DoD's $9M contract for STRATCOM tech insertion and analysis awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $9,058,487 ($9.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: P1 24 2591 TECHNOLOGY INSERTION, SYSTEMS ENGINEERING, TRAINING, AND ANALYSIS FOR THE UNITED STATES STRATEGIC COMMAND

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $9.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: P1 24 2591 TECHNOLOGY INSERTION, SYSTEMS ENGINEERING, TRAINING, AND ANALYSIS FOR THE UNITED STATES STRATEGIC COMMAND Key points: 1. Contract focuses on critical technology insertion, systems engineering, training, and analysis for strategic command. 2. Awarded via full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of one year with a cost-plus-fixed-fee structure warrants close monitoring of cost efficiency. 4. Performance period spans from August 2025 to July 2026, indicating a near-term need for these capabilities. 5. The North American Industry Classification System (NAICS) code 541715 points to significant R&D activities. 6. This contract represents a modest investment within the broader Department of Defense R&D portfolio.

Value Assessment

Rating: fair

Benchmarking the value of this $9.06 million contract is challenging without specific performance metrics or comparable contract data. The cost-plus-fixed-fee (CPFF) pricing structure means that while the fee is fixed, the government bears the risk of cost overruns. This necessitates diligent oversight to ensure costs remain reasonable and aligned with the scope of work. Compared to larger R&D contracts, this appears to be a focused effort, but its true value will depend on the successful integration of new technologies and the effectiveness of the training and analysis provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bidders (no) suggests a competitive environment, which typically aids in price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the level of competition and its impact on the final award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors strive to offer competitive pricing and innovative solutions to win the contract.

Public Impact

The United States Strategic Command (STRATCOM) is the primary beneficiary, receiving enhanced technological capabilities and analytical support. Services include technology insertion, systems engineering, training, and analysis, aimed at improving strategic deterrence and operations. The geographic impact is national, supporting a key element of U.S. national security infrastructure. Workforce implications may include specialized training for military and civilian personnel operating STRATCOM systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not closely managed.
The specific technologies being inserted are not detailed, posing a potential risk if they do not align with evolving strategic needs.
Reliance on a single contractor for critical systems engineering and analysis could create vendor lock-in.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for innovation.
Focus on technology insertion suggests a proactive approach to maintaining strategic advantage.
Systems engineering and analysis are crucial for ensuring the effectiveness and integration of complex defense systems.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, driven by the need for technological superiority. Comparable spending benchmarks would typically involve other contracts for advanced technology development, systems integration, and strategic analysis within the Department of Defense. The size of this contract ($9.06 million) is relatively small compared to major defense acquisition programs but significant for specialized R&D efforts.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary competition was likely among larger defense contractors. There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem for this specific contract appears limited, though larger prime contractors may engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, acting on behalf of the Department of Defense and STRATCOM. Accountability measures will be tied to the cost-plus-fixed-fee structure, requiring rigorous tracking of expenditures and performance against milestones. Transparency will depend on the reporting requirements stipulated in the contract and the DoD's public disclosure policies regarding R&D activities. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Strategic Command Systems Support
Defense Research and Development
Systems Engineering Services
Technology Insertion Programs
Military Training and Analysis

Risk Flags

Cost Overrun Risk (CPFF)
Technology Integration Challenges
Cybersecurity Vulnerabilities
Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. P1 24 2591 TECHNOLOGY INSERTION, SYSTEMS ENGINEERING, TRAINING, AND ANALYSIS FOR THE UNITED STATES STRATEGIC COMMAND

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $9.1 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

What is the track record of Science Applications International Corporation (SAIC) with the Department of Defense, particularly in R&D and strategic command support?

Science Applications International Corporation (SAIC) is a major defense contractor with a long history of supporting the Department of Defense across various domains, including R&D, IT, and engineering services. SAIC has consistently secured significant contracts related to systems engineering, analysis, and technology development for numerous military branches and agencies. Their experience often involves complex, mission-critical systems. For STRATCOM specifically, SAIC has previously been involved in contracts related to command and control systems, intelligence analysis, and strategic planning support. Their extensive portfolio suggests a strong capability to handle the requirements of this contract, though specific performance on similar R&D technology insertion tasks would require deeper analysis of past contract performance reports and award fees.

How does the $9.06 million value of this contract compare to typical R&D spending for STRATCOM or similar defense entities?

The $9.06 million value for this specific contract is relatively modest within the broader context of Department of Defense R&D spending. Major defense R&D programs can run into hundreds of millions or even billions of dollars. However, for specialized technology insertion, systems engineering, and analysis focused on a particular command like STRATCOM, this amount is reasonable. It suggests a targeted effort rather than a large-scale platform development. Comparing it to other STRATCOM-specific R&D contracts would require access to historical spending data for that command. Generally, such contracts aim to address specific technological gaps or enhance existing capabilities without the massive investment of developing entirely new weapon systems.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for technology insertion and systems engineering?

The primary risk with a CPFF contract for technology insertion and systems engineering lies in cost control. While the contractor's fee is fixed, the government bears the risk of all allowable costs incurred. If the project encounters unforeseen technical challenges, scope creep, or inefficiencies in execution, the total cost to the government can escalate significantly beyond initial estimates. For technology insertion, the inherent uncertainty in integrating new technologies can lead to unexpected development or implementation costs. Effective oversight, detailed cost tracking, and robust performance metrics are crucial to mitigate these risks and ensure the contractor remains incentivized to manage costs efficiently. Without strong oversight, CPFF contracts can be more expensive than fixed-price alternatives.

What does the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) imply about the nature of the services being procured?

The NAICS code 541715 signifies that the contract is for research and development activities focused on the physical sciences (e.g., physics, chemistry, materials science), engineering (e.g., aerospace, electrical, mechanical), and life sciences (excluding nanotechnology and biotechnology, which have separate codes). For this contract, it implies that SAIC will be engaged in activities such as developing new technologies, improving existing systems through engineering analysis, conducting experiments, and potentially creating prototypes or advanced concepts related to STRATCOM's mission. This code suggests a high degree of technical expertise and innovation is required, moving beyond routine services to more advanced problem-solving and discovery.

Given the contract's focus on 'Technology Insertion,' what are potential challenges in ensuring the successful adoption and integration of new technologies within STRATCOM?

Successful technology insertion faces several challenges. Firstly, technical compatibility is key; new technologies must integrate seamlessly with existing legacy systems, which can be complex and require significant systems engineering effort. Secondly, user adoption is critical; personnel must be adequately trained and willing to embrace new tools and processes, which requires effective training programs and change management. Thirdly, security considerations are paramount, especially for strategic command systems, ensuring new technologies do not introduce vulnerabilities. Finally, the long-term sustainment and maintenance of inserted technologies must be planned for, including availability of parts, expertise, and updates. The 'Systems Engineering, Training, and Analysis' components of this contract are designed to address these integration and adoption challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,905,239

Exercised Options: $16,646,508

Current Obligation: $9,058,487

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0007

IDV Type: IDC

Timeline