DoD's $11.85M R&D contract for electronics and communication equipment awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $11,850,535 ($11.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2006-08-25

End Date: 2010-09-30

Contract Duration: 1,497 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200610!001079!5700!FA8750!AFRL/IFK !FA875006C0174 !A!N! !Y! ! !20060825!20061226!069341972!008255408!016435559!N!TASC, INC !100 BRICKSTONE SQUARE !ANDOVER !MA!01810!01430!009!25!ANDOVER !ESSEX !MASS !+000000484493!N!N!000004615311!AC92!RDTE/MISC HARD GOODS-APPLIED RESEARCH !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B!A!N!B! !A!N!U!2!001!E! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: 200610!001079!5700!FA8750!AFRL/IFK !FA875006C0174 !A!N! !Y! ! !20060825!20061226!069341972!008255408!016435559!N!TASC, INC !100 BRICKSTONE SQUARE !ANDOVER !MA!01810!01430!009!25!ANDOVER !ESSE… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. The period of performance spans over 4 years, indicating a significant, long-term project. 4. The primary NAICS code is 541710 (R&D in Physical, Engineering, and Life Sciences), placing it within the research sector. 5. The contract was managed by the Defense Contract Management Agency, a key oversight body. 6. The awardee, Science Applications International Corporation, is a large, established government contractor.

Value Assessment

Rating: fair

The total award amount of $11.85 million for a 4-year R&D contract in electronics and communication equipment appears within a reasonable range for such specialized work. However, without specific benchmarks for comparable R&D projects in this niche, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type means the government pays for allowable costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar CPFF contracts for applied research in electronics would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified in the provided data, but the competitive nature suggests that multiple companies vied for this award. This level of competition is generally expected to drive prices down and encourage innovation, leading to better value for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider range of innovative solutions being considered.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, which will receive advancements in electronics and communication equipment. The services delivered involve applied research and development, aiming to improve existing technologies or create new ones. The geographic impact is primarily within the United States, where the contractor Science Applications International Corporation is based and where the R&D activities will likely occur. Workforce implications include employment opportunities for scientists, engineers, and technicians involved in research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
The duration of the contract (over 4 years) requires sustained oversight to ensure objectives are met.
The specific nature of 'MISC HARD GOODS-APPLIED RESEARCH' could imply evolving requirements and potential scope creep.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, Science Applications International Corporation, is a large and experienced entity in government contracting.
The contract is managed by the Defense Contract Management Agency, suggesting established oversight procedures.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on electronics and communication equipment. The NAICS code 541710 covers R&D in physical, engineering, and life sciences. The defense industry heavily relies on advancements in this area for national security. Comparable spending benchmarks would involve looking at other DoD contracts for applied research in similar technological domains, which can range from millions to billions depending on the scope and criticality.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contractor, Science Applications International Corporation may engage small businesses as subcontractors for specialized components or services, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract is provided by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance and performance. Accountability measures are inherent in the Cost Plus Fixed Fee structure, where the fixed fee is contingent on meeting contract terms. Transparency is facilitated through contract award databases, though detailed project progress reports are typically internal to the DoD. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Electronics and Communication Equipment Procurement
Applied Research Contracts
Science and Technology Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
R&D projects inherently carry technical risks and potential for scope changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 200610!001079!5700!FA8750!AFRL/IFK !FA875006C0174 !A!N! !Y! ! !20060825!20061226!069341972!008255408!016435559!N!TASC, INC !100 BRICKSTONE SQUARE !ANDOVER !MA!01810!01430!009!25!ANDOVER !ESSEX !MASS !+000000484493!N!N!000004615311!AC92!RDTE/MISC HARD GOODS-APPLIED RESEARCH !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !999

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2006-08-25. End: 2010-09-30.

What is the track record of Science Applications International Corporation (SAIC) with similar Cost Plus Fixed Fee (CPFF) contracts within the Department of Defense?

Science Applications International Corporation (SAIC) has a extensive history of performing on Cost Plus Fixed Fee (CPFF) contracts with the Department of Defense (DoD). SAIC is a major government contractor specializing in a wide range of services, including R&D, IT, and engineering. Their experience with CPFF contracts typically involves managing complex projects where costs are less predictable, such as research and development. While specific performance metrics for past CPFF contracts are not detailed here, SAIC's continued success in securing large DoD contracts suggests a generally positive track record in managing costs and delivering on contractual obligations under this pricing structure. However, like any large contractor, there may be instances of cost variances or performance challenges that are managed through contract modifications or closeout procedures.

How does the $11.85 million award compare to other DoD contracts for applied research in electronics and communication equipment?

The $11.85 million award for applied research in electronics and communication equipment is a moderate-sized contract within the DoD's vast R&D portfolio. The DoD awards numerous contracts in this domain, ranging from small, targeted research grants to multi-billion dollar programs for advanced systems. For a 4-year applied research effort focused on specific hardware and communication technologies, this amount is not unusually high or low. It suggests a focused research effort rather than a broad, system-wide development initiative. To provide a more precise comparison, one would need to analyze the specific technical scope, deliverables, and duration of other comparable contracts within the same fiscal years and technological areas.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in electronics?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in electronics include potential cost overruns and a reduced incentive for the contractor to aggressively control costs. While the fixed fee provides some certainty for the contractor's profit, the government bears the risk of all allowable costs exceeding initial estimates. In R&D, especially in rapidly evolving fields like electronics, unforeseen technical challenges or material cost increases are common, which can drive up the total cost to the government. Furthermore, if the fixed fee is set too high, it could represent a windfall for the contractor. Conversely, if set too low, it might disincentivize the contractor from undertaking the project or lead to cutting corners. Effective oversight and robust cost accounting are crucial to mitigate these risks.

What is the significance of the NAICS code 541710 (Research and Development in Physical, Engineering, and Life Sciences) for this contract?

The NAICS code 541710 signifies that this contract is primarily for research and development activities within the physical sciences, engineering, and life sciences. For this specific contract, it indicates that the work involves scientific inquiry and experimentation to expand knowledge and understanding, leading to the development of new or improved products, processes, or services in the realm of electronics and communication equipment. This classification helps in categorizing the contract within federal spending databases, allowing for analysis of R&D investment trends, benchmarking against similar research efforts, and identifying the types of expertise and resources required from contractors. It places the contract firmly within the innovation and technology advancement segment of federal procurement.

How does the 'FULL AND OPEN COMPETITION' designation impact the potential value and innovation derived from this contract?

The 'FULL AND OPEN COMPETITION' designation is a significant positive indicator for both value and innovation. It means that the contract was advertised broadly, allowing any responsible source to submit a proposal. This maximizes the pool of potential offerors, increasing the likelihood of receiving innovative technical approaches and competitive pricing. By fostering a robust competition, the government is more likely to secure the best possible solution at a fair market price. This process inherently drives contractors to differentiate themselves through technical merit, cost-effectiveness, and unique capabilities, thereby enhancing the potential for groundbreaking advancements in electronics and communication equipment compared to sole-source or limited competition awards.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Engility Corporation (UEI: 783837672)

Address: 4801 STONECROFT BLVD, CHANTILLY, VA, 20151

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline