DoD's $35M Space Systems Technical Support Task Order to SAIC Shows Strong Competition and Fair Value
Contract Overview
Contract Amount: $35,251,447 ($35.3M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2017-04-09
End Date: 2022-10-08
Contract Duration: 2,008 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::CL::IGF SPACE AND MISSILE SYSTEMS CENTER TECHNICAL SUPPORT FOLLOW-ON TASK ORDER INDEPENDENT READINESS REVIEW TEAM
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $35.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CL::IGF SPACE AND MISSILE SYSTEMS CENTER TECHNICAL SUPPORT FOLLOW-ON TASK ORDER INDEPENDENT READINESS REVIEW TEAM Key points: 1. Value for money appears reasonable given the specialized nature of the services and the competitive bidding process. 2. The contract leveraged full and open competition, indicating a healthy market for these technical support services. 3. Risk indicators are low, with a clear statement of work and a history of successful task order execution. 4. Performance context suggests this task order supported critical space and missile systems development and sustainment. 5. Positioned within the R&D sector, this contract aligns with broader national security objectives in space.
Value Assessment
Rating: good
The total value of $35.25 million over five years for specialized technical support in space and missile systems appears to be within a reasonable range. While direct comparisons are difficult without more granular data on specific services, the use of full and open competition suggests that pricing was subject to market forces. The 'Cost No Fee' contract type, while less common for R&D, indicates that the contractor's fee was not directly tied to cost overruns, potentially incentivizing efficiency. Benchmarking against similar large-scale technical support contracts in the defense sector would provide further insight into value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of five bidders (no) indicates a robust competitive environment for these specialized technical support services. This level of competition is generally favorable for price discovery and ensures the government receives proposals from multiple qualified vendors, driving down costs and improving the quality of services offered.
Taxpayer Impact: The full and open competition for this task order likely resulted in more favorable pricing for taxpayers compared to a sole-source or limited competition award. It ensured that the government benefited from the best value offered by multiple capable contractors.
Public Impact
The primary beneficiaries are the Department of Defense and the Air Force, receiving critical technical support for space and missile systems. Services delivered likely included systems engineering, technical analysis, program management support, and acquisition assistance for advanced space technologies. The geographic impact is primarily within the United States, supporting defense installations and contractor facilities involved in space programs. Workforce implications include the employment of highly skilled engineers, scientists, and technical professionals by the contractor, Science Applications International Corporation (SAIC).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the definition of 'technical support' is not tightly managed.
- Reliance on a single large contractor for critical, long-term support could pose a risk if contractor performance degrades.
- The 'Cost No Fee' contract type requires careful monitoring to ensure contractor efficiency and prevent complacency.
Positive Signals
- Awarded under full and open competition, indicating a competitive market and likely fair pricing.
- Multiple bidders participated, suggesting a healthy ecosystem of contractors capable of providing these specialized services.
- The task order was part of a larger framework, potentially allowing for streamlined execution and oversight.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The market for space and missile systems technical support is highly specialized, dominated by a few large defense contractors with the requisite expertise and security clearances. Spending in this area is driven by national security priorities and technological advancements in space capabilities. Comparable spending benchmarks would typically be found within the broader DoD R&D and professional services categories.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, SAIC, is a large business. There is no explicit information on subcontracting plans for small businesses within this data. However, large defense contracts often include subcontracting goals, and it's possible SAIC engaged small businesses for specific components or services, though this is not detailed here. The impact on the small business ecosystem is likely indirect, depending on SAIC's subcontracting practices.
Oversight & Accountability
Oversight for this task order would typically be managed by the contracting officer and the program office within the Department of the Air Force. The 'IGF' designation in the data likely refers to an Inspector General review or audit related to this contract or task order, suggesting a level of scrutiny. Transparency is facilitated by contract databases like FPDS, but detailed performance metrics and specific oversight activities are often internal to the agency.
Related Government Programs
- Space Systems Command Technical Support
- Missile Defense Agency Support Services
- DoD Research and Development Contracts
- Air Force Acquisition Support
- National Reconnaissance Office Technical Services
Risk Flags
- Potential for cost overruns if not managed tightly due to 'Cost No Fee' structure.
- Long-term reliance on a single large contractor.
- Need for continuous government oversight to ensure performance and cost control.
Tags
research-and-development, department-of-defense, department-of-the-air-force, space-and-missile-systems-center, science-applications-international-corporation, full-and-open-competition, delivery-order, cost-no-fee, technical-support, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CL::IGF SPACE AND MISSILE SYSTEMS CENTER TECHNICAL SUPPORT FOLLOW-ON TASK ORDER INDEPENDENT READINESS REVIEW TEAM
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 $35.3 million.
What is the period of performance?
Start: 2017-04-09. End: 2022-10-08.
What was the specific nature of the technical support provided under this task order?
While the provided data does not detail the specific services, the contract's classification (NAICS 541712) and the agency (Space and Missile Systems Center) strongly suggest the support was related to research, development, and technical analysis for space and missile systems. This could encompass areas such as systems engineering, integration, testing, cybersecurity, advanced materials research, propulsion systems analysis, and program management support for complex defense programs. The 'Cost No Fee' (PT) contract type implies that the contractor's profit was fixed and not directly tied to the costs incurred, requiring careful management of resources and adherence to project milestones.
How does the pricing of this task order compare to similar contracts for space systems technical support?
Directly comparing the pricing of this $35.25 million task order is challenging without access to detailed service breakdowns and market rate data for highly specialized space systems R&D. However, the fact that it was awarded under 'Full and Open Competition' with five bidders (no) suggests that the pricing was subject to market forces and likely competitive. The 'Cost No Fee' structure also implies a negotiated fee that was deemed fair at the time of award. Benchmarking against other large, complex R&D support contracts within the Department of Defense, particularly those managed by the Space Force or its predecessors, would be necessary for a more precise value assessment.
What are the primary risks associated with this type of long-term technical support contract?
Key risks for long-term technical support contracts like this include potential scope creep, where the requirements expand beyond the original agreement, leading to cost overruns or schedule delays. There's also the risk of contractor performance degradation over time, especially if incentives are not structured effectively. Over-reliance on a single contractor for critical functions can create vulnerabilities. Furthermore, the 'Cost No Fee' contract type, while potentially incentivizing efficiency, requires robust government oversight to ensure the contractor remains diligent and avoids complacency, as their fee is not directly impacted by cost savings or overruns.
What was the historical spending pattern for technical support at the Space and Missile Systems Center prior to this task order?
The provided data indicates this was a 'Follow-On Task Order' with a duration of 2008 (dur), suggesting a preceding contract or task order. To understand historical spending patterns, one would need to analyze contract awards to Science Applications International Corporation (SAIC) and potentially other contractors by the Space and Missile Systems Center (SMC) for similar technical support services over several preceding years. Examining the total obligated amounts, contract types, and competition levels of prior awards would reveal trends in spending, contractor selection, and the evolution of support requirements for SMC's programs.
What is the track record of Science Applications International Corporation (SAIC) in performing similar defense R&D support contracts?
Science Applications International Corporation (SAIC) has a long and extensive track record as a major defense contractor, frequently awarded large contracts for R&D, systems engineering, and technical support across various military branches. They are known to handle complex, high-value programs. For space and missile systems specifically, SAIC has been a significant player, supporting numerous critical DoD initiatives. While this specific task order data doesn't detail SAIC's performance on it, their general profile suggests they possess the capability and experience to execute such contracts. A deeper dive into past performance reviews and contract close-outs for SAIC on similar SMC contracts would provide more specific insights.
How does the 'Cost No Fee' (PT) contract type influence contractor behavior and government oversight?
The 'Cost No Fee' (PT) contract type means the contractor is reimbursed for allowable costs but receives a fixed fee that is not adjusted based on actual costs incurred. This structure can incentivize the contractor to control costs efficiently to maximize their profit margin (fee relative to costs). However, it can also reduce the incentive to innovate or go above and beyond if it requires additional, uncompensated effort. Government oversight must be rigorous, focusing on ensuring that all claimed costs are allowable, reasonable, and allocable, and that the contractor is meeting all performance requirements and milestones outlined in the contract. The government must actively manage the contract to ensure the contractor remains engaged and delivers the required technical support effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 12010, SUNSET HILLS ROAD, 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: $35,251,447
Exercised Options: $35,251,447
Current Obligation: $35,251,447
Actual Outlays: $1,577,050
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $13,512,433
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU620
IDV Type: IDC
Timeline
Start Date: 2017-04-09
Current End Date: 2022-10-08
Potential End Date: 2022-10-08 00:00:00
Last Modified: 2025-01-30
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