DoD's $16M R&D contract for EDIS support awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $15,993,217 ($16.0M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2024-05-31

End Date: 2026-02-02

Contract Duration: 612 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROVIDES THE RDSMO PMO WITH EDIS AND OTHER NECESSARY SUPPORT PRIMARILY FOR THE CUE AND COMM AND EC2-K ENCLAVES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PROVIDES THE RDSMO PMO WITH EDIS AND OTHER NECESSARY SUPPORT PRIMARILY FOR THE CUE AND COMM AND EC2-K ENCLAVES Key points: 1. Contract focuses on critical support for EDIS and other necessary functions within specific enclaves. 2. Awarded under full and open competition, suggesting a robust market for these specialized services. 3. Performance period spans over 600 days, indicating a significant, ongoing need for the services. 4. The contract type, Cost Plus Fixed Fee, allows for flexibility but requires careful cost monitoring. 5. This award represents a portion of broader R&D spending within the physical, engineering, and life sciences sector. 6. The contractor, SAIC, is a major player in government contracting, particularly in IT and R&D services.

Value Assessment

Rating: good

The contract value of approximately $16 million over a 612-day period appears reasonable for specialized R&D support services. Benchmarking against similar contracts for IT support and R&D in the defense sector would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates close oversight to ensure costs remain within expected parameters and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.

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. This competitive process is expected to drive better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of interest and participation from qualified companies in the market for these specialized R&D support services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The primary beneficiaries are the Department of Defense and its Air Force component, receiving essential support for their EDIS and related enclave operations. Services delivered include crucial support for EDIS (Enterprise Data Integration System) and other necessary functions within the CUE, COMM, and EC2-K enclaves. The geographic impact is primarily within the operational areas of the Department of the Air Force, likely supporting specific military installations or command centers. Workforce implications include the potential for skilled personnel in R&D, IT support, and systems engineering to be engaged through Science Applications International Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specialized nature of the enclaves supported may limit the pool of contractors with the requisite expertise.
Reliance on a single large contractor for critical support functions could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for good value.
The contractor, SAIC, has a strong track record in providing complex IT and R&D services to the government.
The contract duration suggests a stable and ongoing requirement for these critical support services.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541715, which covers R&D in Physical, Engineering, and Life Sciences. This sector is characterized by innovation and specialized expertise. The Department of Defense is a significant investor in R&D, seeking technological advancements to maintain military superiority. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D support services, particularly those involving IT infrastructure and specialized enclave operations.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, Science Applications International Corporation, is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on SAIC's strategy and the specific requirements of the EDIS support and enclave operations.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices responsible for the EDIS and the specified enclaves. Accountability measures are built into the Cost Plus Fixed Fee contract structure, requiring the contractor to justify costs and adhere to the fixed fee. Transparency is generally maintained through contract reporting mechanisms, though specific details of enclave operations may be sensitive.

Related Government Programs

Department of Defense IT Support Services
Research and Development Contracts
Air Force Enterprise Systems
Cloud Computing and Enclave Support
Systems Engineering and Integration

Risk Flags

Potential for cost overruns due to CPFF structure.
Cybersecurity risks associated with critical enclaves.
Complexity of supporting multiple specialized enclaves.
Dependence on contractor performance for mission-critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PROVIDES THE RDSMO PMO WITH EDIS AND OTHER NECESSARY SUPPORT PRIMARILY FOR THE CUE AND COMM AND EC2-K ENCLAVES

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 $16.0 million.

What is the period of performance?

Start: 2024-05-31. End: 2026-02-02.

What is the historical spending pattern for EDIS support and similar enclave operations within the Department of the Air Force?

Analyzing historical spending for EDIS support and related enclave operations within the Department of the Air Force is crucial for understanding the long-term investment in these capabilities. While specific historical data for this exact contract is not provided, the Department of Defense, and the Air Force in particular, consistently allocates significant budgets towards IT infrastructure, cybersecurity, and specialized operational enclaves. These systems are vital for command, control, and intelligence. Trends often show increasing investment in secure, high-performance computing environments and data integration services to support evolving mission requirements. Examining past contracts for similar services, including their value, duration, and contractor performance, can reveal patterns of sustained investment and potential areas for cost optimization or consolidation.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar R&D support services?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work may evolve or is not precisely defined at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the contractor agrees to a set price regardless of actual costs, and Cost Plus Incentive Fee (CPIF) contracts, which include incentives for meeting cost, performance, or schedule targets. For R&D support, CPFF offers flexibility, allowing the government to adapt to new findings or requirements. However, it places a greater burden on government oversight to ensure costs are reasonable and allocable. Compared to fixed-price contracts, CPFF generally carries higher cost risk for the government but can be more appropriate for innovative or uncertain R&D projects. CPIF offers a middle ground, balancing flexibility with cost control incentives.

What is Science Applications International Corporation's (SAIC) track record with similar Department of Defense R&D and IT support contracts?

Science Applications International Corporation (SAIC) has a substantial and long-standing track record of providing a wide array of services to the Department of Defense (DoD), including R&D support, IT services, and complex systems integration. They are a major government contractor with extensive experience in areas relevant to this contract, such as supporting critical infrastructure, cybersecurity, and advanced technological development. SAIC has historically secured numerous large-value contracts across various military branches. Their performance on past contracts, while generally positive, is subject to government evaluations and oversight. Reviewing past performance metrics, any past performance issues or commendations, and the types of R&D and IT support they have delivered for the DoD would provide a comprehensive understanding of their capabilities and reliability for this specific EDIS support requirement.

What are the potential risks associated with the 'EDIS and other necessary support' for the specified enclaves?

The 'EDIS and other necessary support' for the CUE, COMM, and EC2-K enclaves carries several potential risks. Firstly, the specialized nature of these enclaves suggests they are critical, potentially sensitive, operational environments. Any disruption or failure in support could have significant mission impacts. Secondly, the reliance on IT systems and data integration (implied by EDIS) introduces cybersecurity risks, including potential breaches, data corruption, or denial-of-service attacks. Thirdly, the complexity of integrating and supporting systems within multiple enclaves can lead to interoperability challenges or performance degradation if not managed effectively. Finally, the Cost Plus Fixed Fee (CPFF) contract type, while flexible, carries a risk of cost escalation if not rigorously overseen, potentially exceeding the initial budget expectations for the R&D support.

How does the $16 million contract value compare to the overall R&D spending within the Air Force's IT and systems engineering domains?

The $16 million contract value for EDIS support represents a specific investment within the broader Research and Development (R&D) and IT/systems engineering domains of the Department of the Air Force. The Air Force's overall R&D budget is substantial, often in the tens of billions of dollars annually, encompassing a wide range of activities from basic research to advanced technology development and prototyping. This $16 million award, while significant for a single contract, is a relatively small fraction of the total Air Force R&D expenditure. It highlights a focused investment in critical support infrastructure for specific operational enclaves. To contextualize its size, one would compare it to the average value and number of other R&D support contracts, particularly those related to enterprise data integration, cybersecurity, and specialized IT environments within the Air Force or DoD.

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: NEGOTIATED PROPOSAL/QUOTE

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: $40,748,116

Exercised Options: $20,248,422

Current Obligation: $15,993,217

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA881820D0009

IDV Type: IDC

Timeline