DoD's $167M Remote Sensing Systems contract awarded to Science Applications International Corporation for R&D services

Contract Overview

Contract Amount: $166,893,683 ($166.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2018-11-19

End Date: 2023-11-30

Contract Duration: 1,837 days

Daily Burn Rate: $90.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: REMOTE SENSING SYSTEMS ENGINEERING AND INTEGRATION SERVICES FOLLOW-ON

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $166.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: REMOTE SENSING SYSTEMS ENGINEERING AND INTEGRATION SERVICES FOLLOW-ON Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract spans over 5 years, indicating a long-term need for these services. 3. Services are categorized under Research and Development in Physical, Engineering, and Life Sciences. 4. The primary contractor, Science Applications International Corporation, has a significant presence in government contracting. 5. The contract type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract is for remote sensing systems engineering and integration, a critical area for defense operations.

Value Assessment

Rating: good

Benchmarking the value of this contract requires access to comparable remote sensing systems engineering and integration services contracts. However, the duration and scope suggest a substantial investment. The 'COST NO FEE' contract type implies that the government will reimburse allowable costs, with the contractor's profit being negotiated separately or included in the cost structure. This can sometimes lead to higher overall costs if not managed carefully, but it also allows for flexibility in evolving research and development projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection process and potentially better pricing due to market forces. The number of bidders is not specified, but the open competition suggests multiple entities likely vied for this significant contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from a wider pool of contractors.

Public Impact

The Department of Defense benefits from advanced remote sensing capabilities, crucial for intelligence, surveillance, and reconnaissance. Services delivered include engineering and integration of complex remote sensing systems. The geographic impact is likely national, supporting defense operations across various theaters. Workforce implications include employment for highly skilled engineers, scientists, and technical personnel in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in R&D projects if scope creep occurs or unforeseen technical challenges arise.
Reliance on a single large contractor for critical systems integration could pose a risk if performance falters.
The 'COST NO FEE' structure requires diligent oversight to ensure costs remain reasonable and justified.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
Long-term contract duration suggests a stable and ongoing need, allowing for sustained development and expertise.
Contractor's experience in systems engineering and integration is likely a positive factor in successful project execution.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This segment of the federal market is characterized by innovation and specialized expertise. Spending in this area is critical for maintaining technological superiority. Comparable spending benchmarks would typically be found within broader R&D services categories, often dominated by large, established defense contractors and specialized research firms.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). As a large-scale R&D and systems integration contract, it is likely that the prime contractor, Science Applications International Corporation, will engage subcontractors. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear. It is possible that smaller, specialized firms could be involved as subcontractors, but the primary awardee is a large business.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. The 'COST NO FEE' structure necessitates robust financial oversight to ensure that reimbursed costs are allowable, allocable, and reasonable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Satellite and Space Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Advanced Technology Development

Risk Flags

Cost Control Risk
Technical Performance Risk
Contractor Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $166.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. REMOTE SENSING SYSTEMS ENGINEERING AND INTEGRATION SERVICES FOLLOW-ON

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 $166.9 million.

What is the period of performance?

Start: 2018-11-19. End: 2023-11-30.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar remote sensing systems engineering and integration services to the DoD?

Science Applications International Corporation (SAIC) has a long and extensive history of providing complex systems engineering, integration, and technical support services to the Department of Defense and other federal agencies. They are a major defense contractor with significant expertise in areas relevant to remote sensing, including satellite systems, sensor integration, data processing, and command and control. SAIC has been involved in numerous large-scale programs that require similar capabilities. Their track record generally indicates a capacity to handle large, complex R&D and integration efforts. However, specific performance metrics for this particular contract, such as on-time delivery, budget adherence, and technical success rates, would require deeper analysis of contract performance reports and potentially CPARS (Contractor Performance Assessment Reporting System) data, which is not publicly available in detail for this award.

How does the total contract value of approximately $167 million compare to other R&D contracts for similar remote sensing systems?

The total contract value of approximately $167 million over its potential duration is substantial, reflecting the complexity and long-term nature of remote sensing systems engineering and integration. To benchmark this value effectively, one would need to compare it against other large-scale R&D contracts awarded by the DoD or other agencies for similar services. Contracts for satellite development, sensor integration, and advanced ISR system development can easily reach hundreds of millions or even billions of dollars. Given that this is a follow-on contract, it suggests a proven need and potentially a competitive pricing structure established in prior phases. Without access to a database of comparable contract values and scopes, it's difficult to definitively state if $167 million is high or low, but it is within the range expected for significant defense R&D and systems integration efforts.

What are the primary risks associated with this 'COST NO FEE' contract type for the government?

The 'COST NO FEE' (CNF) contract type, while allowing flexibility for R&D, presents specific risks for the government. The primary risk is that the contractor is reimbursed for all allowable costs incurred, plus a pre-negotiated fee (profit). This structure can incentivize cost incurrence, as the contractor's profit is not directly tied to cost savings. Therefore, the government bears the risk of cost overruns if the contractor does not manage expenses efficiently. Diligent oversight by the government is crucial to scrutinize all claimed costs, ensuring they are reasonable, allocable, and necessary for contract performance. Without strong cost controls and monitoring, the total expenditure could exceed initial estimates. This contrasts with fixed-price contracts where the contractor assumes more cost risk.

How effective is the 'FULL AND OPEN COMPETITION' strategy likely to be in ensuring value for money on this R&D contract?

The 'FULL AND OPEN COMPETITION' strategy is generally considered the most effective method for ensuring value for money, especially for complex R&D services. By allowing all responsible sources to compete, the government maximizes the potential for receiving innovative solutions and competitive pricing. This broad competition drives contractors to offer their best technical approaches and most cost-effective proposals to win the award. For an R&D contract like this, it increases the likelihood that the selected approach will be technically sound and that the associated costs are well-justified. The government benefits from a wider range of options and the pressure on bidders to be efficient and performant, which ultimately translates to better value for taxpayer dollars.

What are the potential implications of this contract on the broader remote sensing technology market?

This contract, valued at approximately $167 million and awarded to a major player like SAIC, can have significant implications for the remote sensing technology market. Firstly, it signals continued strong government investment in advanced remote sensing capabilities, which can stimulate innovation and R&D within the sector. Secondly, the prime contractor is likely to leverage specialized subcontractors, potentially benefiting smaller, niche technology providers and fostering growth in specific areas of remote sensing. Thirdly, the success of this contract could lead to follow-on opportunities or influence the direction of future technology development, setting standards or requirements that shape the market. The long-term nature of the contract also provides a degree of market stability for the involved parties and their supply chains.

Are there any historical spending patterns or trends related to remote sensing systems engineering and integration that this contract aligns with?

This contract aligns with a long-standing and increasing trend of federal spending on remote sensing and related intelligence, surveillance, and reconnaissance (ISR) capabilities, particularly within the Department of Defense. Historically, the US government has invested heavily in space-based and airborne remote sensing for national security, environmental monitoring, and scientific research. Spending in this area has seen consistent growth, driven by the need for higher resolution, faster data acquisition, and more sophisticated data analysis. This contract, being a follow-on, indicates a sustained commitment to these capabilities. It fits within a broader pattern of awarding large, multi-year R&D and integration contracts to major defense contractors to develop and maintain cutting-edge systems in response to evolving geopolitical and technological landscapes.

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

Solicitation ID: FA881018R0001

Offers Received: 1

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: $168,151,797

Exercised Options: $168,151,796

Current Obligation: $166,893,683

Actual Outlays: $4,370,648

Subaward Activity

Number of Subawards: 263

Total Subaward Amount: $1,528,695,272

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