Air Force awards $13.4M for engineering and sustainment services to Science Applications International Corporation

Contract Overview

Contract Amount: $13,373,784 ($13.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2019-06-21

End Date: 2021-04-30

Contract Duration: 679 days

Daily Burn Rate: $19.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENGINEERING, DEVELOPMENT, INTEGRATION&SUSTAINMENT CORE SUSTAIN&MANAGEMENT TASK ORDER

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING, DEVELOPMENT, INTEGRATION&SUSTAINMENT CORE SUSTAIN&MANAGEMENT TASK ORDER Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Services encompass engineering, development, integration, and sustainment, indicating a broad scope. 3. The contract duration of 679 days suggests a medium-term need for these services. 4. Performance is in Virginia, potentially impacting the local economy and workforce. 5. The 'Research and Development' NAICS code suggests innovation and advanced technical work. 6. Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely managed.

Value Assessment

Rating: fair

Benchmarking the value of this $13.4 million contract is challenging without specific deliverables or comparable sole-source awards. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation if the contractor's expenses are not rigorously scrutinized. Without details on the specific tasks and expected outcomes, it's difficult to definitively assess value for money. However, the absence of competition suggests a potential lack of price pressure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Air Force did not solicit bids from multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids had been received.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for these engineering and sustainment services.

Public Impact

The Department of the Air Force benefits from specialized engineering, development, integration, and sustainment services. The contract supports advanced research and development activities within the physical, engineering, and life sciences. Work is performed in Virginia, potentially creating or sustaining jobs in the region. The services provided are critical for maintaining and advancing Air Force technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type can lead to cost overruns if not managed effectively.
Lack of detailed performance metrics in the provided data makes outcome assessment difficult.

Positive Signals

Science Applications International Corporation is a large, established defense contractor with significant experience.
The contract addresses critical sustainment and development needs for the Air Force.
The R&D focus suggests investment in future technological capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a broad category encompassing a wide range of scientific and technical services. The market for such services is competitive, with many firms offering specialized expertise. However, specific R&D needs, particularly those requiring unique or proprietary knowledge, can sometimes lead to sole-source procurements. The total federal spending in NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) is substantial, reflecting the government's continuous investment in innovation.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Science Applications International Corporation is a large prime contractor. While this specific award does not directly benefit small businesses through a set-aside, large prime contractors are often required to subcontract a portion of their work to small businesses. The extent of subcontracting to small businesses would depend on SAIC's internal policies and the specific requirements of the contract, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure costs remain within reasonable bounds relative to the fixed fee. Transparency is limited by the sole-source nature and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Engineering Services
Science Applications International Corporation Contracts
Cost Plus Fixed Fee Contracts
Sole Source Procurements

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING, DEVELOPMENT, INTEGRATION&SUSTAINMENT CORE SUSTAIN&MANAGEMENT TASK ORDER

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 $13.4 million.

What is the period of performance?

Start: 2019-06-21. End: 2021-04-30.

What specific engineering, development, integration, and sustainment tasks are encompassed by this contract?

The provided data offers limited detail on the specific tasks. The contract description 'ENGINEERING, DEVELOPMENT, INTEGRATION&SUSTAINMENT CORE SUSTAIN&MANAGEMENT TASK ORDER' suggests a broad scope covering the lifecycle of a system or technology. This likely includes design, prototyping, testing, implementation, and ongoing maintenance and support. Given the R&D classification (NAICS 541715), the 'development' and 'integration' aspects may involve creating new capabilities or integrating existing ones into larger systems. 'Sustainment' implies ensuring the continued operational effectiveness of these systems over time. Without access to the full contract statement of work, the precise nature of these tasks remains unspecified.

How does the $13.4 million value compare to similar R&D contracts for engineering and sustainment services?

Directly comparing the $13.4 million value is difficult without knowing the specific deliverables and the complexity of the R&D involved. However, for R&D services within the physical, engineering, and life sciences, contract values can range significantly from a few million to hundreds of millions of dollars, depending on the scope, duration, and technological advancement required. Given this contract's duration of approximately 22 months (679 days), the annual value is roughly $7.7 million. This falls within a moderate range for specialized R&D task orders, but its true value proposition depends heavily on the criticality and uniqueness of the services provided to the Air Force.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract of this nature?

The primary risks associated with this sole-source, Cost Plus Fixed Fee (CPFF) contract are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to a higher price than could be achieved through a competitive bidding process. The government may not be getting the best possible value for its money. Secondly, the CPFF structure, while allowing for flexibility in R&D where costs can be unpredictable, incentivizes the contractor to incur costs, as their fee is a fixed percentage of those costs. This can lead to cost overruns if not managed with extremely diligent oversight from the government to ensure costs are reasonable and allocable to the contract objectives. Scope creep is also a significant risk in R&D contracts.

What is Science Applications International Corporation's track record with the Department of Defense and Air Force?

Science Applications International Corporation (SAIC) is a major federal contractor with a long history of serving the Department of Defense (DoD) and various military branches, including the Air Force. They have a substantial portfolio of contracts across a wide range of services, including IT, engineering, logistics, and R&D. SAIC is known for its large-scale system integration and support services. While specific performance details for individual contracts are not publicly detailed in this data, their continued success in winning large government contracts suggests a generally positive track record and established relationship with agencies like the Air Force. However, like any large contractor, they may have faced past performance issues on specific projects.

How does this contract align with broader Air Force R&D priorities?

This contract aligns with the Air Force's continuous need to modernize its capabilities and maintain technological superiority. The focus on 'ENGINEERING, DEVELOPMENT, INTEGRATION&SUSTAINMENT' within the R&D sphere (NAICS 541715) suggests support for developing and maintaining advanced systems, potentially in areas like aerospace technology, command and control, or cyber capabilities. The sustainment component indicates a focus not just on innovation but also on ensuring the long-term viability and effectiveness of existing or newly developed assets. Without specific details on the project, it's presumed to support critical mission requirements that necessitate specialized engineering and technical expertise.

What is the historical spending trend for similar engineering and sustainment services by the Air Force?

Historical spending by the Air Force on engineering, development, integration, and sustainment services is substantial and represents a significant portion of its overall budget. Agencies like the Air Force rely heavily on contractors for specialized technical expertise that may not be available in-house. Spending in this category typically fluctuates based on modernization programs, new platform development, and the lifecycle management of existing systems. While this specific $13.4 million task order is a single data point, the Air Force consistently awards billions of dollars annually across numerous contracts for similar services, reflecting a sustained demand for R&D and technical support.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $21,618,609

Exercised Options: $17,288,582

Current Obligation: $13,373,784

Actual Outlays: $2,697,994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA881819D0004

IDV Type: IDC

Timeline