DoD's $69M EDIS TO 102 Enterprise Ground System contract awarded to SAIC for R&D
Contract Overview
Contract Amount: $69,090,226 ($69.1M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2020-08-28
End Date: 2023-08-28
Contract Duration: 1,095 days
Daily Burn Rate: $63.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: EDIS TO 102 ENTERPRISE GROUND SYSTEM
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $69.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: EDIS TO 102 ENTERPRISE GROUND SYSTEM Key points: 1. Contract awarded to a single large business, Science Applications International Corporation (SAIC). 2. The contract is for Research and Development in the Physical, Engineering, and Life Sciences. 3. Awarded as a Delivery Order under a larger contract vehicle. 4. The contract duration is 1095 days, spanning three years. 5. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance. 6. The base value of this specific delivery order is approximately $69.1 million.
Value Assessment
Rating: fair
The contract's value of $69.1 million for a three-year R&D effort appears within a reasonable range for complex enterprise systems. However, without specific benchmarks for similar 'Enterprise Ground Systems' or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, which can drive efficiency, but also carries the risk of cost overruns if not managed tightly. The contract's base value is $63,096, with the potential for award fees to increase the total.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific details of the competition, such as the number of bidders or the evaluation process, are not provided in the summary data. Full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of innovative solutions being considered.
Public Impact
The primary beneficiary is the Department of the Air Force, receiving advanced ground system capabilities. The contract supports research and development in physical, engineering, and life sciences. The geographic impact is likely concentrated within the operational areas of the Department of the Air Force. Workforce implications may include specialized R&D personnel, engineers, and technical staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can lead to higher costs if award fees are consistently maximized without commensurate performance gains.
- The complexity of 'Enterprise Ground Systems' R&D may present inherent risks in achieving desired outcomes within budget.
- Reliance on a single large contractor for critical R&D could pose long-term dependency risks.
Positive Signals
- Full and open competition suggests a robust bidding process, potentially leading to better value.
- The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
- The contract is for Research and Development, indicating investment in future capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for enterprise ground systems is highly specialized, often involving large, established defense contractors like SAIC. Spending in this area is driven by the need for advanced technological capabilities to support military operations, intelligence gathering, and data management. Comparable spending benchmarks would typically be found within large-scale defense R&D programs for IT infrastructure and systems integration.
Small Business Impact
The data indicates this contract was awarded to a large business (SAIC) and does not mention any small business set-asides or subcontracting requirements. Therefore, the direct impact on small businesses through this specific award appears minimal. However, large prime contractors are often required to meet small business subcontracting goals on broader contract vehicles, which may indirectly benefit small businesses if SAIC fulfills such obligations.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. The Cost Plus Award Fee (CPAF) structure implies performance metrics that are monitored to determine award fees. Transparency is generally maintained through contract reporting requirements, though specific details of performance and cost are often considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Research and Development Programs
- Enterprise IT Infrastructure Contracts
- Space and Ground Systems Development
- Information Technology Services
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Inherent risks in R&D projects regarding technical feasibility and schedule.
- Reliance on a single large contractor for critical system development.
Tags
department-of-defense, department-of-the-air-force, science-applications-international-corporation, research-and-development, enterprise-ground-system, cost-plus-award-fee, full-and-open-competition, delivery-order, it-infrastructure, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. EDIS TO 102 ENTERPRISE GROUND SYSTEM
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 $69.1 million.
What is the period of performance?
Start: 2020-08-28. End: 2023-08-28.
What is the historical spending pattern for Science Applications International Corporation (SAIC) with the Department of Defense, particularly in R&D for ground systems?
Science Applications International Corporation (SAIC) is a major defense contractor with a long history of securing significant contracts across various agencies, including the Department of Defense (DoD). While specific historical spending data for SAIC on 'ground systems R&D' is not detailed here, their portfolio typically includes large-scale IT, engineering, and R&D services. Analyzing SAIC's broader contract awards with the DoD over the past decade would reveal substantial investment in areas like C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), enterprise IT modernization, and advanced research. Their involvement in numerous complex programs suggests a strong track record, but also necessitates scrutiny to ensure competitive pricing and effective delivery across all their engagements. This particular $69 million award represents a segment of their overall business with the DoD, likely contributing to their established presence in the defense R&D sector.
How does the Cost Plus Award Fee (CPAF) structure for this contract compare to other R&D contracts of similar scope?
The Cost Plus Award Fee (CPAF) contract type is common for research and development efforts where the final scope and cost are difficult to define precisely at the outset. It allows the government to reimburse the contractor for allowable costs incurred, plus a base fee, and an additional award fee based on performance against pre-defined criteria. Compared to fixed-price contracts, CPAF offers more flexibility for R&D but requires robust government oversight to manage costs and ensure performance targets are met. Other R&D contracts might use Cost Plus Incentive Fee (CPIF) or Cost Plus Fixed Fee (CPFF). CPAF is generally favored when the government wants to strongly incentivize specific performance outcomes beyond just cost control. The effectiveness of CPAF hinges on well-defined award criteria that align with program objectives and prevent 'gold plating' or unnecessary expenditures.
What are the key performance indicators (KPIs) likely used to determine the award fee for this EDIS TO 102 contract?
For the EDIS TO 102 Enterprise Ground System contract, key performance indicators (KPIs) for determining the award fee would likely focus on technical performance, schedule adherence, cost management, and innovation. Specific KPIs could include the successful development and integration of system components, meeting defined technical performance thresholds (e.g., data processing speed, system reliability, security compliance), timely delivery of milestones, and effective management of project costs within projected budgets. Innovation might be measured by the contractor's ability to propose and implement novel solutions that enhance system capabilities or efficiency. The Department of the Air Force would establish these criteria, and SAIC's performance against them would be evaluated by the Contracting Officer's Representative (COR) to determine the amount of award fee earned.
What is the potential risk associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' classification for this contract?
The 'Research and Development in the Physical, Engineering, and Life Sciences' classification (NAICS 541715) inherently carries a higher degree of risk compared to contracts for established goods or services. R&D efforts are exploratory by nature, meaning the outcomes are not guaranteed. Risks include technical feasibility challenges, where the desired technological advancements may prove impossible or impractical to achieve. There's also the risk of schedule delays due to unforeseen scientific or engineering hurdles, and potential cost overruns if research proves more complex or expensive than initially estimated. Furthermore, the 'life sciences' aspect could introduce regulatory compliance risks, depending on the specific application. Effective risk mitigation requires strong program management, clear objectives, adaptive planning, and robust oversight from the government.
How does the $69.1 million value of this delivery order compare to the overall spending on enterprise ground systems by the Department of the Air Force?
The $69.1 million value of this specific delivery order (EDIS TO 102) represents a significant but likely partial investment in the Department of the Air Force's (DAF) overall enterprise ground systems. The DAF operates vast and complex networks requiring continuous upgrades and development of ground support infrastructure. Total spending on such systems can run into billions of dollars over multiple years, encompassing hardware, software, integration, cybersecurity, and ongoing sustainment. This $69.1 million award to SAIC is one component within a larger R&D initiative or a broader contract vehicle. To contextualize its significance, one would need to compare it against the DAF's total R&D budget, its IT modernization portfolio, and the lifecycle costs of its major ground system programs. It is a substantial sum for a single R&D effort but likely a fraction of the DAF's total investment in maintaining and advancing its ground-based capabilities.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
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: $116,430,445
Exercised Options: $106,709,161
Current Obligation: $69,090,226
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $3,174,582
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
Start Date: 2020-08-28
Current End Date: 2023-08-28
Potential End Date: 2027-02-03 00:00:00
Last Modified: 2025-12-19
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