DoD's $39.6M Engineering Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $39,653,617 ($39.7M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2012-05-16
End Date: 2015-06-30
Contract Duration: 1,140 days
Daily Burn Rate: $34.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CLMS FOLLOW ON
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914, UNITED STATES OF AMERICA
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $39.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: CLMS FOLLOW ON Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of the contract was 1140 days, indicating a medium-term engagement. 4. The award was made by the Department of the Air Force, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contractor, Science Applications International Corporation, is a large, established entity in the federal contracting space.
Value Assessment
Rating: fair
Benchmarking the value of this $39.6 million contract is challenging without specific deliverables or performance metrics. However, the firm fixed-price structure suggests an attempt to control costs. Comparing this to similar engineering services contracts awarded by the Air Force during the 2012-2015 period would provide better context on whether the pricing was competitive for the scope of work. The absence of detailed performance data makes a definitive value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was competed suggests that the agency sought to leverage market forces to obtain the best value. The number of bidders is not specified, but full and open competition generally leads to more robust price discovery compared to sole-source or limited competition scenarios.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation among bidders, leading to more cost-effective service delivery.
Public Impact
The primary beneficiaries are likely components within the Department of the Air Force requiring engineering expertise. The services delivered fall under the broad category of engineering services, potentially encompassing design, analysis, and technical support. The contract was awarded to a company with a presence in Colorado, suggesting potential geographic impact in that region. The contract supports the Air Force's operational and developmental needs, indirectly impacting the defense workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the contractor's performance quality.
- The substantial dollar amount warrants close monitoring to ensure efficient use of taxpayer funds.
- The firm fixed-price contract, while shifting risk, could incentivize cost-cutting that might impact quality if not properly overseen.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Firm fixed-price contract type helps manage cost certainty for the government.
- The contractor, SAIC, has extensive experience in federal contracting, suggesting a degree of reliability.
Sector Analysis
Engineering services represent a significant segment of the federal contracting market, particularly within the Department of Defense. This contract falls under the professional, scientific, and technical services sector. The market for engineering services is characterized by a mix of large, established firms like SAIC and smaller specialized companies. Spending in this area is driven by the need for technical expertise across various defense platforms and infrastructure projects. Comparable spending benchmarks would involve analyzing other engineering services contracts awarded by the DoD and its branches for similar scope and duration.
Small Business Impact
This contract does not appear to have been set aside for small businesses, as indicated by 'sb: false'. The prime contractor, Science Applications International Corporation, is a large business. There is no explicit information provided regarding subcontracting plans or goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract is likely minimal, unless SAIC voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Engineering Services
- Air Force Professional Services Contracts
- Science Applications International Corporation Federal Contracts
- Firm Fixed Price Defense Contracts
Risk Flags
- Lack of detailed performance metrics.
- Potential for cost overruns if scope was underestimated by contractor.
- Need for robust government oversight to ensure quality.
Tags
defense, department-of-defense, air-force, engineering-services, firm-fixed-price, full-and-open-competition, science-applications-international-corporation, colorado, professional-scientific-and-technical-services, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. CLMS 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 $39.7 million.
What is the period of performance?
Start: 2012-05-16. End: 2015-06-30.
What specific engineering services were provided under this contract?
The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, engineering services for the Department of Defense can range widely, including but not limited to systems engineering, design and development, technical analysis, testing and evaluation, logistics engineering, and program management support. Without further documentation, it's impossible to ascertain the precise technical tasks performed. These services likely supported specific Air Force programs, platforms, or infrastructure requirements, contributing to the overall mission readiness and technological advancement of the branch.
How does the $39.6 million award compare to similar engineering services contracts awarded by the Air Force during that period?
Comparing this $39.6 million contract requires access to a broader dataset of Air Force engineering services contracts awarded between May 2012 and June 2015. Factors such as contract duration, scope of work, and specific engineering disciplines involved would be crucial for a meaningful comparison. If this contract represents a typical value for a medium-duration, broad engineering support task, it might be considered standard. However, if similar, more complex services were procured for significantly less, or if this contract was for a highly specialized niche, it could indicate either exceptional value or potential overpricing. A detailed analysis would involve benchmarking against contracts with similar NAICS codes and service descriptions.
What is Science Applications International Corporation's track record with the Department of Defense?
Science Applications International Corporation (SAIC) has a long and extensive history of contracting with the Department of Defense (DoD) and other federal agencies. They are a major defense contractor known for providing a wide array of services, including IT, engineering, logistics, and program management. Their track record generally includes numerous large-scale contracts across various military branches. While specific performance details for individual contracts vary, SAIC is recognized as a significant player in the federal contracting landscape. A comprehensive review would involve examining past performance evaluations, any contract disputes, and the overall volume and type of work they have successfully executed for the DoD over the years.
What were the primary risks associated with this firm fixed-price contract?
The primary risk associated with a firm fixed-price (FFP) contract, from the government's perspective, is that the contractor might cut corners on quality or scope to maximize profit if the initial price was set too high or if unforeseen difficulties arise. For SAIC, the risk was that the actual costs of performing the engineering services could exceed the fixed price, leading to reduced profit margins or even a loss. This risk is mitigated by the contractor's thorough understanding of the scope of work and their ability to accurately estimate costs before bidding. The government's risk is further managed through robust oversight and clear performance expectations, even within an FFP structure.
How has federal spending on engineering services evolved since this contract was awarded?
Federal spending on engineering services has generally seen fluctuations influenced by defense budgets, infrastructure initiatives, and technological advancements. Since the 2012-2015 period of this contract, overall federal spending, particularly within the DoD, has remained substantial, with engineering services consistently being a critical component. Trends may include increased demand for cybersecurity-related engineering, advanced materials, and systems integration for complex platforms. While specific figures require detailed analysis of historical budget data and contract awards, the underlying need for specialized engineering expertise within the government, especially for defense and infrastructure, has persisted and likely grown in complexity.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $96,839,686
Exercised Options: $45,618,624
Current Obligation: $39,653,617
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS23F0107J
IDV Type: FSS
Timeline
Start Date: 2012-05-16
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2015-05-19
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