DoD's $64M Electronic Warfare Support Contract Awarded to Science Applications International Corp
Contract Overview
Contract Amount: $64,369,503 ($64.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2007-02-26
End Date: 2012-02-25
Contract Duration: 1,825 days
Daily Burn Rate: $35.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR ELECTRONIC WARFARE
Place of Performance
Location: CRANE, MARTIN County, INDIANA, 47522
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $64.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR ELECTRONIC WARFARE Key points: 1. Contract awarded to a single, large business. 2. Significant spending on engineering and technical support services. 3. Full and open competition was utilized. 4. Potential for cost overruns given the Cost Plus Award Fee structure.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for potential cost growth beyond initial estimates, making direct pricing comparisons challenging. The award fee mechanism incentivizes performance but can inflate final costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure may still lead to costs exceeding initial projections.
Taxpayer Impact: Taxpayer funds are utilized for engineering and technical support, with the potential for costs to exceed initial estimates due to the contract type.
Public Impact
Supports critical electronic warfare capabilities for the Navy. Ensures continued technological advancement in a sensitive defense sector. Provides long-term employment for technical and engineering professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to cost overruns.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports critical national defense functions.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies. Spending benchmarks for similar complex engineering support services can vary widely based on scope and duration.
Small Business Impact
The contract data indicates no small business participation. This suggests that the prime contractor, Science Applications International Corporation, is handling the entirety of the work, potentially missing opportunities for small business subcontracting.
Oversight & Accountability
The contract was awarded through full and open competition, indicating a degree of oversight in the selection process. However, the Cost Plus Award Fee structure warrants close monitoring to ensure cost efficiency and prevent overspending.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Award Fee structure.
- No small business participation.
- Long contract duration (5 years).
- Potential for scope creep in engineering services.
Tags
engineering-services, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR ELECTRONIC WARFARE
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 Navy).
What is the total obligated amount?
The obligated amount is $64.4 million.
What is the period of performance?
Start: 2007-02-26. End: 2012-02-25.
What is the typical cost range for similar engineering and technical support services in the electronic warfare domain?
The cost range for similar engineering and technical support services in electronic warfare can vary significantly, typically from tens of millions to hundreds of millions of dollars over several years. Factors influencing cost include the complexity of the systems supported, the level of research and development involved, the duration of the contract, and the specific expertise required. Benchmarking requires detailed analysis of contract scope, deliverables, and performance metrics.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for complex engineering services?
The primary risks with a CPAF contract include potential cost overruns if performance targets are not well-defined or if the contractor inflates costs to achieve award fees. There's also a risk that the government may pay higher prices than necessary if the award fee criteria are too easily met or not sufficiently challenging. Effective oversight is crucial to mitigate these risks and ensure value for money.
How does the lack of small business participation impact the overall effectiveness and value of this contract?
The lack of small business participation means potential benefits like innovation, specialized expertise, and cost efficiencies that small businesses often bring are not realized. It also limits opportunities for small businesses to gain experience in critical defense sectors. While the prime contractor may be capable, a more diverse supplier base could potentially enhance overall program effectiveness and foster broader economic impact.
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
Solicitation ID: N0002406R3277
Offers Received: 3
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: $1,304,445,674
Exercised Options: $553,390,208
Current Obligation: $64,369,503
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2007-02-26
Current End Date: 2012-02-25
Potential End Date: 2012-02-25 00:00:00
Last Modified: 2019-04-24
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