Navy awards $57.2M contract for EW engineering support to Science Applications International Corporation

Contract Overview

Contract Amount: $57,172,555 ($57.2M)

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: $31.3K/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 $57.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR ELECTRONIC WARFARE Key points: 1. Contract provides essential engineering, technical, and programmatic support for electronic warfare systems. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 5 years (1825 days) indicates a long-term need for these services. 4. The contractor, Science Applications International Corporation, is a major defense contractor with extensive experience. 5. The contract type (Cost Plus Award Fee) incentivizes performance while managing costs. 6. The value of the contract is significant within the defense engineering services sector.

Value Assessment

Rating: good

The contract value of $57.2 million over five years averages to approximately $11.44 million per year. This is a substantial award, but without specific benchmarks for similar EW support contracts, a precise value-for-money assessment is challenging. The Cost Plus Award Fee structure allows for performance incentives, which can drive better outcomes. However, it also requires careful oversight to ensure costs remain reasonable and that award fees are justified by exceptional performance.

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 bids. This suggests a robust competitive environment where multiple companies likely vied for the contract. The presence of multiple bidders generally leads to more competitive pricing and a wider range of technical solutions being considered.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader U.S. Department of Defense, which receive critical support for their electronic warfare capabilities. Services delivered include engineering, technical, and programmatic support essential for the development, maintenance, and enhancement of EW systems. The geographic impact is likely concentrated around naval bases and defense installations where EW systems are developed, tested, and operated. Workforce implications include employment opportunities for engineers, technicians, and program managers within Science Applications International Corporation and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require diligent oversight to ensure award fees are earned through demonstrable superior performance and not simply for meeting basic requirements.
The long duration of the contract could lead to cost overruns if not managed effectively, especially with evolving technological requirements in electronic warfare.

Positive Signals

Awarded under full and open competition, indicating a competitive process that likely secured favorable pricing.
The contractor, Science Applications International Corporation, is a well-established entity with a proven track record in defense contracting.
The contract addresses a critical need for electronic warfare support, vital for national security.

Sector Analysis

The defense engineering services sector is highly specialized, focusing on complex technical solutions for military applications. Electronic warfare, a key component of this sector, involves the use of the electromagnetic spectrum to detect, deny, or deceive enemy forces. This contract fits within the broader category of defense IT and engineering services, a market characterized by significant government spending and a limited number of large, specialized contractors. Comparable spending benchmarks are difficult to ascertain without more specific contract details, but multi-million dollar awards for specialized engineering support are common in this domain.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large prime contract awarded to a major defense contractor, it is possible that subcontracting opportunities may exist for small businesses, but this would depend on the prime contractor's strategy and the specific needs of the program. Further analysis would be required to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The Cost Plus Award Fee structure necessitates robust performance monitoring and evaluation to justify any awarded fees. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Electronic Warfare Systems
Defense Engineering Services
Naval Warfare Technology
Program Management Support
Information Technology Services (Defense)

Risk Flags

Cost Overruns Risk
Performance Measurement Ambiguity
Long-Term Contract Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.2 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 $57.2 million.

What is the period of performance?

Start: 2007-02-26. End: 2012-02-25.

What is the track record of Science Applications International Corporation (SAIC) with similar Department of Defense contracts?

Science Applications International Corporation (SAIC) has a long and extensive history of contracting with the Department of Defense (DoD) across a wide range of services, including engineering, IT, logistics, and technical support. They are a major defense contractor frequently awarded large-scale contracts. SAIC has demonstrated capabilities in complex systems integration, cybersecurity, and advanced technology development, often supporting critical defense programs. Their track record includes numerous successful contract completions and ongoing support for various military branches. However, like any large contractor, they have also faced scrutiny and contract disputes in the past, underscoring the importance of ongoing performance monitoring and oversight for all their engagements.

How does the average annual value of this contract compare to other electronic warfare support contracts?

The average annual value of this contract is approximately $11.44 million ($57.2 million / 5 years). Benchmarking this against other electronic warfare (EW) support contracts is challenging without access to a comprehensive database of similar awards, including their scope, duration, and specific technical requirements. However, for specialized engineering and programmatic support for complex systems like EW, an annual value in the low to mid-double-digit millions is not uncommon for large, established defense contractors. Smaller, more focused contracts or those with less complex requirements would naturally have lower values. Conversely, contracts involving extensive R&D, system-wide integration, or large-scale production could significantly exceed this figure. Therefore, while substantial, this contract's value appears within a plausible range for its described purpose and contractor.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract type for this service?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract for engineering and technical support services revolve around cost control and performance definition. For the government, there's a risk that costs could escalate beyond initial projections, as the contractor is reimbursed for allowable costs. The 'award fee' component introduces subjectivity; defining clear, measurable criteria for earning the award fee is crucial. If criteria are poorly defined or too easily met, the government might pay higher fees than warranted for performance that is merely adequate rather than exceptional. Conversely, if criteria are too stringent or performance is genuinely outstanding, the contractor might feel unfairly compensated. Effective oversight is paramount to ensure costs are reasonable and award fees are tied to demonstrable, superior performance.

How effective is full and open competition in ensuring value for money in defense engineering services?

Full and open competition is generally considered the most effective method for ensuring value for money in defense engineering services. By allowing all responsible sources to compete, the government leverages market forces to drive down prices and encourage innovation. A larger pool of bidders increases the likelihood of receiving technically superior proposals at competitive price points. This process helps prevent sole-source situations where pricing might be less scrutinized. However, the effectiveness is contingent on the clarity of the solicitation, the fairness of the evaluation process, and the government's ability to accurately define its requirements. In highly specialized fields like electronic warfare, the number of capable bidders might be limited, potentially reducing the competitive intensity, but full and open competition still provides the best framework for maximizing value.

What are the historical spending patterns for engineering and technical support services within the Department of the Navy?

Historical spending patterns for engineering and technical support services within the Department of the Navy (DoN) show a consistent and significant investment in these areas. The DoN relies heavily on external contractors to provide specialized expertise that complements its organic capabilities, particularly in complex fields like electronic warfare, cybersecurity, shipbuilding, and systems integration. Spending in this category typically fluctuates based on modernization programs, new platform development, and evolving threat landscapes. Major defense contractors like SAIC are perennial recipients of such contracts. While specific annual totals vary, the overall trend indicates a sustained demand for high-level engineering and technical support, reflecting the complexity and technological intensity of modern naval operations.

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: N0002407R3108

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: $866,745,334

Exercised Options: $360,215,330

Current Obligation: $57,172,555

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline