DoD's $37.5M contract for special missions non-traditional assessment awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $37,460,077 ($37.5M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2007-06-25

End Date: 2012-06-24

Contract Duration: 1,826 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SPECIAL MISSIONS NON-TRADITIONAL ASSESSMENT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SPECIAL MISSIONS NON-TRADITIONAL ASSESSMENT Key points: 1. Contract value represents a significant investment in specialized defense capabilities. 2. Competition dynamics suggest a robust market for advanced engineering and assessment services. 3. Contract duration of five years indicates a long-term need for these services. 4. The 'Cost Plus Fixed Fee' pricing structure may lead to cost overruns if not managed carefully. 5. This contract falls within the engineering services sector, crucial for national security. 6. Performance context is tied to the Department of the Navy's operational requirements.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. However, the total award of over $37 million for five years of specialized engineering services suggests a substantial investment. Comparing it to similar 'special missions non-traditional assessment' contracts is difficult due to the unique nature of the service. The 'Cost Plus Fixed Fee' (CPFF) structure, while common for complex projects, carries inherent risks of cost escalation if the fixed fee is not adequately justified by the estimated costs. Without more granular data on the scope of work and the contractor's efficiency, a definitive value-for-money assessment is limited.

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. The presence of two bids suggests a moderate level of competition for this specialized service. While two bidders are better than one, a higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The limited number of bidders might suggest a niche market or high barriers to entry for potential competitors.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, with only two bidders, the potential for significant cost savings through intense price competition may have been constrained.

Public Impact

The primary beneficiaries are likely elements within the Department of Defense requiring specialized intelligence and assessment capabilities. Services delivered are critical for understanding and responding to non-traditional threats. Geographic impact is likely global, supporting naval operations and national security interests. Workforce implications include employment for highly skilled engineers, analysts, and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize contractor spending without direct cost accountability.
Limited competition (2 bidders) may have reduced pressure on the contractor to offer the lowest possible price.
The 'non-traditional assessment' nature of the service could imply evolving requirements and potential scope creep.

Positive Signals

Awarded through 'Full and Open Competition,' ensuring a broad initial search for qualified contractors.
Science Applications International Corporation (SAIC) is a large, established defense contractor with significant experience.
The contract duration of five years suggests a stable, long-term need for these critical services.

Sector Analysis

This contract operates within the Engineering Services sector, specifically focusing on specialized defense applications. The market for such services is driven by government defense spending and the need for advanced technological solutions. Comparable spending benchmarks are difficult to establish due to the 'non-traditional assessment' nature, which implies unique or emerging threat analysis. However, the overall engineering services market for the federal government is substantial, encompassing a wide array of technical support and development contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the prime contractor, Science Applications International Corporation (SAIC), is a large business. While large prime contracts can sometimes lead to subcontracting opportunities for small businesses, there is no explicit indication here that this contract specifically targets or prioritizes small business participation. The impact on the small business ecosystem would depend on SAIC's subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense. Accountability measures are typically embedded within the contract's performance work statement, requiring adherence to specific deliverables and quality standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Defense Intelligence Analysis
Special Operations Support
Naval Engineering Services
Threat Assessment Services
Advanced Technology Development

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure carries inherent risk of cost overruns.
Limited competition (2 bidders) may result in suboptimal pricing.
Ambiguity in 'non-traditional assessment' scope could lead to scope creep and cost increases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SPECIAL MISSIONS NON-TRADITIONAL ASSESSMENT

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 $37.5 million.

What is the period of performance?

Start: 2007-06-25. End: 2012-06-24.

What is the historical spending pattern for 'Special Missions Non-Traditional Assessment' services by the Department of the Navy?

Analyzing historical spending for 'Special Missions Non-Traditional Assessment' requires detailed data mining within federal procurement databases. This specific service description is quite specialized. Generally, the Department of the Navy's spending in related areas like intelligence analysis, special operations support, and advanced engineering services has been substantial and often fluctuates based on geopolitical events and evolving threat landscapes. Contracts for such niche services can vary significantly in value and duration. Without access to a granular, historical dataset specifically tagged for 'non-traditional assessment,' it's difficult to provide precise figures. However, the trend in defense spending often shows an increasing allocation towards intelligence, surveillance, reconnaissance (ISR), and advanced analytical capabilities to counter emerging threats.

How does the 'Cost Plus Fixed Fee' (CPFF) pricing structure typically impact contractor performance and cost control in defense contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for research and development or complex services where the scope of work is not precisely defined at the outset, making it difficult to estimate costs accurately. In this structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While it allows flexibility for evolving project requirements, it can reduce the contractor's incentive to control costs, as they are guaranteed reimbursement for expenses. The fixed fee, however, provides a ceiling on the contractor's profit. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate the risk of cost overruns and ensure value for the government.

What are the potential risks associated with a 'non-traditional assessment' service contract?

Contracts for 'non-traditional assessment' services carry several potential risks. Firstly, the 'non-traditional' aspect implies that the nature of the threats or the assessment methodologies may be novel, evolving, or poorly understood, leading to ambiguity in the scope of work. This ambiguity can result in scope creep, where the contractor undertakes work beyond the original intent, potentially increasing costs and timelines. Secondly, defining and measuring success for 'non-traditional' assessments can be challenging, making performance evaluation difficult. Thirdly, there might be a higher risk of contractor over-promising capabilities that are difficult to deliver. Finally, the specialized nature of the service might limit the pool of qualified contractors, potentially impacting competition and pricing.

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

Science Applications International Corporation (SAIC) is a major defense contractor with a long history of serving the Department of Defense (DoD) across various sectors, including engineering, IT, intelligence, and logistics. SAIC has consistently secured large, complex contracts from multiple branches of the DoD. Their track record generally includes experience in providing advanced technical solutions, systems engineering, and analytical support. While specific performance details for individual contracts are often proprietary or require deep dives into contract databases, SAIC's sustained presence and significant contract awards suggest a generally reliable performance history. However, like any large contractor, they may have faced performance challenges or disputes on specific projects, which would be detailed in contract performance reports and award fee evaluations.

How does the number of bidders (2) in this 'full and open competition' affect the potential value for taxpayers?

When a 'full and open competition' yields only two bids, the potential value for taxpayers can be somewhat diminished compared to scenarios with numerous bidders. Intense competition among many offerors typically drives down prices as each company strives to win the contract by offering the most attractive combination of cost and technical merit. With only two bidders, the government has a more limited set of options, potentially reducing the downward pressure on price. While the government still negotiates based on the bids received, the lack of broader market engagement means there's a reduced likelihood of uncovering significantly lower-cost alternatives or highly innovative, cost-saving approaches that might have emerged from a larger pool of competitors. Therefore, while the competition is technically 'open,' the limited number of participants suggests a less competitive market dynamic.

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: N0002407R3239

Offers Received: 2

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: $690,668,823

Exercised Options: $690,668,823

Current Obligation: $37,460,077

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline