DoD's $42.2M Special Missions Engineering Contract Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $42,205,577 ($42.2M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2007-06-29

End Date: 2009-06-28

Contract Duration: 730 days

Daily Burn Rate: $57.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: SPECIAL MISSIONS ENGINEERING & LOGISTICS SERVICES

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $42.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SPECIAL MISSIONS ENGINEERING & LOGISTICS SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. The contract duration is two years, indicating a medium-term engagement. 4. The primary agency is the Department of the Navy, with a specific focus on Special Missions. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparisons to similar specialized engineering services. The Cost Plus Award Fee structure allows for performance-based incentives, but the base cost and award fee components would need further analysis to determine true value for money. The contract's value of approximately $42.2 million over two years suggests a significant but not exceptionally large engagement for specialized engineering support within the Department of Defense.

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 typically leads to a more robust price discovery process and potentially better pricing for the government. The number of bidders is not specified, but the open competition suggests multiple entities likely vied for this contract, fostering a competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services received.

Public Impact

The Department of the Navy benefits from specialized engineering and logistics support for its special missions. This contract likely supports critical operational capabilities and technological advancements within naval special operations. The geographic impact is primarily within Indiana, where the contractor's facility is located. The contract supports a specialized engineering workforce, contributing to the skilled labor pool in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the award fee component.
The Cost Plus Award Fee structure can sometimes lead to cost overruns if not managed tightly.
Limited transparency on the specific 'special missions' supported could obscure the full impact and necessity of the contract.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
The contract supports critical engineering services for the Department of the Navy's special missions.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting specialized military applications. The broader engineering services market is substantial, with government contracts forming a significant portion. This particular award is for niche capabilities, likely involving advanced technology integration, system design, and logistical support for unique operational requirements. Comparable spending benchmarks would depend on the specific nature of the 'special missions' supported.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, the prime contractor, Science Applications International Corporation, may engage small businesses as subcontractors, depending on the specific needs of the special missions engineering and logistics services required. The impact on the small business ecosystem would be indirect, through potential subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Department of the Navy. The Cost Plus Award Fee structure implies performance monitoring to determine award fee payouts. Transparency regarding specific deliverables and performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Special Warfare Command Support Contracts
Department of Defense Engineering Services
Special Operations Forces Support
Advanced Technology Development Contracts
Logistics and Technical Support Services

Risk Flags

Potential for cost overruns inherent in CPAF contracts.
Need for clear and measurable performance metrics to justify award fees.
Specificity of 'special missions' is not detailed, limiting full transparency.
Reliance on prime contractor for potential small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SPECIAL MISSIONS ENGINEERING & LOGISTICS SERVICES

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 $42.2 million.

What is the period of performance?

Start: 2007-06-29. End: 2009-06-28.

What is the track record of Science Applications International Corporation (SAIC) with the Department of the Navy for similar engineering services?

Science Applications International Corporation (SAIC) has a long-standing and extensive track record of providing a wide array of services to the Department of the Navy and other defense agencies. Their portfolio includes complex engineering, IT solutions, logistics, and program management. For the Navy specifically, SAIC has been involved in numerous contracts supporting shipbuilding, naval systems development, C4ISR integration, and operational support. Their history suggests a capacity to handle large, complex projects requiring specialized technical expertise. Analyzing past performance on similar Cost Plus Award Fee contracts would provide further insight into their ability to meet performance expectations and manage costs effectively within the DoD environment.

How does the $42.2 million contract value compare to other engineering services contracts awarded by the Department of the Navy?

The $42.2 million contract value over two years places this award in the mid-range for specialized engineering services within the Department of the Navy. The Navy procures a vast number of contracts, with values ranging from small, targeted awards to multi-billion dollar shipbuilding or system development programs. Contracts for specific engineering support, particularly for niche areas like 'special missions,' often fall into this multi-million dollar bracket. For context, larger platform development or sustainment contracts can easily exceed hundreds of millions or billions. This particular award suggests a significant but focused requirement for specialized technical expertise rather than broad platform acquisition or sustainment.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for specialized engineering services?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract for specialized engineering 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, while intended to incentivize performance, relies heavily on well-defined and measurable performance criteria. If these criteria are ambiguous or poorly monitored, the government might pay award fees for suboptimal performance. Conversely, contractors face the risk of not achieving the highest award fee if performance targets are not met or exceeded. Effective oversight, clear performance metrics, and robust cost accounting are crucial to mitigate these risks.

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

Full and open competition is generally considered the most effective method for ensuring value for money in defense engineering contracts. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This broad competition increases the likelihood that the government will receive the best possible technical solution at the most reasonable cost. While it requires more effort in terms of proposal evaluation, the potential savings and improved outcomes typically outweigh these costs. However, the effectiveness can be diminished if the solicitation requirements are poorly defined or if the evaluation criteria do not adequately balance cost and technical merit.

What are the implications of the NAICS code 541330 (Engineering Services) for this contract's scope and potential contractor pool?

The assignment of NAICS code 541330, 'Engineering Services,' indicates that the primary focus of this contract is on providing professional engineering expertise. This typically includes activities such as design, development, consulting, and analysis related to engineering disciplines. For this specific contract, it suggests the work involves applying engineering principles to the 'special missions' context, likely encompassing system design, integration, testing, and potentially research and development. The contractor pool for this code is broad, including many firms specializing in various engineering fields, from aerospace and defense to civil and electrical engineering. The 'special missions' qualifier, however, narrows the field to those with specific, often classified or highly specialized, capabilities.

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: N0002407R3211

Offers Received: 1

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: $804,732,009

Exercised Options: $804,732,009

Current Obligation: $42,205,577

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline