DoD's $12.87M NSWC Crane Fleet Maintenance Contract Awarded to Science Applications International Corp

Contract Overview

Contract Amount: $12,872,754 ($12.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2007-08-21

End Date: 2010-05-20

Contract Duration: 1,003 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FLEET MAINTENANCE AND ENGINEERING FOR NSWC CRANE CODE 608

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: FLEET MAINTENANCE AND ENGINEERING FOR NSWC CRANE CODE 608 Key points: 1. Contract awarded to Science Applications International Corporation for fleet maintenance and engineering. 2. Significant spending of $12.87 million over the contract period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under Engineering Services, a broad category with varying cost structures.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering service contracts is difficult without more granular data on the specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. However, the CPFF pricing structure may still allow for costs to exceed initial expectations.

Taxpayer Impact: Taxpayer funds are utilized for fleet maintenance. While competition aims for efficiency, the CPFF structure warrants scrutiny to ensure value for money.

Public Impact

Ensures operational readiness of naval assets through essential maintenance. Supports a large corporation, potentially impacting smaller businesses in the supply chain. The duration and cost indicate a substantial commitment of federal resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure can incentivize higher costs.
  • Lack of specific performance metrics makes value assessment challenging.
  • Contract duration is significant, requiring ongoing oversight.

Positive Signals

  • Full and open competition utilized.
  • Contract supports critical naval operations.

Sector Analysis

This contract falls under Engineering Services, a sector that can vary widely in cost and complexity. Benchmarking requires comparison with similar specialized maintenance and engineering contracts within the Department of Defense.

Small Business Impact

While the prime contractor is a large corporation, the nature of fleet maintenance could involve subcontracting opportunities for small businesses in specialized repair or parts supply, though this is not explicitly stated.

Oversight & Accountability

The contract's duration and cost necessitate robust oversight from the Department of the Navy to ensure adherence to terms and effective cost management, particularly given the CPFF structure.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee (CPFF) pricing structure.
  • Lack of detailed performance metrics.
  • Long contract duration requires sustained oversight.
  • Potential for cost overruns if not managed diligently.

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 $12.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. FLEET MAINTENANCE AND ENGINEERING FOR NSWC CRANE CODE 608

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 $12.9 million.

What is the period of performance?

Start: 2007-08-21. End: 2010-05-20.

What specific engineering services were provided under this contract, and how do they align with the fixed fee component?

The contract details are limited, but 'Fleet Maintenance and Engineering' suggests a range of services from routine upkeep to complex system repairs. The fixed fee component should cover the contractor's overhead and profit, while direct costs are reimbursed. Understanding the scope of 'engineering' is crucial to assess if the fixed fee adequately covers the intended profit and overhead without incentivizing unnecessary cost escalation.

What were the key performance indicators (KPIs) for this contract, and how was performance measured against them?

Specific KPIs are not detailed in the provided data. Effective oversight would require established metrics related to fleet readiness, maintenance turnaround times, and quality of repairs. Without these, assessing the true value and effectiveness of the contractor's performance is difficult, making it harder to justify the $12.87 million expenditure.

How did the full and open competition process ensure the best value was achieved, considering the CPFF structure?

Full and open competition theoretically allows multiple bidders to propose solutions, driving down prices. However, the CPFF structure means the government bears much of the cost risk. The competition likely focused on the contractor's technical approach, past performance, and proposed fixed fee. The government's ability to negotiate a fair fixed fee and manage costs throughout the contract lifecycle is critical to realizing value.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N0002407R3432

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,354,030

Exercised Options: $59,510,912

Current Obligation: $12,872,754

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: 2007-08-21

Current End Date: 2010-05-20

Potential End Date: 2010-05-20 00:00:00

Last Modified: 2016-09-09

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