DoD awards $24.4M engineering support contract to Science Applications International Corporation, spanning over 16 years

Contract Overview

Contract Amount: $24,360,036 ($24.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2007-09-26

End Date: 2024-01-25

Contract Duration: 5,965 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NON-PERSONAL ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NON-PERSONAL ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES Key points: 1. Contract provides essential engineering, technical, and management support services. 2. Long duration suggests a need for sustained, specialized expertise. 3. Awarded under full and open competition, indicating a broad market search. 4. Cost-plus-fixed-fee structure allows for flexibility but requires careful cost monitoring. 5. Contractor has a significant presence in defense and engineering sectors. 6. Delivery order structure implies task-based execution within a larger framework.

Value Assessment

Rating: good

The contract's total value of $24.4 million over nearly 17 years averages to approximately $1.4 million annually. This appears reasonable for specialized engineering, technical, and management support services, especially given the long-term nature of the contract. Benchmarking against similar long-duration, broad-scope engineering support contracts within the Department of Defense would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, necessitates diligent oversight to ensure costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for their effort without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the agency sought proposals from all responsible sources. The presence of 3 bidders indicates a competitive environment, though the specific details of the bidding process and the number of proposals received are not detailed here. Full and open competition generally promotes price discovery and allows the government to select the best value offering from a wide pool of potential contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation, leading to more cost-effective service delivery.

Public Impact

The Department of Defense benefits from continuous engineering, technical, and management support, crucial for its complex operations. Services delivered likely encompass a wide range of technical expertise supporting defense systems and infrastructure. The contract's duration suggests a stable, long-term relationship, potentially impacting workforce planning within the contractor's organization. Geographic impact is likely concentrated around DoD facilities where these services are required, though specific locations are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 17 years) could lead to complacency or reduced agility if not actively managed.
Cost-plus-fixed-fee contracts can incentivize cost overruns if oversight is not rigorous.
Reliance on a single large contractor for critical support functions may pose a risk if contractor performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
Contractor (SAIC) is a well-established entity with extensive experience in government contracting, particularly in defense and engineering.
Long contract duration indicates a sustained need for the services, suggesting the contractor is meeting performance expectations over time.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market. The defense industry relies heavily on specialized engineering and technical support for its advanced systems and infrastructure. Spending in this sector is often characterized by long-term contracts, high technical complexity, and a need for deep domain expertise. Comparable spending benchmarks would involve analyzing other large, multi-year engineering support contracts awarded by the DoD and other federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor is not a small business. While the contract itself does not appear to have a small business set-aside component, large prime contractors like Science Applications International Corporation are often required to meet subcontracting goals for small businesses. The extent to which this contract contributes to the small business ecosystem would depend on the specific subcontracting plan and opportunities created.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract's CPFF structure necessitates robust financial oversight to monitor costs and ensure the fixed fee remains appropriate. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance metrics are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Technical Support Services
Management Consulting Services
Department of Defense IT and Engineering Contracts
Science Applications International Corporation Contracts

Risk Flags

Long contract duration may reduce flexibility and increase risk of obsolescence.
CPFF structure requires diligent cost oversight to prevent overruns.
Potential for contractor complacency over extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NON-PERSONAL ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2007-09-26. End: 2024-01-25.

What is the historical spending trend for Science Applications International Corporation with the Department of Defense for similar engineering and technical support services?

Analyzing historical spending for SAIC with the DoD reveals a consistent and substantial relationship. SAIC has been a significant prime contractor for the Department of Defense across various domains, including engineering, technical support, and IT services. Their awards often span multiple years and encompass a wide range of requirements, reflecting their broad capabilities and established presence. Specific to engineering and technical support, SAIC has secured numerous contracts, some of which are multi-year, indicating a sustained demand for their expertise. While the exact dollar amounts fluctuate year-to-year based on specific program needs and contract vehicles, SAIC's overall footprint within DoD spending for these service categories remains robust. This particular $24.4 million contract, awarded in 2007 and extending to 2024, represents a long-term commitment that aligns with their historical engagement patterns, suggesting a successful track record in delivering these types of services to the DoD.

How does the average annual cost of this contract compare to industry benchmarks for similar engineering support services?

The average annual cost for this contract is approximately $1.44 million ($24.4 million / 16.9 years). Benchmarking this figure requires careful consideration of the specific services provided, the complexity, and the level of expertise required. Engineering, technical, and management support services for the Department of Defense are often highly specialized and command premium pricing due to security requirements, technical sophistication, and the critical nature of the support. Industry benchmarks for similar large-scale, long-term government engineering support contracts can range significantly, but an average annual cost in the low to mid-seven figures is not uncommon for prime contractors with extensive capabilities like SAIC. Factors such as the specific technical domains (e.g., aerospace, C4ISR, cybersecurity), the level of personnel required (e.g., senior engineers vs. technicians), and the geographic distribution of services would influence precise comparisons. Without more granular data on the specific tasks performed, a definitive comparison is challenging, but the annual average appears within a plausible range for this type of extensive government support.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially one spanning nearly 17 years, revolve around cost control and contractor performance incentives. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual costs incurred (within allowable limits). This can lead to cost overruns if the government's oversight is not rigorous in monitoring the 'cost' portion. Conversely, the contractor bears the risk if actual costs exceed estimates, as their profit is capped by the fixed fee. Over the long duration of this contract, there's also a risk of scope creep, where requirements may evolve, potentially leading to contract modifications and increased costs. Furthermore, maintaining consistent performance quality and adapting to technological changes over such an extended period can be challenging for both parties. Effective risk mitigation requires robust government oversight, clear performance metrics, and proactive contract management to address evolving needs and control costs.

What does the number of bidders (3) suggest about the competition level for this specific engineering support requirement?

Having three bidders for this contract suggests a moderate level of competition. While 'full and open competition' implies that all responsible sources were invited to bid, three bidders indicate that a subset of the market actively pursued this opportunity. This number is often considered sufficient to establish a competitive baseline and encourage reasonable pricing. However, it is not as robust as a scenario with five or more bidders, which might indicate even stronger price discovery and a wider range of innovative solutions. The quality and capabilities of the three bidding firms would also be a critical factor; if they were all highly qualified and capable, then three bidders could represent strong competition. Conversely, if only one or two were truly competitive, the price discovery might be less effective. Without knowing the specific nature of the requirement and the pool of potential offerors, it's difficult to definitively label the competition as 'high' or 'low,' but three bidders generally signifies a healthy, albeit not exceptionally crowded, competitive landscape.

How has Science Applications International Corporation's role evolved within the federal contracting landscape, particularly in defense engineering?

Science Applications International Corporation (SAIC) has evolved from a broad-based IT and systems integrator to a more focused provider of technical, engineering, and enterprise IT solutions, particularly for the defense and federal civilian markets. Initially known for its diverse range of services, SAIC has strategically refined its portfolio over the years, divesting non-core assets and strengthening its capabilities in areas like cloud computing, cybersecurity, data analytics, and digital engineering. Within defense engineering, SAIC has consistently maintained a strong presence, supporting complex platforms, weapon systems, and infrastructure modernization efforts. Their evolution reflects a broader trend in the federal contracting landscape towards specialization and the ability to offer end-to-end solutions for increasingly complex technological challenges. SAIC's long-standing relationship with the DoD, evidenced by contracts like this one, underscores their adaptability and continued relevance in providing critical engineering and technical support services.

What are the potential implications of this contract's long duration (nearly 17 years) on contractor innovation and service relevance?

A contract duration of nearly 17 years presents both opportunities and challenges for contractor innovation and service relevance. On the positive side, the long-term nature provides SAIC with stability and the opportunity to deeply understand the DoD's evolving needs, fostering a collaborative relationship that can drive tailored innovation. It allows for significant investment in specialized knowledge and personnel. However, the extended timeframe also carries risks. There's a potential for the contractor to become complacent, relying on established processes rather than seeking more efficient or technologically advanced solutions. Service relevance could diminish if the contractor fails to adapt to rapid technological advancements or shifts in DoD priorities. To mitigate these risks, the government must actively manage the contract, incorporating mechanisms for regular performance reviews, technology refresh requirements, and potentially periodic re-competition or review of the scope to ensure continued alignment with current and future defense needs. SAIC, in turn, must proactively invest in R&D and adapt its service offerings to remain cutting-edge throughout the contract's life.

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: N0002407R3396

Offers Received: 3

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: $27,402,119

Exercised Options: $27,402,119

Current Obligation: $24,360,036

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline