DoD's $30.7M Contract for Missile Defense Systems Management Awarded to Science Applications International Corp

Contract Overview

Contract Amount: $30,699,919 ($30.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2008-05-09

End Date: 2014-08-08

Contract Duration: 2,282 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MATERIAL AND TARGETS MANAGEMENT OF MISSILE/AIR DEFENSE SYSTEMS

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: MATERIAL AND TARGETS MANAGEMENT OF MISSILE/AIR DEFENSE SYSTEMS Key points: 1. Contract awarded to a single large business, indicating limited small business participation. 2. The contract spans over 6 years, suggesting a long-term need for these services. 3. Engineering services for missile defense systems are critical for national security. 4. The cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored.

Value Assessment

Rating: fair

The total award amount is $30.7 million over approximately 6 years. Without specific per-unit cost data or benchmarks for similar missile defense system management contracts, a precise value assessment is difficult. The cost-plus-fixed-fee structure requires careful oversight to ensure cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of price discovery and how the fixed fee was determined are not provided, making it hard to assess if the best possible price was achieved.

Taxpayer Impact: Taxpayers are funding critical defense capabilities. The effectiveness of the competition and contract management will determine the value for money received.

Public Impact

Ensures the continued operational readiness and effectiveness of vital missile and air defense systems. Supports national security by maintaining advanced defense technologies. The contract's success directly impacts the military's ability to defend against aerial threats.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific per-unit cost data for benchmarking.
  • Cost-plus-fixed-fee contracts can lead to cost escalation without strict oversight.
  • No indication of small business subcontracting goals or achievements.

Positive Signals

  • Awarded under full and open competition.
  • Addresses a critical national security need.
  • Long contract duration suggests sustained capability development.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense systems. Spending in this area is driven by national security priorities and technological advancements in defense capabilities. Benchmarks are highly specialized and depend on the complexity of the systems managed.

Small Business Impact

The contract was awarded to Science Applications International Corporation, a large business. There is no explicit indication of small business set-asides or subcontracting requirements in the provided data, suggesting limited direct opportunities for small businesses on this specific award.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring performance, cost control, and adherence to contract terms. The long duration necessitates continuous monitoring.

Related Government Programs

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

Risk Flags

  • Potential for cost overruns due to cost-plus-fixed-fee structure.
  • Lack of transparency on specific performance metrics.
  • Limited visibility into small business participation.
  • Dependency on a single contractor for critical defense systems.

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 $30.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. MATERIAL AND TARGETS MANAGEMENT OF MISSILE/AIR DEFENSE SYSTEMS

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 $30.7 million.

What is the period of performance?

Start: 2008-05-09. End: 2014-08-08.

What specific metrics are used to evaluate the performance and effectiveness of Science Applications International Corporation in managing these missile defense systems?

Performance metrics likely include system availability rates, response times to threats, successful integration of upgrades, and adherence to maintenance schedules. The effectiveness is measured by the overall readiness and reliability of the missile and air defense systems under their management, ensuring they meet operational requirements and national security objectives.

How does the cost-plus-fixed-fee structure mitigate risks of cost overruns for this critical defense system contract?

The 'fixed fee' component aims to cap the contractor's profit, theoretically incentivizing efficiency. However, the 'cost-plus' element allows the contractor to recover allowable costs. Mitigation relies heavily on robust government oversight, detailed cost auditing, and clear definition of allowable costs to prevent scope creep and unnecessary expenditures.

What is the long-term strategic value of this contract beyond immediate system management for the Department of Defense?

This contract likely contributes to maintaining and evolving critical defense infrastructure, ensuring technological superiority in air and missile defense. It fosters expertise within SAIC, potentially leading to innovations and improved capabilities for future defense needs. The sustained management ensures readiness against evolving threats.

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: N0002408R3083

Offers Received: 11

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: $34,806,597

Exercised Options: $34,806,597

Current Obligation: $30,699,919

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: 2008-05-09

Current End Date: 2014-08-08

Potential End Date: 2014-08-08 00:00:00

Last Modified: 2021-12-07

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