Navy awards $18.16M engineering services contract to Science Applications International Corporation for warfare technical liaison support
Contract Overview
Contract Amount: $18,159,023 ($18.2M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2009-08-11
End Date: 2013-08-10
Contract Duration: 1,460 days
Daily Burn Rate: $12.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SURFACE WARFARE TECHNICAL LIAISON OFFICE SUPPORT
Place of Performance
Location: CRANE, MARTIN County, INDIANA, 47522
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $18.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SURFACE WARFARE TECHNICAL LIAISON OFFICE SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days (4 years) indicates a long-term need for these services. 3. Engineering services are critical for maintaining and advancing naval technological capabilities. 4. The award to a large, established contractor like SAIC suggests a focus on proven performance. 5. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 6. The geographic location of the awardee in Indiana may have implications for local economic impact.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more granular data on the scope of 'technical liaison support'. However, the total award amount of $18.16 million over four years averages to approximately $4.54 million per year. This figure needs to be compared against the complexity and criticality of the services provided. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, can sometimes result in higher overall costs compared to fixed-price contracts if costs are not meticulously controlled by the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The government's use of full and open competition suggests they sought the best value through a broad market search.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation, ensuring that government funds are used more efficiently.
Public Impact
The primary beneficiaries are the Department of the Navy and its Surface Warfare programs, receiving essential technical support. Services delivered likely include technical advice, engineering analysis, and liaison activities to enhance operational readiness and technological advancement. The geographic impact is primarily centered around the contractor's location in Indiana, though the services support naval operations globally. Workforce implications include employment opportunities for engineers and technical specialists within Science Applications International Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to incur more costs than necessary to increase the fixed fee.
- Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services rendered.
- The duration of the contract (4 years) may not align with rapidly evolving technological needs in warfare.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- Contract awarded to a large, experienced contractor (SAIC) with a significant presence in defense contracting.
- Engineering services are crucial for maintaining and improving naval technological capabilities.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS code 541330), a significant segment of the federal contracting market supporting defense and technology initiatives. The Department of Defense is a major consumer of engineering services, utilizing them for research, development, acquisition, and sustainment of complex systems. Comparable spending benchmarks would involve analyzing other engineering support contracts within the Navy and DoD, considering factors like contract type, duration, and specific service scope.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Science Applications International Corporation (SAIC) is a large prime contractor. While there's no direct information on subcontracting plans for small businesses within this specific award, large prime contractors are often required to meet small business subcontracting goals on their overall contract portfolio. The absence of a small business set-aside suggests the competition was geared towards larger firms capable of providing the specialized engineering services required.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the CPFF contract type, requiring detailed cost reporting and justification. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance.
Related Government Programs
- Naval Surface Warfare Center Support Contracts
- Department of Defense Engineering Services
- Technical Support Services Contracts
- Defense Logistics Agency Support
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Lack of specific performance metrics makes objective assessment of value difficult.
- Potential for contractor to prioritize cost-reimbursement over efficiency.
- Limited insight into the number of bidders in the full and open competition.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, science-applications-international-corporation, surface-warfare, technical-liaison, indiana, large-contractor, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SURFACE WARFARE TECHNICAL LIAISON OFFICE SUPPORT
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 $18.2 million.
What is the period of performance?
Start: 2009-08-11. End: 2013-08-10.
What is the specific nature of the 'Surface Warfare Technical Liaison Office Support' provided by SAIC?
The provided data does not detail the specific tasks encompassed by 'Surface Warfare Technical Liaison Office Support.' However, based on the contractor's expertise (Science Applications International Corporation) and the sector (Engineering Services), this support likely involves providing technical expertise, engineering analysis, research and development consultation, and acting as a bridge between warfare centers, program offices, and operational commands. This could include advising on system integration, troubleshooting technical issues, evaluating new technologies, and ensuring effective communication of technical requirements and solutions within the surface warfare domain. The exact scope would be defined in the contract's Statement of Work (SOW).
How does the $18.16 million award compare to similar engineering support contracts for naval warfare?
Direct comparison is difficult without knowing the precise scope and duration of comparable contracts. However, $18.16 million over four years ($4.54 million annually) for specialized engineering liaison support appears to be within a reasonable range for a large, established defense contractor like SAIC supporting a critical area like naval surface warfare. Larger, more complex system development or integration contracts can run into hundreds of millions or billions. Smaller, more focused technical support might be in the low millions. This contract's value suggests a significant, ongoing need for expert technical guidance and support within the Navy's surface warfare community.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?
The primary risk with a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, the government reimburses allowable costs. This structure can incentivize the contractor to incur higher costs, as the fixed fee remains constant regardless of the actual costs incurred (though the fee itself is negotiated). Effective government oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. Without strong management, the total cost to the government can exceed initial estimates, diminishing the value proposition compared to fixed-price contracts.
What is SAIC's track record in providing similar technical liaison or engineering services to the Department of Defense?
Science Applications International Corporation (SAIC) has a long and extensive track record of providing a wide array of technical, engineering, and support services to the Department of Defense and other federal agencies. They are a major defense contractor known for their capabilities in areas such as systems engineering, IT, C4ISR, and program management. While specific performance details for this exact contract are not provided, SAIC's general reputation and significant presence in the defense sector suggest they possess the necessary experience and resources to fulfill complex engineering support roles. Their history includes numerous large-scale contracts across various military branches.
How has federal spending on engineering services for naval operations evolved over the past decade?
Federal spending on engineering services for naval operations has generally remained substantial, reflecting the continuous need for modernization, maintenance, and technological advancement of the fleet. While specific figures fluctuate annually based on budget allocations, geopolitical factors, and acquisition priorities, the DoD consistently represents a significant portion of the federal engineering services market. Spending trends are influenced by major shipbuilding programs, upgrades to existing platforms, cybersecurity requirements, and the integration of new technologies like AI and unmanned systems. Analyzing historical spending patterns for the Department of the Navy's Surface Warfare programs would reveal specific trends and investment priorities over the last decade.
What are the potential implications of awarding this contract to a single large entity like SAIC versus multiple smaller firms?
Awarding a contract of this nature to a single large entity like SAIC can offer benefits such as streamlined communication, unified project management, and potentially leveraging a broad range of integrated capabilities. SAIC likely has established processes and a deep understanding of DoD requirements. However, relying on a single large contractor may limit opportunities for smaller, specialized firms to contribute and innovate. It could also concentrate risk; if SAIC underperforms, the entire support function is jeopardized. A strategy involving multiple smaller firms might foster more competition and specialized expertise but could increase management complexity and coordination overhead for the government.
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: N0002409R3250
Offers Received: 1
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: $20,729,730
Exercised Options: $20,729,730
Current Obligation: $18,159,023
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: 2009-08-11
Current End Date: 2013-08-10
Potential End Date: 2014-08-10 00:00:00
Last Modified: 2019-02-26
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