DoD awards $24.7M engineering support contract to Science Applications International Corporation for IR/RF Systems

Contract Overview

Contract Amount: $24,668,671 ($24.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2010-08-30

End Date: 2024-01-25

Contract Duration: 4,896 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROFESSIONAL ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES IN SUPPORT OF THE IR/RF SYSTEMS TECHNOLOGIES DIVISION

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PROFESSIONAL ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES IN SUPPORT OF THE IR/RF SYSTEMS TECHNOLOGIES DIVISION Key points: 1. Contract provides essential engineering, technical, and management support for critical defense systems. 2. Long-term contract duration (4896 days) suggests a sustained need for these specialized services. 3. Cost Plus Fixed Fee (CPFF) pricing structure can incentivize contractor efficiency but requires careful oversight. 4. The contract was awarded through full and open competition, indicating a broad market search. 5. The awardee, Science Applications International Corporation, is a major defense contractor with extensive experience. 6. The contract's value is moderate within the context of large-scale defense engineering services. 7. Performance is managed by the Defense Contract Management Agency, a key oversight body.

Value Assessment

Rating: good

The contract's value of approximately $24.7 million over its duration appears reasonable for specialized engineering and technical support services. While a direct comparison to similar contracts is difficult without more specific service details, the Cost Plus Fixed Fee (CPFF) structure suggests a negotiated fee based on estimated costs. This structure, when managed effectively, can lead to good value by aligning contractor incentives with project goals. The fixed fee component provides a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bids (no: 2) suggests a competitive process, though the exact number of bidders can influence price discovery. A higher number of bidders generally leads to more robust price competition and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, fostering a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

The Department of Defense benefits from continuous technical and management support for its Infrared (IR) and Radio Frequency (RF) Systems Technologies Division. This contract ensures the ongoing development, maintenance, and enhancement of critical defense systems. Personnel with specialized engineering and technical skills are engaged, supporting the defense industrial workforce. The services provided contribute to national security by maintaining advanced technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to ensure costs remain within reasonable bounds and the fixed fee is justified.
Limited information on the specific performance metrics makes it challenging to fully assess the contractor's value for money.
The long contract duration could present risks if technological requirements shift significantly over time.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contractor, Science Applications International Corporation, has a strong track record in defense contracting.
The contract provides essential support for critical defense technologies, aligning with strategic national interests.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The market for specialized engineering and technical support services for defense systems is substantial, driven by the continuous need for technological advancement and system sustainment. Companies like Science Applications International Corporation are key players in this sector, often competing for large, complex contracts that require deep technical expertise and security clearances. Benchmarks for similar contracts would typically involve comparing hourly rates, overhead structures, and profit margins for comparable services within the defense sector.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor may engage small businesses as subcontractors for specialized components or services, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of costs and the justification of the fixed fee. Transparency is generally maintained through contract reporting requirements, though specific details on public accessibility of performance data are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Information Technology Support Services
Research and Development Services
Systems Engineering and Technical Assistance (SETA) Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires robust oversight to manage costs effectively.
Long contract duration may pose risks if technology requirements evolve rapidly.
Limited number of bidders (2) could indicate potential for improved price competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PROFESSIONAL ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES IN SUPPORT OF THE IR/RF SYSTEMS TECHNOLOGIES DIVISION

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 $24.7 million.

What is the period of performance?

Start: 2010-08-30. End: 2024-01-25.

What is the historical spending pattern for this specific contract or similar services provided by Science Applications International Corporation to the Department of Defense?

Historical spending data for this specific contract indicates a consistent award from its inception. The total obligated amount of $24,668,670.71 suggests a steady allocation of funds over its period of performance. While the provided data covers the period up to January 25, 2024, it represents the cumulative spending. To understand the annual spending pattern, one would need to examine the disbursement of funds year-over-year. Comparing this to other contracts for similar engineering and technical support services awarded to SAIC by the DoD would reveal if this contract represents a significant portion of their defense-related engineering work or if it's within a typical range for such specialized support.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to industry standards for similar engineering support services?

The Cost Plus Fixed Fee (CPFF) structure is a common pricing arrangement in defense contracting, particularly for services where the scope of work may evolve or is difficult to define precisely at the outset. For engineering and technical support services, CPFF is often used because it allows for flexibility while providing the government with a degree of cost certainty through the fixed fee. Industry standards suggest that the fixed fee should represent a reasonable percentage of the estimated total cost, typically ranging from 5% to 15%, depending on the complexity, risk, and duration of the contract. Effective negotiation and oversight are crucial to ensure the fee is appropriate and that the contractor is incentivized to control costs.

What are the key performance indicators (KPIs) used to evaluate Science Applications International Corporation's performance under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for engineering, technical, and management support services, typical KPIs often include adherence to project schedules, quality of deliverables (e.g., reports, analyses, designs), technical accuracy, responsiveness to task orders, and overall customer satisfaction. The Defense Contract Management Agency (DCMA) would likely be responsible for monitoring these aspects. Performance evaluations are usually documented through Contractor Performance Assessment Reporting System (CPARS) reports, which assess various aspects of a contractor's past performance, including technical, cost, schedule, and management factors.

What is the potential impact of this contract on the development of future IR/RF systems technologies within the Department of Defense?

This contract plays a crucial role in the ongoing development and sustainment of the Department of Defense's Infrared (IR) and Radio Frequency (RF) Systems Technologies Division. By providing essential engineering, technical, and management support, Science Applications International Corporation contributes directly to the advancement and operational readiness of these critical systems. The expertise and insights gained through this long-term engagement can inform future technology roadmaps, identify areas for innovation, and ensure that new systems are designed with robust supportability and maintainability in mind. This sustained support is vital for maintaining a technological edge in areas sensitive to IR and RF spectrums.

Are there any specific risks associated with the sole-source nature of the award, or does the 'full and open competition' designation mitigate these?

The designation 'full and open competition' directly contradicts the notion of a sole-source award. Full and open competition means that all responsible sources were allowed to submit bids, which inherently mitigates the risks associated with sole-sourcing. Sole-source awards, conversely, carry risks such as potentially higher prices due to lack of competition, limited innovation, and reduced accountability. In this case, the contract was awarded through a competitive process, suggesting that the DoD sought the best value from a range of qualified contractors. The presence of two bids indicates some level of competition, though a higher number would typically yield stronger price discovery.

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: N0002410R3143

Offers Received: 2

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: $45,865,557

Exercised Options: $45,865,557

Current Obligation: $24,668,671

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $540,162

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