DoD's $20M Engineering Support Contract Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $19,994,966 ($20.0M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2011-09-22

End Date: 2017-08-31

Contract Duration: 2,170 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NON-PERSONAL, PROFESSIONAL ENGINEERING, TECHNICAL, ACQUISITION ENGINEERING AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR HARDWARE REQUIREMENTS IN SUPPORT THE MOBILITY SYSTEMS ENGINEERING BRANCH.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NON-PERSONAL, PROFESSIONAL ENGINEERING, TECHNICAL, ACQUISITION ENGINEERING AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR HARDWARE REQUIREMENTS IN SUPPORT THE MOBILITY SYSTEMS ENGINEERING BRANCH. Key points: 1. Contract provides essential engineering and program management support for hardware requirements. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The contract duration of 2170 days indicates a long-term need for these services. 4. The cost-plus-fixed-fee pricing structure requires careful monitoring of costs and fee. 5. Services are critical for the Mobility Systems Engineering Branch within the Department of the Navy. 6. The contract value of approximately $20 million over its term warrants performance scrutiny.

Value Assessment

Rating: good

The contract value of $19.99 million over approximately 6 years suggests a moderate annual spend for specialized engineering support. Benchmarking against similar contracts for professional engineering services requires access to a broader dataset of comparable awards. However, the fixed fee component within the cost-plus structure provides some predictability for the contractor's profit, while the government bears the cost risk. The value proposition hinges on the successful delivery of critical engineering and program management support for hardware requirements.

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 presence of multiple bidders (3 noted) suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The specific number of bids received is not detailed, but the competition type itself is a positive indicator for market-based pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors vie for the best price and performance, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of the Navy's Mobility Systems Engineering Branch, receiving critical support for hardware development and management. Services delivered include non-personal, professional engineering, technical, acquisition engineering, and program management support. The geographic impact is likely concentrated within the Navy's operational and development facilities, primarily in Indiana where the contract is noted as 'IN'. Workforce implications include the potential for specialized engineering and technical roles to be filled by Science Applications International Corporation personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, as the government reimburses them, requiring diligent oversight to manage expenditures.
The long duration of the contract (2170 days) necessitates ongoing performance monitoring to ensure sustained quality and value.
Reliance on a single contractor for critical engineering support over an extended period could pose a risk if performance degrades or needs evolve significantly.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The contract addresses essential engineering and program management needs for hardware requirements, suggesting strategic alignment with Navy objectives.
Science Applications International Corporation is a large, established defense contractor with a significant track record in providing similar services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the professional services market supporting government and commercial clients. The defense industry relies heavily on such specialized engineering and technical support for complex systems development and maintenance. The market size for defense engineering services is substantial, driven by continuous modernization and operational needs. This contract represents a portion of the broader spending on acquisition and program management support within the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it is possible that Science Applications International Corporation may engage small businesses as subcontractors. However, without specific subcontracting plans or goals detailed in the award data, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if small business participation is mandated or encouraged.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management officials. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor incurred costs and ensure the fixed fee remains appropriate. Transparency is typically managed through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Engineering Services
Naval Systems Support
Program Management Support
Acquisition Support Services
Hardware Engineering

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent cost monitoring.
Long contract duration necessitates ongoing performance evaluation.
Potential for technology obsolescence over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NON-PERSONAL, PROFESSIONAL ENGINEERING, TECHNICAL, ACQUISITION ENGINEERING AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR HARDWARE REQUIREMENTS IN SUPPORT THE MOBILITY SYSTEMS ENGINEERING BRANCH.

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 $20.0 million.

What is the period of performance?

Start: 2011-09-22. End: 2017-08-31.

What is the historical spending pattern for similar engineering support services by the Department of the Navy?

Analyzing historical spending for similar engineering support services by the Department of the Navy requires access to comprehensive contract databases. Generally, the Navy, like other branches of the DoD, consistently allocates significant funds towards engineering, technical, and program management support to maintain its complex platforms and develop new technologies. Spending patterns are influenced by modernization priorities, fleet readiness requirements, and specific program lifecycles. For instance, periods of major platform development or upgrades often see increased spending in these areas. Without specific data points for comparable contracts, it's difficult to provide precise historical figures, but the consistent need for such services suggests a stable, albeit fluctuating, budget allocation over time.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) structure used in this contract is common for research and development or complex services where the scope may evolve, making a fixed-price contract difficult to establish upfront. In CPFF, the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, offering the government maximum price certainty but shifting cost risk to the contractor. Cost-Reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee) also exist, offering different incentive structures. CPFF provides some cost predictability due to the fixed fee but still places cost control risk on the government, unlike FFP. For routine, well-defined services, FFP is often preferred for its cost certainty.

What is Science Applications International Corporation's track record with similar DoD contracts?

Science Applications International Corporation (SAIC) has an extensive track record of performing complex engineering, technical, and program management services for the Department of Defense and other federal agencies. They are a major defense contractor frequently awarded contracts for systems engineering, IT support, logistics, and acquisition management across various military branches. Their history includes supporting numerous large-scale programs, often involving hardware integration, software development, and lifecycle support. While specific performance metrics for individual contracts are not publicly detailed in this summary, SAIC's sustained presence and significant contract awards suggest a generally accepted capability to meet DoD requirements. However, like any large contractor, past performance reviews and specific contract outcomes would provide a more granular assessment.

What are the potential risks associated with a long-duration contract (2170 days) for engineering support?

Long-duration contracts, such as this 2170-day (approximately 6-year) award, present several potential risks. Firstly, technology and requirements can rapidly evolve within such a timeframe, potentially making the initially defined scope of work obsolete or less relevant. This could lead to scope creep, change orders, or a need for contract modifications, impacting cost and schedule. Secondly, maintaining consistent performance quality over an extended period can be challenging; contractor personnel may change, institutional knowledge can be lost, or motivation might wane. Thirdly, the government's long-term commitment ties up significant funding that might be needed elsewhere if priorities shift. Finally, a prolonged reliance on a single contractor can reduce flexibility and limit opportunities to incorporate innovative solutions from other market players.

How does the 'Engineering Services' classification (NAICS 541330) typically align with defense hardware requirements?

The NAICS code 541330, 'Engineering Services,' broadly encompasses firms providing specialized engineering expertise across various disciplines. For defense hardware requirements, this classification is highly relevant. It covers services such as systems engineering (defining requirements, architecture, and integration), design and development of hardware components, testing and evaluation, acquisition support (planning, procurement, and contract management), and lifecycle support. Defense hardware, from aircraft and ships to communication systems and weapons platforms, is incredibly complex and requires deep engineering knowledge for its conception, development, sustainment, and modernization. Therefore, contracts classified under 541330 are fundamental to ensuring that the military's hardware capabilities are designed, built, and maintained effectively.

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: N0002411R3174

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: $45,005,830

Exercised Options: $45,005,830

Current Obligation: $19,994,966

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $4,350,208

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