DoD's $78M EW Engineering Contract with SAIC: 7 Years of Airborne Domain Support

Contract Overview

Contract Amount: $78,337,297 ($78.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2013-02-12

End Date: 2020-02-20

Contract Duration: 2,564 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR ELECTRONIC WARFARE (EW) AIRBORNE DOMAIN IN SUPPORT OF THE SPECTRUM WARFARE DEPARTMENT AT NAVAL SURFACE WARFARE CENTER (NSWC) CRANE.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $78.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR ELECTRONIC WARFARE (EW) AIRBORNE DOMAIN IN SUPPORT OF THE SPECTRUM WARFARE DEPARTMENT AT NAVAL SURFACE WARFARE CENTER (NSWC) CRANE. Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for Electronic Warfare (EW) engineering. 2. Focuses on airborne domain support for Naval Surface Warfare Center (NSWC) Crane. 3. Significant duration of 7 years (2564 days) indicates long-term need. 4. Awarded under full and open competition, suggesting a competitive process.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring of costs to ensure value. The total award of $78.3M over 7 years suggests a substantial but potentially reasonable investment for specialized EW engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically leads to better price discovery and competitive pricing. This method ensures a broad range of potential offerors could compete, maximizing the opportunity for the government to secure favorable terms.

Taxpayer Impact: The competitive award process likely resulted in a fair price for the specialized engineering services, maximizing taxpayer value.

Public Impact

Ensures continued development and support for critical Naval EW capabilities. Supports advanced airborne EW systems vital for national security. Contributes to technological superiority in the electromagnetic spectrum. Provides specialized engineering expertise to a key Navy research and development center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can incentivize cost overruns if not managed tightly.
Long-term contracts may not always reflect the most current market pricing.
Reliance on a single contractor for 7 years could limit future innovation options.

Positive Signals

Awarded via full and open competition.
Supports critical national defense capabilities.
Long contract duration suggests sustained need and potential for stable support.
Contractor has a strong track record in defense services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies like Electronic Warfare. Spending in this area is crucial for maintaining military technological advantage, with benchmarks varying widely based on specialization and contract scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor, SAIC, is a large business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract's duration and CPFF structure necessitate robust oversight from the Naval Surface Warfare Center (NSWC) Crane to ensure cost control and performance. Regular reviews and audits are essential for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Long contract duration may not capture latest market efficiencies.
Lack of small business subcontracting information.
Reliance on a single contractor for an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR ELECTRONIC WARFARE (EW) AIRBORNE DOMAIN IN SUPPORT OF THE SPECTRUM WARFARE DEPARTMENT AT NAVAL SURFACE WARFARE CENTER (NSWC) CRANE.

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 $78.3 million.

What is the period of performance?

Start: 2013-02-12. End: 2020-02-20.

What specific EW airborne systems or technologies does this contract support, and how do they align with current naval priorities?

This contract supports the Spectrum Warfare Department at NSWC Crane, focusing on Electronic Warfare (EW) in the airborne domain. While specific systems aren't detailed, it likely involves development, integration, testing, and sustainment of EW capabilities crucial for naval aviation, such as electronic attack, electronic protection, and signals intelligence. These align with the Navy's ongoing efforts to maintain dominance in contested electromagnetic environments.

How effectively has the Cost Plus Fixed Fee structure managed costs and prevented potential overruns over the contract's 7-year period?

Assessing the effectiveness of the CPFF structure requires detailed financial data and performance reports. While CPFF offers flexibility for evolving requirements, it carries inherent risks of cost overruns if not rigorously managed. NSWC Crane's oversight, including audits and performance reviews, would be critical in ensuring costs remained reasonable and aligned with the fixed fee, maximizing value despite the inherent risks of this contract type.

What is the long-term strategic impact of awarding a 7-year contract for EW engineering to a single entity like SAIC?

A 7-year contract provides stability and deep expertise development for SAIC in supporting NSWC Crane's EW mission. However, it could also potentially limit exposure to newer technologies or alternative solutions from other vendors over time. Strategic planning by the Navy is essential to ensure this long-term partnership continues to foster innovation and adapt to the rapidly evolving EW landscape.

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: N0002412R3237

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: $85,299,442

Exercised Options: $85,299,442

Current Obligation: $78,337,297

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $18,478,656

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