DoD Awards $21.6M for Small Arms Weapons Systems Engineering Support to Science Applications International Corporation

Contract Overview

Contract Amount: $21,636,813 ($21.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2013-09-06

End Date: 2024-01-25

Contract Duration: 3,793 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING AND TECHNICAL SUPPORT FOR SMALL ARMS WEAPONS SYSTEMS DIVISION IGF::OT::IGF

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING AND TECHNICAL SUPPORT FOR SMALL ARMS WEAPONS SYSTEMS DIVISION IGF::OT::IGF Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for engineering and technical support. 2. The contract spans over 10 years, indicating a long-term need for these services. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The sector is Defense, a significant area of federal spending.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, which generally promotes competitive pricing. However, the CPFF pricing type requires careful oversight to ensure value for money.

Taxpayer Impact: Taxpayer funds are being used for specialized engineering services in the defense sector. The long duration and CPFF structure warrant scrutiny for cost-effectiveness.

Public Impact

Ensures continued technical expertise for critical small arms weapons systems. Supports the Department of Defense's operational readiness and modernization efforts. Potential for long-term contractor relationship impacting future competition.

Waste & Efficiency Indicators

Waste Risk Score: 57 / 10

Warning Flags

  • CPFF contract type can incentivize cost increases.
  • Long contract duration (over 10 years) may limit future competitive opportunities.
  • No specific small business participation noted.

Positive Signals

  • Full and open competition utilized.
  • Services are critical for defense readiness.
  • Experienced contractor likely provides stable support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense systems. Federal spending in defense engineering is substantial, with benchmarks varying widely based on system complexity and duration.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract. This suggests that larger prime contractors are handling the entirety of the work.

Oversight & Accountability

The contract was awarded by the Department of Defense, with oversight likely managed by the Defense Contract Management Agency. The long duration and CPFF structure necessitate robust oversight to control costs and ensure performance.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Cost Plus Fixed Fee (CPFF) contract type.
  • Long contract duration (over 10 years).
  • Lack of specific small business participation.
  • Potential for cost overruns.
  • Limited flexibility for technological adaptation.

Tags

engineering-services, department-of-defense, ma, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING AND TECHNICAL SUPPORT FOR SMALL ARMS WEAPONS SYSTEMS DIVISION IGF::OT::IGF

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 $21.6 million.

What is the period of performance?

Start: 2013-09-06. End: 2024-01-25.

What is the estimated cost per year for these engineering services, and how does it compare to industry benchmarks for similar support?

The total award value is $21.6 million over approximately 3.8 years (3793 days), equating to roughly $5.7 million per year. Benchmarking is challenging without specific service details, but this annual figure should be compared against rates for specialized engineering and technical support within the defense sector, considering the CPFF structure.

What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context, and how are they being mitigated?

CPFF contracts carry inherent risks of cost escalation as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies typically involve stringent cost monitoring, detailed performance metrics, and clear definition of work scope to prevent scope creep. The long duration amplifies these risks if not actively managed.

How does the long-term nature of this contract impact the government's ability to adapt to evolving technologies and potentially secure better pricing in the future?

A 10+ year contract can create vendor lock-in and reduce agility in adopting new technologies. While it provides stability, it may prevent the government from capitalizing on market shifts or technological advancements that could lead to more cost-effective solutions through future competitions. Regular reviews and potential re-competition clauses are crucial.

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: N0002412R3402

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: $25,684,381

Exercised Options: $25,266,524

Current Obligation: $21,636,813

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $4,174,062

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

Start Date: 2013-09-06

Current End Date: 2024-01-25

Potential End Date: 2024-01-25 00:00:00

Last Modified: 2024-04-01

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