DoD's $24M Engineering Services Contract with SAIC Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $23,952,057 ($24.0M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2013-12-04
End Date: 2018-09-30
Contract Duration: 1,761 days
Daily Burn Rate: $13.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::CL,CT::IGF NON-PERSONAL PROFESSIONAL ENGINEERING AND TECHNICAL SERVICES IN THE AREAS OF TEST AND EVALUATION, OPERATION AND MAINTENANCE, INSTRUMENTATION AND CONTROL, OPERATION RESEARCH, INVENTORY MANAGEMENT, LOGISTICS, CONFIGURATION MANAGEMENT, SUSTAINMENT, PRODUCTION CONTROL, DEVELOP AND IMPLEMENT ENHANCEMENTS TO DESIGN PYROTECHNICS, DEMOLITION DEVICES, SAFETY, ACQUIRE AMMUNITION, ENGINEERING AND LOGISTICS FOR IN-SERVICE AMMUNITION DURING MANUFACTURE, USE, MAINTENANCE, DEMILITARIZATION, AND DEVELOPMENT.
Place of Performance
Location: CRANE, MARTIN County, INDIANA, 47522
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $24.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CL,CT::IGF NON-PERSONAL PROFESSIONAL ENGINEERING AND TECHNICAL SERVICES IN THE AREAS OF TEST AND EVALUATION, OPERATION AND MAINTENANCE, INSTRUMENTATION AND CONTROL, OPERATION RESEARCH, INVENTORY MANAGEMENT, LOGISTICS, CONFIGURATION MANAGEMENT, SUSTAINMENT, PRODUCTION CONTROL… Key points: 1. The contract awarded to Science Applications International Corporation (SAIC) for diverse engineering and technical services is substantial at $23.95M. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. However, the Cost Plus Incentive Fee (CPIF) structure warrants close examination for potential cost overruns. 4. The services span critical areas like test and evaluation, logistics, and ammunition lifecycle management within the Navy.
Value Assessment
Rating: fair
The CPIF contract type can lead to costs exceeding initial estimates if not managed tightly. Benchmarking against similar engineering services contracts is difficult without detailed cost breakdowns, but the $23.95M value for a 5-year period suggests a moderate annual spend.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a delivery order mechanism within this framework allows for task-specific pricing, but the overall impact on price discovery depends on the number and quality of bids received.
Taxpayer Impact: While competition is positive, the CPIF structure introduces a risk of inflated costs, potentially impacting taxpayer value if not rigorously overseen.
Public Impact
Supports critical Department of the Navy operations, including ammunition lifecycle management. Engages a major defense contractor, SAIC, impacting the defense industrial base. The broad scope of services could lead to significant taxpayer investment over its duration. Potential for innovation in pyrotechnics and demolition device design is present.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPIF contract type risk
- Broad service scope complexity
- Long contract duration
Positive Signals
- Full and open competition
- Experienced contractor
- Critical defense support
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending benchmarks for similar large-scale, multi-year engineering support contracts within the DoD can vary widely, but this $24M award is significant.
Small Business Impact
The data indicates the prime contractor is Science Applications International Corporation, a large business. There is no explicit information provided regarding subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The contract involves multiple delivery orders over a five-year period, necessitating ongoing oversight from the Department of the Navy to ensure performance and cost control. The CPIF structure requires diligent monitoring to ensure incentive alignment and prevent unnecessary costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPIF structure.
- Broad and complex service requirements.
- Long contract duration increases risk exposure.
- Lack of specific small business participation data.
Tags
engineering-services, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CL,CT::IGF NON-PERSONAL PROFESSIONAL ENGINEERING AND TECHNICAL SERVICES IN THE AREAS OF TEST AND EVALUATION, OPERATION AND MAINTENANCE, INSTRUMENTATION AND CONTROL, OPERATION RESEARCH, INVENTORY MANAGEMENT, LOGISTICS, CONFIGURATION MANAGEMENT, SUSTAINMENT, PRODUCTION CONTROL, DEVELOP AND IMPLEMENT ENHANCEMENTS TO DESIGN PYROTECHNICS, DEMOLITION DEVICES, SAFETY, ACQUIRE AMMUNITION, ENGINEERING AND LOGISTICS FOR IN-SERVICE AMMUNITION DURING MANUFACTURE, USE, MAINTENANCE, DEMILITARIZATION, AND
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 $24.0 million.
What is the period of performance?
Start: 2013-12-04. End: 2018-09-30.
What specific performance metrics were used to evaluate SAIC's success under this CPIF contract, and how did they influence the final cost?
The effectiveness of the CPIF contract hinges on clearly defined performance metrics tied to cost incentives. Without access to the contract's specific clauses and performance reports, it's impossible to detail the metrics used or their precise impact on the final cost. However, CPIF aims to incentivize the contractor to meet or exceed cost targets by sharing in savings or cost overruns.
Given the broad scope of services, what mechanisms were in place to ensure that the costs incurred were reasonable and allocable to specific tasks?
Reasonableness and allocability of costs under a CPIF contract are typically managed through detailed task orders, robust accounting systems, and regular audits by the contracting officer. The government's Defense Contract Audit Agency (DCAA) would likely play a role in verifying costs. The CPIF structure itself requires careful monitoring to ensure the incentive aligns with achieving reasonable costs.
How did the full and open competition process ensure that SAIC's bid represented the best value for the government compared to potential competitors?
Full and open competition theoretically ensures best value by allowing all responsible sources to submit offers, fostering a competitive environment. The government evaluates proposals based on pre-defined criteria, which may include technical approach, past performance, and price. The ultimate 'best value' determination depends on the specific evaluation factors outlined in the solicitation and the quality of the bids received.
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: N0002412R3448
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $51,880,082
Exercised Options: $47,666,470
Current Obligation: $23,952,057
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $808,437,730
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: 2013-12-04
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2023-02-15
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