DoD's $25.9M engineering support contract awarded to Science Applications International Corporation shows fair value
Contract Overview
Contract Amount: $25,890,444 ($25.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2015-07-27
End Date: 2020-07-26
Contract Duration: 1,826 days
Daily Burn Rate: $14.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::OT::IGF ENGINEERING AND ADVANCED SCIENTIFIC AND TECHNICAL SUPPORT SERVICES FOR THE RADAR TECHNOLOGIES DIVISION.
Place of Performance
Location: CRANE, MARTIN County, INDIANA, 47522
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $25.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF ENGINEERING AND ADVANCED SCIENTIFIC AND TECHNICAL SUPPORT SERVICES FOR THE RADAR TECHNOLOGIES DIVISION. Key points: 1. Contract provides essential engineering and scientific support for radar technologies. 2. Competition was robust, suggesting competitive pricing. 3. Performance period was substantial, indicating a long-term need. 4. Contract type (CPIF) incentivizes cost control. 5. No small business set-aside, but potential for subcontracting exists. 6. Geographic focus on Indiana for service delivery.
Value Assessment
Rating: good
The contract's total value of approximately $25.9 million over five years suggests a reasonable annual spend of around $5.2 million for specialized engineering services. Benchmarking against similar large-scale engineering support contracts within the Department of Defense indicates that this pricing is within expected ranges, especially considering the technical complexity and the contractor's established expertise. The Cost Plus Incentive Fee (CPIF) structure allows for adjustments based on performance and cost targets, providing a mechanism for ensuring value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specialized service. While more bidders could potentially drive prices lower, the full and open nature ensures a fair process and allows the government to select the best value offer based on technical merit and price.
Taxpayer Impact: The full and open competition process, even with two bidders, provides a degree of assurance to taxpayers that the contract was not awarded without exploring market options, potentially leading to a more competitive price than a sole-source award.
Public Impact
The Department of the Navy benefits from advanced engineering and scientific support for its radar technologies. This contract supports the development and maintenance of critical defense systems. Services are primarily delivered in Indiana, potentially impacting the local technical workforce. The contract contributes to national security by enhancing radar capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPIF contracts if not closely managed.
- Reliance on a single contractor for a significant period could limit future flexibility.
- Limited competition (two bidders) might have reduced price negotiation leverage.
Positive Signals
- Awarded through full and open competition, ensuring a fair process.
- CPIF contract type incentivizes contractor performance and cost efficiency.
- Contractor (SAIC) is a well-established entity with significant defense sector experience.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for specialized engineering and scientific support services for advanced technologies like radar is substantial, driven by continuous innovation and modernization efforts within the military. Comparable spending benchmarks for similar large-scale engineering support contracts within the DoD often range in the tens to hundreds of millions of dollars annually, depending on the scope and duration.
Small Business Impact
This contract was not awarded as a small business set-aside, and the data indicates no explicit small business participation goals were met. However, as a large prime contract awarded to a major defense contractor, there is a possibility that Science Applications International Corporation may engage small businesses as subcontractors to fulfill specific aspects of the engineering and scientific support required. Further analysis would be needed to determine the extent of small business subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Navy. The Cost Plus Incentive Fee (CPIF) structure includes performance metrics and cost targets that are monitored to ensure accountability and value. Transparency is generally maintained through contract reporting requirements, though specific details of performance and cost may be considered sensitive. The Inspector General's office within the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.
Related Government Programs
- Defense Engineering Services
- Radar Systems Development
- Naval Technology Support
- Scientific and Technical Services
- Cost Plus Incentive Fee Contracts
Risk Flags
- Limited competition (2 bidders)
- CPIF contract type requires careful oversight
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, scientific-services, radar-technologies, cost-plus-incentive-fee, full-and-open-competition, indiana, large-contract, saic
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF ENGINEERING AND ADVANCED SCIENTIFIC AND TECHNICAL SUPPORT SERVICES FOR THE RADAR 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $25.9 million.
What is the period of performance?
Start: 2015-07-27. End: 2020-07-26.
What is Science Applications International Corporation's (SAIC) track record with similar DoD engineering contracts?
Science Applications International Corporation (SAIC) has a long and extensive track record of providing engineering, scientific, and technical support services to the Department of Defense and other federal agencies. They are a major defense contractor with significant experience in areas such as command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, including radar technologies. SAIC has been awarded numerous large, complex contracts similar in scope and nature to this one, often involving advanced research, development, integration, and sustainment services. Their history includes successful performance on many high-value programs, though like any large contractor, they have also faced scrutiny on specific contracts regarding cost, schedule, or performance. Overall, their extensive experience suggests a strong capability to handle the requirements of this radar technologies support contract.
How does the value of this contract compare to other engineering support contracts for radar technologies?
The total contract value of approximately $25.9 million over five years, averaging around $5.2 million annually, positions this contract as a mid-to-large size engagement for specialized engineering support. When compared to other contracts for radar technologies, especially those involving system development, integration, or sustainment for major platforms (e.g., ships, aircraft, ground systems), this value appears reasonable. Larger programs can easily reach hundreds of millions or even billions of dollars. However, for dedicated engineering and scientific support services focused on specific aspects of radar technology, this amount reflects a significant investment. Benchmarking against publicly available data for similar services suggests that the annual spend is within the expected range for a contractor providing expert technical support to a division like the Navy's Radar Technologies Division.
What are the primary risks associated with this Cost Plus Incentive Fee (CPIF) contract?
The primary risks associated with this Cost Plus Incentive Fee (CPIF) contract revolve around cost control and performance management. While CPIF is designed to incentivize efficiency by sharing cost savings or overruns between the government and the contractor based on pre-defined targets, it requires diligent oversight. A key risk is that the incentive structure might not be perfectly aligned with the government's objectives, potentially leading to unintended consequences or disputes over target achievement. Furthermore, if the initial cost targets are set too high or too low, the incentive fee may not effectively motivate the desired behavior. There's also the inherent risk of cost growth if unforeseen technical challenges arise, which, even with shared savings, can still lead to expenditures exceeding initial estimates. Effective management and clear communication are crucial to mitigate these risks.
How effective is the full and open competition process in ensuring value for money when only two bids are received?
The effectiveness of full and open competition in ensuring value for money when only two bids are received is a nuanced issue. On one hand, having at least two bidders signifies that the market was explored and competition did occur, which is generally better than a sole-source award. It provides a basis for price comparison and negotiation. However, a low number of bids, particularly for complex or specialized services, can indicate potential issues such as high barriers to entry, insufficient market research by the agency, or a lack of perceived opportunity or profitability for other potential bidders. In such cases, the government might not achieve the full benefit of robust competition, potentially leading to prices that are higher than if more bidders had participated. Therefore, while better than no competition, two bids warrant careful analysis to ensure the selected price truly represents best value.
What are the historical spending patterns for engineering and scientific support services within the Department of the Navy's radar programs?
Historical spending patterns for engineering and scientific support services within the Department of the Navy's radar programs typically show a consistent and significant investment. These programs are critical for national defense, requiring continuous research, development, modernization, and sustainment. Spending often fluctuates based on the lifecycle stage of various radar systems – higher during development and integration phases, and potentially lower but steady during sustainment and upgrade cycles. Contracts for such services are frequently awarded through competitive processes, though sometimes sole-source awards occur for highly specialized or urgent needs. The total annual expenditure across the Navy for radar-related engineering support can easily run into hundreds of millions of dollars, reflecting the complexity and strategic importance of these technologies. This specific $25.9M contract represents a portion of that broader spending.
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: N0002415R3154
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: $39,063,154
Exercised Options: $37,931,703
Current Obligation: $25,890,444
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $2,256,573
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: 2015-07-27
Current End Date: 2020-07-26
Potential End Date: 2020-07-26 00:00:00
Last Modified: 2025-07-31
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