DoD's $39.8M Engineering Support Contract Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $39,847,013 ($39.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2016-05-13

End Date: 2021-05-12

Contract Duration: 1,825 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF NON-PERSONAL, PROFESSIONAL SUPPORT IN THE AREAS OF ENGINEERING, TECHNICAL, ACQUISITION ENGINEERING, LOGISTICS, AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR REQUIREMENTS IN THE MANEUVER AND ENGAGEMENT DIVISION.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $39.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF NON-PERSONAL, PROFESSIONAL SUPPORT IN THE AREAS OF ENGINEERING, TECHNICAL, ACQUISITION ENGINEERING, LOGISTICS, AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR REQUIREMENTS IN THE MANEUVER AND ENGAGEMENT DIVISION. Key points: 1. Contract provides essential engineering, technical, acquisition, logistics, and program management support. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. Duration of 5 years indicates a long-term need for these specialized services. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The primary agency is the Department of the Navy, with support for the Maneuver and Engagement Division. 7. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 8. The contractor, Science Applications International Corporation, is a major player in defense contracting.

Value Assessment

Rating: good

The contract value of $39.8 million over five years for specialized engineering and program management support appears reasonable given the scope and duration. Benchmarking against similar large-scale engineering support contracts within the Department of Defense suggests that the pricing structure, while Cost Plus Fixed Fee, is within expected ranges for complex technical services. The fixed fee component provides a degree of cost certainty for the government, but the cost-reimbursement aspect necessitates diligent oversight to ensure efficiency and prevent overruns. Without specific line-item cost data, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

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 5 bids suggests a healthy level of interest and competition for this requirement. Full and open competition is generally the preferred method as it maximizes the pool of potential offerors, leading to potentially better pricing and innovative solutions. The fact that multiple bidders participated implies that the market has sufficient capacity and interest in providing these specialized engineering and program management services.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices due to market forces and a wider selection of qualified contractors. This process helps ensure that the government is obtaining services at a fair market value.

Public Impact

The primary beneficiaries are the Department of the Navy's Maneuver and Engagement Division, receiving critical support for their operations. Services delivered include engineering, technical, acquisition, logistics, and program management expertise. The geographic impact is likely concentrated within the Department of Defense's operational and research facilities, potentially across various locations. Workforce implications include the employment of skilled engineers, logisticians, and program managers by the contractor, Science Applications International Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust government oversight to manage costs effectively and ensure the fixed fee remains appropriate.
The long duration of the contract (5 years) necessitates ongoing performance monitoring to ensure continued value and alignment with evolving requirements.
Reliance on a single large contractor for such a broad range of critical support services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace and potentially fair pricing.
The contractor, Science Applications International Corporation, is a well-established entity with significant experience in defense contracting.
The contract addresses essential support functions vital to the Navy's operational capabilities.

Sector Analysis

The engineering services sector, particularly within defense, is characterized by high technical complexity and significant government spending. Companies like Science Applications International Corporation operate in a market segment that demands specialized expertise in areas such as systems engineering, program management, and technical support for advanced military platforms. This contract fits within the broader category of professional services supporting defense acquisition and readiness. Comparable spending benchmarks in this sector often involve multi-year contracts for similar support functions, with values ranging from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal unless they are subcontractors. However, large prime contractors like Science Applications International Corporation often have subcontracting plans that may include opportunities for small businesses to provide specialized support or components, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and program managers. They are responsible for monitoring contractor performance, approving costs, and ensuring adherence to contract terms. The fixed fee component requires careful management to ensure it remains fair and reflects the level of effort and risk. Transparency is generally maintained through contract reporting requirements and performance evaluations. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage costs.
Long contract duration necessitates ongoing performance monitoring.
Potential for scope creep in complex engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF NON-PERSONAL, PROFESSIONAL SUPPORT IN THE AREAS OF ENGINEERING, TECHNICAL, ACQUISITION ENGINEERING, LOGISTICS, AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR REQUIREMENTS IN THE MANEUVER AND ENGAGEMENT 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 $39.8 million.

What is the period of performance?

Start: 2016-05-13. End: 2021-05-12.

What is the historical spending pattern for Science Applications International Corporation with the Department of the Navy for similar engineering and program management services?

Analyzing historical spending for Science Applications International Corporation (SAIC) with the Department of the Navy (DoN) reveals a consistent and substantial relationship. SAIC has been a significant prime contractor for the DoN across various domains, including IT, engineering, and professional services. Over the past decade, their contract awards from the DoN have frequently been in the hundreds of millions, and sometimes billions, of dollars annually. This specific $39.8 million contract for engineering, technical, acquisition, logistics, and program management support is a notable award but falls within the typical range of individual task orders or delivery orders issued under larger IDIQ vehicles that SAIC frequently holds with the Navy. The consistent award of contracts suggests a strong track record and established trust between SAIC and the DoN for delivering complex services.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to other similar engineering support contracts awarded by the DoD?

The Cost Plus Fixed Fee (CPFF) contract structure is common for complex engineering and R&D efforts within the Department of Defense (DoD) where the scope of work may evolve or is difficult to define precisely upfront. Compared to other similar contracts, CPFF aims to provide the contractor with reimbursement for allowable costs plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee is fixed, but the government bears the risk of cost overruns if actual costs exceed estimates. Other common structures include Firm-Fixed-Price (FFP), which offers greater cost certainty to the government but shifts risk to the contractor, and Cost Plus Incentive Fee (CPIF), which includes performance incentives. For specialized engineering services like those required here, CPFF is often chosen when detailed technical specifications are still developing or when innovation is a key objective, balancing cost risk and flexibility.

What are the key performance indicators (KPIs) typically used to evaluate the success of engineering support contracts like this one?

Key Performance Indicators (KPIs) for engineering support contracts like this one typically focus on technical performance, schedule adherence, cost control, and overall customer satisfaction. For technical performance, KPIs might include the accuracy and completeness of engineering designs, the effectiveness of technical solutions proposed, and adherence to technical specifications. Schedule adherence is measured by the contractor's ability to meet milestones and delivery dates for reports, analyses, and support services. Cost control is monitored through the efficient use of resources and staying within projected budgets, especially critical in CPFF contracts where the government reimburses costs. Customer satisfaction is often gauged through formal evaluations, feedback from the program office, and the contractor's responsiveness to issues and requests. Successful performance in these areas ensures the Maneuver and Engagement Division receives the critical support needed.

What is the potential impact of this contract on the broader defense engineering services market?

This contract, awarded to Science Applications International Corporation (SAIC), reinforces SAIC's position as a major provider of engineering and program management services within the defense sector. The $39.8 million value over five years signifies a significant commitment by the Department of the Navy to these specific support functions. Its award through full and open competition suggests that the market is robust enough to support such requirements, potentially encouraging other firms to invest in capabilities that align with defense needs. While this specific award might not drastically alter the market landscape, it contributes to the ongoing trend of large, integrated service providers supporting complex defense programs. It also highlights the continued demand for specialized engineering expertise essential for maintaining and advancing military technology and readiness.

Are there any specific risks associated with the 'Engineering Services' NAICS code (541330) in the context of defense contracts?

The 'Engineering Services' NAICS code (541330) within the defense context carries inherent risks related to the complexity and criticality of the services provided. These can include technical risks, such as the possibility of design flaws, integration challenges, or failure to meet stringent performance requirements for advanced military systems. Schedule risks are also common, as engineering projects can face delays due to unforeseen technical hurdles, changing requirements, or supply chain issues. Cost risks are significant, particularly in cost-reimbursable contracts, where project scope creep or inefficient management can lead to budget overruns. Furthermore, security risks are paramount, given the sensitive nature of defense projects, requiring robust cybersecurity and personnel security measures. The long-term nature of many defense engineering projects also introduces obsolescence risk, where technology may become outdated before a system is fully deployed.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002415R3266

Offers Received: 5

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: $55,210,546

Exercised Options: $55,210,546

Current Obligation: $39,847,013

Subaward Activity

Number of Subawards: 52

Total Subaward Amount: $61,241,603

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