DoD's $44.4M Engineering Services Contract with SAIC: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $44,395,346 ($44.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2016-04-08

End Date: 2021-04-07

Contract Duration: 1,825 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF NON-PERSONAL PROFESSIONAL ENGINEERING, TECHNICAL ASSESSMENTS&SPECIAL STUDIES, AND MANAGEMENT SUPPORT SERVICES REQUIRED BY THE STRATEGIC MISSIONS SYSTEMS ENGINEERING DIVISION (GXT) AT NSWC CRANE.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $44.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF NON-PERSONAL PROFESSIONAL ENGINEERING, TECHNICAL ASSESSMENTS&SPECIAL STUDIES, AND MANAGEMENT SUPPORT SERVICES REQUIRED BY THE STRATEGIC MISSIONS SYSTEMS ENGINEERING DIVISION (GXT) AT NSWC CRANE. Key points: 1. Analysis of a significant contract for engineering and technical support services. 2. Examines the competitive landscape and its impact on pricing. 3. Assesses the value proposition and performance context of the services. 4. Identifies potential risks and positive signals associated with the contract. 5. Positions the contract within the broader defense sector spending. 6. Evaluates the role of small businesses in this procurement.

Value Assessment

Rating: good

The contract's total value of $44.4 million over five years suggests a substantial investment in specialized engineering and technical support. While specific performance metrics are not detailed here, the duration and scope indicate a need for consistent, high-level expertise. Benchmarking against similar large-scale engineering support contracts within the Department of Defense would provide a clearer picture of value for money, but the fixed-fee structure on a cost-plus basis aims to control overall expenditure while incentivizing efficient service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a single award, however, means that while the competition was broad, the final selection was made from the pool of qualified offerors. This approach generally fosters competitive pricing and encourages a wide range of technical solutions, though the specific number of bidders is not provided.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is designed to drive down costs through market forces and ensure the government receives the best possible value from a diverse range of potential providers.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Strategic Missions Systems Engineering Division at NSWC Crane, which receives critical engineering and technical support. Services delivered include professional engineering, technical assessments, special studies, and management support. The geographic impact is centered around NSWC Crane in Indiana, a key naval warfare center. Workforce implications include the potential for highly skilled engineers and technical professionals to be engaged through Science Applications International Corporation (SAIC).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed effectively under the cost-plus structure.
Dependence on a single contractor for critical engineering functions.
Risk of scope creep if requirements are not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract duration of five years allows for long-term planning and stability.
Focus on specialized engineering and technical services indicates a strategic need.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Defense Industrial Base. The market for such services is characterized by high barriers to entry due to specialized knowledge requirements and security clearances. Spending in this area is often driven by complex defense acquisition programs and the need for advanced technical expertise. Comparable spending benchmarks would typically be found within other large-scale engineering support contracts awarded to major defense contractors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to Science Applications International Corporation, a major defense contractor, the primary impact on small businesses would likely be through subcontracting opportunities. The extent to which SAIC engages small businesses as subcontractors will determine the overall benefit to the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers at NSWC Crane. The cost-plus fixed-fee (CPFF) contract type necessitates close monitoring of costs incurred by the contractor to ensure they align with the fixed fee and the overall contract ceiling. Transparency is generally maintained through contract reporting requirements, and any significant issues or potential fraud could fall under the jurisdiction of the Department of Defense's Inspector General.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Support Services
NSWC Crane Support Contracts
Strategic Missions Systems Engineering Support

Risk Flags

Cost Control Risk (CPFF)
Contractor Performance Risk
Scope Management Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF NON-PERSONAL PROFESSIONAL ENGINEERING, TECHNICAL ASSESSMENTS&SPECIAL STUDIES, AND MANAGEMENT SUPPORT SERVICES REQUIRED BY THE STRATEGIC MISSIONS SYSTEMS ENGINEERING DIVISION (GXT) AT 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 $44.4 million.

What is the period of performance?

Start: 2016-04-08. End: 2021-04-07.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar engineering and technical support services to the Department of Defense?

Science Applications International Corporation (SAIC) is a well-established government contractor with a significant history of providing a wide range of technical, engineering, and IT services to the Department of Defense and other federal agencies. They have a substantial portfolio of contracts supporting complex defense programs, including systems engineering, integration, and sustainment. SAIC's experience often involves supporting critical missions similar to those at NSWC Crane. Their track record generally includes managing large, multi-year contracts and delivering specialized expertise. However, like any large contractor, specific performance on individual contracts can vary, and a detailed review of past performance evaluations and any past issues would be necessary for a comprehensive assessment of their reliability on this specific contract.

How does the $44.4 million contract value compare to other engineering services contracts awarded by the Department of the Navy for similar support?

The $44.4 million contract value over five years, averaging approximately $8.88 million per year, places this contract in the mid-to-large tier for specialized engineering support services within the Department of the Navy. While not as large as major platform development contracts, it represents a significant investment in critical technical expertise. Comparable contracts would likely involve other naval warfare centers or system commands requiring similar levels of engineering, technical assessment, and management support. The specific nature of the services (engineering, technical assessments, special studies, management support) suggests it is comparable to contracts for program management support, systems engineering, and technical assistance. A precise comparison would require analyzing the scope and duration of other contracts within the same NAICS code (541330) and agency.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how are they mitigated in this case?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their allowable costs are reimbursed, and they receive a predetermined fixed fee. This can lead to potential cost overruns if not managed diligently. Mitigation strategies for this contract would involve robust oversight from the Department of the Navy, including detailed review and auditing of contractor-incurred costs, strict adherence to the contract's scope of work, and performance metrics that tie fee realization to successful outcomes. The fixed fee itself provides a ceiling on the profit, and the government's ability to manage the scope and monitor expenditures are key to mitigating risks and ensuring value for money.

What is the strategic importance of the Strategic Missions Systems Engineering Division (GXT) at NSWC Crane, and how does this contract support its mission?

The Naval Surface Warfare Center (NSWC) Crane Division is a key component of the U.S. Navy's warfare centers, focusing on research, development, acquisition, test, and evaluation of advanced technologies for naval, joint, and combined warfare. The Strategic Missions Systems Engineering Division (GXT) likely plays a crucial role in supporting the development and integration of complex systems critical to national security. This contract, providing engineering, technical assessments, special studies, and management support, is vital for ensuring that these strategic missions are technically sound, well-managed, and effectively executed. It enables NSWC Crane to leverage specialized external expertise to augment its organic capabilities, thereby enhancing its ability to deliver cutting-edge solutions and maintain technological superiority.

How has federal spending on engineering services (NAICS 541330) by the Department of Defense evolved over the past five years, and where does this contract fit?

Federal spending on engineering services, categorized under NAICS code 541330, by the Department of Defense (DoD) has historically been substantial, reflecting the complexity and scale of military operations and acquisition programs. Over the past five years, this spending has generally remained robust, driven by modernization efforts, research and development, and ongoing support for existing platforms. This $44.4 million contract represents a specific allocation within that broader spending trend, focusing on specialized engineering and technical support for strategic missions at NSWC Crane. While it is a significant sum for a single contract, it is a fraction of the total DoD expenditure in this category, which can run into billions of dollars annually across various agencies and programs.

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: N0002416R3371

Offers Received: 1

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: $48,543,208

Exercised Options: $48,543,208

Current Obligation: $44,395,346

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $77,690,171

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