DoD Awards $66.5M Engineering Support Contract to Science Applications International Corp

Contract Overview

Contract Amount: $66,504,867 ($66.5M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2016-06-24

End Date: 2025-07-05

Contract Duration: 3,298 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THIS REQUIREMENT IS FOR NON-PERSONAL PROFESSIONAL SUPPORT IN THE FOLLOWING AREAS, ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES, SCIENTIFIC/ENGINEERING ANALYSIS AND STUDIES, TEST AND EVALUATION, TECHNICAL DATA SUPPORT, FIELD ENGINEERING, INTEGRATED LOGISTICS SUPPORT (ILS), CONFIGURATION MANAGEMENT (CM), MANAGEMENT SUPPORT SERVICES, DATA MANAGEMENT SUPPORT, AND PROTOTYPE FABRICATION.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $66.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF THIS REQUIREMENT IS FOR NON-PERSONAL PROFESSIONAL SUPPORT IN THE FOLLOWING AREAS, ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES, SCIENTIFIC/ENGINEERING ANALYSIS AND STUDIES, TEST AND EVALUATION, TECHNICAL DATA SUPPORT, FIELD ENGINEERING, INTEGRATED LOGISTICS… Key points: 1. Contract awarded via full and open competition, indicating a competitive bidding process. 2. The contract spans over 9 years, suggesting a long-term need for these services. 3. Services include engineering, technical, and management support, vital for complex defense projects. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may lead to cost overruns if not managed carefully.

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex services where costs are difficult to predict. While it allows for flexibility, it carries a risk of cost escalation if the contractor's expenses exceed initial estimates. Benchmarking against similar CPFF contracts for engineering support is crucial to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders participated. This method generally promotes price discovery and can lead to more competitive pricing. The use of a Delivery Order (DO) under a larger contract framework implies a structured procurement process.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by fostering a competitive environment. However, the CPFF structure requires diligent oversight to prevent unnecessary costs.

Public Impact

Ensures continued engineering and technical expertise for critical Department of the Navy programs. Supports advanced scientific and engineering analysis, crucial for defense innovation and readiness. Provides essential management and logistics support, contributing to the efficiency of military operations. The long duration of the contract impacts long-term budget planning for the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns due to CPFF pricing structure.
  • Long contract duration may not adapt well to rapidly changing technological needs.
  • Lack of specific performance metrics in provided data.

Positive Signals

  • Awarded through full and open competition, promoting market competition.
  • Services are critical for national defense and technological advancement.
  • Experienced contractor likely to provide high-quality support.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant area of government spending, particularly within the Department of Defense. Benchmarks for similar contracts often vary widely based on the specific technical requirements and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and was awarded under a prime contract. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Cost Plus Fixed Fee (CPFF) structure necessitates robust oversight from the Department of the Navy to monitor contractor costs and ensure performance aligns with contract requirements. Regular audits and performance reviews are essential for accountability.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee (CPFF) pricing model.
  • Long contract duration (over 9 years).
  • Potential for scope creep without clear performance metrics.
  • Lack of small business subcontracting information.
  • Reliance on a single contractor for a broad range of critical services.

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 $66.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF THIS REQUIREMENT IS FOR NON-PERSONAL PROFESSIONAL SUPPORT IN THE FOLLOWING AREAS, ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES, SCIENTIFIC/ENGINEERING ANALYSIS AND STUDIES, TEST AND EVALUATION, TECHNICAL DATA SUPPORT, FIELD ENGINEERING, INTEGRATED LOGISTICS SUPPORT (ILS), CONFIGURATION MANAGEMENT (CM), MANAGEMENT SUPPORT SERVICES, DATA MANAGEMENT SUPPORT, AND PROTOTYPE FABRICATION.

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 $66.5 million.

What is the period of performance?

Start: 2016-06-24. End: 2025-07-05.

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

The total contract value is $66.5 million over approximately 9 years, averaging around $7.4 million per year. This figure needs to be benchmarked against industry standards for comparable engineering, technical, and management support services, considering the specific scope and complexity outlined in the contract. Without detailed cost breakdowns, a precise comparison is difficult, but this annual average provides a starting point for value assessment.

What are the specific performance metrics and key performance indicators (KPIs) used to evaluate the contractor's effectiveness and ensure taxpayer value?

The provided data does not specify the performance metrics or KPIs. For a CPFF contract of this magnitude and duration, robust KPIs are crucial for ensuring effectiveness and accountability. These should include measures related to technical performance, adherence to schedules, cost control, and overall mission support. The Department of the Navy's oversight process should detail how these metrics are tracked and reported.

What is the risk associated with the Cost Plus Fixed Fee (CPFF) pricing model, and what mitigation strategies are in place?

The primary risk of CPFF is potential cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee. Mitigation strategies typically involve stringent cost monitoring, regular audits, clear definition of allowable costs, and performance incentives. The government must actively manage the contract to ensure costs remain reasonable and the fixed fee adequately compensates the contractor for the agreed-upon scope.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002415R3112

Offers Received: 2

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: $68,788,480

Exercised Options: $68,788,480

Current Obligation: $66,504,867

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $29,134,559

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: 2016-06-24

Current End Date: 2025-07-05

Potential End Date: 2025-07-05 00:00:00

Last Modified: 2025-11-05

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