DoD awards $46.8M for submarine signature silencing support, with SAIC as prime

Contract Overview

Contract Amount: $46,776,547 ($46.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2010-11-30

End Date: 2024-01-25

Contract Duration: 4,804 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES FOR THE OPERATION OF SUBMARINE AND SURFACE SHIP SIGNATURE SILENCING PROGRAMS.

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $46.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES FOR THE OPERATION OF SUBMARINE AND SURFACE SHIP SIGNATURE SILENCING PROGRAMS. Key points: 1. Contract provides critical engineering and technical support for naval signature silencing programs. 2. Long-term contract duration (4804 days) suggests ongoing need for specialized services. 3. Cost-plus-fixed-fee structure incentivizes efficient cost management by the contractor. 4. Full and open competition indicates a robust bidding process. 5. Prime contractor, Science Applications International Corporation (SAIC), has extensive defense sector experience. 6. Services are essential for maintaining the stealth capabilities of U.S. Navy vessels.

Value Assessment

Rating: good

The contract's value of approximately $46.8 million over its duration appears reasonable given the specialized nature of engineering, technical, and management support for submarine and surface ship signature silencing programs. While a direct per-unit cost comparison is difficult without more granular data on specific deliverables, the fixed fee component within the cost-plus structure suggests an effort to control overall program expenses. Benchmarking against similar complex defense support contracts would provide further insight, but the long duration and critical mission focus imply a significant investment is warranted.

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 specific number of bidders is not provided, but the 'full and open' designation generally suggests a competitive environment that allows for price discovery and selection of the most advantageous offer. This approach is typically favored for significant procurements to ensure the government receives the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring that government funds are used efficiently.

Public Impact

The U.S. Navy benefits directly through enhanced operational capabilities of its submarine and surface fleets. Services delivered include crucial engineering, technical, and management support for signature silencing programs. The geographic impact is primarily national, supporting naval operations and research facilities. Workforce implications include employment for highly skilled engineers, scientists, and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not closely monitored.
Reliance on a single prime contractor for critical, long-term support services.
The specialized nature of the work may limit the pool of qualified subcontractors.

Positive Signals

Long-term contract provides stability and continuity for essential defense programs.
Full and open competition suggests a strong market response and potential for value.
Prime contractor's experience in similar defense programs indicates a high likelihood of successful execution.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. The market for specialized naval engineering and technical support is dominated by a few large, experienced defense contractors. Spending in this niche is driven by the need for advanced technological capabilities, particularly in areas like acoustic signature management for submarines and surface vessels, which are critical for maintaining a strategic advantage. Comparable spending benchmarks would likely be found within other large, long-duration defense support contracts requiring deep technical expertise.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large prime contract awarded through full and open competition, the primary focus is likely on the prime contractor's capabilities. However, large prime contractors often engage small businesses for specialized support, so there may be indirect opportunities, but direct set-aside analysis is not possible with the given information.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), as indicated by the 'SA' field. Accountability measures would be embedded within the Cost Plus Fixed Fee (CPFF) contract terms, requiring the contractor to justify costs and meet performance milestones. Transparency is generally maintained through contract reporting requirements, though specific public access to detailed performance metrics may be limited due to national security considerations.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Programs
Submarine Warfare Programs
Surface Ship Modernization
Defense Engineering Services
Acoustic Signature Management

Risk Flags

Long contract duration may increase risk of scope creep or evolving requirements.
Cost-plus contract type requires diligent oversight to manage costs effectively.
Reliance on a single prime contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING, TECHNICAL AND MANAGEMENT SUPPORT SERVICES FOR THE OPERATION OF SUBMARINE AND SURFACE SHIP SIGNATURE SILENCING PROGRAMS.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $46.8 million.

What is the period of performance?

Start: 2010-11-30. End: 2024-01-25.

What is the historical spending trend for signature silencing support services by the Department of Defense?

Analyzing historical spending trends for signature silencing support services requires access to detailed contract databases and budget allocations over multiple fiscal years. While this specific contract represents a significant award, understanding the broader trend involves examining the total obligated amounts for similar services across different naval programs and agencies. Factors such as geopolitical shifts, technological advancements in detection and counter-detection, and the overall naval shipbuilding and modernization budget heavily influence these spending patterns. Without access to aggregated historical data for this specific service category, it is difficult to provide a precise trend analysis. However, it is reasonable to infer that spending in this area remains consistently high due to the critical nature of stealth technology for naval superiority, particularly for submarine operations.

How does the cost-plus-fixed-fee (CPFF) structure impact contractor incentives and potential cost overruns compared to other contract types?

The Cost-Plus-Fixed-Fee (CPFF) contract type is designed to provide the contractor with reimbursement for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to perform the work efficiently to maximize their profit margin, as the fee remains constant regardless of the final cost. However, it also carries a risk of cost overruns if the initial cost estimates are inaccurate or if unforeseen complexities arise during performance. Unlike fixed-price contracts where the contractor bears the risk of cost overruns, in CPFF, the government ultimately bears the risk of increased costs, provided they are allowable. Effective oversight and robust cost accounting standards are crucial to mitigate this risk and ensure the government receives good value.

What is Science Applications International Corporation's (SAIC) track record with similar large-scale defense engineering contracts?

Science Applications International Corporation (SAIC) has a well-established and extensive track record in providing large-scale engineering, technical, and management support services to the Department of Defense and other federal agencies. They are a major defense contractor with significant experience in complex systems engineering, IT solutions, and program management across various military branches. SAIC has historically secured and successfully executed numerous contracts involving naval systems, including those related to submarine and surface ship operations, cybersecurity, and advanced technological development. Their long-standing presence and consistent award of substantial contracts in these domains suggest a strong capability to manage intricate projects, meet stringent performance requirements, and deliver reliable support for critical defense missions like signature silencing.

What are the key performance indicators (KPIs) typically used to evaluate the success of signature silencing support contracts?

Key Performance Indicators (KPIs) for signature silencing support contracts typically focus on technical performance, schedule adherence, cost control, and program management effectiveness. For technical performance, KPIs might include the accuracy and reliability of signature analysis, the effectiveness of proposed silencing solutions, and the successful integration of new technologies. Schedule adherence would be measured by the timely completion of project milestones and deliverables. Cost control KPIs would involve managing project costs within the estimated budget and demonstrating efficient use of resources, particularly relevant in a CPFF structure. Program management effectiveness could be assessed through factors like responsiveness to government requests, quality of reporting, and overall stakeholder satisfaction. Specific metrics are often tailored to the unique requirements of each contract and may involve classified performance data.

How does the geographic location of the contractor or performance impact the cost and efficiency of this contract?

The geographic location of the contractor's primary operations and where the contract performance occurs can significantly impact cost and efficiency. If SAIC's main engineering and technical support facilities are located in areas with higher labor costs (e.g., major metropolitan areas or defense hubs), this could translate to higher personnel expenses, which are a significant component of cost-plus contracts. Conversely, performance at government facilities or shipyards might involve different logistical considerations and overhead. Travel costs, facility usage fees, and local wage rates all play a role. The contract specifies 'MASSACHUSETTS' as the 'State Name' (SN), suggesting a significant portion of the work or contractor presence is in that state, which is known for having a substantial defense industry presence and associated labor costs. Proximity to key naval bases or research centers could offer efficiency benefits, while distance might introduce travel expenses and coordination challenges.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002410R3417

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: $46,880,989

Exercised Options: $46,880,989

Current Obligation: $46,776,547

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $158,476

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