GSA awards $73M engineering services contract to Science Applications International Corporation for 5 years

Contract Overview

Contract Amount: $73,089,646 ($73.1M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2016-05-26

End Date: 2021-08-25

Contract Duration: 1,917 days

Daily Burn Rate: $38.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF TECHNICAL, ANALYTICAL, OPERATIONAL, PROGRAMMATIC, AND PLANNING SUBJECT MATTER EXPERTISE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $73.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CL::IGF TECHNICAL, ANALYTICAL, OPERATIONAL, PROGRAMMATIC, AND PLANNING SUBJECT MATTER EXPERTISE Key points: 1. Contract value of $73.1M over 5 years suggests a significant investment in engineering expertise. 2. Full and open competition indicates a potentially competitive bidding process. 3. Delivery order contract type implies flexibility in tasking and potential for scope adjustments. 4. Time and Materials pricing structure carries inherent risk of cost overruns if not closely managed. 5. The contract supports engineering services, a critical component for various government operations. 6. The award to a single contractor, Science Applications International Corporation, warrants scrutiny of performance and pricing. 7. The contract duration of 1917 days (approx. 5.25 years) aligns with typical project lifecycles for complex engineering needs.

Value Assessment

Rating: fair

The contract value of $73.1 million over approximately 5.25 years averages to about $13.9 million annually. Without specific benchmarks for similar engineering services contracts from GSA or other agencies, it is difficult to definitively assess value for money. The Time and Materials (T&M) pricing mechanism, while offering flexibility, can lead to higher costs compared to fixed-price contracts if not meticulously managed and monitored for efficiency. The contract's duration and total value suggest a substantial need for specialized engineering support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely invited to submit proposals. This method is generally preferred as it maximizes the pool of potential offerors and fosters a competitive environment, which can lead to better pricing and quality. The number of bidders and the specific evaluation criteria used would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages innovation among contractors vying for the award.

Public Impact

The primary beneficiaries are government agencies requiring specialized engineering, technical, analytical, operational, programmatic, and planning expertise. Services delivered likely encompass a broad range of engineering disciplines essential for government projects and operations. The contract's performance is centered in the District of Columbia, indicating a focus on federal operations within the capital. Workforce implications include the potential for employment of engineers, analysts, and technical specialists by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not strictly managed and monitored for efficiency and necessity of hours billed.
The long duration of the contract (over 5 years) increases the risk of scope creep or evolving requirements not being adequately addressed within the original T&M framework.
Lack of specific performance metrics or clear deliverables in the provided data makes it difficult to assess the contractor's performance trajectory.
Reliance on a single contractor for a significant duration may limit flexibility in adopting new technologies or approaches if the contractor's capabilities become outdated.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contract supports critical engineering and technical services vital for government operations.
The contractor, Science Applications International Corporation, is a large, established entity with a significant presence in government contracting, implying experience and resources.
The contract duration aligns with the potential need for sustained, specialized expertise over multiple project phases.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a broad category encompassing firms that provide engineering consulting and design services. The federal government is a significant consumer of these services, utilizing them for infrastructure projects, defense systems, research and development, and operational support. Market size for federal engineering services is substantial, with billions spent annually across various agencies. This contract with GSA likely supports a portfolio of projects requiring diverse engineering expertise.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary focus appears to be on securing the necessary engineering expertise through a large, established contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms would include contract officer representatives (CORs) monitoring performance, adherence to the contract terms, and proper billing under the Time and Materials structure. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Engineering Services
Technical Support Services
Program Management Support
Professional Services
GSA Federal Acquisition Service Contracts

Risk Flags

Time and Materials Pricing
Long Contract Duration
Potential for Scope Creep
High Cost of Living Area

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $73.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CL::IGF TECHNICAL, ANALYTICAL, OPERATIONAL, PROGRAMMATIC, AND PLANNING SUBJECT MATTER EXPERTISE

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $73.1 million.

What is the period of performance?

Start: 2016-05-26. End: 2021-08-25.

What is the historical spending pattern for engineering services under GSA's Federal Acquisition Service?

Historical spending on engineering services through GSA's Federal Acquisition Service (FAS) has been substantial, reflecting the government's continuous need for technical expertise across various domains. While specific aggregate data for 'engineering services' within FAS can fluctuate based on agency needs and budget allocations, GSA consistently awards billions of dollars annually for professional and technical services. Contracts like this one, often awarded via IDIQ vehicles or direct solicitations, contribute to this overall spending. Analyzing past awards within NAICS code 541330 (Engineering Services) and related categories can reveal trends in contract values, durations, and the types of services most frequently procured. This particular contract's value of $73.1M over five years is a significant, but not unprecedented, award within the broader context of federal engineering service procurements managed by GSA.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar engineering services?

Time and Materials (T&M) contracts, like the one awarded to Science Applications International Corporation, compensate contractors for the direct labor hours at specified fixed hourly rates and for the actual cost of materials. This structure offers flexibility, allowing for adjustments in scope and effort as a project evolves, which can be beneficial for research, development, or services where the exact requirements are not fully defined at the outset. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the total cost is not predetermined. For engineering services where requirements are well-defined and stable, fixed-price or cost-plus-fixed-fee contracts might offer better cost certainty and value for money. The effectiveness of a T&M contract hinges on robust government oversight to ensure efficient labor utilization and prevent unnecessary material purchases.

What is Science Applications International Corporation's track record with GSA and similar federal engineering contracts?

Science Applications International Corporation (SAIC) is a major federal contractor with a long history of providing a wide array of services, including engineering, IT, and technical support, to various government agencies. Their track record with GSA is extensive, often involving large-scale contracts awarded through competitive processes. SAIC has consistently secured significant awards for engineering and technical services across defense, civilian, and intelligence sectors. Performance reviews and past performance evaluations from previous contracts are critical components of the source selection process for new awards. While specific details of past performance on GSA contracts are not provided here, SAIC's status as a prime contractor on numerous large federal awards suggests a generally established capability and experience relevant to this type of engineering services requirement.

What are the potential risks associated with a $73M engineering services contract awarded under full and open competition?

While full and open competition is generally advantageous, potential risks associated with a $73M engineering services contract include: 1) Cost Overruns: The Time and Materials (T&M) pricing structure, if not rigorously managed, can lead to costs exceeding the initial estimates. 2) Scope Creep: The flexibility inherent in T&M contracts can sometimes lead to an uncontrolled expansion of project scope, increasing costs and timelines. 3) Performance Issues: Despite competition, the selected contractor may not consistently meet performance expectations, leading to delays or subpar deliverables. 4) Contractor Dependency: A long-term, high-value contract can create significant dependency on a single entity, potentially limiting the government's agility in adopting new solutions or switching providers if performance falters. 5) Market Dynamics: While competition was open, the specific market for highly specialized engineering expertise might be limited, potentially impacting long-term pricing competitiveness.

How does the geographic location (District of Columbia) influence the nature and cost of these engineering services?

The contract's performance location in the District of Columbia (DC) significantly influences the nature and cost of engineering services. DC is a hub for federal agencies, requiring specialized engineering support for a dense concentration of government facilities, infrastructure, and policy-driven projects. The cost of living and doing business in the DC metropolitan area is notably higher than in many other regions of the U.S. This translates to higher labor rates for skilled professionals, including engineers and technical staff, as well as increased overhead costs for contractors operating in the area. Consequently, engineering services procured in DC often command higher price points compared to similar services rendered in lower-cost geographic locations. The proximity to federal decision-makers and the unique regulatory and operational environment within the capital also shape the specific types of engineering expertise required.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12010, SUNSET HILLS ROAD, 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: $177,285,822

Exercised Options: $120,435,400

Current Obligation: $73,089,646

Actual Outlays: $-68,556

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $131,520,508

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU130

IDV Type: IDC

Timeline