DoD awards $28.3M engineering services contract to SAIC, highlighting a 5-year engagement

Contract Overview

Contract Amount: $28,256,777 ($28.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2017-06-01

End Date: 2022-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THIS IS A NEW AWARD.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF THIS IS A NEW AWARD. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 1825 days (5 years) indicates a long-term need for these engineering services. 4. The awardee, Science Applications International Corporation (SAIC), is a large, established government contractor. 5. The contract is for engineering services, a broad category that could encompass various technical support functions. 6. The geographic location is Washington D.C., indicating services likely supporting the Pentagon or related agencies.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed service descriptions and comparable contract data. However, the award amount of $28.3 million over five years averages to approximately $5.66 million per year. This figure needs to be assessed against the specific engineering services provided and the complexity involved. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee, which can sometimes incentivize higher spending if oversight is not rigorous.

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 3 bids suggests a moderate level of competition for this specific requirement. While competition is generally positive, the exact number of bidders does not always correlate directly with the best price or value without further analysis of the bids submitted and the nature of the services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to foster a competitive environment that can drive down prices and improve the quality of services offered.

Public Impact

The Department of Defense benefits from specialized engineering services to support its complex operations and technological advancements. The contract likely supports critical defense infrastructure, systems development, or operational planning within the Washington D.C. area. The workforce implications are likely to involve skilled engineers and technical professionals employed by SAIC and potentially its subcontractors. The geographic impact is concentrated in the National Capital Region, supporting federal government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher costs if not managed effectively.
Lack of specific service details makes it difficult to benchmark value for money.
Long contract duration may reduce flexibility for future technological shifts or needs.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Awardee (SAIC) is a large, experienced contractor with a track record in government services.
Contract duration suggests a stable, long-term requirement, potentially leading to efficiencies.

Sector Analysis

Engineering services represent a significant segment of the professional services market supporting government operations. This contract falls within the broader professional, scientific, and technical services sector, which is crucial for defense agencies requiring specialized expertise. The market for defense engineering services is substantial, with numerous large and small businesses competing for contracts. Benchmarking this award against similar engineering services contracts for the DoD would provide further context on its pricing and scope.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). There is no explicit information provided regarding subcontracting plans for small businesses. Without this information, it is difficult to assess the direct impact on the small business ecosystem, though large prime contractors like SAIC often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Defense's Washington Headquarters Services. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are allowable and reasonable. Transparency is generally maintained through contract reporting mechanisms, though specific details of performance and cost are often not publicly disclosed in full.

Related Government Programs

Department of Defense Engineering Services
Professional, Scientific, and Technical Services
Washington Headquarters Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited public information on specific services provided hinders detailed value assessment.
Competition level (3 bidders) is moderate; further analysis needed to confirm optimal pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF THIS IS A NEW AWARD.

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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2017-06-01. End: 2022-05-31.

What specific types of engineering services are being provided under this contract?

The provided data indicates the contract is for 'Engineering Services' (nd: Engineering Services) with the North American Industry Classification System (NAICS) code 541330. This NAICS code covers establishments primarily engaged in providing architectural, engineering, and related services. However, the specific sub-disciplines or tasks within engineering (e.g., mechanical, electrical, systems, civil, aerospace) are not detailed in the provided summary. These services could range from design and development to testing, analysis, and technical support for various defense systems, infrastructure, or operational requirements. Further details would be found in the contract's Statement of Work (SOW).

How does the average annual cost of this contract compare to similar DoD engineering service contracts?

The contract's total value is $28,256,776.95 over 1825 days (5 years), averaging approximately $5.65 million per year. Comparing this to similar DoD engineering service contracts requires access to a database of comparable awards, including their scope, duration, and specific services rendered. Without such a benchmark, it's difficult to definitively state if this represents a high, low, or average annual cost. Factors like the criticality of the services, the required expertise, security clearances, and the specific technological domain (e.g., cybersecurity, aerospace, naval systems) significantly influence pricing. The CPFF structure also means actual costs could vary.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this award?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, they are reimbursed for all allowable costs incurred. If the contractor's cost estimation is inaccurate or if unforeseen challenges arise, the total cost to the government could exceed initial projections. This structure can sometimes reduce the contractor's incentive to control costs aggressively, as their profit (the fixed fee) is predetermined. Effective oversight by the government is crucial to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. The government must diligently monitor expenditures and ensure that all costs claimed by the contractor are reasonable, allocable, and necessary for contract performance.

What is Science Applications International Corporation's (SAIC) track record with the Department of Defense?

Science Applications International Corporation (SAIC) is a major government contractor with a substantial and long-standing presence serving the Department of Defense (DoD). SAIC provides a wide array of services, including IT, systems engineering, cybersecurity, logistics, and program management, to various branches of the military and defense agencies. They have historically been awarded numerous large-scale contracts across different defense programs. Their track record with the DoD is generally characterized by extensive experience and a broad capability set, though like any large contractor, they are subject to performance reviews and contract compliance requirements. This specific award represents one of many engagements between SAIC and the DoD.

How has federal spending on engineering services, particularly within the DoD, trended over the past five years?

Federal spending on engineering services, especially within the Department of Defense, has generally remained robust, reflecting the ongoing need for technical expertise to support complex military operations, research and development, and infrastructure projects. While specific figures fluctuate annually based on budget allocations and national security priorities, the DoD consistently represents one of the largest federal spenders in this category. Trends often show increased investment in areas like cybersecurity engineering, systems integration, and advanced technological development. Analyzing historical spending patterns for NAICS code 541330 within the DoD would reveal specific growth or contraction trends, influenced by factors such as geopolitical events, modernization initiatives, and budget cycles.

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: HQ003416R0133

Offers Received: 3

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: $28,256,777

Exercised Options: $28,256,777

Current Obligation: $28,256,777

Actual Outlays: $1,625,920

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $21,993,922

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003417D0003

IDV Type: IDC

Timeline