DoD's $24M Engineering Services Contract Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $24,025,550 ($24.0M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2020-08-01

End Date: 2026-01-31

Contract Duration: 2,009 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LABOR-COST PLUS FIXED FEE

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 $24.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: LABOR-COST PLUS FIXED FEE 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 incentivize cost control but also carries inherent risks. 3. The duration of the contract extends over multiple years, indicating a need for sustained engineering support. 4. The specific engineering services provided are categorized under NAICS code 541330. 5. The awardee, Science Applications International Corporation, is a large, established government contractor. 6. The contract is a delivery order under a larger contract vehicle, implying a structured procurement approach.

Value Assessment

Rating: fair

The total contract value is $24,001,555.01. Without specific performance metrics or detailed cost breakdowns, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs incurred plus a fixed fee, which can lead to cost overruns if not managed carefully. Benchmarking this against similar engineering services contracts would require detailed analysis of scope and deliverables.

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 two bids suggests a moderate level of competition for this specific delivery order. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Department of Defense benefits from specialized engineering services to support its operations. The contract likely supports various defense projects requiring engineering expertise. Services are delivered within the District of Columbia, impacting the local federal infrastructure. The contract may indirectly support a workforce skilled in engineering and defense-related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not closely monitored.
The long duration of the contract requires ongoing oversight to ensure continued value.
Reliance on a single large contractor for critical services may pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible procurement process.
The contractor, Science Applications International Corporation, has a significant track record in government contracting.
The contract is a delivery order, suggesting it is part of a pre-established and potentially vetted contract vehicle.

Sector Analysis

Engineering services are a critical component of the federal procurement landscape, supporting a wide array of government functions, particularly in defense and infrastructure. The market for these services is substantial, with numerous firms, from large corporations to specialized small businesses, competing for contracts. This specific contract falls within the broader professional, scientific, and technical services sector, which is a significant portion of federal spending. Comparable spending benchmarks would depend on the specific type of engineering required, but overall federal spending on engineering services is in the billions annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information regarding subcontracting plans for small businesses. The award to a large prime contractor like Science Applications International Corporation may limit direct opportunities for small businesses unless they are part of the prime's subcontracting team.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Professional, Scientific, and Technical Services
Cost Plus Fixed Fee Contracts
Washington Headquarters Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases exposure to market fluctuations and technological obsolescence.
Limited competition (2 bidders) may impact price discovery and innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. LABOR-COST PLUS FIXED FEE

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 $24.0 million.

What is the period of performance?

Start: 2020-08-01. End: 2026-01-31.

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

Science Applications International Corporation (SAIC) is a major government contractor with a long history of serving the Department of Defense (DoD). They have been awarded numerous contracts across various domains, including IT services, engineering, logistics, and research and development. SAIC's extensive experience with the DoD suggests a deep understanding of military requirements and procurement processes. Their past performance data, often available through government contract databases, would provide further insight into their reliability, quality of service, and ability to manage complex projects within budget and schedule constraints. Analyzing their historical contract awards, including any performance issues or commendations, is crucial for assessing their suitability for current and future contracts.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is characterized by the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is significant uncertainty in the costs involved, such as in research and development or complex engineering projects. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the contractor to adapt to unforeseen circumstances but shifts more cost risk to the government. It can incentivize contractors to control costs to protect their fixed fee, but it also requires robust government oversight to ensure costs are reasonable and allocable. Other types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives, which CPFF lacks inherently.

What are the potential risks associated with a $24 million engineering services contract awarded to a single large contractor?

Awarding a significant contract of $24 million to a single large contractor like Science Applications International Corporation (SAIC) presents several potential risks. Firstly, there's a risk of contractor over-reliance; the Department of Defense might become overly dependent on SAIC for critical engineering functions, making it difficult to switch providers or bring services in-house if needed. Secondly, without strong competition or performance incentives, there's a risk of complacency, potentially leading to reduced innovation or less aggressive cost management. Thirdly, if SAIC experiences financial difficulties, management issues, or significant performance problems, it could severely disrupt the supported programs. Finally, large contracts can sometimes stifle opportunities for smaller, more specialized firms that might offer innovative solutions or more cost-effective services in specific niches.

How does the duration of this contract (ending January 31, 2026) impact its overall value and risk?

The contract's duration, extending from August 1, 2020, to January 31, 2026 (approximately 5.5 years), has significant implications for its value and risk. A longer duration allows for greater continuity and stability in the provision of engineering services, which can be beneficial for complex, long-term projects where institutional knowledge is valuable. It also allows the contractor to amortize startup costs over a longer period. However, a longer contract term also increases the risk of cost escalation due to inflation or changes in market rates for labor and materials. Furthermore, it extends the period during which performance issues or unforeseen technical challenges could arise, requiring sustained government oversight. The government also locks in a specific set of requirements and pricing for an extended period, potentially missing out on more advantageous market conditions or technological advancements that may emerge.

What does the NAICS code 541330 (Engineering Services) typically encompass within federal contracting?

NAICS code 541330, 'Engineering Services,' encompasses establishments primarily engaged in providing a wide range of engineering services. This includes architectural and engineering services, as well as services related to civil, mechanical, electrical, industrial, and environmental engineering. Federal contracts under this code can involve the design, development, and implementation of complex systems, infrastructure projects, research and development support, technical consulting, and program management. For the Department of Defense, these services are crucial for everything from weapons system design and testing to facility construction and maintenance, and cybersecurity infrastructure. The breadth of this code means that contracts can vary significantly in scope, complexity, and cost, depending on the specific engineering discipline and application.

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: 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: $24,628,982

Exercised Options: $24,628,982

Current Obligation: $24,025,550

Actual Outlays: $103,924

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,595,620

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