DoD's $42.8M Engineering Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $42,806,060 ($42.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-13
End Date: 2026-08-31
Contract Duration: 1,083 days
Daily Burn Rate: $39.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TECHNICAL, ANALYTICAL, FINANCIAL, ADMINISTRATIVE, AND SPECIALIZED SUPPORT SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $42.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TECHNICAL, ANALYTICAL, FINANCIAL, ADMINISTRATIVE, AND SPECIALIZED SUPPORT SERVICES Key points: 1. Contract provides essential technical, analytical, and specialized support services. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. Duration of over 1000 days indicates a long-term need for these services. 4. Firm Fixed Price contract type offers cost certainty for the government. 5. The contractor, SAIC, is a major player in the federal contracting space. 6. Services are categorized under Engineering Services (NAICS 541330).
Value Assessment
Rating: good
The contract value of $42.8 million over approximately three years appears reasonable for the scope of technical, analytical, and specialized support services. Benchmarking against similar large-scale engineering support contracts within the Department of Defense suggests this pricing is within expected ranges. The firm fixed-price structure provides a degree of cost control, though the ultimate value will depend on the efficiency of service delivery by Science Applications International Corporation.
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 competitive environment, which typically drives better pricing and service offerings. This level of competition is generally favorable for the government, as it allows for a thorough evaluation of various capabilities and cost proposals.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the services rendered, potentially leading to cost savings compared to less competitive procurement methods.
Public Impact
The Department of Defense benefits from enhanced technical, analytical, and specialized support. Services are critical for ongoing operations and strategic initiatives within the agency. The contract supports specialized engineering expertise, contributing to project success. Workforce implications include the potential for skilled engineers and analysts to be engaged.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term, fixed-price contracts if not managed diligently.
- Reliance on a single large contractor for critical support services could pose a risk if performance falters.
Positive Signals
- Award to a well-established contractor with a significant federal presence.
- Firm Fixed Price contract provides budget predictability.
- Full and open competition suggests a thorough vetting of potential providers.
Sector Analysis
The Engineering Services sector (NAICS 541330) is a significant component of federal spending, particularly within the Department of Defense, which relies heavily on specialized technical and analytical support for its complex operations. This contract fits within the broader landscape of professional services procured by the government to augment in-house capabilities. Comparable spending benchmarks for large-scale engineering support contracts often run into tens or hundreds of millions of dollars, depending on the duration and scope.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is not immediately clear. Further analysis of subcontracting reports would be necessary to assess the extent of small business involvement.
Oversight & Accountability
Oversight for this contract will likely be managed by the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon budget. Transparency is generally maintained through federal procurement databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Professional Services Contracts
- Engineering and Technical Support Services
- Science Applications International Corporation Contracts
- Washington Headquarters Services Contracts
Risk Flags
- Long duration fixed-price contract may be susceptible to cost overruns if scope changes.
- Reliance on a single large contractor for critical support services.
Tags
defense, department-of-defense, engineering-services, science-applications-international-corporation, washington-headquarters-services, firm-fixed-price, full-and-open-competition, professional-services, technical-support, analytical-support, specialized-support, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TECHNICAL, ANALYTICAL, FINANCIAL, ADMINISTRATIVE, AND SPECIALIZED SUPPORT SERVICES
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 $42.8 million.
What is the period of performance?
Start: 2023-09-13. End: 2026-08-31.
What is the track record of Science Applications International Corporation (SAIC) in delivering similar engineering and technical support services to the federal government?
Science Applications International Corporation (SAIC) has a long and extensive history of providing a wide array of technical, engineering, and IT services to the federal government, including significant work with the Department of Defense. They are a major federal contractor with a substantial portfolio of contracts across various agencies. Their track record includes support for complex systems engineering, program management, cybersecurity, and advanced research and development. While specific performance metrics for individual contracts are not always publicly detailed, SAIC's consistent presence and large contract awards suggest a generally accepted capability to perform. However, like any large contractor, they may have faced past performance reviews or disputes on specific projects, which would be detailed in agency performance databases not publicly accessible in full.
How does the $42.8 million contract value compare to other engineering services contracts awarded by the Department of Defense in the last fiscal year?
The $42.8 million contract value for engineering services awarded to SAIC falls within a common range for significant, multi-year support contracts within the Department of Defense (DoD). The DoD procures a vast number of engineering and technical support contracts annually, with values ranging from small, specialized task orders to multi-billion dollar programs. Contracts in the tens of millions of dollars are typical for providing comprehensive support over a period of 1-3 years for specific projects or operational needs. To provide a precise comparison, one would need to analyze the distribution of contract values for NAICS code 541330 (Engineering Services) awarded by the DoD in the relevant fiscal year, looking at the median, average, and percentile ranks. However, an award of this magnitude is neither exceptionally large nor small, representing a substantial but not unprecedented investment in specialized engineering expertise.
What are the primary risks associated with a firm fixed-price contract of this duration (over 1000 days)?
The primary risks associated with a firm fixed-price (FFP) contract of this duration (over 1000 days) revolve around potential scope creep and the contractor's ability to maintain profitability if costs escalate unexpectedly. For the government, the risk is that the fixed price may become uncompetitive if market conditions change significantly or if the scope of work needs to be adjusted substantially, potentially requiring costly modifications. For the contractor, the risk is that unforeseen technical challenges, material cost increases, or labor rate hikes could erode profit margins or lead to losses if they cannot absorb these increases within the fixed price. Effective contract management, including clear initial scope definition and a robust change control process, is crucial to mitigate these risks for both parties.
What specific types of engineering services are typically encompassed by NAICS code 541330 and how might they apply to this DoD contract?
NAICS code 541330, Engineering Services, encompasses a broad range of professional services involving the application of engineering principles. This includes services such as aerospace, chemical, civil, electrical, environmental, industrial, mechanical, and structural engineering. For a Department of Defense contract, these services could involve designing, developing, and testing military systems and equipment; providing technical support for existing platforms; conducting feasibility studies; performing systems integration; ensuring compliance with military specifications and standards; and offering program management support for complex defense projects. Given the 'technical, analytical, and specialized support services' description, this contract likely involves a combination of design, analysis, testing, and advisory engineering functions critical to DoD operations and modernization efforts.
Are there any indications of potential performance issues or past disputes related to SAIC's contracts with the Department of Defense?
Publicly available information does not typically detail specific performance issues or disputes for individual contracts unless they result in significant legal action, contract termination, or are highlighted in official Inspector General reports. Science Applications International Corporation (SAIC) is a large, established contractor, and like many companies of its size operating extensively within the federal space, it is plausible that they have encountered performance challenges or contractual disagreements on some projects over their history. However, without access to proprietary contract performance databases or specific public reports detailing such issues for this particular contract or related ones, it is not possible to definitively state whether there are indications of performance problems. The award itself, under full and open competition, suggests that SAIC met the required performance and responsibility criteria at the time of selection.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
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: $88,249,093
Exercised Options: $46,965,058
Current Obligation: $42,806,060
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $36,614,065
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
Start Date: 2023-09-13
Current End Date: 2026-08-31
Potential End Date: 2028-08-31 00:00:00
Last Modified: 2025-10-28
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