DoD's Missile Defense Agency spent over $33.4M on analytical engineering labor with Science Applications International Corporation
Contract Overview
Contract Amount: $33,430,517 ($33.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2017-09-12
End Date: 2022-09-12
Contract Duration: 1,826 days
Daily Burn Rate: $18.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ANALYTICAL ENGINEERING LABOR FOR THE DE IGF::OT::IGF
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $33.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ANALYTICAL ENGINEERING LABOR FOR THE DE IGF::OT::IGF Key points: 1. Contract awarded for extensive analytical engineering support, indicating a need for specialized expertise. 2. The contract duration of five years suggests a long-term requirement for these services. 3. Awarded as a definitive contract, implying a clear scope of work and defined deliverables. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to advanced technical services. 5. The contractor, Science Applications International Corporation, is a large, established entity in the defense sector. 6. The absence of small business set-aside flags suggests the contract was not specifically targeted for small business participation.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without detailed cost breakdowns or comparisons to similar sole-source procurements. The total obligation of $33.4 million over five years averages to approximately $6.7 million annually. While this figure is substantial, its value-for-money assessment depends heavily on the criticality of the analytical engineering services provided to the Missile Defense Agency's mission and the uniqueness of the contractor's capabilities. Without competitive bids, it's difficult to ascertain if this represents optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when only one vendor possesses the necessary specialized skills, technology, or proprietary information required for the service. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids had been solicited.
Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive pricing, which could have potentially lowered the overall cost of these critical analytical engineering services.
Public Impact
The primary beneficiaries are the Department of Defense and the Missile Defense Agency, receiving specialized analytical engineering support. The services delivered are crucial for the research and development efforts within the missile defense domain. The geographic impact is primarily within Virginia, where the agency is located, and potentially extends to other defense installations requiring these analytical services. The contract supports a highly skilled workforce in specialized engineering and analytical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced incentive for cost efficiency.
- Sole-source awards can limit opportunities for new or innovative solutions from a broader market.
- The significant dollar value of the contract warrants close scrutiny of performance and deliverables to ensure taxpayer funds are used effectively.
Positive Signals
- Award to a large, experienced contractor like SAIC suggests a high likelihood of technical capability and project execution.
- The long contract duration indicates a stable, ongoing need for these specialized services, implying strategic importance.
- The specific NAICS code suggests the contract is focused on high-value, advanced R&D activities.
Sector Analysis
This contract falls within the 'Research and Development in the Physical, Engineering, and Life Sciences' sector, specifically related to defense applications. The market for specialized analytical engineering services for defense is dominated by a few large, established contractors with deep technical expertise and security clearances. Spending in this sector is often characterized by long-term, high-value contracts driven by national security requirements and technological advancements. Comparable spending benchmarks are difficult to establish due to the specialized nature and sole-source awards common in this niche.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to Science Applications International Corporation, a large prime contractor, suggests that the primary focus was on securing specialized capabilities rather than promoting small business participation directly through this specific award. Any involvement of small businesses would likely be through subcontracting opportunities offered by SAIC, which are not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Missile Defense Agency. As a cost-plus-fixed-fee contract, there are specific reporting requirements for costs incurred and progress made. Transparency is generally maintained through contract databases and agency reporting, though detailed performance metrics are often proprietary. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Missile Defense Systems
- Advanced Research and Development Contracts
- Department of Defense Engineering Services
- Cost-Plus-Fixed-Fee Contracts
- Sole-Source Defense Procurements
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on pricing justification
Tags
defense, missile-defense-agency, science-applications-international-corporation, analytical-engineering, research-and-development, cost-plus-fixed-fee, definitive-contract, sole-source, virginia, department-of-defense, r&d
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ANALYTICAL ENGINEERING LABOR FOR THE DE IGF::OT::IGF
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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $33.4 million.
What is the period of performance?
Start: 2017-09-12. End: 2022-09-12.
What is the specific nature of the 'analytical engineering labor' provided under this contract?
The 'analytical engineering labor' provided under this contract likely encompasses a range of highly specialized technical services essential for the development, testing, and sustainment of missile defense systems. This could include activities such as systems analysis, performance modeling and simulation, requirements definition, technical data analysis, risk assessment, and the development of engineering solutions. Given the NAICS code '541712' (Research and Development in the Physical, Engineering, and Life Sciences), the work is focused on advanced scientific and engineering principles applied to complex defense challenges. The 'COST PLUS FIXED FEE' contract type suggests that the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit, requiring detailed justification of expenses and progress.
How does the $33.4 million expenditure compare to other analytical engineering contracts within the Missile Defense Agency or DoD?
Direct comparison of the $33.4 million expenditure to other analytical engineering contracts within the Missile Defense Agency (MDA) or the broader Department of Defense (DoD) is challenging without access to a comprehensive database of similar sole-source procurements and their specific scopes of work. However, for a five-year definitive contract awarded to a large, established contractor like Science Applications International Corporation (SAIC), this figure represents a significant investment. MDA's budget is substantial, and contracts for specialized R&D and engineering support are often in the tens to hundreds of millions of dollars. The value is relative to the criticality of the services to MDA's mission, which is inherently high given its focus on national security.
What are the primary risks associated with a sole-source award of this magnitude?
The primary risks associated with a sole-source award of this magnitude include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or find cost efficiencies, and the possibility that the government may not be receiving the best possible value. There's also a risk that the government's reliance on a single source could create long-term dependencies. Furthermore, without competition, it's harder to objectively assess if the contractor's proposed technical approach and cost structure are truly optimal. Robust oversight and performance management are critical to mitigate these risks.
What is Science Applications International Corporation's track record with the Missile Defense Agency and similar contracts?
Science Applications International Corporation (SAIC) is a major defense contractor with a long history of supporting government agencies, including the Department of Defense and specifically the Missile Defense Agency. SAIC has a broad portfolio of services that often include systems engineering, integration, technical support, and R&D across various defense programs. While specific details of their past performance on contracts directly comparable to this one are not provided, SAIC's status as a large, established prime contractor suggests a significant track record of delivering complex technical solutions. Their extensive experience in the defense sector generally indicates a capacity to handle large-scale, critical programs like those managed by the MDA.
Additional Analysis
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Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ014717R0026
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: $34,801,086
Exercised Options: $34,801,086
Current Obligation: $33,430,517
Actual Outlays: $1,414,400
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-12
Current End Date: 2022-09-12
Potential End Date: 2022-09-12 00:00:00
Last Modified: 2024-02-02
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