DoD's $161M contract for engineering services shows strong competition and long-term performance

Contract Overview

Contract Amount: $16,127,441 ($16.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2005-11-08

End Date: 2024-01-25

Contract Duration: 6,652 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200602!060511!1700!N61331!COASTAL SYSTEMS STATION DAHLGREN!N0017804D4143 !A!N! !Y!HR01 ! !20051108!20061107!020278375!020278375!008898843!N!L-3 COMMUNICATIONS TITAN CORPO!FOUR GREENTREE CENTER !MARLTON !NJ!08053!54700!005!12!PANAMA CITY !BAY !FLORIDA !+000005712412!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !N02 !DJC2 !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! !1700!N00178!0001! !

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: 200602!060511!1700!N61331!COASTAL SYSTEMS STATION DAHLGREN!N0017804D4143 !A!N! !Y!HR01 ! !20051108!20061107!020278375!020278375!008898843!N!L-3 COMMUNICATIONS TITAN CORPO!FOUR GREENTREE CENTER !MARLTON !NJ!08053!54700!005!12!PANAMA CITY !BAY … Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Long contract duration (over 18 years) suggests sustained need for services. 3. Multiple delivery orders (21) indicate flexibility and evolving requirements. 4. Contractor has a significant track record with the Department of Defense. 5. Services align with critical engineering and program management functions. 6. Pricing structure (Cost Plus Fixed Fee) requires careful oversight to manage costs.

Value Assessment

Rating: good

The total award amount of $161,274,410 over an extended period suggests a substantial investment in engineering services. Benchmarking this against similar large-scale engineering support contracts within the Department of Defense is crucial. While the contract has seen numerous modifications and delivery orders, indicating adaptability, the Cost Plus Fixed Fee (CPFF) pricing structure necessitates diligent oversight to ensure cost efficiency and prevent potential overruns. The long duration implies a consistent need, but also raises questions about the initial cost estimations and potential for price creep over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The fact that there were 21 delivery orders issued indicates a dynamic relationship with the contractor, potentially adapting to evolving needs. The competitive nature of the initial award is a positive sign for price discovery and achieving value for money.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential bidders.

Public Impact

Benefits the Department of Defense by providing essential engineering and program management support. Services likely support various defense programs and operational readiness. Geographic impact is broad, potentially supporting multiple DoD installations. Workforce implications include skilled engineers and program managers, both within the contractor and potentially supporting government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure requires robust government oversight to control costs.
Long contract duration may lead to complacency or reduced incentive for cost savings over time.
Potential for scope creep across numerous delivery orders needs careful management.

Positive Signals

Awarded through full and open competition, ensuring a competitive bidding process.
Contractor has a long-standing relationship and demonstrated performance with the DoD.
Multiple delivery orders suggest adaptability to evolving program needs.
Contract supports critical engineering and program management functions for national defense.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services market. The Department of Defense is a major consumer of these services, utilizing them for research, development, acquisition, and sustainment of complex military systems. The market size for engineering services supporting the federal government is substantial, with significant spending allocated annually. This contract represents a portion of that spending, focused on program management and support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the primary contractor is a large entity. There is no explicit information on subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor actively engages in subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (Department of Defense) and potentially the Defense Contract Management Agency (DCMA). The Cost Plus Fixed Fee structure necessitates rigorous financial oversight, including audits and reviews of incurred costs and the fixed fee. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any allegations of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Program Management Support
Cost Plus Fixed Fee Contracts
Department of Defense IT and Professional Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Long contract duration may reduce incentive for cost efficiency.
Need for continuous monitoring of scope creep across multiple delivery orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 200602!060511!1700!N61331!COASTAL SYSTEMS STATION DAHLGREN!N0017804D4143 !A!N! !Y!HR01 ! !20051108!20061107!020278375!020278375!008898843!N!L-3 COMMUNICATIONS TITAN CORPO!FOUR GREENTREE CENTER !MARLTON !NJ!08053!54700!005!12!PANAMA CITY !BAY !FLORIDA !+000005712412!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !N02 !DJC2 !541330!E! !5!B!M! !A!D!200

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2005-11-08. End: 2024-01-25.

What is the historical spending trend for this specific contract vehicle over its lifespan?

The contract, with a base award date in 2005 and an estimated completion date in 2024, has accumulated $161,274,410 in obligations. The data shows 21 delivery orders, indicating a phased approach to service delivery. While specific annual spending figures are not provided in this dataset, the total obligation amount suggests consistent funding over the contract's extended duration. Analyzing the distribution of these obligations across the years would reveal spending patterns and potentially highlight periods of increased or decreased activity, which could be linked to specific program milestones or shifts in defense priorities.

How does the per-unit cost of services compare to similar contracts awarded by the DoD?

Determining a precise per-unit cost is challenging without detailed service breakdowns and labor categories associated with each delivery order. The contract type is Cost Plus Fixed Fee (CPFF), which means the government pays the contractor's actual costs plus a negotiated fixed fee. Benchmarking CPFF contracts requires comparing the fixed fee percentage and the overall cost structure against industry standards and similar DoD contracts for program management and engineering support. Given the long duration and the nature of the services, it's essential to compare the effective overhead rates and the fixed fee as a percentage of total costs to ensure competitiveness and value for money.

What are the key performance indicators (KPIs) used to evaluate contractor performance on this contract?

While the provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract, typical performance metrics for engineering and program support services within the DoD often include adherence to schedule, budget performance, quality of deliverables, technical execution, and responsiveness to government requests. For a CPFF contract, performance is also evaluated on the contractor's ability to manage costs effectively while meeting technical requirements. The existence of 21 delivery orders and a long contract duration suggests that the contractor has consistently met or exceeded these performance expectations to warrant continued tasking and funding.

What is the track record of L-3 Communications Titan Corporation (now potentially part of a larger entity) with the Department of Defense?

L-3 Communications Titan Corporation, the contractor listed, has a history of performing services for the Department of Defense. While the specific entity name might have evolved through mergers and acquisitions (as L-3 Communications itself has undergone significant changes), its past performance indicates experience in supporting defense contracts. The longevity of this particular contract vehicle (over 18 years) suggests a positive and sustained performance history that has led to repeated tasking and funding. Further investigation into the contractor's specific performance ratings and past contract history would provide a more detailed understanding of their reliability and expertise.

Are there any identified risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this contract?

Yes, the primary risk associated with a Cost Plus Fixed Fee (CPFF) structure is the potential for cost overruns. Since the government reimburses the contractor for actual costs incurred, there is less inherent incentive for the contractor to control expenses compared to fixed-price contracts. The government must implement robust oversight, including detailed cost audits and monitoring, to ensure that costs are reasonable, allocable, and allowable. The fixed fee, while intended to provide profit certainty, also requires careful negotiation to ensure it reflects the level of risk and effort involved. Without diligent management, CPFF contracts can become more expensive than initially anticipated.

How has the scope of services evolved across the 21 delivery orders?

The data indicates 21 delivery orders have been issued under this contract, suggesting a dynamic evolution of the required services. While the specific details of each order are not provided, the primary service category is 'PROGRAM MANAGEMENT/SUPPORT SERVICES' and the NAICS code is '541330' (Engineering Services). This implies that the core function remains consistent, but the specific tasks, projects, or support levels have likely been adjusted or expanded over time to meet changing DoD requirements. Analyzing the value and description of each delivery order would reveal the specific areas of growth or shifts in focus within the engineering and program support domain.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 21

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

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4143

IDV Type: IDC

Timeline