DoD's $29.5M Littoral Systems Integration Program Awarded to SAIC
Contract Overview
Contract Amount: $29,457,348 ($29.5M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2006-11-08
End Date: 2010-12-18
Contract Duration: 1,501 days
Daily Burn Rate: $19.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: LITTORAL SYSTEMS INTEGRATION PROGRAM AND APPLIED ENGINEERING SUPPORT
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32408, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $29.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: LITTORAL SYSTEMS INTEGRATION PROGRAM AND APPLIED ENGINEERING SUPPORT Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for engineering support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 1501 days, indicating a long-term engagement. 4. The contract type is Cost Plus Award Fee, which incentivizes performance. 5. The award value is approximately $29.5 million.
Value Assessment
Rating: good
The Cost Plus Award Fee structure allows for performance-based incentives. The benchmark of $19.6 million (BR) suggests this contract's value is within a reasonable range for similar engineering services, though the award fee component could increase the final cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically leads to better price discovery and potentially lower costs for the government. This method allows any qualified vendor to bid, fostering a competitive environment.
Taxpayer Impact: The competitive nature of the award is a positive sign for taxpayer value, as it aims to secure the best services at a reasonable price.
Public Impact
Supports the Department of the Navy's Littoral Systems Integration Program. Engineering services provided by SAIC are crucial for naval technology development. The long-term nature of the contract suggests a sustained need for these specialized services. Potential impact on naval modernization and operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to higher costs if not managed carefully.
- Specific performance metrics and award fee criteria are not detailed, making it hard to assess true value.
- The contract was awarded in 2006, and its effectiveness in current operations is unknown.
Positive Signals
- Full and open competition generally leads to better pricing.
- The award fee structure incentivizes contractor performance.
- Long contract duration indicates a stable and ongoing requirement.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector critical for defense and technology development. Spending benchmarks for this sector vary widely based on project complexity and duration, but the $29.5M value over approximately four years is substantial for specialized integration and applied engineering.
Small Business Impact
The data indicates this contract was not awarded to small businesses (SB is false). The prime contractor, SAIC, is a large corporation, suggesting that small businesses may have participated as subcontractors, but their role is not specified.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense, which has established oversight mechanisms. However, the effectiveness of oversight for Cost Plus Award Fee contracts relies heavily on detailed performance monitoring and management.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract type (Cost Plus Award Fee) can lead to higher costs.
- Lack of detail on performance metrics and award fee outcomes.
- Potential for cost overruns if not managed diligently.
- No information on small business subcontracting participation.
Tags
engineering-services, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. LITTORAL SYSTEMS INTEGRATION PROGRAM AND APPLIED ENGINEERING SUPPORT
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $29.5 million.
What is the period of performance?
Start: 2006-11-08. End: 2010-12-18.
What specific performance metrics were used to determine award fees, and how did SAIC perform against them?
The provided data does not specify the performance metrics or award fee criteria. Understanding these would be crucial to assess if the 'award' portion of the fee truly reflects exceptional performance or simply meeting baseline requirements. Without this, it's difficult to gauge the full value realized by the government beyond the cost reimbursement.
What is the potential for cost overruns in this Cost Plus Award Fee contract, and how was risk mitigated?
Cost Plus Award Fee contracts inherently carry a risk of cost overruns as the government reimburses costs plus an incentive fee. Risk mitigation would depend on robust government oversight, clearly defined performance standards, and strict adherence to the contract's ceiling. The benchmark value suggests some cost control, but the final expenditure could exceed initial estimates.
How effectively did the full and open competition process ensure the best technical solution and price for the Littoral Systems Integration Program?
Full and open competition is designed to maximize both technical solutions and price competitiveness. The fact that SAIC won suggests they offered a compelling proposal. However, a definitive assessment would require reviewing the proposals received and the evaluation criteria used by the Department of the Navy to ensure the chosen solution was indeed the best value.
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: N0002406R3682
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $680,749,270
Exercised Options: $348,733,072
Current Obligation: $29,457,348
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2006-11-08
Current End Date: 2010-12-18
Potential End Date: 2010-12-18 00:00:00
Last Modified: 2016-02-16
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