DoD's LCS Mission Package Integration Support contract awarded to Science Applications International Corporation for over $49M
Contract Overview
Contract Amount: $49,248,353 ($49.2M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2010-03-01
End Date: 2014-09-30
Contract Duration: 1,674 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LCS MISSION PACKAGE INTEGRATION PROGRAM SUPPORT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $49.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: LCS MISSION PACKAGE INTEGRATION PROGRAM SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of integration services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include cost overruns inherent in Cost Plus Fixed Fee contracts. 4. Performance context is within the Littoral Combat Ship (LCS) program, a complex naval platform. 5. This contract falls within the Engineering Services sector, supporting defense acquisition. 6. The contract was awarded as a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.
Value Assessment
Rating: good
The contract's total value of approximately $49.2 million over roughly 4.5 years for integration support services appears to be within a reasonable range for a program of this complexity. Benchmarking against similar large-scale defense integration contracts is challenging without more specific service details, but the pricing structure (Cost Plus Fixed Fee) allows for flexibility while aiming for cost control through the fixed fee component. The value reflects the specialized engineering expertise required for integrating mission packages onto naval vessels.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the designation implies a competitive process was actively pursued.
Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.
Public Impact
The primary beneficiaries are the Department of the Navy and the Littoral Combat Ship program, ensuring the integration of critical mission capabilities. Services delivered include engineering, integration, and technical support for mission packages. The geographic impact is primarily within naval operations and defense infrastructure, with potential implications for shipbuilding and maintenance facilities. Workforce implications include the need for specialized engineers and technical personnel within Science Applications International Corporation and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not managed diligently.
- Integration programs for complex platforms like the LCS are inherently risky and prone to schedule delays.
- Reliance on a single contractor for critical integration support could pose a risk if performance falters.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing environment.
- Science Applications International Corporation is a large, established defense contractor with significant experience.
- The contract duration suggests a long-term commitment to supporting a key naval program.
Sector Analysis
This contract operates within the defense engineering services sector, a significant segment of the federal contracting market. The Littoral Combat Ship (LCS) program itself represents a substantial investment in naval modernization. Spending in this area is driven by national security requirements and the need for advanced technological capabilities. Comparable spending benchmarks would typically involve other large-scale platform integration or systems engineering contracts within the Department of Defense.
Small Business Impact
This contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses in the provided data. The prime contractor, Science Applications International Corporation, is a large business. This means opportunities for small businesses would likely arise through subcontracting if SAIC chooses to engage them for specific services or components, but there is no direct set-aside mechanism in place for this award.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract reporting systems, though specific details of performance and cost breakdowns may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Littoral Combat Ship (LCS) Program
- Naval Sea Systems Command (NAVSEA) Contracts
- Department of Defense Engineering Services
- Mission Package Integration Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent cost oversight.
- Complex integration programs are susceptible to schedule delays and cost overruns.
- Potential for scope creep in long-term integration projects.
Tags
defense, department-of-defense, department-of-the-navy, littoral-combat-ship, engineering-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, science-applications-international-corporation, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. LCS MISSION PACKAGE INTEGRATION PROGRAM 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 $49.2 million.
What is the period of performance?
Start: 2010-03-01. End: 2014-09-30.
What is the track record of Science Applications International Corporation (SAIC) in supporting complex naval integration programs?
Science Applications International Corporation (SAIC) has a long and extensive history of supporting the Department of Defense and various naval programs. They are a major defense contractor known for providing a wide range of services, including systems engineering, integration, logistics, and technical support. SAIC has been involved in numerous large-scale defense initiatives, often serving as a prime contractor or key subcontractor. Their experience spans various naval platforms and weapon systems, suggesting a strong capability to handle complex integration challenges like those presented by the LCS Mission Package Integration Program. While specific performance metrics for this particular contract are not detailed here, SAIC's overall market position and sustained presence in the defense sector indicate a substantial capacity and established expertise in managing such demanding projects.
How does the value of this contract compare to other similar integration support contracts within the DoD?
Comparing the approximate $49.2 million value of this LCS Mission Package Integration Support contract requires context regarding the scope, duration, and specific services rendered. Large-scale platform integration and systems engineering contracts within the Department of Defense can range from tens of millions to billions of dollars. For a contract spanning over 4.5 years and involving the integration of complex mission packages onto naval vessels, this value appears moderate. Contracts for similar integration efforts on major platforms like destroyers, aircraft carriers, or submarines often exceed this amount significantly due to greater complexity and scale. However, without detailed service breakdowns and specific performance periods, a precise comparison is difficult. The value is likely influenced by the number of mission packages supported and the maturity of the LCS platform at the time of award.
What are the primary risks associated with Cost Plus Fixed Fee (CPFF) contracts in defense programs?
Cost Plus Fixed Fee (CPFF) contracts, like the one awarded for LCS Mission Package Integration Support, carry inherent risks primarily related to cost control. The government agrees to pay the contractor's allowable costs plus a fixed fee representing profit. A key risk is that contractors may have less incentive to control costs rigorously compared to fixed-price contracts, as they are assured their costs will be reimbursed. This can lead to cost overruns if the contractor's initial cost estimates are inaccurate or if unforeseen technical challenges arise. For the government, managing CPFF contracts requires robust oversight to ensure costs are reasonable and allocable. The fixed fee, however, does provide a predictable profit margin for the contractor, which can incentivize performance once costs are managed effectively. The risk is mitigated by strong government oversight and clear contract terms.
How effective has the LCS Mission Package Integration Program been historically, and does this contract reflect that?
The Littoral Combat Ship (LCS) program, and by extension its mission package integration efforts, has faced significant scrutiny and challenges regarding effectiveness and cost overruns throughout its history. While the program aims to provide modular mission capabilities, the integration and deployment of these packages have encountered delays and technical hurdles. This contract, awarded in 2010, falls within the earlier phases of the LCS program's development and deployment. Its value and duration suggest a focus on establishing and refining the integration processes. The effectiveness of this specific contract would be measured by its contribution to successfully integrating mission packages onto the LCS platforms, enabling their operational deployment. Historical performance data for the broader LCS program indicates a mixed record, with ongoing efforts to improve integration and reduce costs.
What are the historical spending patterns for engineering services related to naval platform integration?
Historical spending on engineering services for naval platform integration within the Department of Defense has been substantial and consistent, reflecting the continuous need for modernization and capability enhancement of naval fleets. Agencies like the Department of the Navy consistently allocate significant portions of their budgets to research, development, and acquisition, which heavily involve engineering and integration services. Spending patterns are influenced by major shipbuilding programs, upgrades to existing platforms, and the development of new technologies and weapon systems. Contracts for integration support, systems engineering, and technical services often represent a considerable portion of the overall program costs for platforms such as destroyers, carriers, submarines, and indeed, the LCS. While specific figures fluctuate year-to-year based on program lifecycles and budget priorities, the demand for these specialized services remains a constant driver of federal spending in this category.
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: N0002409R3498
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: $49,877,382
Exercised Options: $49,877,382
Current Obligation: $49,248,353
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2010-03-01
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2021-05-19
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