DHS awarded $10.8M for engineering services to SAIC, supporting the SAVER program

Contract Overview

Contract Amount: $10,828,568 ($10.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2006-09-15

End Date: 2011-09-14

Contract Duration: 1,825 days

Daily Burn Rate: $5.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THIS PR IS FOR A NEW ACQUISITION TO SUPPORT THE SAVER PROGRAM WHICH IS CURRENTLY RUN OUT OF THE TEXAS ENGINEERIG EXPERIMENT STATION, TEXAS A&M UNIVERSITY.ACCOUNTING CODE: 6-T-GH-25-00-00DCN#: GH06V40009SPECIAL NOTE: UPON COMPLETION OF THE PR APPROVAL PROCESS PLEASE FORWARD A COPY OF THE ORDER APPROVAL DOCUMENT TO JEANNE.BORAM@ASSOCIATES.DHS.GOV

Place of Performance

Location: ABINGDON, HARFORD County, MARYLAND, 21009

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THIS PR IS FOR A NEW ACQUISITION TO SUPPORT THE SAVER PROGRAM WHICH IS CURRENTLY RUN OUT OF THE TEXAS ENGINEERIG EXPERIMENT STATION, TEXAS A&M UNIVERSITY.ACCOUNTING CODE: 6-T-GH-25-00-00DCN#: GH06V40009SPECIAL NOTE: UPON COMPLETION OF THE PR APPROVAL PROCESS PLEASE FORWARD A COP… Key points: 1. Contract awarded to a single, large incumbent provider, raising questions about potential lack of competition. 2. The contract's duration of 5 years suggests a long-term need for these engineering services. 3. Services are categorized under Engineering Services (NAICS 541330), a broad category with diverse applications. 4. The contract was a competitive delivery order, indicating some level of competition at the task order level. 5. The use of Time and Materials pricing could lead to cost overruns if not carefully managed. 6. The SAVER program's focus on research and development implies a need for specialized engineering expertise.

Value Assessment

Rating: fair

The contract value of $10.8 million over five years averages to approximately $2.16 million annually. Benchmarking this against similar engineering services contracts is challenging without more specific details on the SAVER program's scope. However, the duration and value suggest a significant investment. The Time and Materials (T&M) pricing structure, while common for R&D and evolving requirements, carries inherent risks of cost escalation if not rigorously monitored and controlled by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was issued as a competitive delivery order, suggesting it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. The data indicates two bids were received ('no': 2). While competed, the low number of bidders might suggest limited market interest or a highly specialized requirement that only a few firms could meet. Further analysis of the parent IDIQ contract's competition would be beneficial.

Taxpayer Impact: A competitive process, even with a limited number of bidders, is generally favorable for taxpayers as it allows for some price discovery and encourages contractors to offer competitive terms.

Public Impact

The Department of Homeland Security (DHS) benefits from continued support for its SAVER program. Engineering services are delivered to aid in the research, development, and potentially operationalization of technologies or solutions under the SAVER program. The geographic impact is likely concentrated around the Texas Engineering Experiment Station at Texas A&M University, where the program is currently run. The workforce implications involve specialized engineers and technical personnel employed by Science Applications International Corporation (SAIC).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed effectively.
Limited number of bidders (2) may indicate a lack of robust competition for this specific requirement.
The contract's long duration (5 years) could lock the government into a specific vendor relationship, potentially limiting future flexibility.

Positive Signals

Awarded under a competitive delivery order, suggesting some level of market engagement.
Support for the SAVER program indicates investment in critical research and development for homeland security.
Incumbent contractor (SAIC) likely possesses institutional knowledge of the SAVER program, potentially leading to efficient service delivery.

Sector Analysis

Engineering services, particularly those supporting government research and development programs like SAVER, represent a significant segment of the professional services market. This contract falls within the broader IT and professional services sector, often characterized by specialized expertise and long-term engagements. Comparable spending benchmarks would depend heavily on the specific technological or scientific focus of the SAVER program, but government spending on engineering and technical support services is consistently high.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided information. The impact on the small business ecosystem is likely minimal unless SAIC actively engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Office of Procurement Operations within DHS, with program-specific oversight from the SAVER program managers. Accountability measures would be tied to performance metrics outlined in the delivery order and the parent contract. Transparency is facilitated through contract databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Research and Development Programs
Texas A&M University Engineering Services Contracts
SAVER Program Support
Science Applications International Corporation (SAIC) Government Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may result in suboptimal pricing.
Long contract duration could reduce future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THIS PR IS FOR A NEW ACQUISITION TO SUPPORT THE SAVER PROGRAM WHICH IS CURRENTLY RUN OUT OF THE TEXAS ENGINEERIG EXPERIMENT STATION, TEXAS A&M UNIVERSITY.ACCOUNTING CODE: 6-T-GH-25-00-00DCN#: GH06V40009SPECIAL NOTE: UPON COMPLETION OF THE PR APPROVAL PROCESS PLEASE FORWARD A COPY OF THE ORDER APPROVAL DOCUMENT TO JEANNE.BORAM@ASSOCIATES.DHS.GOV

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2006-09-15. End: 2011-09-14.

What is the specific nature and scope of the SAVER program that requires these engineering services?

The SAVER (Securing America's Vulnerable Energy Resources) program, managed by the Department of Homeland Security's Science and Technology Directorate, focuses on identifying and mitigating risks to critical energy infrastructure. This involves research, development, and testing of technologies and strategies to enhance the security and resilience of energy systems against various threats, including physical attacks, cyber threats, and natural disasters. The engineering services procured under this contract likely support these R&D efforts, potentially involving system design, analysis, prototyping, testing, and evaluation of new security solutions for the energy sector.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar engineering services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, common in research and development or early-stage projects. Unlike fixed-price contracts, T&M reimburses the contractor for direct labor hours at specified rates and for the cost of materials. This offers flexibility but carries a higher risk of cost overruns for the government if not closely monitored, as the final cost is not predetermined. For well-defined engineering tasks, fixed-price contracts are generally preferred for better cost control. The government's ability to manage and oversee T&M contracts effectively, including labor hour tracking and material cost verification, is crucial to mitigate these risks.

What is Science Applications International Corporation's (SAIC) track record with DHS and similar government engineering contracts?

Science Applications International Corporation (SAIC) is a major government contractor with a substantial history of providing a wide range of services, including engineering, IT, and logistics, to various federal agencies, including DHS. SAIC has a significant portfolio of contracts supporting defense, intelligence, and civilian agencies. Their track record with DHS likely includes numerous awards across different directorates and programs. While specific performance metrics for this particular SAVER program contract are not detailed here, SAIC's overall presence suggests they are a capable provider of complex technical and engineering solutions. Past performance evaluations on other contracts would provide a more granular view of their reliability and quality.

Given the $10.8M value and 5-year duration, how does this contract's spending compare to historical DHS investments in energy infrastructure security?

The $10.8 million awarded over five years, averaging approximately $2.16 million annually, represents a moderate investment within the context of DHS's overall budget for critical infrastructure protection. DHS allocates significant resources to safeguarding various sectors, including energy. Historical spending patterns for energy infrastructure security can fluctuate based on threat assessments, technological advancements, and specific program initiatives. Without direct comparative data on the SAVER program's historical funding or similar R&D efforts in energy security, it's difficult to definitively benchmark this contract's value. However, it signifies a sustained commitment to addressing vulnerabilities in the energy sector through technological development and engineering support.

What are the potential risks associated with the limited competition (2 bidders) for this engineering services contract?

Limited competition, such as the two bidders indicated for this delivery order, can pose several risks. Firstly, it may lead to higher prices than would be achievable in a more robustly competed environment, as contractors face less pressure to offer their most competitive rates. Secondly, it can reduce the government's leverage in negotiations and potentially limit the range of innovative solutions available. Thirdly, it might signal that the market for this specific type of engineering service is narrow, or that the requirements were structured in a way that inadvertently excluded potential bidders. This could also indicate a reliance on a small pool of incumbent contractors, potentially hindering the introduction of new technologies or approaches.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSHQDC06Q00137

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,194,208

Exercised Options: $10,828,568

Current Obligation: $10,828,568

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0107J

IDV Type: FSS

Timeline