Army awards $30.3M for grounds activity services to Science Applications International Corporation
Contract Overview
Contract Amount: $30,357,525 ($30.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2017-02-15
End Date: 2021-04-12
Contract Duration: 1,517 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF 1. THIS PERFORMANCE BASED TASK ORDER, KY01, FOR CERDEC GROUNDS ACTIVITY (CGA). THIS PERFORMANCE BASED TASK ORDER IS HEREBY ISSUED ON A COST PLUS FIXED FEE&COST NO FEE (CPFF) TERM BASIS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE BASE CONTRACT (W91QUZ-06-D-0016) AND MODIFICATION THERETO. THE TASK ORDER NUMBER ASSOCIATED WITH THIS ORDER IS: KY01 2. PERFORMANCE SHALL BE IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT, ATTACHMENT 0001, SECTION J, AND IN ACCORDANCE WITH THE CONTRACT DATA REQUIREMENTS LISTS (CDRL), EXHIBIT A THROUGH EXHIBIT D, SECTION J. 3. PERIOD OF PERFORMANCE: TASK ORDER WILL BE FOR A ONE (1) FIFTEEN (15) MONTH BASE PERIOD FROM DATE OF AWARD WITH ONE (1) THIRTEEN (13) MONTH OPTION PERIOD AND ONE TWELVE (12) MONTH OPTION. SUBJECT TO FAR 52.232-18 ENTITLED, AVAILABILITY OF FUNDS&FAR 52.232-22 ENTITLED, LIMITATION OF FUNDS THE AWARD OF THIS TASK ORDER IS SUBJECT TO THE RECEIPT OF ADEQUATE AND PROPER FUNDING
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $30.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF 1. THIS PERFORMANCE BASED TASK ORDER, KY01, FOR CERDEC GROUNDS ACTIVITY (CGA). THIS PERFORMANCE BASED TASK ORDER IS HEREBY ISSUED ON A COST PLUS FIXED FEE&COST NO FEE (CPFF) TERM BASIS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE BASE CONTRACT (W91QUZ-06-D-001… Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Performance-based task order suggests a focus on measurable outcomes. 3. Multiple option periods extend the contract duration, requiring ongoing oversight. 4. The contract falls under wired telecommunications carriers, a broad IT services category. 5. The contractor, Science Applications International Corporation, is a large, established entity in federal contracting. 6. The contract's duration of over 1500 days suggests a significant, long-term need for these services.
Value Assessment
Rating: fair
The contract's value of $30.3 million over approximately four years for grounds activity services appears within a reasonable range for large-scale federal support contracts. However, without specific benchmarks for grounds maintenance and related activities, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee structure introduces some risk, as it allows for costs to exceed initial estimates, though the fixed fee component provides a ceiling on contractor profit. Comparing this to similar contracts for base operations or facility support would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it was competed suggests a healthy market for these services. The number of bidders is not specified, but full and open competition generally leads to better price discovery and potentially more competitive pricing for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of offers, driving down prices and increasing the likelihood of selecting the most cost-effective solution.
Public Impact
The Department of the Army is the primary beneficiary, receiving grounds activity services. Services likely include maintenance, landscaping, and potentially other base support functions. The geographic impact is concentrated at the Army facility where the services are performed. This contract supports jobs within the contractor's workforce, potentially including local hires.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to higher final costs if not managed tightly.
- Long contract durations require sustained oversight to ensure performance and prevent scope creep.
- The broad nature of 'grounds activity' could lead to ambiguity in performance expectations if not clearly defined.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Performance-based task order structure encourages focus on achieving defined outcomes.
- The contractor, Science Applications International Corporation, has extensive experience in federal contracts.
Sector Analysis
This contract falls within the broader Information Technology (IT) sector, specifically under the Wired Telecommunications Carriers category (NAICS 517110), which often encompasses a wide range of support services for government infrastructure. While the primary service is grounds activity, the classification suggests it might be bundled with or support IT infrastructure at the facility. The federal IT services market is vast, with significant spending on maintenance, operations, and support. This contract represents a small fraction of overall federal IT spending but is significant for the specific services provided.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, it did not directly benefit small businesses through a set-aside. However, the prime contractor, Science Applications International Corporation, may engage small businesses as subcontractors to fulfill portions of the contract requirements, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a performance-based task order, success would be measured against defined performance standards. The contract's cost-plus-fixed-fee nature necessitates careful monitoring of expenditures to ensure costs remain reasonable and within the fixed fee parameters. Transparency would be facilitated through contract reporting mechanisms, and any significant issues could fall under the purview of the Department of Defense's Inspector General.
Related Government Programs
- Base Operations Support Services
- Facility Maintenance Contracts
- Information Technology Infrastructure Support
- Department of Defense Service Contracts
Risk Flags
- Cost-plus-fixed-fee contract type carries inherent risk of cost overruns.
- Long contract duration requires sustained oversight to manage evolving needs and performance.
- Scope of 'grounds activity' needs clear definition to ensure performance expectations are met.
Tags
department-of-defense, department-of-the-army, wired-telecommunications-carriers, cost-plus-fixed-fee, full-and-open-competition, performance-based, service-contract, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF 1. THIS PERFORMANCE BASED TASK ORDER, KY01, FOR CERDEC GROUNDS ACTIVITY (CGA). THIS PERFORMANCE BASED TASK ORDER IS HEREBY ISSUED ON A COST PLUS FIXED FEE&COST NO FEE (CPFF) TERM BASIS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE BASE CONTRACT (W91QUZ-06-D-0016) AND MODIFICATION THERETO. THE TASK ORDER NUMBER ASSOCIATED WITH THIS ORDER IS: KY01 2. PERFORMANCE SHALL BE IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT, ATTACHMENT 0001, SECTION J, AND IN ACCORDANCE WITH THE CO
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 Army).
What is the total obligated amount?
The obligated amount is $30.4 million.
What is the period of performance?
Start: 2017-02-15. End: 2021-04-12.
What is the historical spending pattern for grounds activity services at this specific Army installation?
Analyzing historical spending for grounds activity services at this specific Army installation would provide crucial context for the current $30.3 million award. Without access to historical data for this particular installation, it's difficult to determine if this contract represents an increase, decrease, or stable level of investment. Trends in previous contract values, durations, and the number of bidders for similar services could reveal patterns of cost escalation, efficiency improvements, or shifts in service requirements. Understanding past performance and costs associated with grounds maintenance and related activities is essential for assessing whether the current contract offers good value and is aligned with long-term budgetary planning for the installation's operational needs.
How does the cost-plus-fixed-fee (CPFF) structure impact the government's risk and potential for cost overruns compared to other contract types?
The Cost-Plus-Fixed-Fee (CPFF) contract structure, used here, involves the government reimbursing the contractor for allowable costs plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, making it difficult to estimate costs accurately upfront. While the fixed fee provides a ceiling on the contractor's profit, it does not cap the total contract cost. This means the government bears the risk of cost overruns if the actual costs incurred by the contractor exceed initial estimates. Compared to fixed-price contracts, where the contractor assumes more risk for cost overruns, CPFF can lead to higher final costs for the government. However, it can also ensure that necessary work is completed even if unforeseen challenges arise, provided the government exercises diligent oversight and cost controls.
What specific grounds activity services are included under this task order, and how are they measured for performance?
The Performance Work Statement (PWS) and Contract Data Requirements Lists (CDRLs) associated with this task order (KY01) would detail the specific grounds activity services required. These could encompass a wide range of tasks such as landscape maintenance (mowing, trimming, planting), groundskeeping, snow removal, pest control, waste management, and potentially infrastructure upkeep related to grounds. Performance measurement is critical under a performance-based contract. The PWS would outline measurable performance standards (e.g., response times for snow removal, quality of landscaping, completion rates for scheduled maintenance) and the methods for assessing contractor performance against these standards. This ensures the government receives the intended value and that services meet defined quality and timeliness requirements.
What is the track record of Science Applications International Corporation (SAIC) in performing similar grounds activity or base support contracts for the Department of Defense?
Science Applications International Corporation (SAIC) is a large and established federal contractor with a significant track record across various service domains, including IT, engineering, and logistics support. While SAIC is widely recognized for its IT and complex systems integration capabilities, its portfolio often includes base operations and support services for military installations. To assess its track record specifically for grounds activity, a review of past performance evaluations, contract awards, and any reported issues on similar contracts would be necessary. Generally, SAIC's extensive experience suggests a capacity to manage large-scale service contracts. However, the specific performance quality on grounds-related tasks would depend on their internal resource allocation, management, and any specialized subcontractors they might employ for this particular task order.
How does the duration of the contract (over 1500 days) influence the potential for cost savings or increased risk for the government?
A contract duration exceeding 1500 days (over four years) presents a dual-edged sword regarding cost savings and risk. On one hand, a longer-term contract can foster stability and allow the contractor to achieve economies of scale, potentially leading to more predictable and possibly lower unit costs over time compared to frequent short-term procurements. It also reduces the administrative burden and cost associated with repeated re-competition. On the other hand, extended durations increase the government's exposure to risks such as inflation, changes in technology or requirements, and potential contractor performance degradation over time. The cost-plus-fixed-fee structure, combined with a long duration, necessitates robust oversight to manage costs effectively and ensure the contractor remains incentivized to perform efficiently throughout the contract period. Regular reviews and potential adjustments based on performance and market conditions are crucial.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,691,579
Exercised Options: $58,691,579
Current Obligation: $30,357,525
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0016
IDV Type: IDC
Timeline
Start Date: 2017-02-15
Current End Date: 2021-04-12
Potential End Date: 2021-04-12 00:00:00
Last Modified: 2025-01-29
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