DoD awards $183.8M to Science Applications International Corp for military vehicle manufacturing

Contract Overview

Contract Amount: $183,842,191 ($183.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2015-11-24

End Date: 2023-06-30

Contract Duration: 2,775 days

Daily Burn Rate: $66.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: IGF::OT::IGF

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29406

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $183.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF Key points: 1. Significant contract value awarded to a single large business. 2. Competition method was 'Full and Open', suggesting broad market access. 3. Contract type is Fixed Price Incentive, which can lead to cost overruns if not managed. 4. Sector is Defense, a major area of federal spending.

Value Assessment

Rating: fair

The contract value of $183.8M over nearly 8 years is substantial. Benchmarking against similar military vehicle manufacturing contracts is difficult without more specific details on the scope and components, but the duration suggests a complex and long-term requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the award to a single entity, Science Applications International Corporation, warrants scrutiny to ensure the competitive process yielded the best value.

Taxpayer Impact: Taxpayer funds are being utilized for defense procurement. The effectiveness of the competition and contract type will determine the ultimate value for taxpayers.

Public Impact

Supports military readiness and national defense objectives. Provides employment opportunities within the defense manufacturing sector. Potential for technological advancements in armored vehicle capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Fixed Price Incentive contract type can incentivize contractor to incur costs to achieve targets, potentially leading to higher final prices.
  • No indication of small business participation.
  • Long contract duration increases risk of scope creep and cost escalation.

Positive Signals

  • Awarded under Full and Open Competition.
  • Contract supports critical defense capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically military vehicle manufacturing. Federal spending in this area is substantial and driven by national security needs. Benchmarks are highly dependent on the specific vehicle type and technological requirements.

Small Business Impact

The data indicates that small businesses were not involved in this specific contract award (sb: false). This suggests the prime contractor is a large business, and there's no explicit mention of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight is provided by the Defense Contract Management Agency. The Fixed Price Incentive contract type requires careful monitoring of cost performance and incentive targets to ensure accountability and prevent excessive spending.

Related Government Programs

  • Military Armored Vehicle, Tank, and Tank Component Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Potential for cost overruns due to Fixed Price Incentive contract type.
  • Lack of small business participation.
  • Long contract duration increases risk.
  • Limited specific details on the procured items for robust value assessment.

Tags

military-armored-vehicle-tank-and-tank-c, department-of-defense, sc, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $183.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF

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 $183.8 million.

What is the period of performance?

Start: 2015-11-24. End: 2023-06-30.

What specific military armored vehicles or components were procured under this contract, and how do their capabilities and costs compare to industry standards?

The provided data lacks specifics on the exact vehicles or components. To assess value, a detailed comparison of the procured items' technical specifications, performance metrics, and unit costs against similar, recently contracted systems would be necessary. This would reveal if the $183.8M award represents a competitive price for the acquired capabilities.

What were the key performance metrics and incentive targets in the Fixed Price Incentive contract, and how effectively were they managed to control costs?

Understanding the contract's incentive structure is crucial. The effectiveness of cost control hinges on the clarity and attainability of performance targets and the alignment of incentives with desired outcomes. A review of performance reports and any incurred cost overruns or savings would indicate how well the contract terms were managed by the Defense Contract Management Agency.

Given the 'Full and Open Competition' award, what was the competitive landscape, and did the final award price reflect significant cost savings compared to initial proposals?

While 'Full and Open Competition' suggests a broad initial solicitation, the award to a single entity requires examination. Analyzing the number of bids received, the range of proposed prices, and the government's negotiation strategy would determine if the competition effectively drove down costs. A comparison of the final awarded price against the government's estimate would also be informative.

Industry Classification

NAICS: ManufacturingOther Transportation Equipment ManufacturingMilitary Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785415R0001

Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $1,186,775,045

Exercised Options: $218,143,382

Current Obligation: $183,842,191

Subaward Activity

Number of Subawards: 86

Total Subaward Amount: $161,547,689

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2015-11-24

Current End Date: 2023-06-30

Potential End Date: 2023-06-30 00:00:00

Last Modified: 2024-10-02

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