DoD's $27.1M contract for airborne networking services awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $27,140,871 ($27.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2006-06-19

End Date: 2024-01-25

Contract Duration: 6,429 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TECH & ENGR SERVICES TO SUPPORT THE COMMUNICATION AND AIRBORNE NETWORKING

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $27.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TECH & ENGR SERVICES TO SUPPORT THE COMMUNICATION AND AIRBORNE NETWORKING Key points: 1. Value for money assessed through comparison with similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are monitored through contract performance and contractor track record. 4. Performance context is evaluated against project milestones and delivery schedules. 5. Sector positioning places this contract within the broader defense IT and engineering services market. 6. The contract type (Cost Plus Fixed Fee) requires careful oversight to manage costs.

Value Assessment

Rating: good

The contract's value of approximately $27.1 million over its period of performance appears reasonable given the specialized nature of airborne networking and communication support. Benchmarking against similar large-scale engineering and technical services contracts within the Department of Defense suggests that the pricing structure is within expected ranges. The Cost Plus Fixed Fee (CPFF) award type, while allowing for flexibility, necessitates diligent oversight to ensure costs remain controlled and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of a competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not detailed, but the 'full and open' designation implies a robust competitive environment.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of companies to compete, driving down costs and fostering innovation. This approach ensures that the government secures the best possible value for its investment.

Public Impact

The Department of Defense benefits from enhanced communication and airborne networking capabilities. Services delivered include critical support for advanced communication systems. The geographic impact is likely national, supporting military operations across various theaters. Workforce implications include employment for engineers, technicians, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, requiring strong government oversight.
Long contract durations (6429 days) may present challenges in adapting to evolving technological requirements.
Potential for scope creep in complex engineering services contracts.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor (SAIC) is a large, established entity with significant experience in defense contracting.
The contract supports critical defense communication and networking infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies. The market for defense IT and communication systems is highly specialized and competitive, with significant government investment. Comparable spending benchmarks in this area often involve multi-year, high-value contracts for system integration, development, and sustainment, reflecting the complexity and strategic importance of these capabilities.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large prime contract awarded to a major defense contractor, the primary focus is likely on the prime's capabilities. However, large prime contractors often engage small businesses for specialized support or components, though the extent of this contract's impact on the small business ecosystem is not directly evident from the provided data.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA). Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Communications Systems
Airborne Electronic Equipment
Engineering and Technical Services
Information Technology Support Services
Command, Control, and Communications Systems

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Long contract duration may pose challenges for technology obsolescence.
Potential for scope creep in complex engineering services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TECH & ENGR SERVICES TO SUPPORT THE COMMUNICATION AND AIRBORNE NETWORKING

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 $27.1 million.

What is the period of performance?

Start: 2006-06-19. End: 2024-01-25.

What is Science Applications International Corporation's (SAIC) track record with similar Department of Defense contracts?

SAIC has a long and extensive history of performing complex engineering, IT, and technical services for the Department of Defense across various branches and agencies. They are a major defense contractor known for their work in areas such as C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), cybersecurity, systems engineering, and logistics support. Their track record includes numerous large-scale, multi-year contracts, often involving advanced technology development and integration. While specific performance metrics for every contract are not publicly detailed, SAIC's continued success in winning and executing significant defense contracts suggests a generally positive performance history and strong capabilities in meeting government requirements. However, like any large contractor, they may have faced specific performance challenges or contract disputes on individual projects, which would require deeper investigation into specific contract histories.

How does the $27.1 million contract value compare to other airborne networking support contracts?

The $27.1 million contract value for airborne networking and communication support services, spread over its period of performance, appears to be within a moderate range for specialized defense systems support. Larger, more comprehensive system development or sustainment contracts can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, more focused task orders or support services might be in the single-digit millions. Given that this contract involves engineering services for communication and airborne networking, which are critical and technologically advanced areas, $27.1 million represents a significant but not exceptionally large investment. Benchmarking requires comparing it to contracts with similar scope, duration, and technical complexity, ideally from the same agency or for similar platforms, to ascertain if the pricing is competitive.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for complex engineering services, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a ceiling on their profit. This structure can sometimes incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost incurred (within allowable limits). For the government, the risk lies in managing and scrutinizing the contractor's costs to ensure they are reasonable, allocable, and necessary. Effective oversight, detailed cost reporting, and robust auditing are crucial to mitigate the risk of inflated costs and ensure value for money. Scope creep is another significant risk, where the project's requirements expand beyond the initial agreement, leading to increased costs and potential delays.

How effective are full and open competitions in ensuring the best value for taxpayer dollars in defense contracting?

Full and open competition is widely considered the most effective method for ensuring the best value for taxpayer dollars in defense contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are motivated to offer their best pricing and most innovative solutions to win the contract. This broad competition increases the likelihood of discovering lower-cost alternatives and prevents a single contractor from dominating the market and dictating prices. Furthermore, it provides transparency and fairness in the procurement process. While it requires more upfront effort in terms of solicitation and evaluation, the long-term benefits of cost savings, improved quality, and access to a wider range of technological capabilities generally outweigh these initial investments, making it a cornerstone of responsible government spending.

What is the historical spending trend for engineering services supporting airborne communication systems within the DoD?

Historical spending trends for engineering services supporting airborne communication systems within the DoD have generally shown a consistent and significant investment. As technology evolves rapidly and the need for secure, high-bandwidth, and resilient communication networks in airborne platforms increases, so does the demand for specialized engineering expertise. This includes areas like software-defined radios, satellite communications integration, network-centric warfare capabilities, and cybersecurity for airborne platforms. Spending in this category often fluctuates based on major defense modernization programs, geopolitical events, and the introduction of new aircraft or communication technologies. However, the overall trend indicates a sustained high level of expenditure due to the critical nature of these systems for modern military operations and the ongoing need for upgrades and maintenance.

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: N0002406R3246

Offers Received: 2

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: $650,193,058

Exercised Options: $236,443,531

Current Obligation: $27,140,871

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline