DoD's $46M Engineering Support Contract Awarded to Science Applications International Corp

Contract Overview

Contract Amount: $46,344,361 ($46.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2007-05-29

End Date: 2024-01-25

Contract Duration: 6,085 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: JPALS, NUCAS AND AAR R&D AND ENGINEERING SUPPORT

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $46.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: JPALS, NUCAS AND AAR R&D AND ENGINEERING SUPPORT Key points: 1. Contract provides R&D and engineering support for JPALS, NUCAS, and AAR systems. 2. Long contract duration of over 6000 days suggests a need for sustained support. 3. Awarded via full and open competition, indicating a broad market search. 4. Cost Plus Award Fee (CPA) contract type allows for performance-based incentives. 5. The contract's value is moderate within the context of large-scale defense engineering. 6. Engineering services (NAICS 541330) are critical for maintaining complex defense systems.

Value Assessment

Rating: good

The contract's total value of $46.3 million over its extended period suggests a reasonable investment for ongoing R&D and engineering support. Benchmarking against similar long-term, specialized engineering contracts within the Department of Defense is challenging without more granular data on specific deliverables. However, the Cost Plus Award Fee structure implies that the government aims to achieve good value by incentivizing contractor performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select from a wide range of qualified contractors. The use of full and open competition is a positive indicator for achieving competitive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best available solution through a broad solicitation process.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which receive essential R&D and engineering support for critical systems. Services delivered include research, development, and engineering expertise for JPALS, NUCAS, and AAR. The geographic impact is likely national, supporting defense operations and readiness across different military installations. Workforce implications include the employment of engineers and technical specialists by the contractor, Science Applications International Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if performance incentives are not tightly managed.
Long contract duration could lead to scope creep or evolving requirements that may not be fully captured in initial pricing.
Dependence on a single contractor for critical R&D and engineering support could pose a risk if contractor performance degrades.

Positive Signals

The Cost Plus Award Fee structure incentivizes high performance and successful outcomes.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The sustained nature of the contract indicates a recognized need for ongoing, specialized engineering expertise.

Sector Analysis

This contract falls within the broader defense engineering services sector, which is a significant component of the U.S. federal IT and defense spending landscape. The market for specialized engineering support for complex defense systems is characterized by a few large, established contractors capable of meeting stringent requirements. Spending in this area is driven by the need to maintain and modernize aging military platforms and develop new technological capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Science Applications International Corporation is a large prime contractor. There is no explicit information on subcontracting plans for small businesses within this award, but large prime contractors often utilize small businesses for specialized support, which could be a positive impact if implemented.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Award Fee structure necessitates close monitoring of performance metrics to ensure award fees are justified. Transparency is generally maintained through contract reporting mechanisms, though specific details of award fee determinations are often proprietary.

Related Government Programs

Defense Research and Development
Engineering Services Contracts
Naval Systems Support
Aerospace Engineering Support
Information Technology Support Services

Risk Flags

Long contract duration may indicate potential for scope creep or evolving requirements.
Cost Plus Award Fee contracts require diligent oversight to ensure value for money.
Dependence on a single contractor for critical R&D could pose a risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. JPALS, NUCAS AND AAR R&D AND ENGINEERING 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $46.3 million.

What is the period of performance?

Start: 2007-05-29. End: 2024-01-25.

What is the historical spending trend for JPALS, NUCAS, and AAR R&D and engineering support?

Analyzing historical spending trends for this specific contract requires access to detailed contract modification history and potentially related contracts. The current award value of $46.3 million represents the total obligated amount over its duration. Without prior contract data or a clear baseline, it's difficult to ascertain if current spending is an increase, decrease, or stable compared to previous periods. However, the long duration (6085 days) suggests a consistent need and potentially stable, albeit significant, annual expenditure for these critical R&D and engineering services.

How does the Cost Plus Award Fee (CPA) structure impact contractor performance and cost control for this contract?

The Cost Plus Award Fee (CPA) structure is designed to incentivize contractor performance by allowing for additional profit (the 'award fee') based on achieving specific performance objectives defined by the government. This can lead to better quality services and innovation. However, it also requires robust government oversight to ensure that award fees are earned legitimately and that costs are controlled. If performance metrics are poorly defined or oversight is lax, CPA contracts can sometimes lead to higher costs than fixed-price arrangements, as the contractor is reimbursed for all allowable costs plus a fee that can vary based on performance.

What are the key performance indicators (KPIs) used to determine the award fee for Science Applications International Corporation?

The specific Key Performance Indicators (KPIs) used to determine the award fee for this contract are not publicly detailed in the provided data. Typically, for R&D and engineering support contracts, KPIs would relate to technical performance, schedule adherence, cost management, innovation, and responsiveness to government needs. The 'Award Fee Plan' associated with the contract would outline these metrics and the criteria for earning different levels of award fees. Effective KPIs are crucial for ensuring the government receives optimal value and that the contractor is motivated to exceed basic requirements.

What is the significance of the 'MASSACHUSETTS' location (ST: MA) for this contract?

The 'MASSACHUSETTS' designation (ST: MA) likely indicates the state where the contractor, Science Applications International Corporation, has a significant operational presence or where the contract's administrative functions are primarily managed. While the contract itself supports Department of Defense systems, which are geographically dispersed, the state code often reflects the contractor's reporting location or a key site of performance. This could have implications for state-level economic impact, workforce development, and potentially state taxes, but it does not define the operational scope of the engineering services provided.

How does the contract's duration (6085 days) compare to typical engineering support contracts in the defense sector?

A duration of 6085 days, which is approximately 16.7 years, is exceptionally long for a single contract award, even within the defense sector. While multi-year contracts and indefinite-delivery/indefinite-quantity (IDIQ) vehicles are common, a single delivery order or contract with such an extended period suggests a long-term, stable requirement for specialized engineering and R&D support. Many defense contracts are awarded for shorter durations (e.g., 1-5 years) with options for renewal. This extended period may reflect the lifecycle of the systems being supported or a strategic decision to ensure continuity of essential services.

What is the potential impact of this contract on the broader defense engineering services market?

This contract, awarded to a major defense contractor like Science Applications International Corporation, reinforces their position in the defense engineering services market. The $46.3 million value, spread over a long period, signifies a substantial commitment by the DoD to these specific systems (JPALS, NUCAS, AAR). Its award through full and open competition suggests that the market is competitive, but the long duration and specialized nature likely favor established players with proven track records. This contract could influence future solicitations by setting benchmarks for performance and pricing in similar R&D and engineering support categories.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002407R3199

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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: $441,359,448

Exercised Options: $134,919,272

Current Obligation: $46,344,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4143

IDV Type: IDC

Timeline