DoD's $50M engineering services contract to SAIC shows long-term engagement and full competition

Contract Overview

Contract Amount: $50,172,752 ($50.2M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2007-01-16

End Date: 2024-01-25

Contract Duration: 6,218 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: TECHNICAL AND ENGINEERING SUPPORT SERVICES SUPPORTING ATC&LS

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $50.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TECHNICAL AND ENGINEERING SUPPORT SERVICES SUPPORTING ATC&LS Key points: 1. Contract awarded through full and open competition, suggesting a competitive market for these services. 2. Long contract duration (over 17 years) indicates a sustained need for these technical and engineering support services. 3. The Cost Plus Award Fee (CPAF) pricing structure incentivizes performance but requires careful oversight to manage costs. 4. The contract is a delivery order under a larger IDIQ contract, common for flexible and ongoing support needs. 5. The prime contractor, Science Applications International Corporation (SAIC), is a major player in government contracting. 6. The contract's value is significant, reflecting substantial investment in air traffic control and landing systems support.

Value Assessment

Rating: good

The contract's total value of approximately $50.17 million over its extensive period suggests a moderate annual spend. Benchmarking this against similar long-term, complex engineering support contracts is challenging without more specific service details. However, the CPAF structure implies that pricing is tied to performance, which can be a good value if performance targets are met and costs are managed effectively. The relatively low number of delivery orders (1) for this substantial value might indicate large, infrequent taskings or a single, overarching project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, driving down prices and encouraging innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided, but the designation suggests a robust market for these engineering services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to better pricing and a wider range of solutions, ensuring government funds are used efficiently.

Public Impact

The Department of Defense benefits from continuous technical and engineering support for its Air Traffic Control and Landing Systems (ATC&LS). This contract ensures the operational readiness and modernization of critical aviation infrastructure within the military. The services provided likely support personnel involved in aviation operations and maintenance across various military installations. Geographic impact is likely widespread, supporting DoD aviation activities globally, though specific locations are not detailed. The contract supports a workforce of engineers and technical specialists, contributing to specialized government contracting employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure, while incentivizing, can lead to cost overruns if not rigorously monitored.
The extended duration of the contract (over 17 years) raises questions about potential scope creep or evolving requirements.
Lack of specific details on performance metrics makes it difficult to fully assess the 'award fee' component's effectiveness.
The contract is a delivery order under a larger IDIQ, which can sometimes obscure the true total value and competition for individual task orders.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The long-term nature suggests a consistent and critical need for these services, providing stability for the program.
SAIC is an established government contractor with a track record in complex technical services.
The CPAF structure, if managed well, can drive high performance and achieve desired outcomes.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market. This sector encompasses a wide range of specialized services, including design, consulting, and technical support for complex systems. The federal government is a major consumer of engineering services, particularly within defense, infrastructure, and technology. The approximate $50 million value over its lifespan places it as a substantial, long-term engagement, likely supporting critical national defense infrastructure.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus or requirement for this specific contract, as neither a small business set-aside nor subcontracting goals are indicated. This suggests the prime contract was awarded based on full and open competition, likely to a large business capable of meeting the extensive requirements. Consequently, the direct impact on the small business ecosystem for this particular award appears minimal, though SAIC may engage small businesses as subcontractors under separate agreements not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractors meet contractual requirements, including cost, schedule, and performance. The CPAF structure necessitates close monitoring of performance metrics to justify award fees. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports and audits are often internal or classified. Inspector General oversight may be involved if specific concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Air Traffic Control Systems
Defense Aviation Support
Engineering and Technical Services
Logistics Support Services
Department of Defense IT and Infrastructure

Risk Flags

Long contract duration may indicate potential for scope creep or evolving requirements.
CPAF structure requires robust oversight to ensure value for money.
Limited public data on specific performance metrics and outcomes.
Delivery order under IDIQ may obscure detailed competition specifics for this order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TECHNICAL AND ENGINEERING SUPPORT SERVICES SUPPORTING ATC&LS

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 $50.2 million.

What is the period of performance?

Start: 2007-01-16. End: 2024-01-25.

What is Science Applications International Corporation's (SAIC) track record with similar large-scale engineering support contracts for the Department of Defense?

SAIC is a well-established government contractor with extensive experience in providing technical, engineering, and IT services to the Department of Defense and other federal agencies. They frequently win large, complex contracts, including those involving systems engineering, integration, and support for defense platforms and infrastructure. Their history includes numerous prime contracts similar in scope and duration to this ATC&LS support. While specific performance metrics for past contracts are not publicly detailed, SAIC's continued success in securing significant DoD awards suggests a generally positive track record and capability to meet demanding requirements. However, like any large contractor, they may have faced past performance challenges or disputes on specific projects, which are not detailed in this summary data.

How does the $50.17 million total contract value compare to annual spending on similar ATC&LS engineering support?

The total contract value of $50.17 million spread over approximately 17 years (January 2007 to January 2025) equates to an average annual spend of roughly $2.95 million. This figure represents a moderate annual investment for specialized engineering support within a large organization like the DoD. Without access to specific budget allocations for ATC&LS or comparable contract data across different military branches or agencies, a precise benchmark is difficult. However, this annual average suggests a focused, ongoing need rather than a massive, episodic expenditure. It is likely within the expected range for sustaining and evolving complex systems like air traffic control and landing infrastructure.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude and duration?

The primary risks with a CPAF contract of this scale and duration revolve around cost control and performance verification. For the government, the risk is that the contractor may not achieve the highest performance levels to earn the maximum award fee, yet costs continue to escalate under the 'cost plus' component. Conversely, the contractor bears the risk of not meeting performance targets, thus forfeiting potential award fees. Effective oversight is crucial to ensure that the award fee criteria are objective, measurable, and aligned with critical program goals. Without stringent monitoring of expenditures and rigorous evaluation of performance against defined metrics, there's a risk of both cost overruns and suboptimal service delivery over the contract's long lifespan.

How has the need for ATC&LS engineering support evolved since the contract's inception in 2007?

Since 2007, the landscape of Air Traffic Control and Landing Systems (ATC&LS) has undergone significant technological evolution. Key advancements include increased digitalization, integration of satellite-based navigation (like GPS augmentation), enhanced communication systems (e.g., data link), and the development of Next Generation Air Transportation Systems (NextGen) concepts in the US. For the DoD, this likely translates to a need for engineering support that addresses cybersecurity threats, data integration across diverse platforms, automation, and potentially AI-driven decision support. The long duration of this contract suggests SAIC's role has adapted to these evolving technological requirements, moving beyond legacy system support to encompass modernization, integration of new technologies, and ensuring interoperability within the broader DoD operational environment.

What is the significance of this contract being a delivery order under a larger IDIQ contract?

This contract being a delivery order (DO) under an indefinite-delivery, indefinite-quantity (IDIQ) contract signifies a flexible contracting approach. IDIQs allow agencies to procure a range of supplies or services over a set period, with specific quantities and delivery dates defined by individual task orders or delivery orders. This structure is beneficial when the exact timing and volume of needs are uncertain but a general requirement exists. For taxpayers, it means the government can respond efficiently to fluctuating demands without needing to re-compete the entire requirement each time. However, it also means that the 'full and open competition' designation applies to the underlying IDIQ, and the specific competition for this particular delivery order might have been more limited, depending on the IDIQ's terms.

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: N0002406R3665

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: $455,452,015

Exercised Options: $153,475,181

Current Obligation: $50,172,752

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