Over $27 million awarded to Science Applications International Corporation for program management support by the Department of Defense

Contract Overview

Contract Amount: $27,107,187 ($27.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2009-07-15

End Date: 2024-01-25

Contract Duration: 5,307 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM MANAGEMENT SUPPORT

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: PROGRAM MANAGEMENT SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract duration of over 5,300 days indicates a long-term need for these services. 3. The cost-plus-fixed-fee (CPFF) pricing structure may incentivize cost overruns if not closely monitored. 4. The contract is for engineering services, a critical component of defense program management. 5. The award was made by the Defense Contract Management Agency, a key oversight body. 6. The contract spans multiple delivery orders, indicating flexibility and phased execution.

Value Assessment

Rating: good

The total value of $27.1 million over approximately 14.5 years suggests a moderate annual spend. Benchmarking against similar program management support contracts is difficult without more specific service details. However, the CPFF contract type can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not stringent. The consistent award of multiple delivery orders indicates ongoing value perceived by the agency.

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 presence of four delivery orders suggests that the Science Applications International Corporation (SAIC) was selected as the best value provider among several potential bidders. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces, ensuring that the selected contractor offers the most advantageous terms.

Public Impact

The Department of Defense benefits from consistent and expert program management support. Services delivered likely include planning, execution, monitoring, and control of defense programs. The contract's impact is national, supporting defense initiatives across various operational theaters. Workforce implications include the potential for skilled engineers and program managers employed by SAIC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
  • Long contract duration may require ongoing vigilance to ensure continued value for money.
  • The specific nature of 'program management support' can be broad, requiring clear performance metrics.

Positive Signals

  • Awarded through full and open competition, indicating competitive pricing potential.
  • Multiple delivery orders suggest sustained satisfaction and performance.
  • Contracting through a specialized agency (DCMA) implies robust oversight.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. The federal government is a significant consumer of these services, particularly within the Department of Defense, for managing complex acquisition programs and ensuring technical feasibility. Market size for engineering services supporting the federal government is substantial, with numerous large and small firms competing for contracts. This specific award to SAIC represents a portion of the government's investment in maintaining its technological edge and operational readiness.

Small Business Impact

The data indicates that small business participation was not a primary driver for this specific award, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. While SAIC is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting on this contract and its overall impact on the small business ecosystem.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, providing a layer of accountability. The contract's structure with multiple delivery orders allows for phased oversight and performance evaluation. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Defense Program Management
  • Engineering and Technical Services
  • Contract Administration Services
  • Acquisition Support Services

Risk Flags

  • Cost-plus-fixed-fee pricing requires diligent oversight to prevent cost escalation.
  • Long contract duration necessitates continuous performance monitoring.
  • The broad nature of 'program management support' requires clearly defined deliverables and metrics.

Tags

defense, program-management-support, science-applications-international-corporation, department-of-defense, engineering-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, long-term-contract, massachusetts, defense-contract-management-agency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PROGRAM MANAGEMENT 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 $27.1 million.

What is the period of performance?

Start: 2009-07-15. End: 2024-01-25.

What is the historical spending trend for program management support services by the Department of Defense?

Historical spending on program management support services by the Department of Defense has been substantial and generally increasing over the past decade, driven by modernization efforts and ongoing global security challenges. While specific figures for 'program management support' can vary based on categorization, the overall trend reflects a consistent demand for expertise in managing complex defense acquisition programs. Factors influencing this trend include the introduction of new technologies, the need for lifecycle support of existing systems, and the strategic imperative to maintain readiness. The DoD often utilizes a mix of contract types and competition levels for these services, with significant portions awarded through full and open competition to large system integrators and specialized support firms like Science Applications International Corporation.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type, used here, reimburses the contractor for allowable costs plus a fixed fee representing profit. This structure is often employed when the scope of work is not precisely defined or is expected to evolve, providing flexibility. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the contractor is incentivized to incur costs to achieve the project goals, while the government bears the primary cost risk. For similar program management support services, fixed-price incentive (FPI) or firm-fixed-price (FFP) contracts might offer better cost control if the scope is well-defined. However, the CPFF structure can be advantageous when innovation or adaptation is crucial and precise cost estimation is challenging upfront, provided robust government oversight is in place to manage expenditures.

What is Science Applications International Corporation's track record with the Department of Defense?

Science Applications International Corporation (SAIC) has a long-standing and extensive track record as a major contractor for the Department of Defense (DoD). They consistently secure a significant volume of contracts across various defense domains, including IT services, engineering, logistics, and program management. SAIC is known for its ability to handle large, complex programs and has been a key partner in numerous defense initiatives. Their performance history with the DoD is generally characterized by a broad range of capabilities and a substantial presence in supporting military operations and technological development. While specific performance ratings for individual contracts are often proprietary, SAIC's continued success in winning competitive bids indicates a generally positive standing with the agency.

What are the key performance indicators (KPIs) typically used to evaluate program management support contracts?

Key Performance Indicators (KPIs) for program management support contracts typically focus on the contractor's ability to deliver services that ensure program success within defined constraints. Common KPIs include adherence to schedule (meeting milestones and deadlines), cost control (managing expenditures within budget or projected costs), quality of deliverables (accuracy, completeness, and effectiveness of reports, plans, and analyses), risk management (identification and mitigation of program risks), stakeholder satisfaction (feedback from government program managers and end-users), and compliance with contract terms and regulations. For a CPFF contract, tracking cost variance and ensuring that costs remain reasonable and allocable are critical. Performance is often assessed through regular progress reports, formal reviews, and potentially award-fee evaluations if applicable.

How does this contract's value compare to the overall DoD budget for engineering and technical services?

The $27.1 million awarded to SAIC for program management support represents a relatively small fraction of the Department of Defense's overall budget for engineering and technical services. The DoD's annual budget runs into hundreds of billions of dollars, with a significant portion allocated to research, development, testing, and evaluation (RDT&E), as well as procurement and sustainment of weapon systems. Engineering and technical services are integral to all these activities. While $27.1 million is a substantial sum for a single contract, it is dwarfed by the total spending in this category across the entire department. This contract likely supports a specific program or set of programs, contributing to the broader mission objectives rather than representing a major strategic investment in itself.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N0002408R3459

Offers Received: 4

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: $29,699,636

Exercised Options: $28,900,695

Current Obligation: $27,107,187

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

Start Date: 2009-07-15

Current End Date: 2024-01-25

Potential End Date: 2024-01-25 00:00:00

Last Modified: 2024-01-25

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