DoD's $42.8M Engineering Services Contract with SAIC: Full and Open Competition Awarded
Contract Overview
Contract Amount: $42,840,154 ($42.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2010-03-31
End Date: 2015-09-14
Contract Duration: 1,993 days
Daily Burn Rate: $21.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ICIS MANAGEMENT AND PROFESSIONAL SUPPORT SERVICES
Place of Performance
Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $42.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ICIS MANAGEMENT AND PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for engineering services. 2. Significant value of $42.8 million over its period of performance. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract falls under the Engineering Services sector, a critical area for defense operations.
Value Assessment
Rating: good
The contract's pricing structure is Cost Plus Fixed Fee, which can incentivize cost control while ensuring contractor profit. Benchmarking against similar engineering services contracts would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, allowing multiple bidders to compete. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received fair market value for the engineering services rendered.
Public Impact
Supports critical Department of the Navy engineering and professional support functions. The duration of the contract (over 5 years) indicates a long-term need for these services. SAIC's role highlights the importance of private sector expertise in government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts.
- Long contract duration could lead to scope creep if not managed effectively.
Positive Signals
- Full and open competition ensures a competitive bidding process.
- Award to a well-established contractor like SAIC suggests reliability.
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for defense infrastructure and technological development. Spending in this sector is often substantial due to the complexity and criticality of defense projects.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor, SAIC, is a large corporation. There is no information on small business subcontracting participation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, implying oversight from this agency. The use of delivery orders suggests a structured approach to task management and funding allocation.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
- Long contract duration may increase the potential for scope creep.
- Lack of specific detail on small business subcontracting.
- No explicit mention of performance metrics or specific value-added metrics.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ICIS MANAGEMENT AND PROFESSIONAL SUPPORT SERVICES
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $42.8 million.
What is the period of performance?
Start: 2010-03-31. End: 2015-09-14.
What was the specific nature of the engineering services provided under this contract, and how did they contribute to the Department of the Navy's mission?
The contract provided 'ICIS Management and Professional Support Services,' falling under the NAICS code 541330 for Engineering Services. These services likely encompassed a range of technical, analytical, and management support crucial for naval operations, research and development, or infrastructure projects. The exact contribution would depend on the specific tasks ordered via delivery orders, but generally, such services are essential for maintaining technological superiority and operational readiness.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to mitigate the risk of cost overruns and ensure efficient use of funds?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns. Mitigation typically involves robust government oversight, detailed performance metrics, and clear definition of work scope in each delivery order. The fixed fee component provides the contractor with an incentive to control costs to maximize profit. Regular audits and reviews by the Department of the Navy would also be crucial for monitoring expenditures and ensuring adherence to the contract's financial parameters.
How does the $42.8 million contract value compare to typical spending on similar engineering services by the Department of the Navy or other defense agencies?
A $42.8 million contract over approximately five years for engineering services is a substantial but not extraordinary amount within the defense sector. The Department of Defense procures billions in engineering and professional services annually. The value is significant enough to warrant competitive bidding to ensure value for money. Benchmarking against similar contracts for specific naval engineering needs would provide a more precise comparison of its cost-effectiveness.
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: N0002409R3247
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $44,749,061
Exercised Options: $44,749,061
Current Obligation: $42,840,154
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2010-03-31
Current End Date: 2015-09-14
Potential End Date: 2015-09-14 00:00:00
Last Modified: 2017-06-29
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