DoD's $46.8M Engineering Services Contract with SAIC Faces Scrutiny for Potential Overpricing
Contract Overview
Contract Amount: $46,791,943 ($46.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2014-07-31
End Date: 2016-07-31
Contract Duration: 731 days
Daily Burn Rate: $64.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF SYSTEMS ENGINEERING AND TECHNICAL SUPPORT
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $46.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF SYSTEMS ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for $46.8M. 2. Full and open competition was used, but the pricing assessment is fair. 3. Potential risks include cost overruns and the effectiveness of the fixed-fee structure. 4. The sector is Engineering Services within the Department of Defense.
Value Assessment
Rating: fair
The contract's pricing appears fair when benchmarked against similar engineering services contracts. However, the cost-plus-fixed-fee structure warrants close monitoring to ensure costs do not escalate beyond initial estimates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. The fixed-fee component aims to control costs, but the effectiveness depends on accurate initial estimates.
Taxpayer Impact: Taxpayer funds are utilized for engineering services. While competition is present, the cost-plus-fixed-fee nature requires diligent oversight to prevent unnecessary expenditures.
Public Impact
Ensures critical engineering and technical support for the Department of the Navy. Supports advanced technological development and implementation within defense systems. The contract's duration and value indicate a significant investment in specialized expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure can incentivize cost overruns if not managed tightly.
- Potential for scope creep without strict change control.
- Reliance on a single contractor for critical services.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Contract provides essential technical support for naval operations.
- Fixed fee component aims to provide cost certainty.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for the Department of Defense's technological advancements. Spending benchmarks in this sector vary widely based on project complexity and duration.
Small Business Impact
This contract does not appear to have specific provisions or set-asides for small businesses. The primary contractor, SAIC, is a large corporation, indicating limited direct opportunities for small businesses through this specific award.
Oversight & Accountability
The contract's oversight is managed by the Department of the Navy. The cost-plus-fixed-fee structure necessitates robust financial oversight and performance monitoring to ensure accountability and prevent waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to the cost-plus-fixed-fee structure.
- Lack of specific detail on the services provided and their direct impact.
- Limited visibility into small business participation.
- Contract duration may not align with rapidly evolving technological needs.
Tags
engineering-services, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF SYSTEMS ENGINEERING AND TECHNICAL 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $46.8 million.
What is the period of performance?
Start: 2014-07-31. End: 2016-07-31.
What specific engineering services are provided under this contract, and how do they align with current naval technological needs?
The contract covers general engineering and technical support. While the exact services are not detailed here, they are intended to support the Department of the Navy's operational and developmental requirements. The alignment with current needs would require a deeper dive into the specific task orders and the Navy's strategic technology roadmap.
How effectively does the cost-plus-fixed-fee structure mitigate risks associated with cost overruns in complex engineering projects?
The cost-plus-fixed-fee structure aims to provide cost certainty by capping the contractor's fee. However, it can incentivize cost overruns if the government does not rigorously monitor the 'cost' portion. Effective risk mitigation relies on strong government oversight, detailed cost tracking, and strict change order management to prevent scope creep.
What is the long-term strategic value of this contract for the Department of the Navy, considering its duration and cost?
The long-term strategic value lies in securing specialized engineering expertise for potentially critical naval systems. The $46.8M over two years suggests a significant commitment to maintaining or advancing specific technological capabilities. Its true value is realized if it directly contributes to enhanced naval readiness, modernization, or operational 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: N0002414R3507
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: $61,007,910
Exercised Options: $61,007,910
Current Obligation: $46,791,943
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
Start Date: 2014-07-31
Current End Date: 2016-07-31
Potential End Date: 2016-07-31 00:00:00
Last Modified: 2024-08-15
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