DoD's $42.9M Engineering Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $42,919,951 ($42.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2010-09-22
End Date: 2017-04-13
Contract Duration: 2,395 days
Daily Burn Rate: $17.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SUPPORT SERVICES
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $42.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING AND TECHNICAL SUPPORT SERVICES Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed carefully. 3. The duration of the contract is substantial, spanning nearly 7 years, indicating a long-term need for these services. 4. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The primary service category is Engineering Services, a critical component for defense operations and development. 6. The contract was awarded to a single large business, with no indication of small business set-aside or subcontracting.
Value Assessment
Rating: fair
Benchmarking the value of this $42.9 million contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation compared to fixed-price contracts. While the duration is long, the total value spread over nearly seven years suggests a moderate annual spend. Further analysis would require comparing the specific engineering tasks performed against industry standards and the pricing structure for similar CPFF contracts within the Department of Defense.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a reasonable level of competition for these engineering services. However, the fact that it resulted in a single delivery order implies it might be part of a larger IDIQ vehicle, where the initial competition for the IDIQ itself is key. The competition level here is adequate but could potentially be higher depending on the specific niche of engineering services required.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. The presence of multiple bidders suggests that the government had options, potentially driving down costs compared to a sole-source award.
Public Impact
The Department of the Navy benefits from specialized engineering and technical support services. These services are crucial for the development, maintenance, and enhancement of naval systems and infrastructure. The contract supports the operational readiness and technological advancement of the U.S. Navy. The geographic impact is likely concentrated around naval facilities and operational areas, primarily in Maryland where the contractor is located. The contract supports highly skilled engineering and technical professionals within Science Applications International Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
- Long contract duration (nearly 7 years) increases the risk of scope creep or evolving requirements not being adequately addressed.
- Lack of transparency on specific deliverables makes it difficult to assess true value for money.
- No indication of small business participation or subcontracting opportunities.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- The contractor, Science Applications International Corporation, is a large, established entity with significant experience in government contracting.
- The contract addresses a critical need for engineering and technical support within the Department of Defense.
Sector Analysis
The engineering services sector is a vital component of the defense industrial base, providing essential expertise for complex weapon systems, infrastructure, and research and development. This contract falls under the broader category of professional, scientific, and technical services, which is a significant area of federal spending. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) represents a market characterized by specialized knowledge and high barriers to entry. Federal spending in this area often supports innovation and the maintenance of advanced military capabilities.
Small Business Impact
This contract does not appear to have included a small business set-aside, as indicated by `sb: false`. Furthermore, there is no explicit mention of subcontracting goals or requirements. This suggests that the primary award went to a large business, and opportunities for small businesses would likely depend on SAIC's internal subcontracting practices rather than a direct government mandate within this specific contract.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and allocable to the contract. Transparency is dependent on the reporting requirements stipulated in the contract and the agency's commitment to making relevant data publicly accessible. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Naval Sea Systems Command (NAVSEA) Contracts
- Science Applications International Corporation (SAIC) Federal Contracts
- Cost Plus Fixed Fee Contracts
- Professional, Scientific, and Technical Services
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long contract duration increases the risk of requirement evolution and performance management challenges.
- Lack of specific performance metrics or deliverables makes value assessment difficult.
- No explicit small business subcontracting goals noted.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, science-applications-international-corporation, maryland, professional-scientific-and-technical-services, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING AND TECHNICAL 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 $42.9 million.
What is the period of performance?
Start: 2010-09-22. End: 2017-04-13.
What specific engineering and technical support services were provided under this contract?
The provided data indicates the contract was for 'ENGINEERING AND TECHNICAL SUPPORT SERVICES' under NAICS code 541330 (Engineering Services). However, the specific nature of these services is not detailed. Typically, such contracts can encompass a wide range of activities including systems engineering, design, analysis, testing, logistics support, and program management for naval platforms, weapons systems, or infrastructure. Without access to the contract's Statement of Work (SOW) or task orders, a precise breakdown of services rendered is not possible. The value of $42.9 million spread over nearly seven years suggests a consistent, ongoing need for specialized engineering expertise within the Department of the Navy.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar engineering services?
Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is significant uncertainty in the cost of performance, common in research and development or complex engineering projects. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This differs from Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the actual costs incurred, incentivizing the contractor to control costs. Cost-Reimbursement contracts, like CPFF, shift more cost risk to the government. For engineering services, FFP can be advantageous if requirements are well-defined, offering better cost certainty. However, CPFF provides flexibility when requirements are evolving or technical challenges are substantial, though it necessitates robust government oversight to manage costs effectively.
What is the track record of Science Applications International Corporation (SAIC) in delivering similar engineering services to the DoD?
Science Applications International Corporation (SAIC) is a major government contractor with extensive experience providing a wide array of engineering, IT, and technical services to the Department of Defense and other federal agencies. They have a long history of supporting complex defense programs, including naval systems, C4ISR, and simulation and training. SAIC has consistently secured large-value contracts across various defense branches. While specific performance metrics for this particular $42.9 million contract are not detailed here, SAIC's overall track record suggests they possess the capability and capacity to handle substantial engineering support requirements. However, as with any large contractor, performance can vary across different contracts and programs, and a deeper dive into past performance reviews and contract close-out data would be necessary for a comprehensive assessment.
How does the annual spending on this contract compare to overall federal spending on engineering services?
This contract, valued at approximately $42.9 million over nearly 7 years (2395 days), averages roughly $5.7 million per year. Federal spending on engineering services is substantial, encompassing a wide range of activities across multiple agencies, particularly the Department of Defense, NASA, and the Department of Transportation. While $5.7 million annually is significant for a single contract, it represents a small fraction of the total federal expenditure on engineering services, which can run into tens of billions of dollars annually. For context, the federal government procures billions of dollars worth of engineering services each year, supporting everything from infrastructure projects to advanced military technology development. This contract is therefore a component within a much larger ecosystem of federal engineering service procurements.
What are the potential risks associated with a long-duration delivery order contract for engineering services?
Long-duration delivery order contracts, especially those spanning nearly seven years like this one, present several potential risks. Firstly, the requirements may evolve significantly over the contract period due to technological advancements, changes in strategic priorities, or operational feedback. If the contract isn't structured with flexibility for scope adjustments, it can become outdated or inefficient. Secondly, maintaining consistent oversight and performance management over such an extended period can be challenging for the government agency. Thirdly, the Cost Plus Fixed Fee (CPFF) structure, combined with a long duration, increases the risk of cost escalation if not meticulously managed and audited. Finally, there's a risk of contractor 'lock-in,' where the agency becomes heavily reliant on a single contractor, potentially diminishing future competition or innovation.
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: N0002409R3539
Offers Received: 3
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: $45,433,738
Exercised Options: $45,433,738
Current Obligation: $42,919,951
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $4,045,246
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: 2010-09-22
Current End Date: 2017-04-13
Potential End Date: 2017-04-13 00:00:00
Last Modified: 2018-04-17
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