Navy's $31M R&D contract with SAIC awarded via full and open competition
Contract Overview
Contract Amount: $31,189,646 ($31.2M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2019-04-10
End Date: 2026-01-15
Contract Duration: 2,472 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 99
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LONG RANGE BROAD AGENCY ANNOUNCEMENT (BAA) FOR NAVY AND MARINE CORPS SCIENCE&TECHNOLOGY
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: LONG RANGE BROAD AGENCY ANNOUNCEMENT (BAA) FOR NAVY AND MARINE CORPS SCIENCE&TECHNOLOGY Key points: 1. Contract focuses on advanced research and development for Navy and Marine Corps. 2. Long-range BAA structure allows for flexible and evolving research needs. 3. SAIC, a large defense contractor, holds this significant award. 4. The contract duration extends over several years, indicating a sustained need. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense modernization. 6. The contract type (Cost Plus Fixed Fee) suggests a focus on managing research costs while ensuring contractor profit. 7. This award represents a substantial investment in future defense capabilities.
Value Assessment
Rating: good
Benchmarking the value of this specific R&D contract is challenging due to its broad nature and long duration. However, the total award amount of $31.2 million over approximately 2472 days (around 6.7 years) suggests an average annual spend of roughly $4.6 million. This is within a reasonable range for large-scale, multi-disciplinary R&D efforts undertaken by major defense contractors. The Cost Plus Fixed Fee (CPFF) contract type is common for R&D where precise costs are difficult to estimate upfront, but it requires careful oversight to ensure cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a 'Full and Open Competition' BAA, indicating that all responsible sources were permitted to submit proposals. The broad nature of a BAA often attracts a wide range of potential offerors, fostering a competitive environment. While the specific number of bidders is not provided, the full and open nature suggests a robust competition occurred, which is generally beneficial for price discovery and innovation.
Taxpayer Impact: A full and open competition process is the most advantageous for taxpayers as it maximizes the pool of potential contractors, driving down costs and encouraging the best possible solutions to be presented.
Public Impact
The primary beneficiaries are the U.S. Navy and Marine Corps, who will receive advancements in science and technology to enhance their operational capabilities. Services delivered include cutting-edge research and development across physical, engineering, and life sciences. The geographic impact is national, supporting defense innovation across the United States, though specific research locations may vary. Workforce implications include employment for scientists, engineers, and support staff within SAIC and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- The broad scope of the BAA might lead to research areas that are not fully aligned with immediate critical needs.
- Long contract durations can sometimes reduce agility in adapting to rapidly changing technological landscapes.
Positive Signals
- Full and open competition ensures a wide range of innovative solutions are considered.
- The BAA mechanism allows for flexibility in pursuing emerging scientific and technological opportunities.
- SAIC has a strong track record in supporting defense R&D programs.
- The extended duration suggests a commitment to long-term strategic research objectives.
Sector Analysis
This contract falls within the broader Defense Research and Development sector, a significant portion of federal spending. The North American Industry Classification System (NAICS) code 541715 covers Research and Development in the Physical, Engineering, and Life Sciences. This sector is characterized by high innovation, long development cycles, and substantial government investment aimed at maintaining technological superiority. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of BAAs, but overall federal R&D spending in defense is in the tens of billions annually.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (sb: false). While SAIC is a large prime contractor, there is potential for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on SAIC's procurement practices and the specific research tasks required. Without explicit subcontracting goals or reporting, the direct impact on the small business ecosystem is uncertain, though large prime contracts often create opportunities.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to monitor expenditures against the estimated costs and ensure the fixed fee is justified. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General for the Department of Defense would have jurisdiction for audits and investigations if any issues arise.
Related Government Programs
- Navy Science and Technology Programs
- Marine Corps Science and Technology Initiatives
- Department of Defense Research and Development
- Advanced Technology Development Contracts
- Broad Agency Announcements (BAA) Portfolio
Risk Flags
- Potential for cost overruns in CPFF contracts.
- Broad scope may lead to research drift.
- Long contract duration could impact agility.
Tags
department-of-defense, department-of-the-navy, science-and-technology, research-and-development, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, large-contract, science-applications-international-corporation, naics-541715, virginia, long-range-baa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. LONG RANGE BROAD AGENCY ANNOUNCEMENT (BAA) FOR NAVY AND MARINE CORPS SCIENCE&TECHNOLOGY
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 $31.2 million.
What is the period of performance?
Start: 2019-04-10. End: 2026-01-15.
What is Science Applications International Corporation's (SAIC) track record with similar Navy R&D contracts?
SAIC has a substantial and long-standing track record of performing research and development services for the Department of the Navy and other defense agencies. They are a major prime contractor involved in a wide array of scientific, engineering, and technical support services. Their experience spans various domains, including systems engineering, simulation and modeling, cybersecurity, and advanced technological research. Analyzing their past performance on similar Cost Plus Fixed Fee R&D contracts would reveal their ability to manage complex projects, control costs, and deliver on technical objectives within the defense sector. Historical data often shows SAIC as a reliable performer, though like any large contractor, specific project outcomes can vary.
How does the $31.2 million award compare to other Navy R&D contracts of similar scope?
Comparing this $31.2 million award requires understanding the 'scope' which is defined by the BAA's broad nature and the specific research areas pursued over its multi-year duration. For large, multi-disciplinary R&D efforts under BAAs, this amount is substantial but not extraordinary. Many Navy S&T programs involve investments ranging from a few million to tens or even hundreds of millions of dollars over their lifecycle. The key differentiator here is the 'long range' aspect, suggesting a foundational or exploratory research focus rather than a specific system development. Annual spending under this contract will likely average around $4.6 million, which is a significant but manageable figure for a major defense research initiative.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for R&D?
The primary risks with a CPFF contract for R&D revolve around cost control and potential for scope creep. In R&D, especially under a broad BAA, the exact costs and effort required are often uncertain. CPFF allows the contractor to recover all allowable costs plus a predetermined fixed fee, which is their profit. The risk for the government is that costs could escalate beyond initial estimates, even though the contractor's profit margin is fixed. Diligent oversight is crucial to ensure that all costs incurred are reasonable, allocable, and necessary for the research. Without strong government oversight, there's a risk of inefficiencies or research efforts drifting from the most critical objectives, impacting the overall value for money.
How effective is the Broad Agency Announcement (BAA) mechanism for driving innovation in Navy R&D?
The Broad Agency Announcement (BAA) mechanism is generally considered highly effective for driving innovation in Navy R&D. BAAs are designed to solicit proposals for basic and applied research and development that address agency needs. Their strength lies in their flexibility; they allow the government to explore a wide range of scientific and technical areas without predefining specific technical solutions. This open-ended approach encourages researchers to propose novel ideas and cutting-edge approaches. By allowing 'full and open competition,' BAAs attract diverse talent and perspectives, fostering a dynamic environment where groundbreaking discoveries are more likely to emerge, ultimately benefiting the Navy's technological advancement.
What are the historical spending patterns for Navy R&D contracts under NAICS code 541715?
Historical spending patterns for Navy R&D under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) show a consistent and significant investment. The Department of the Navy, along with other DoD components, allocates billions annually to this sector to maintain technological superiority. Spending often fluctuates based on strategic priorities, emerging threats, and technological breakthroughs. Contracts under this NAICS code can range from small, targeted research grants to large, multi-year prime contracts like the one awarded to SAIC. The trend generally indicates a sustained commitment to advancing foundational and applied sciences critical for future defense capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001418SB002
Offers Received: 99
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: $31,194,646
Exercised Options: $31,194,646
Current Obligation: $31,189,646
Actual Outlays: $5,445,660
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-04-10
Current End Date: 2026-01-15
Potential End Date: 2026-05-03 00:00:00
Last Modified: 2026-01-14
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