SAIC awarded $28.5M for PEO IWS 3.0 Surface Ship Weapons Program support
Contract Overview
Contract Amount: $28,485,566 ($28.5M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2009-11-15
End Date: 2011-06-06
Contract Duration: 568 days
Daily Burn Rate: $50.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONTINUED PROFESSIONAL SUPPORT SERVICES FOR THE PROGRAM EXECUTIVE OFFICE INTEGRATED WARFARE SYSTEM (PEO IWS) 3.0 SURFACE SHIP WEAPONS PROGRAM. CONTRACT CEILING TO BE CORRECTED IN FUTURE MOD.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: CONTINUED PROFESSIONAL SUPPORT SERVICES FOR THE PROGRAM EXECUTIVE OFFICE INTEGRATED WARFARE SYSTEM (PEO IWS) 3.0 SURFACE SHIP WEAPONS PROGRAM. CONTRACT CEILING TO BE CORRECTED IN FUTURE MOD. Key points: 1. Contract ceiling requires correction, indicating potential for future adjustments. 2. Services provided are administrative management and general management consulting. 3. The contract was not competed, raising questions about price discovery. 4. This is a definitive contract with a cost-plus-fixed-fee payment structure. 5. The contract duration is 568 days, ending in June 2011. 6. The primary agency is the Department of Defense, with oversight from DCMA.
Value Assessment
Rating: questionable
Benchmarking the value for this contract is challenging due to the lack of competitive bidding and the stated need for a ceiling correction. The cost-plus-fixed-fee structure can sometimes lead to higher costs if not managed tightly. Without comparable contract data or a competitive process, it's difficult to definitively assess if the pricing represents good value for the services rendered. The contract ceiling correction further clouds the final cost assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning it was awarded directly to Science Applications International Corporation (SAIC) without offering other companies the opportunity to bid. Sole-source awards can be justified for specific reasons, such as unique capabilities or urgent needs, but they limit the potential for price competition and may result in higher costs for the government.
Taxpayer Impact: The lack of competition means taxpayers did not benefit from potential cost savings that could have arisen from a bidding process among multiple qualified vendors.
Public Impact
The PEO IWS 3.0 program benefits from continued professional support services. Services are critical for the management and execution of surface ship weapons programs. The geographic impact is likely concentrated within the Department of Defense's operational areas. The contract supports a specialized workforce within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to suboptimal pricing.
- Contract ceiling correction indicates potential for cost overruns or miscalculation.
- Cost-plus-fixed-fee contracts require diligent oversight to control costs.
Positive Signals
- SAIC is a large, established contractor with experience in defense programs.
- The services provided are essential for critical weapons system programs.
Sector Analysis
This contract falls within the professional services sector, specifically administrative and management consulting, supporting the defense industry. The defense sector is characterized by significant government spending on complex systems and ongoing support. Comparable spending benchmarks would typically involve other large-scale defense support contracts, often awarded through competitive processes, making this sole-source award an outlier in terms of procurement method.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. Therefore, it does not directly contribute to small business subcontracting goals. The focus is on a large prime contractor, and any subcontracting to small businesses would be at the discretion of SAIC, with no specific set-aside mandate.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the contract terms and performance metrics. Transparency is limited due to the sole-source nature of the award and the lack of public competitive bidding details.
Related Government Programs
- Program Executive Office Integrated Warfare Systems (PEO IWS)
- Surface Ship Weapons Programs
- Department of Defense Consulting Services
Risk Flags
- Lack of competition
- Potential for cost overruns due to CPFF structure
- Uncertainty regarding final contract ceiling
Tags
defense, department-of-defense, administrative-management-consulting, sole-source, definitive-contract, cost-plus-fixed-fee, science-applications-international-corporation, program-executive-office, weapons-systems, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. CONTINUED PROFESSIONAL SUPPORT SERVICES FOR THE PROGRAM EXECUTIVE OFFICE INTEGRATED WARFARE SYSTEM (PEO IWS) 3.0 SURFACE SHIP WEAPONS PROGRAM. CONTRACT CEILING TO BE CORRECTED IN FUTURE MOD.
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 $28.5 million.
What is the period of performance?
Start: 2009-11-15. End: 2011-06-06.
What is the historical spending pattern for PEO IWS 3.0 support services?
Historical spending data for PEO IWS 3.0 support services prior to this specific contract award is not detailed in the provided data. However, the contract ceiling of $28.5 million suggests a significant investment in professional support for surface ship weapons programs. Understanding the full historical spending would require examining previous contracts awarded to SAIC or other contractors for similar services within PEO IWS, as well as the evolution of program requirements over time. The 'CONTINUED PROFESSIONAL SUPPORT SERVICES' notation implies a preceding contract or ongoing need, but specific figures for past periods are absent.
How does the cost-plus-fixed-fee (CPFF) structure typically impact contractor performance and government cost?
The Cost-Plus-Fixed-Fee (CPFF) contract structure is designed to provide the contractor with reimbursement for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty. For the government, CPFF can incentivize contractors to complete work efficiently to avoid cost overruns that might jeopardize the fixed fee. However, it also carries a risk of cost escalation if the contractor's cost management is weak or if the government's requirements change significantly, as the government bears the risk of cost overruns. Diligent oversight is crucial to ensure costs remain reasonable and the fixed fee remains appropriate for the effort.
What are the implications of the 'contract ceiling to be corrected in future mod' statement?
The statement 'CONTRACT CEILING TO BE CORRECTED IN FUTURE MOD' indicates that the initial contract ceiling amount of $28.5 million may not be the final authorized amount. This suggests a potential discrepancy, an administrative error, or an anticipated need for increased funding that was not finalized at the time of award. It implies that a contract modification will be issued later to adjust this ceiling. For the government, this introduces uncertainty regarding the total potential expenditure. For the contractor, it signifies that the maximum value of the contract is subject to change, potentially impacting resource allocation and long-term planning. This situation warrants close monitoring to understand the reasons for the correction and the final adjusted ceiling.
What is the typical track record of Science Applications International Corporation (SAIC) in defense contracting?
Science Applications International Corporation (SAIC) is a well-established and large government contractor with a significant track record in the defense sector. They have a history of providing a wide range of services, including IT, engineering, logistics, and program management, to various branches of the U.S. military and intelligence agencies. SAIC has been involved in numerous complex defense programs, often securing large, multi-year contracts. While their extensive experience suggests a capacity to handle demanding projects, like any large contractor, they have also faced scrutiny and performance reviews on specific contracts. Their overall reputation in defense contracting is generally that of a major player capable of delivering complex solutions, though specific contract performance can vary.
What does the 'NOT COMPETED' status imply for the value and efficiency of this contract?
The 'NOT COMPETED' status, meaning this contract was awarded sole-source, implies that the government did not conduct a competitive bidding process to select the contractor. This significantly limits the government's ability to leverage market competition to drive down prices and ensure the most cost-effective solution. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they inherently reduce transparency and the potential for achieving optimal value for taxpayer money. Without competition, there is a higher risk that the awarded price may not be the lowest achievable, and the efficiency of the service delivery might not be as rigorously tested against market alternatives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002410R5344
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4805 STONECROFT BLVD, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,548,167
Exercised Options: $28,516,284
Current Obligation: $28,485,566
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-11-15
Current End Date: 2011-06-06
Potential End Date: 2011-06-06 00:00:00
Last Modified: 2024-04-19
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