Naval Surface Warfare Center contract for munitions support awarded to Science Applications International Corporation for over $28.7M

Contract Overview

Contract Amount: $28,755,768 ($28.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2017-07-27

End Date: 2022-07-27

Contract Duration: 1,826 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE NAVAL SURFACE WARFARE CENTER, CRANE DIVISION CONTRACTING DEPARTMENT, CRANE, IN IS SEEKING POTENTIAL SOURCES THAT CAN SUPPORT NON-PERSONAL MANAGEMENT, ENGINEERING, TEST AND EVALUATION, LOGISTICS, AND IN-SERVICE SUPPORT SERVICES OF VARIOUS SPECIALIZED MUNITIONS ITEMS IN SUPPORT OF THE SPECIALIZED MUNITIONS DIVISION, CODE JXR.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF THE NAVAL SURFACE WARFARE CENTER, CRANE DIVISION CONTRACTING DEPARTMENT, CRANE, IN IS SEEKING POTENTIAL SOURCES THAT CAN SUPPORT NON-PERSONAL MANAGEMENT, ENGINEERING, TEST AND EVALUATION, LOGISTICS, AND IN-SERVICE SUPPORT SERVICES OF VARIOUS SPECIALIZED MUNITIONS ITE… Key points: 1. The contract focuses on essential support services for specialized munitions, indicating a critical need for technical and logistical expertise. 2. The duration of the contract (5 years) suggests a long-term requirement for these specialized services. 3. The award was made under full and open competition, implying a robust process to identify the best value. 4. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not carefully managed, but it allows for flexibility in evolving requirements. 5. The absence of small business set-aside or subcontracting indicates the primary contractor is expected to handle the bulk of the work. 6. The geographic location of the Naval Surface Warfare Center in Crane, Indiana, points to a concentration of defense logistics and engineering activities in the Midwest.

Value Assessment

Rating: fair

The contract value of $28.7 million over five years for specialized munitions support appears to be within a reasonable range for complex engineering and logistics services. However, without specific benchmarks for similar munitions support contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, necessitates close oversight to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for the defined scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best possible value. The fact that it was competed openly implies that the government sought a broad range of capabilities and pricing structures from the market.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to drive down costs and ensure that the selected contractor offers the most advantageous solution for specialized munitions support.

Public Impact

The primary beneficiaries are the U.S. Navy's specialized munitions programs, which receive critical management, engineering, test and evaluation, logistics, and in-service support. The services delivered ensure the readiness and effectiveness of various specialized munitions items. The geographic impact is primarily centered around the Naval Surface Warfare Center, Crane Division in Indiana, a key hub for defense logistics and research. Workforce implications include employment opportunities for engineers, logisticians, technicians, and management professionals within Science Applications International Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent scope creep and manage costs effectively.
The lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance trajectory.
Reliance on a single large contractor for critical munitions support could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Awarded under full and open competition, indicating a thorough vetting process.
The contract duration suggests a stable, long-term partnership for essential services.
Science Applications International Corporation is a large, established defense contractor with a significant track record.

Sector Analysis

This contract falls within the Defense sector, specifically supporting specialized munitions. The market for defense engineering, logistics, and support services is substantial, with significant government spending allocated annually. This contract represents a portion of the broader spending on defense readiness and sustainment, fitting into a category of services that require highly specialized technical expertise and secure handling of sensitive materials. Comparable spending benchmarks would typically be found within the Department of Defense's procurement data for similar support services to naval or other military branches.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope and complexity of the required services were deemed best suited for larger prime contractors capable of managing extensive engineering, logistics, and support operations. There is no explicit mention of subcontracting requirements for small businesses, meaning the primary contractor, Science Applications International Corporation, is expected to fulfill the majority of the contract's needs directly. This could limit direct opportunities for small businesses to participate in this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Naval Surface Warfare Center, Crane Division's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Department of Defense Inspector General, which investigates fraud, waste, and abuse. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance metrics and cost breakdowns may not always be publicly available. Accountability measures would include contractual clauses, performance reviews, and potential penalties for non-compliance.

Related Government Programs

Naval Surface Warfare Center (NSWC) Contracts
Specialized Munitions Procurement
Defense Logistics Support Services
Engineering and Technical Services
Department of the Navy Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost monitoring.
Potential for cost overruns inherent in CPFF contracts.
Lack of publicly available detailed performance metrics.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF THE NAVAL SURFACE WARFARE CENTER, CRANE DIVISION CONTRACTING DEPARTMENT, CRANE, IN IS SEEKING POTENTIAL SOURCES THAT CAN SUPPORT NON-PERSONAL MANAGEMENT, ENGINEERING, TEST AND EVALUATION, LOGISTICS, AND IN-SERVICE SUPPORT SERVICES OF VARIOUS SPECIALIZED MUNITIONS ITEMS IN SUPPORT OF THE SPECIALIZED MUNITIONS DIVISION, CODE JXR.

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 $28.8 million.

What is the period of performance?

Start: 2017-07-27. End: 2022-07-27.

What is the historical spending pattern for similar specialized munitions support services by the Naval Surface Warfare Center, Crane Division?

Analyzing historical spending patterns for similar specialized munitions support services by the Naval Surface Warfare Center, Crane Division requires access to detailed procurement databases. Generally, the Department of Defense, and specifically naval commands like NSWC Crane, allocate significant resources to sustain and modernize munitions capabilities. Spending in this area can fluctuate based on geopolitical factors, modernization programs, and operational tempo. Contracts for such services often involve long-term commitments due to the specialized nature of the work and the need for continuity. Without specific historical data for this contract's predecessors or comparable efforts, it's difficult to provide precise figures, but it's reasonable to assume consistent, substantial investment in maintaining munitions readiness and technical support.

How does the performance of Science Applications International Corporation (SAIC) on similar defense contracts compare to industry averages?

Science Applications International Corporation (SAIC) is a large, established defense contractor with a broad portfolio of services across various government agencies. Assessing their performance on similar defense contracts requires a deep dive into contract performance reports, past performance evaluations, and any available debriefings from previous procurements. Generally, large contractors like SAIC have a mixed record, with many successful projects alongside occasional challenges. Industry averages for defense contracts can be difficult to define due to the wide variance in contract types, scopes, and agencies. Key performance indicators often include on-time delivery, budget adherence, technical quality, and customer satisfaction. SAIC's overall reputation suggests a capacity to handle complex defense requirements, but specific performance on munitions support would need to be evaluated against detailed metrics.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for specialized munitions support?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for specialized munitions support revolve around cost control and contractor incentive. While CPFF provides flexibility for evolving technical requirements common in R&D or specialized engineering, it can incentivize the contractor to incur higher costs to increase the fee base, even though the fee is fixed. The government bears the risk of cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges arise. Effective oversight is crucial to monitor expenditures, validate costs, and ensure the contractor is performing efficiently. For specialized munitions, risks also include potential security breaches, intellectual property protection, and ensuring the quality and reliability of critical components or support services.

What is the potential impact of this contract on the broader defense industrial base for munitions support?

This contract, awarded to Science Applications International Corporation (SAIC), contributes to the stability and capacity of the defense industrial base for munitions support. By securing a significant contract for specialized services, SAIC can maintain and potentially expand its workforce and infrastructure dedicated to this area. This, in turn, supports the Navy's ongoing need for reliable munitions. However, the concentration of such a contract with a single large prime contractor might limit opportunities for smaller, specialized firms to enter or grow within this niche. The long-term impact depends on how SAIC manages its resources, potential subcontracting efforts, and its role in the overall ecosystem of defense suppliers for munitions.

How does the geographic location of NSWC Crane, Indiana, influence the execution and oversight of this contract?

The geographic location of the Naval Surface Warfare Center (NSWC) Crane Division in Indiana places the contract execution and oversight within a dedicated defense facility. NSWC Crane is a major naval installation focused on research, development, acquisition, and sustainment of specialized warfare capabilities, including munitions. This concentration of expertise and infrastructure at Crane likely facilitates closer collaboration between the government program office and the contractor, potentially improving oversight efficiency and communication. It also means that the contractor's personnel and operations are situated within a secure, defense-oriented environment, which can streamline security protocols and access to government facilities and subject matter experts. Proximity can also reduce travel costs and logistical complexities for government oversight personnel.

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: N0002417R3014

Offers Received: 1

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: $33,462,013

Exercised Options: $33,256,903

Current Obligation: $28,755,768

Actual Outlays: $846,445

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,466,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline