DoD Awards $32M Engineering Support Contract to Science Applications International Corp

Contract Overview

Contract Amount: $32,085,546 ($32.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2018-07-10

End Date: 2024-04-01

Contract Duration: 2,092 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: NON-PERSONAL ENGINEERING, LOGISTICS, TECHNICAL, AND PROGRAMMATIC SUPPORT FOR SEWIP BLOCKS 2-4 FOR MEWSD.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NON-PERSONAL ENGINEERING, LOGISTICS, TECHNICAL, AND PROGRAMMATIC SUPPORT FOR SEWIP BLOCKS 2-4 FOR MEWSD. Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for SEWIP Blocks 2-4 support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. 4. The contract duration is substantial at 2092 days, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract value of $32,085,545.64 for engineering, logistics, and technical support appears reasonable given the extensive 2092-day duration and the specialized nature of SEWIP Blocks 2-4.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows the government to select the best value offer. The use of a Cost Plus Incentive Fee contract type aims to incentivize the contractor to control costs while meeting performance objectives.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently, though the Cost Plus Incentive Fee structure requires diligent oversight to prevent excessive costs.

Public Impact

Ensures continued development and support for critical SEWIP (Surface Electronic Warfare Improvement Program) capabilities. Supports the Department of the Navy's electronic warfare modernization efforts. Provides specialized engineering, logistics, and programmatic support, crucial for complex defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to higher final costs if contractor performance is not closely monitored.
Long contract duration increases the risk of scope creep or evolving requirements not being adequately addressed.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Contract supports critical defense systems (SEWIP), indicating strategic importance.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330). Spending in this sector is significant for defense agencies requiring specialized technical expertise for complex systems like SEWIP.

Small Business Impact

The contract was awarded to Science Applications International Corporation, a large business. There is no indication of specific small business subcontracting goals or participation in this award notice.

Oversight & Accountability

The Department of the Navy is the contracting agency. Oversight will be crucial to manage the Cost Plus Incentive Fee structure and ensure performance objectives are met within budget.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPIF contract type.
Risk of scope creep over the long contract duration.
Dependence on a single large contractor for critical support.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NON-PERSONAL ENGINEERING, LOGISTICS, TECHNICAL, AND PROGRAMMATIC SUPPORT FOR SEWIP BLOCKS 2-4 FOR MEWSD.

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 $32.1 million.

What is the period of performance?

Start: 2018-07-10. End: 2024-04-01.

What are the specific performance metrics and incentive fee structures tied to this contract, and how will they be monitored to ensure value for money?

The contract is a Cost Plus Incentive Fee (CPIF) type. Specific performance metrics and incentive fee structures are detailed within the contract's Statement of Work and award terms. The Department of the Navy's contracting officers and technical representatives will monitor contractor performance against these defined metrics, such as technical milestones, delivery schedules, and quality standards. The incentive fee will be adjusted based on the degree to which these targets are met or exceeded, aiming to align contractor profit with government objectives and ensure efficient use of taxpayer funds.

Given the long duration (2092 days), what mechanisms are in place to manage potential cost increases due to inflation or evolving technological requirements?

Long-duration contracts often include clauses for economic price adjustments (EPAs) to account for inflation, particularly for labor and material costs. The CPIF structure itself provides some flexibility, but requires careful negotiation and monitoring of the 'cost' base. For evolving technological requirements, the contract likely includes provisions for contract modifications or change orders, which would be subject to separate negotiation and approval processes to ensure fair pricing and continued alignment with program goals.

How does the awarded price compare to benchmarks for similar engineering and technical support services for defense programs of comparable complexity?

Benchmarking this specific award requires access to proprietary cost data and detailed scope comparisons. However, given the full and open competition and the nature of SEWIP support, the $32 million value over approximately 5.7 years suggests a competitive market price. The CPIF structure implies that the final cost could vary, but the initial award amount reflects an estimate based on projected costs and anticipated performance incentives.

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: N0016417R3032

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $45,698,522

Exercised Options: $45,388,316

Current Obligation: $32,085,546

Actual Outlays: $3,238,551

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $26,606,830

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