DoD's $45.9M contract for engineering support awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $45,905,171 ($45.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2019-01-29

End Date: 2024-05-31

Contract Duration: 1,949 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS REQUIREMENT IS FOR NON-PERSONAL PROFESSIONAL SUPPORT SERVICES IN THE AREAS OF SUSTAINMENT, ENGINEERING, TEST AND EVALUATION, LOGISTICS, AND ANCILLARY FACILITIES IN DIRECT SUPPORT OF THE POLYMERS AND UNDERSEA SENSORS BRANCH (GXPS) OF THE PLATFORM AND LAUNCH SYSTEMS DIVISION (GXP).

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THIS REQUIREMENT IS FOR NON-PERSONAL PROFESSIONAL SUPPORT SERVICES IN THE AREAS OF SUSTAINMENT, ENGINEERING, TEST AND EVALUATION, LOGISTICS, AND ANCILLARY FACILITIES IN DIRECT SUPPORT OF THE POLYMERS AND UNDERSEA SENSORS BRANCH (GXPS) OF THE PLATFORM AND LAUNCH SYSTEMS DIVISION (… Key points: 1. Contract provides critical engineering and logistics support for undersea sensors and polymer technologies. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1949 days indicates a long-term need for these specialized services. 4. Cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight. 5. The services are essential for maintaining and advancing naval platform capabilities. 6. The contractor, SAIC, is a major player in defense and government IT services.

Value Assessment

Rating: good

The contract's value of approximately $45.9 million over its duration suggests a significant investment in specialized engineering and logistics. Benchmarking this against similar long-term support contracts for complex defense systems is crucial. While the cost-plus-fixed-fee structure can accommodate evolving requirements, it necessitates robust cost tracking to ensure value for money. The number of bids received (though not explicitly stated, implied by 'full and open competition') would provide further context for pricing reasonableness.

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. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The number of bids received would be a key indicator of the actual level of competition and its impact on price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a wider range of potential contractors to participate.

Public Impact

The primary beneficiaries are the Department of the Navy and its platform and launch systems division, ensuring the operational readiness of undersea sensors. Services delivered include sustainment, engineering, test and evaluation, logistics, and ancillary facilities support. The geographic impact is primarily within the United States, supporting naval operations and research. This contract supports a specialized workforce of engineers, technicians, and logistics professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
Long contract durations may reduce flexibility to adapt to rapidly changing technological needs.
Reliance on a single large contractor for critical support functions could pose a risk.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The contractor, SAIC, has a significant track record in defense contracting.
The contract addresses essential sustainment and engineering needs for naval platforms.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications related to naval platforms and undersea technology. The market for such specialized engineering and logistics support is substantial within the defense industrial base. Comparable spending benchmarks would involve analyzing other long-term support contracts for complex military systems, particularly those involving advanced sensor technology and platform integration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Science Applications International Corporation, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Defense Engineering Services
Undersea Warfare Systems
Platform Sustainment Contracts
Department of Defense Logistics Support

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technological obsolescence in specialized polymer and sensor technology.
Long contract duration may limit adaptability to evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THIS REQUIREMENT IS FOR NON-PERSONAL PROFESSIONAL SUPPORT SERVICES IN THE AREAS OF SUSTAINMENT, ENGINEERING, TEST AND EVALUATION, LOGISTICS, AND ANCILLARY FACILITIES IN DIRECT SUPPORT OF THE POLYMERS AND UNDERSEA SENSORS BRANCH (GXPS) OF THE PLATFORM AND LAUNCH SYSTEMS DIVISION (GXP).

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 $45.9 million.

What is the period of performance?

Start: 2019-01-29. End: 2024-05-31.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar engineering and logistics support services to the Department of Defense?

Science Applications International Corporation (SAIC) has a long and extensive track record of providing a wide array of services to the Department of Defense, including complex engineering, IT, and logistics support. They are a major defense contractor with numerous awards across various branches. For services similar to those outlined in this contract (sustainment, engineering, test and evaluation, logistics), SAIC has historically demonstrated capability in supporting major defense platforms and systems. Their performance on previous contracts, including those with the Navy, would be a key factor in their selection for this award. A review of past performance evaluations and contract close-outs would provide a more granular understanding of their success rates, adherence to schedule and budget, and overall client satisfaction in comparable engagements.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar long-term defense engineering support contracts?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development or services where the scope is not precisely defined at the outset, allowing for flexibility. Compared to fixed-price contracts, CPFF can be more expensive for the government if costs escalate significantly, as the contractor is reimbursed for actual costs plus a predetermined fixed fee. However, it offers the contractor less financial risk than fixed-price contracts, potentially encouraging participation in complex or uncertain projects. For long-term engineering support, CPFF is often chosen when requirements may evolve. Benchmarking would involve comparing the fee percentage and the total estimated cost against similar contracts that utilized different pricing structures (e.g., Cost Plus Incentive Fee, Firm-Fixed-Price) to assess overall value and risk allocation.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has SAIC performed against them?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data but are typically defined within the Performance Work Statement (PWS). Common KPIs for such contracts often include metrics related to system availability, reliability, maintenance turnaround times, successful test and evaluation outcomes, on-time delivery of logistics support, and adherence to budget. Performance against these KPIs would be monitored by the government's contracting officer's representative (COR). SAIC's performance history on this contract, particularly in meeting delivery schedules and technical specifications, would be assessed through periodic performance reviews and contract reporting. Without access to these specific reports, a definitive assessment of their performance against KPIs is not possible.

What is the historical spending trend for similar engineering and logistics support services within the Department of the Navy or DoD?

Historical spending on engineering and logistics support services within the Department of the Navy and the broader Department of Defense is substantial and generally trends upwards, driven by the complexity of modern military systems and the need for continuous sustainment. The Navy, in particular, invests heavily in maintaining its diverse fleet, which includes complex platforms like submarines and surface vessels that rely on advanced sensor technology. Spending in this category is influenced by factors such as modernization programs, operational tempo, and the lifecycle of existing systems. Analyzing aggregated spending data for NAICS code 541330 (Engineering Services) and related logistics support categories over the past 5-10 years would reveal trends, identify major spending areas, and provide context for the $45.9 million awarded here as part of a larger defense procurement ecosystem.

What are the potential risks associated with the 'Polymers and Undersea Sensors Branch' focus of this contract, and how are they mitigated?

The focus on 'Polymers and Undersea Sensors' presents specific risks related to the specialized nature of the technology. Polymers used in undersea environments face challenges like material degradation due to pressure, temperature, and saltwater exposure, potentially impacting sensor performance and longevity. Undersea sensors themselves are critical for intelligence gathering and navigation, making their reliability paramount. Risks include technological obsolescence, integration challenges with existing naval systems, and the potential for foreign intelligence gathering if security protocols are breached. Mitigation strategies typically involve rigorous material testing, advanced design and manufacturing processes, robust cybersecurity measures, regular performance monitoring, and contingency planning for system failures or performance degradation.

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: N0016418R3021

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: $59,354,206

Exercised Options: $53,766,242

Current Obligation: $45,905,171

Actual Outlays: $306,803

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $75,549,109

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