DoD's $113M ISR Engineering Support Contract Awarded to Science Applications International Corp

Contract Overview

Contract Amount: $112,902,808 ($112.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2020-06-24

End Date: 2027-06-23

Contract Duration: 2,555 days

Daily Burn Rate: $44.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NON-PERSONAL ENGINEERING/TECHNICAL SUPPORT SERVICES FOR INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE (ISR) SYSTEM.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $112.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NON-PERSONAL ENGINEERING/TECHNICAL SUPPORT SERVICES FOR INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE (ISR) SYSTEM. Key points: 1. Contract provides essential engineering and technical support for Intelligence, Surveillance, and Reconnaissance (ISR) systems. 2. Awarded via full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of 7 years indicates a long-term need for sustained ISR system support. 4. The contractor, Science Applications International Corporation (SAIC), has a significant presence in defense contracting. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight of costs. 6. The geographic location of performance is Indiana, potentially impacting local technical workforce demand.

Value Assessment

Rating: good

The contract value of approximately $113 million over seven years for specialized ISR engineering support appears reasonable given the critical nature of the services. Benchmarking against similar complex engineering support contracts for advanced defense systems is challenging without more granular data on specific tasks. However, the fixed fee component suggests a degree of cost control for the government, provided the cost-plus element is managed effectively. The award to a single entity for this specific delivery order implies a tailored solution rather than a broad commodity purchase.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages innovation. The government's decision to use full and open competition suggests confidence in the market's ability to provide the required specialized engineering and technical services for ISR systems.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of solutions, maximizing the value received for the allocated funds.

Public Impact

The primary beneficiaries are the Department of Defense and its intelligence agencies, which will receive critical engineering and technical support for vital ISR systems. Services delivered include engineering, technical support, and potentially system integration and sustainment for ISR platforms. The geographic impact is centered in Indiana, where the contractor will perform the work, potentially creating or sustaining high-skilled jobs in the region. Workforce implications include the need for specialized engineers and technical personnel with expertise in ISR technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
The long duration of the contract requires ongoing performance monitoring to ensure continued value and alignment with evolving ISR needs.
Reliance on a single contractor for this delivery order may limit future flexibility or opportunities for competitive re-competition if needs change significantly.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely yielded fair pricing.
The contractor, SAIC, is a well-established entity with extensive experience in defense and intelligence sectors.
The contract addresses a critical need for sustained engineering support for ISR systems, vital for national security.

Sector Analysis

The Intelligence, Surveillance, and Reconnaissance (ISR) sector is a critical component of modern defense capabilities, encompassing a wide range of technologies from satellites and drones to ground sensors and data analysis platforms. This contract falls within the broader engineering services market, specifically tailored to the highly specialized needs of defense intelligence systems. The market for ISR technology and support services is substantial, driven by continuous global security challenges and the need for advanced situational awareness. Comparable spending benchmarks would likely be found within large, multi-year defense contracts for system development, integration, and sustainment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Science Applications International Corporation (SAIC) is a large prime contractor. While there is no explicit mention of subcontracting requirements for small businesses in the provided data, large prime contractors are often encouraged or mandated to include small business participation in their subcontracting plans. The absence of a small business set-aside suggests that the primary focus was on securing the most capable large-scale provider for these specialized services, rather than specifically fostering small business prime contracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific program managers responsible for monitoring performance, cost, and schedule. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that costs incurred are reasonable and allocable to the contract's objectives. Transparency is typically maintained through regular reporting requirements from the contractor and government performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Engineering Services
Department of the Navy Contracts
Information Technology Support Services
Aerospace Engineering Services

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Performance Monitoring Complexity
Long-Term Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $112.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NON-PERSONAL ENGINEERING/TECHNICAL SUPPORT SERVICES FOR INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE (ISR) SYSTEM.

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 $112.9 million.

What is the period of performance?

Start: 2020-06-24. End: 2027-06-23.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar ISR engineering 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 significant work in intelligence, surveillance, and reconnaissance (ISR). SAIC has been involved in the development, integration, sustainment, and modernization of various ISR platforms and systems, encompassing both hardware and software components. Their experience often includes complex system engineering, cybersecurity, data analytics, and mission support for critical defense intelligence operations. Historically, SAIC has secured numerous large contracts across different military branches for similar technical and engineering support, demonstrating their capacity and expertise in this domain. While specific performance metrics for past ISR contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive performance history and strong client relationships within the DoD.

How does the estimated cost per year for this contract compare to similar ISR engineering support contracts awarded by the DoD?

The total contract value is approximately $113 million over a period of 7 years (2555 days), which averages to roughly $16.14 million per year. Comparing this figure directly to similar ISR engineering support contracts requires access to a comprehensive database of recent awards with detailed scopes of work. However, for highly specialized, long-term engineering and technical support for critical defense systems like ISR, this annual expenditure is within the expected range for large prime contractors. Factors influencing cost include the complexity of the systems supported, the level of security clearance required for personnel, the specific technical expertise needed, and the duration and intensity of the support. Contracts involving advanced R&D, system integration, or sustainment of cutting-edge ISR technology often command higher annual values.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for ISR engineering services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for ISR engineering services revolve around cost control and contractor incentive alignment. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost-plus' element means the government reimburses the contractor for allowable costs incurred. This structure can create an incentive for the contractor to incur higher costs, as their fee is fixed regardless of the actual costs. Consequently, the government bears the risk of cost overruns if costs exceed initial estimates. Effective risk mitigation requires robust government oversight, detailed cost accounting standards, stringent auditing processes, and clear definition of allowable costs to prevent unnecessary expenditures and ensure the contractor remains efficient in delivering the required engineering support.

How effective is the 'full and open competition' procurement method likely to be in ensuring value for money for this ISR support contract?

The 'full and open competition' procurement method is generally considered highly effective in ensuring value for money, especially for complex services like ISR engineering support. By allowing all responsible sources to submit bids, this method fosters a competitive environment where multiple companies vie for the contract. This competition typically drives down prices, encourages innovation in proposed solutions, and allows the government to select the offer that provides the best overall value, considering technical merit, past performance, and price. For specialized ISR support, full and open competition increases the likelihood that the government will find a contractor capable of meeting stringent technical requirements at a competitive price point, thereby maximizing the return on taxpayer investment compared to less competitive methods.

What are the potential implications of this contract's performance location in Indiana on the broader ISR technology sector?

The performance location of this contract in Indiana has several potential implications for the broader ISR technology sector. Firstly, it signifies a concentration of high-value ISR engineering work within that specific geographic region, potentially boosting the local economy and fostering a specialized talent pool. This could lead to the growth of related businesses and research institutions in Indiana focused on ISR technologies. Secondly, it may indicate a strategic decision by the Department of the Navy or SAIC to leverage existing infrastructure, workforce, or partnerships in the area. While the direct impact on the national ISR sector might be localized, it contributes to the overall distribution of defense contracting work and the development of regional expertise within this critical technological domain.

How does the 7-year duration of this contract influence the government's ability to adapt to evolving ISR technologies?

The 7-year duration of this contract presents a dual-edged sword regarding the government's ability to adapt to evolving ISR technologies. On one hand, the long duration provides stability and allows for deep integration of the contractor's expertise into the ISR systems, fostering long-term improvements and sustainment. This continuity can be beneficial for complex, long-lifecycle systems. On the other hand, ISR technology is rapidly advancing. A fixed, long-term contract might risk locking the government into specific technological approaches or solutions that could become outdated before the contract expires. To mitigate this, the contract likely includes provisions for technical refresh, adaptive management, and potentially phased reviews to ensure that the services remain relevant and incorporate emerging technologies as they mature.

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: N0016420R3004

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: $133,351,744

Exercised Options: $133,351,744

Current Obligation: $112,902,808

Actual Outlays: $14,113,606

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $71,410,610

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8470

IDV Type: IDC

Timeline