DoD's $80.8M Engineering Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $80,792,379 ($80.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2020-07-10
End Date: 2025-07-09
Contract Duration: 1,825 days
Daily Burn Rate: $44.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SEE GENERAL INFORMATION.
Place of Performance
Location: CRANE, MARTIN County, INDIANA, 47522
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $80.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SEE GENERAL INFORMATION. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of 1825 days (5 years) indicates a long-term need for these engineering services. 4. The award is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract is not set aside for small businesses, nor does it indicate specific subcontracting goals. 7. The contract is managed by the Department of the Navy, a major component of the Department of Defense.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Fixed Fee contract requires detailed cost breakdowns and comparison to similar engineering service contracts. Without specific performance metrics or a breakdown of costs versus fixed fee, it's difficult to definitively assess value for money. The fixed fee component aims to provide some cost certainty, but the "cost plus" nature means the government bears the risk of cost overruns up to the negotiated fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This generally leads to a more robust price discovery process. The number of bidders is not specified, but the open competition suggests multiple entities likely vied for this award, potentially driving down costs and improving service quality.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider pool of qualified contractors, which can lead to better service delivery and cost efficiency compared to sole-source or limited competition awards.
Public Impact
The Department of the Navy benefits from specialized engineering services crucial for its operations and infrastructure. This contract supports national defense by ensuring the availability of engineering expertise for naval projects. The services delivered are likely to include design, analysis, and technical support for various naval systems and facilities. The geographic impact is primarily within Indiana, where the contractor is located, but the services may support naval operations globally. The contract supports a workforce skilled in engineering and related technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
- Lack of specific performance metrics makes it challenging to assess the true value for money.
- The duration of the contract may not align with evolving technological needs.
- Limited information on subcontracting could mean fewer opportunities for small businesses.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- The fixed fee component provides some level of cost predictability.
- Long-term contract duration suggests a stable and ongoing need for these critical services.
- Contractor's established presence in the industry may indicate reliability.
Sector Analysis
The engineering services sector is a critical component of the broader professional, scientific, and technical services industry. This contract falls under NAICS code 541330, which encompasses establishments primarily engaged in providing architectural, engineering, and related services. The federal government is a significant consumer of these services, particularly for defense, infrastructure, and research projects. Spending in this sector is often driven by large-scale government initiatives and modernization efforts.
Small Business Impact
This contract does not appear to have a small business set-aside. The absence of specific subcontracting goals also suggests that small business participation may not be a primary focus of this particular award. Further analysis would be needed to determine if the prime contractor has internal small business subcontracting programs or if opportunities are expected to arise organically through the supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and auditing of costs. Transparency is facilitated through contract award databases, though specific performance data and cost breakdowns may be subject to proprietary or national security restrictions.
Related Government Programs
- Department of Defense Engineering Services
- Naval Sea Systems Command Contracts
- Professional, Scientific, and Technical Services Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
- Long contract duration may require adjustments for evolving technological or operational requirements.
- Lack of explicit small business subcontracting goals could limit opportunities for smaller firms.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, indiana, science-applications-international-corporation, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SEE GENERAL INFORMATION.
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 $80.8 million.
What is the period of performance?
Start: 2020-07-10. End: 2025-07-09.
What is the track record of Science Applications International Corporation (SAIC) with the Department of Defense, particularly for similar engineering services contracts?
Science Applications International Corporation (SAIC) is a major government contractor with a long history of serving the Department of Defense (DoD) across various domains. For engineering services, SAIC has consistently secured significant contracts, often through competitive bidding. Their track record includes providing a wide range of technical, engineering, and IT support to different branches of the military. Analyzing SAIC's past performance on similar Cost Plus Fixed Fee (CPFF) contracts with the Navy or other DoD agencies would reveal their ability to manage costs effectively, meet performance requirements, and adhere to delivery schedules. Historical data from contract databases and performance reviews (if publicly available) can offer insights into their reliability and value proposition.
How does the awarded amount of $80.8 million compare to other engineering services contracts awarded by the Department of the Navy?
The $80.8 million award for engineering services represents a substantial, but not exceptionally large, contract within the DoD's vast procurement landscape. The Department of the Navy alone awards billions of dollars annually for a wide array of services, including engineering. To benchmark this specific contract, one would compare its value against other contracts for similar NAICS codes (e.g., 541330) awarded over the past few years. Factors such as contract duration, scope of work, and the specific type of engineering services (e.g., naval architecture, systems engineering, infrastructure design) are crucial for a meaningful comparison. Contracts of this magnitude are common for multi-year support services or significant project phases.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how are they mitigated in this case?
The primary risk with CPFF contracts is that the contractor may have less incentive to control costs once the fixed fee is established, as they are guaranteed to recover their costs plus the fee. This can lead to cost overruns if not managed diligently. Mitigation strategies employed by the government typically include robust oversight, detailed cost reporting requirements, audits, and clear performance metrics tied to the contract. For this specific contract, the Department of the Navy's program management office is responsible for monitoring expenditures, ensuring that costs are reasonable and allocable, and verifying that the fixed fee is earned through satisfactory performance. The 5-year duration also necessitates continuous monitoring to ensure the contract remains aligned with evolving needs and budgets.
What is the typical duration for engineering services contracts of this nature, and how does this contract's 5-year term fit within that context?
Engineering services contracts, especially those supporting long-term government programs or infrastructure, often have durations ranging from one to five years, sometimes with options for extension. A 5-year term, as seen in this $80.8 million award, is quite common for providing sustained engineering support, research and development, or program management assistance. This duration allows for continuity of services, enables the contractor to build institutional knowledge, and provides a stable base for planning. Shorter contracts might be used for specific, discrete projects, while longer terms are typical for ongoing operational support or complex, multi-phase endeavors where stability is paramount.
How does the 'Delivery Order' designation impact the overall contract structure and potential spending?
The designation 'Delivery Order' indicates that this award is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts establish terms and conditions, including pricing structures and performance standards, but do not guarantee a specific quantity of work or total dollar amount. Delivery Orders then specify the exact goods or services to be provided, the quantity, delivery schedule, and final price for that specific task. This structure allows agencies to procure services flexibly and efficiently as needs arise, without needing to re-compete the basic contract each time. The total potential spending under the parent IDIQ contract could be significantly higher than this single $80.8 million delivery order.
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: N0016420R3014
Offers Received: 2
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: $84,025,722
Exercised Options: $83,814,276
Current Obligation: $80,792,379
Actual Outlays: $2,544,451
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $212,775,413
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
Start Date: 2020-07-10
Current End Date: 2025-07-09
Potential End Date: 2025-07-09 00:00:00
Last Modified: 2026-02-12
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