DoD awards $86.5M engineering services contract to Science Applications International Corporation for naval systems

Contract Overview

Contract Amount: $86,511,289 ($86.5M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2020-08-07

End Date: 2025-09-30

Contract Duration: 1,880 days

Daily Burn Rate: $46.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING AND LOGISTICS SUPPORT SERVICES FOR MOBILITY PLATFORM INTEGRATION REQUIREMENTS WITHIN THE SPECIAL WARFARE AND EXPEDITIONARY SYSTEMS DIVISION AT NSWC CRANE.

Place of Performance

Location: BEDFORD, LAWRENCE County, INDIANA, 47421

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $86.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING AND LOGISTICS SUPPORT SERVICES FOR MOBILITY PLATFORM INTEGRATION REQUIREMENTS WITHIN THE SPECIAL WARFARE AND EXPEDITIONARY SYSTEMS DIVISION AT NSWC CRANE. Key points: 1. Contract provides critical engineering and logistics support for naval mobility platforms. 2. Full and open competition suggests a robust bidding process. 3. Contract duration of 1880 days indicates a long-term need for these specialized services. 4. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contract's focus on special warfare and expeditionary systems highlights its strategic importance. 6. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs.

Value Assessment

Rating: good

The contract value of $86.5 million over approximately five years represents a significant investment in specialized engineering and logistics. Benchmarking this against similar large-scale defense engineering support contracts is challenging without more specific service details. However, the CPFF structure necessitates close oversight to ensure costs remain reasonable and aligned with the fixed fee. The government's ability to secure competitive pricing through full and open competition is a positive indicator of value.

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 offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The government's decision to use full and open competition suggests confidence in the market's ability to meet the complex requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

The primary beneficiaries are the Department of the Navy and its Special Warfare and Expeditionary Systems Division, receiving essential support for critical mobility platforms. Services delivered include engineering and logistics support, crucial for the operational readiness and development of naval systems. The contract's geographic impact is centered around NSWC Crane in Indiana, a key naval facility. The contract supports a specialized workforce of engineers and logistics professionals, likely contributing to high-skilled employment in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to maximize their fee, requiring robust government oversight.
The long duration of the contract (1880 days) may present challenges in adapting to evolving technological requirements or market conditions.
Lack of specific performance metrics or detailed scope of work in the provided data makes it difficult to fully assess performance risks.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The contractor, Science Applications International Corporation (SAIC), is a large, established defense contractor with significant experience in similar services.
The contract supports critical naval modernization and operational readiness, aligning with national defense priorities.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the defense industrial base. The market for defense engineering and logistics support is substantial, driven by the continuous need for modernization, maintenance, and development of complex military systems. This specific award supports specialized naval platforms, indicating a niche within the broader defense engineering market. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts for naval or special warfare programs.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is not a primary focus for this specific award, as both are marked as false. There is no indication of a small business set-aside. Therefore, the direct impact on small businesses through this contract is likely minimal, unless SAIC engages them as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers at NSWC Crane. The CPFF structure necessitates rigorous cost accounting and auditing by the Defense Contract Audit Agency (DCAA) and potentially the Inspector General's office to ensure funds are used appropriately. Transparency is generally maintained through contract reporting mechanisms, though detailed performance data may be sensitive.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Special Warfare Command Contracts
Defense Logistics Agency Support Contracts
Engineering Services for Defense Platforms
Naval Mobility Platform Development

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent cost oversight.
Long contract duration may pose risks for adapting to evolving requirements.
Specific performance metrics are not detailed, making performance assessment difficult.
Potential for cost escalation under CPFF structure if not managed closely.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING AND LOGISTICS SUPPORT SERVICES FOR MOBILITY PLATFORM INTEGRATION REQUIREMENTS WITHIN THE SPECIAL WARFARE AND EXPEDITIONARY SYSTEMS DIVISION AT NSWC CRANE.

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 $86.5 million.

What is the period of performance?

Start: 2020-08-07. End: 2025-09-30.

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) is a major defense contractor with extensive experience in providing a wide range of services, including engineering, IT, and logistics support, to the Department of Defense and other federal agencies. SAIC has a long history of supporting complex defense programs, often involving systems integration, platform modernization, and lifecycle support. Their portfolio includes numerous contracts for naval systems, special operations forces, and other mission-critical applications. While specific performance metrics for past contracts are not publicly detailed in this context, SAIC's sustained presence and significant contract awards suggest a generally positive track record in delivering complex technical solutions. However, like any large contractor, they may have faced performance challenges or disputes on specific projects, which are not detailed here.

How does the estimated cost per day for this contract compare to industry benchmarks for similar engineering and logistics support services?

The total contract value is approximately $86.5 million over a period of 1880 days. This equates to roughly $46,000 per day. Benchmarking this figure requires careful consideration of the highly specialized nature of the services (engineering and logistics for naval mobility platforms within special warfare) and the specific requirements of NSWC Crane. General engineering services can vary widely in cost. However, for specialized, high-security, and technically demanding defense support, this daily rate may fall within a reasonable range, especially considering it includes engineering expertise, logistics management, and potentially overhead. Without more granular data on the specific labor mix, direct costs, and profit margins, a precise comparison to industry benchmarks is difficult. However, the CPFF structure implies that costs will be scrutinized.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this contract?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This structure can sometimes incentivize contractors to increase costs, as their fee remains constant regardless of the total cost incurred. This necessitates robust government oversight, including detailed cost accounting, audits, and performance monitoring, to ensure that costs are reasonable, allocable, and necessary for contract performance. If not managed effectively, the government could end up paying more than anticipated for the services rendered, even though the fee itself is fixed.

What is the strategic importance of the 'Mobility Platform Integration Requirements' for the Special Warfare and Expeditionary Systems Division?

Mobility platform integration requirements are strategically vital for special warfare and expeditionary forces as they ensure that various vehicles, vessels, and aircraft used for deployment and operations can seamlessly work together. This integration is critical for mission success, enabling forces to rapidly and effectively deploy personnel and equipment across diverse environments. For special warfare and expeditionary units, which often operate in high-risk, complex scenarios, reliable and interoperable mobility platforms are essential for maintaining operational tempo, enhancing situational awareness, and ensuring the safety of personnel. The 'Special Warfare and Expeditionary Systems Division' likely focuses on developing, acquiring, and supporting these advanced capabilities, making engineering and logistics support paramount.

How might the geographic location of NSWC Crane in Indiana influence the execution or oversight of this contract?

The geographic location of Naval Surface Warfare Center (NSWC) Crane in Indiana places the contract's primary operational focus within a key naval research, development, and acquisition facility. This proximity allows for direct collaboration between the contractor (SAIC) and government personnel, potentially streamlining communication and problem-solving. It also means that oversight can be conducted more readily by on-site government representatives. However, Indiana's inland location might influence logistics planning for any hardware components or testing that requires proximity to coastal testing ranges or deployment points, potentially adding complexity or cost to certain aspects of the support services. The concentration of defense-related activities at NSWC Crane also suggests a skilled local or regional workforce pool for specialized engineering talent.

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: N0016420R3006

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: $94,022,778

Exercised Options: $94,022,778

Current Obligation: $86,511,289

Actual Outlays: $15,816,501

Subaward Activity

Number of Subawards: 99

Total Subaward Amount: $35,609,309

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