DoD's Navy Awards $30.4M Engineering Support Contract to Science Applications International Corp

Contract Overview

Contract Amount: $30,429,914 ($30.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2021-05-26

End Date: 2026-05-26

Contract Duration: 1,826 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE REQUIREMENT IS TO PROVIDE CONTRACTOR SUPPORT SERVICES FOR ENGINEERING TASKING FOR THE POWER AND ENERGY SYSTEMS DIVISION (CODE JXM).

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $30.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THE REQUIREMENT IS TO PROVIDE CONTRACTOR SUPPORT SERVICES FOR ENGINEERING TASKING FOR THE POWER AND ENERGY SYSTEMS DIVISION (CODE JXM). Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The contract spans five years, indicating a long-term need for these services.

Value Assessment

Rating: fair

The contract value of $30.4M over five years averages $6.08M annually. Without specific benchmarks for engineering tasking within the Power and Energy Systems Division, it's difficult to definitively assess pricing. However, the Cost Plus Fixed Fee structure warrants scrutiny for potential cost inefficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing, though the Cost Plus Fixed Fee structure may temper some of the cost savings.

Taxpayer Impact: Taxpayers are impacted by the $30.4M expenditure. While competition aims for efficiency, the CPFF contract type necessitates careful oversight to ensure costs remain reasonable and justified.

Public Impact

Supports critical engineering functions for the Navy's Power and Energy Systems Division. The five-year duration suggests a sustained need for specialized engineering expertise. Award to a single contractor, Science Applications International Corporation, concentrates this significant funding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration may not adapt well to evolving technological needs.
Lack of specific performance metrics makes value assessment challenging.

Positive Signals

Awarded through full and open competition.
Contract supports essential engineering services for a key DoD division.
Contractor has a significant presence in the defense sector.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's Power and Energy Systems Division. Spending in this area is critical for national security and technological advancement, with significant government investment.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. The prime contractor, Science Applications International Corporation, is a large corporation, suggesting no direct benefit to small businesses through this specific award.

Oversight & Accountability

The Cost Plus Fixed Fee structure requires robust oversight from the Department of the Navy to ensure that costs are reasonable, allocable, and allowable. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (5 years).
Potential for cost overruns.
Lack of detailed performance metrics in provided data.
No indication of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THE REQUIREMENT IS TO PROVIDE CONTRACTOR SUPPORT SERVICES FOR ENGINEERING TASKING FOR THE POWER AND ENERGY SYSTEMS DIVISION (CODE JXM).

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 $30.4 million.

What is the period of performance?

Start: 2021-05-26. End: 2026-05-26.

What specific engineering tasks are included in this contract, and how do they align with the Navy's strategic goals for power and energy systems?

The contract details 'contractor support services for engineering tasking for the Power and Energy Systems Division (Code JXM)'. While the specific tasks are not enumerated in the provided data, they likely encompass design, analysis, testing, and integration related to naval power generation, distribution, and energy efficiency technologies. Alignment with strategic goals would depend on the Navy's current modernization and operational readiness objectives within this domain.

How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar engineering services, and what is the potential for cost growth?

The fixed fee is a negotiated amount representing the contractor's profit. Without specific details on the fee percentage or the base cost estimate, a direct comparison to industry standards is difficult. However, CPFF contracts inherently carry risk of cost growth as the government reimburses allowable costs. The government must diligently monitor expenditures to prevent cost overruns beyond the anticipated scope and efficiency.

What mechanisms are in place to ensure the effectiveness and efficiency of the engineering services provided, given the long-term nature and CPFF structure of the contract?

Effectiveness and efficiency are typically ensured through performance work statements (PWS), key performance indicators (KPIs), and regular progress reviews. For a CPFF contract, the government contracting officer and technical representatives must actively manage the contract, scrutinize cost reports, and verify that the delivered services meet the required quality standards and contribute to the intended mission objectives.

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: N0016421R3003

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: $61,437,687

Exercised Options: $61,437,687

Current Obligation: $30,429,914

Actual Outlays: $697,901

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $32,394,299

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