DoD's $16.8M Engineering Support Contract Awarded to Science Applications International Corp

Contract Overview

Contract Amount: $16,786,591 ($16.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2022-02-15

End Date: 2026-02-15

Contract Duration: 1,461 days

Daily Burn Rate: $11.5K/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, LOGISTICS, CONFIGURATION MANAGEMENT, DATA MANAGEMENT, AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE STRATEGIC MISSIONS SYSTEMS ENGINEERING DIVISION (GXT).

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NON-PERSONAL ENGINEERING, TECHNICAL, LOGISTICS, CONFIGURATION MANAGEMENT, DATA MANAGEMENT, AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE STRATEGIC MISSIONS SYSTEMS ENGINEERING DIVISION (GXT). Key points: 1. Contract provides critical engineering and technical support for strategic mission systems. 2. Awarded via full and open competition, suggesting a robust market. 3. Duration of over 4 years indicates a long-term need for these services. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. Virginia-based awardee suggests potential for regional economic impact. 6. Focus on strategic missions highlights the contract's national security relevance.

Value Assessment

Rating: good

The contract value of approximately $16.8 million over four years for specialized engineering and technical support appears reasonable. While direct comparisons are difficult without more specific service details, the Cost Plus Fixed Fee (CPFF) structure, when managed effectively, can lead to good value by providing incentives for the contractor to control costs while ensuring necessary services are delivered. The benchmark for similar large-scale engineering support contracts within the Department of Defense often falls within a similar per-year expenditure range, suggesting this award is within expected parameters.

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 presence of a single award (NO=1) suggests that Science Applications International Corporation was selected as the best value offeror among the competitors. This level of competition is generally favorable for price discovery and ensures the government receives competitive proposals.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring the government secures services at a more advantageous cost.

Public Impact

The Department of the Navy benefits from specialized engineering and technical support for its strategic mission systems. Services include engineering, technical, logistics, configuration management, data management, and program management. The contract is geographically focused in Virginia, potentially impacting the local workforce and economy. The successful execution of this contract supports the readiness and effectiveness of critical defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require careful oversight to ensure costs remain controlled and reasonable.
The long duration of the contract could lead to scope creep if not managed diligently.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Science Applications International Corporation is a large, established defense contractor with a track record.
The contract supports critical strategic mission systems, aligning with national security priorities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related strategic mission systems. The market for such specialized services is dominated by large, established defense contractors. Spending in this area is driven by the need for advanced technological development and sustainment of complex military platforms. Comparable spending benchmarks for similar engineering support contracts within the DoD can range from tens to hundreds of millions of dollars annually, depending on the scope and criticality of the systems supported.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. However, as a large prime contractor, Science Applications International Corporation may be required to subcontract a portion of the work to small businesses, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely 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, which requires detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Strategic Mission Systems Support
Department of Defense IT and Technical Services
Naval Systems Engineering Contracts

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage costs.
Long contract duration necessitates proactive scope management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NON-PERSONAL ENGINEERING, TECHNICAL, LOGISTICS, CONFIGURATION MANAGEMENT, DATA MANAGEMENT, AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE STRATEGIC MISSIONS SYSTEMS ENGINEERING DIVISION (GXT).

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 $16.8 million.

What is the period of performance?

Start: 2022-02-15. End: 2026-02-15.

What is the historical performance record of Science Applications International Corporation (SAIC) with the Department of the Navy, particularly on similar engineering support contracts?

Science Applications International Corporation (SAIC) has a substantial history of contracting with the Department of the Navy and the broader Department of Defense. They are a major defense contractor frequently awarded contracts for a wide array of services, including engineering, IT, and program management. Historical data from contract databases often shows SAIC performing on numerous large-value contracts. While specific performance metrics for past contracts are not publicly detailed in this summary, their continued success in winning competitive bids suggests a generally positive track record. However, a deeper dive into past performance evaluations, if available through official channels like the Contractor Performance Assessment Reporting System (CPARS), would be necessary for a comprehensive assessment of their reliability and quality on comparable projects.

How does the estimated annual cost of this contract compare to similar engineering support contracts awarded by the Navy or other DoD branches?

The total value of this contract is approximately $16.8 million over a period of 1461 days (roughly 4 years), equating to an average annual cost of about $4.2 million. Benchmarking this against similar engineering support contracts requires careful consideration of the specific services rendered, the complexity of the systems supported, and the level of security clearance required. For large-scale, specialized engineering and technical support for strategic mission systems within the DoD, an annual expenditure in the low millions is generally considered moderate. Contracts for more complex or extensive system development and sustainment can easily reach tens or even hundreds of millions annually. Therefore, this contract appears to be within a reasonable range for its stated purpose, assuming the scope is well-defined and managed.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may not be sufficiently incentivized to control costs, as their profit (the fixed fee) is predetermined. This can lead to cost overruns if not managed carefully. Additionally, there's a risk of scope creep, where the project's requirements expand beyond the initial agreement, potentially increasing costs without a corresponding increase in the fixed fee. Mitigation strategies typically involve robust government oversight, detailed cost tracking and auditing, clear definition and management of the contract scope, and regular performance reviews. The government's contracting officer and technical team must actively monitor expenditures and contractor performance to ensure the work remains within budget and meets objectives. Strong communication channels between the government and contractor are also crucial.

What is the expected impact of this contract on the readiness and effectiveness of the specific strategic mission systems it supports?

This contract is expected to have a positive impact on the readiness and effectiveness of the strategic mission systems it supports by providing essential engineering, technical, logistics, configuration management, data management, and program management services. These services are critical for the development, sustainment, and modernization of complex defense systems. By ensuring these systems are properly maintained, updated, and managed, the contract directly contributes to their operational availability and performance. This, in turn, enhances the warfighter's capabilities and the overall effectiveness of the Department of the Navy's strategic missions. The continuity of support over the contract's duration aims to prevent degradation of system performance and ensure long-term reliability.

How does the $16.8 million total contract value compare to historical spending patterns for similar engineering support services within the Department of the Navy over the past five years?

To accurately compare this $16.8 million contract to historical spending patterns, one would need access to detailed historical contract data for the Department of the Navy (DoN) specifically for 'Engineering Services' (NAICS code 541330) or similar categories related to strategic mission systems support. Without that granular data, a precise comparison is difficult. However, the DoN consistently spends billions of dollars annually on a wide range of services, including engineering and technical support. A single contract of $16.8 million represents a relatively small portion of the DoN's overall service acquisition budget. Its significance lies in its specific support function. If the DoN has historically awarded numerous contracts in this range for similar specialized support, then this award aligns with past patterns. If such contracts were previously awarded at significantly lower or higher values, it might indicate a shift in market rates, scope, or strategic priorities.

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: N0016421R3015

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: $26,641,489

Exercised Options: $19,540,321

Current Obligation: $16,786,591

Actual Outlays: $491,819

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $18,769,122

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