DoD Awards $27.8M for Strategic Systems Engineering and Logistics Support to Science Applications International Corporation

Contract Overview

Contract Amount: $27,839,520 ($27.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2024-04-23

End Date: 2029-04-22

Contract Duration: 1,825 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: NON-PERSONAL SERVICES IN THE AREAS OF SUSTAINMENT, ENGINEERING, TEST AND EVALUATION, LOGISTICS, AND RESEARCH/DEVELOPMENT REQUIRED BY THE STRATEGIC SYSTEMS GUIDANCE, NAVIGATION AND CONTROL DIVISION (CODE GXP) AT NSWC CRANE.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NON-PERSONAL SERVICES IN THE AREAS OF SUSTAINMENT, ENGINEERING, TEST AND EVALUATION, LOGISTICS, AND RESEARCH/DEVELOPMENT REQUIRED BY THE STRATEGIC SYSTEMS GUIDANCE, NAVIGATION AND CONTROL DIVISION (CODE GXP) AT NSWC CRANE. Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for critical strategic systems support. 2. Services include sustainment, engineering, test and evaluation, logistics, and R&D for NSWC Crane. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans five years, indicating a long-term need for these specialized services.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which allows for cost reimbursement plus a fixed fee. This structure can be effective for R&D or when costs are difficult to estimate precisely, but requires careful oversight to manage costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is expected to yield a fair price for the services, benefiting taxpayers by ensuring value for money.

Public Impact

Ensures continued operation and advancement of strategic systems vital for national security. Supports specialized engineering, testing, and logistics functions at NSWC Crane. Provides long-term stability for critical defense capabilities. Potential for innovation through R&D services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Reliance on a single awardee for a 5-year period may limit future competitive opportunities.
Specific performance metrics and quality assurance details are not provided.

Positive Signals

Awarded under full and open competition.
Long-term contract duration provides stability for critical functions.
Services cover a broad range of essential defense support areas.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related research, development, and sustainment. Spending in this area is crucial for maintaining technological superiority and operational readiness in the defense industry.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific set-asides for small businesses. SAIC is a large business, suggesting that subcontracting opportunities for small businesses may exist but are not guaranteed by the contract structure.

Oversight & Accountability

The contract's Cost Plus Fixed Fee structure necessitates robust oversight from the Department of Defense to ensure costs are reasonable and the fixed fee is justified. Regular performance reviews and audits will be critical for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Long-term reliance on a single contractor.
Lack of explicit small business subcontracting goals.
Need for stringent government oversight to ensure performance and cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NON-PERSONAL SERVICES IN THE AREAS OF SUSTAINMENT, ENGINEERING, TEST AND EVALUATION, LOGISTICS, AND RESEARCH/DEVELOPMENT REQUIRED BY THE STRATEGIC SYSTEMS GUIDANCE, NAVIGATION AND CONTROL DIVISION (CODE GXP) 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 $27.8 million.

What is the period of performance?

Start: 2024-04-23. End: 2029-04-22.

What is the estimated total cost for the fixed fee component of this contract, and how was it determined?

The fixed fee is a crucial element of a Cost Plus Fixed Fee (CPFF) contract. Its determination typically involves negotiation based on the complexity of the work, the level of risk assumed by the contractor, and the anticipated profit margin. Without specific details on the fee negotiation, it's difficult to assess its reasonableness. Further analysis would require access to the contract's fee structure and justification.

How will the government ensure that the contractor's costs remain within reasonable bounds given the CPFF structure?

Effective oversight is paramount for CPFF contracts. The Department of Defense will likely employ several strategies, including detailed cost monitoring, regular audits of contractor expenditures, performance-based metrics tied to fee realization, and clear communication channels to address any cost deviations promptly. Establishing robust Earned Value Management (EVM) systems can also provide early warnings of potential cost issues.

What are the key performance indicators (KPIs) used to measure the success of SAIC's engineering and sustainment services?

The success of these critical services hinges on well-defined KPIs. These would likely include metrics related to system availability and reliability, turnaround times for repairs and maintenance, successful completion of test and evaluation milestones, adherence to project schedules, and the quality of engineering documentation. Specific KPIs should be detailed in the contract's performance work statement (PWS).

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: N0016423R3010

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: $92,030,349

Exercised Options: $35,206,917

Current Obligation: $27,839,520

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $27,598,465

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