DoD's $22.3M contract for combat systems T&E support awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $22,313,806 ($22.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2024-08-13

End Date: 2026-08-12

Contract Duration: 729 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NON-PERSONAL CONTRACTOR SERVICES TO PROVIDE A FULL-RANGE OF TECHNICAL AND PROGRAMMATIC SUPPORT FOR THE TEST & EVALUATION (T&E) OF SURFACE COMBATANT AND CARRIER/LARGE DECK COMBAT SYSTEMS PROGRAMS.

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NON-PERSONAL CONTRACTOR SERVICES TO PROVIDE A FULL-RANGE OF TECHNICAL AND PROGRAMMATIC SUPPORT FOR THE TEST & EVALUATION (T&E) OF SURFACE COMBATANT AND CARRIER/LARGE DECK COMBAT SYSTEMS PROGRAMS. Key points: 1. Contract provides essential technical and programmatic support for critical surface combatant and carrier/large deck combat systems testing. 2. The awardee, Science Applications International Corporation (SAIC), has a significant presence in defense contracting. 3. The contract duration of approximately two years suggests a focused scope of work for specific testing phases. 4. The 'Cost Plus Fixed Fee' pricing structure requires careful monitoring to ensure cost containment. 5. This contract falls under engineering services, a vital component of defense acquisition and development. 6. The geographic location of performance in Washington D.C. may indicate proximity to key Navy decision-making centers.

Value Assessment

Rating: good

The contract value of $22.3 million for approximately two years of support appears reasonable for specialized engineering services in the defense sector. Benchmarking against similar contracts for technical and programmatic support for complex combat systems is necessary for a definitive value assessment. The 'Cost Plus Fixed Fee' (CPFF) structure, while common for R&D and complex services, necessitates robust oversight to manage costs effectively and ensure the fixed fee remains appropriate for the effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to yield fair market pricing and encourage innovation. The number of bids received and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive environment, driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader U.S. Navy fleet, which will receive enhanced testing and evaluation of critical combat systems. Services delivered include technical and programmatic support crucial for the Test & Evaluation (T&E) of surface combatant and carrier/large deck combat systems. The geographic impact is primarily within the District of Columbia, where the performance is located, potentially involving personnel and resources in that region. Workforce implications may include the employment of specialized engineers, program managers, and technical experts by SAIC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, as the contractor is reimbursed for all allowable costs plus a fixed fee.
The specific nature of 'technical and programmatic support' requires detailed understanding of the T&E processes to ensure effective oversight and performance evaluation.
Reliance on a single contractor for critical T&E support could pose a risk if performance issues arise or if the contractor's capacity is stretched.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contractor, Science Applications International Corporation (SAIC), is a well-established entity with extensive experience in defense contracting and engineering services.
The contract supports critical testing and evaluation for advanced naval combat systems, contributing to national security.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market, particularly for the Department of Defense. The market for defense engineering and technical support services is substantial, driven by the continuous need for modernization, testing, and sustainment of complex military platforms. Spending in this area is often characterized by long-term relationships and specialized expertise, with major defense contractors like SAIC playing a key role.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, SAIC, may engage small businesses as subcontractors for specialized support, which would contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, cost tracking, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Test and Evaluation Programs
Surface Combatant Modernization Programs
Carrier Strike Group Support Contracts
Defense Engineering Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Performance location in Washington D.C. may indicate higher labor costs.
Contract duration of approximately two years necessitates planning for follow-on support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NON-PERSONAL CONTRACTOR SERVICES TO PROVIDE A FULL-RANGE OF TECHNICAL AND PROGRAMMATIC SUPPORT FOR THE TEST & EVALUATION (T&E) OF SURFACE COMBATANT AND CARRIER/LARGE DECK COMBAT SYSTEMS PROGRAMS.

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 $22.3 million.

What is the period of performance?

Start: 2024-08-13. End: 2026-08-12.

What is Science Applications International Corporation's (SAIC) track record with similar Department of Defense contracts, particularly in test and evaluation services?

Science Applications International Corporation (SAIC) has a substantial and long-standing track record with the Department of Defense (DoD) across a wide array of services, including extensive experience in engineering, systems integration, and technical support. For test and evaluation (T&E) services specifically, SAIC has been a significant player, supporting various military branches and programs. Their portfolio often includes providing programmatic and technical expertise for complex weapon systems, much like the surface combatant and carrier/large deck combat systems mentioned in this contract. Historical data from federal procurement databases would likely show numerous awards to SAIC for similar T&E support, often involving large dollar values and multi-year durations. Their performance on these contracts, while generally viewed as strong given their market position, would be subject to specific contract-level evaluations and past performance reviews during the bidding process for new awards.

How does the 'Cost Plus Fixed Fee' (CPFF) pricing structure compare to other contract types used for similar engineering services in the defense sector?

The 'Cost Plus Fixed Fee' (CPFF) contract type is commonly used by the Department of Defense for research, development, complex services, and situations where the scope of work is not precisely defined at the outset, such as advanced testing and evaluation. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred during performance, plus a predetermined fixed fee representing profit. This contrasts with other common contract types like 'Fixed Price' contracts, where the price is set regardless of actual costs, offering more cost certainty to the government but potentially higher risk for the contractor. 'Cost Plus Incentive Fee' (CPIF) contracts also reimburse costs plus a fee, but the fee is adjusted based on performance against pre-defined targets. For engineering services like those required for T&E, CPFF is often chosen when the technical challenges and potential for unforeseen issues are high, allowing flexibility while still providing a defined profit margin for the contractor. However, it necessitates rigorous government oversight to control costs and ensure the fixed fee remains appropriate for the effort expended.

What are the potential risks associated with relying on a single contractor, SAIC, for comprehensive technical and programmatic support for critical combat systems T&E?

Relying on a single contractor, even a reputable one like SAIC, for comprehensive technical and programmatic support for critical combat systems T&E introduces several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on SAIC's specific methodologies, personnel, and systems, making it difficult and costly to switch providers if performance issues arise or if a better solution emerges. Secondly, a lack of direct competition during the contract's performance period could reduce the incentive for SAIC to innovate or optimize costs beyond what is contractually required. Thirdly, if SAIC experiences internal challenges, such as key personnel departures, financial difficulties, or shifts in strategic focus, it could directly impact the continuity and quality of the T&E support, potentially delaying critical testing schedules. Lastly, while SAIC is a large company, unforeseen surges in demand or unexpected technical complexities could strain their resources, leading to performance degradation. Mitigating these risks often involves strong contract management, clear performance metrics, and contingency planning by the government.

How does the $22.3 million contract value compare to historical spending on similar engineering services for naval combat systems T&E?

The $22.3 million contract value for approximately two years of support for surface combatant and carrier/large deck combat systems T&E is a significant but not extraordinary figure within the context of major defense procurements. Historical spending on similar engineering and technical support services for naval combat systems often runs into tens or hundreds of millions of dollars annually, reflecting the complexity and high cost of developing, testing, and maintaining advanced naval platforms. Contracts for T&E support can vary widely based on the specific systems being tested, the phase of development (e.g., initial design validation vs. operational testing), and the duration of the support. Given that this contract covers 'a full range of technical and programmatic support,' it suggests a comprehensive scope. To provide a precise comparison, one would need to analyze spending trends for similar services awarded by the Department of the Navy or other DoD components over the past several years, looking at contracts with comparable objectives and durations. However, as a standalone figure for specialized engineering support over two years, $22.3 million is consistent with the high-value nature of defense acquisition.

What are the implications of the 'DISTRICT OF COLUMBIA' performance location (st: DC, sn: DISTRICT OF COLUMBIA) for this contract?

The performance location being in the District of Columbia (DC) for this Department of the Navy contract has several potential implications. Firstly, it suggests a close proximity to key Navy decision-making bodies, program executive offices, and potentially the Naval Sea Systems Command (NAVSEA) headquarters, which is responsible for the development, procurement, and maintenance of Navy ships and combat systems. This proximity can facilitate communication, collaboration, and rapid decision-making between the contractor and government personnel. Secondly, it may indicate that the work involves direct interaction with Navy leadership or participation in high-level program reviews. Thirdly, operating in the DC area often means higher labor costs due to the cost of living and competitive market for specialized talent. Finally, it could imply that the contract supports programs that are centrally managed or have significant policy or strategic implications requiring close government oversight and engagement.

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: N0016423R3004

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: $86,686,560

Exercised Options: $30,146,835

Current Obligation: $22,313,806

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $23,679,844

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