Navy awards $13.6M engineering and technical support contract to Science Applications International Corporation

Contract Overview

Contract Amount: $13,584,517 ($13.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2024-12-30

End Date: 2029-12-29

Contract Duration: 1,825 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING & TECHNICAL SUPPORT SERVICES, FIELD ENGINEERING, INTEGRATED LOGISTICS SUPPORT, CONFIGURATION MANAGEMENT, MANAGEMENT SUPPORT, DATA MANAGEMENT SUPPORT, & PROTOTYPE FABRICATION FOR THE WEAPONS SYSTEMS DIVISION

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING & TECHNICAL SUPPORT SERVICES, FIELD ENGINEERING, INTEGRATED LOGISTICS SUPPORT, CONFIGURATION MANAGEMENT, MANAGEMENT SUPPORT, DATA MANAGEMENT SUPPORT, & PROTOTYPE FABRICATION FOR THE WEAPONS SYSTEMS DIVISION Key points: 1. Contract provides essential engineering, logistics, and data management support for weapons systems. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of five years indicates a long-term need for these services. 4. Cost-plus-fixed-fee pricing structure may incentivize cost overruns if not closely monitored. 5. The award is a delivery order under a larger contract, suggesting a phased approach to procurement. 6. Focus on weapons systems highlights critical national defense implications. 7. The contractor, SAIC, is a major player in defense contracting, indicating established capabilities.

Value Assessment

Rating: good

The contract value of $13.6 million over five years appears reasonable for specialized engineering and technical support services for weapons systems. Benchmarking against similar contracts for defense logistics and engineering support suggests this pricing is within expected ranges. The cost-plus-fixed-fee structure, while common, requires diligent oversight to ensure value for money and prevent excessive costs. Without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance.

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 bids. 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 Navy's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for these critical weapons systems support services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best possible value.

Public Impact

The primary beneficiaries are the Department of the Navy's Weapons Systems Division, which will receive critical engineering, logistics, and data management support. Services delivered include field engineering, integrated logistics support, configuration management, data management, and prototype fabrication. The geographic impact is primarily within the contractor's operational areas, supporting naval operations and readiness. Workforce implications include the potential for skilled engineering and technical jobs within Science Applications International Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to higher costs if not managed effectively.
The long duration of the contract may not adapt well to rapidly changing technological requirements in weapons systems.
Lack of specific details on performance metrics makes it difficult to assess the contractor's accountability.
Potential for scope creep in complex engineering and technical support services.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, SAIC, has a significant track record in defense contracting, implying experience and capability.
The contract addresses critical support for naval weapons systems, vital for national security.
The five-year term provides stability for essential services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for defense engineering and technical support is substantial, driven by the continuous need to maintain, upgrade, and develop complex military systems. Spending in this sector is often characterized by long-term relationships, specialized expertise, and significant government oversight. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the Department of Defense to major defense contractors.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses will depend on SAIC's procurement practices and the specific requirements of the support services. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be tied to the performance metrics outlined in the contract and the cost-plus-fixed-fee structure, requiring regular reporting and audits. Transparency is facilitated by the contract's award under full and open competition. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Naval Weapons Systems Support
Integrated Logistics Support Contracts
Defense Technical Services
Science Applications International Corporation Contracts

Risk Flags

Cost-plus-fixed-fee pricing requires diligent oversight to manage costs.
Long contract duration may not fully adapt to rapid technological changes in weapon systems.
Potential for scope creep in complex engineering and technical support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING & TECHNICAL SUPPORT SERVICES, FIELD ENGINEERING, INTEGRATED LOGISTICS SUPPORT, CONFIGURATION MANAGEMENT, MANAGEMENT SUPPORT, DATA MANAGEMENT SUPPORT, & PROTOTYPE FABRICATION FOR THE WEAPONS SYSTEMS DIVISION

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 $13.6 million.

What is the period of performance?

Start: 2024-12-30. End: 2029-12-29.

What is Science Applications International Corporation's track record with the Department of the Navy for similar engineering and technical support services?

Science Applications International Corporation (SAIC) has a long and extensive history of contracting with the Department of the Navy and other Department of Defense agencies for a wide range of engineering, technical, and logistics support services. They are a major defense contractor known for providing complex solutions across various military platforms. Their past performance with the Navy likely includes numerous contracts for weapon systems support, IT services, and research and development. While specific details of past performance on identical contracts are proprietary, SAIC's established presence and scale in the defense sector suggest a significant and generally positive track record. Government contract databases and past performance reviews would offer more granular insights into their specific performance metrics and any past issues or commendations.

How does the awarded value of $13.6 million compare to similar engineering and technical support contracts for naval weapon systems?

The awarded value of $13.6 million over a five-year period for engineering and technical support services for naval weapon systems is within a typical range for such specialized contracts. However, a precise comparison requires detailed knowledge of the specific scope of work, deliverables, and the complexity of the weapon systems involved. Contracts for highly specialized engineering, integrated logistics, and configuration management for advanced military hardware can vary significantly in cost. Factors such as the number of personnel required, the level of technical expertise, the duration of support, and the criticality of the systems all influence pricing. Generally, this value suggests a focused scope of support rather than a comprehensive, platform-wide sustainment program, which would likely be valued much higher.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services is the potential for cost overruns, which can negatively impact the government's value for money. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. While the fixed fee incentivizes the contractor to control costs to maximize profit, there's a risk that the contractor may not have sufficient incentive to be as cost-conscious as in a fixed-price contract, especially if the initial cost estimates are inaccurate or if the scope of work expands. The government bears the risk of cost increases above the estimated amount. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate these risks and ensure fair pricing.

What are the implications of this contract being a delivery order under a larger contract?

This contract being a delivery order (DO) under a larger, indefinite-delivery indefinite-quantity (IDIQ) or similar type of contract signifies a phased or task-specific procurement approach. Instead of awarding a single, large contract for all anticipated work, the government establishes a master contract with pre-negotiated terms and pricing, and then issues individual delivery orders for specific quantities of supplies or services as needed. This provides flexibility for the government to procure services incrementally, adapting to evolving requirements and budgets. For taxpayers, it can mean better cost control by only ordering what is needed, when it is needed. However, it also means that the total spending over the life of the master contract could exceed the value of any single delivery order, requiring ongoing monitoring of overall expenditure.

How does the five-year duration of this contract impact its alignment with the lifecycle of modern naval weapon systems?

A five-year duration for engineering and technical support services for naval weapon systems presents a mixed alignment with the lifecycle of modern military hardware. On one hand, it provides a stable, predictable period for essential support, allowing the contractor to build expertise and the Navy to rely on consistent service delivery. This duration is often suitable for sustainment, maintenance, and incremental upgrades. However, modern weapon systems, particularly in areas like electronics, software, and cyber capabilities, can evolve rapidly. A five-year contract might not adequately anticipate or accommodate significant technological shifts, obsolescence issues, or the need for entirely new support paradigms that could emerge within that timeframe. Flexibility within the contract or subsequent contract actions would be necessary to address such rapid advancements.

What is the significance of the 'Engineering Services' (NAICS 541330) classification for this contract?

The classification of 'Engineering Services' (NAICS 541330) signifies that the core of this contract involves the application of engineering principles and knowledge to provide specialized technical expertise. This typically includes activities such as design, development, analysis, testing, and consulting related to complex systems, infrastructure, or products. For naval weapon systems, this classification underscores the need for highly skilled professionals who can understand intricate technical requirements, troubleshoot complex problems, manage configurations, and potentially contribute to prototype fabrication. It indicates that the services go beyond routine maintenance or basic support, requiring a deep understanding of engineering disciplines to ensure the effectiveness, reliability, and safety of critical defense assets.

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: N0016424R3015

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: $82,280,478

Exercised Options: $82,280,478

Current Obligation: $13,584,517

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $21,623,907

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