DoD's $15M Engineering Support Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $15,003,163 ($15.0M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2019-02-06
End Date: 2025-03-07
Contract Duration: 2,221 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SEA04Z - TSM ENGINEERING AND TECHNICAL SUPPORT
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $15.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SEA04Z - TSM ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Value for money appears fair given the fixed-fee structure, though detailed cost breakdowns are needed for a definitive assessment. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with potential for cost overruns in cost-plus contracts if not closely managed. 4. Performance context is within engineering services, a critical area for defense operations. 5. Sector positioning is within the defense services industry, supporting naval engineering requirements.
Value Assessment
Rating: fair
The contract's total value of approximately $15 million over its duration suggests a moderate-sized engagement. As a Cost Plus Fixed Fee (CPFF) contract, the pricing structure allows for cost reimbursement plus a predetermined profit. Benchmarking against similar engineering support contracts is challenging without more granular data on the specific services rendered. However, the fixed fee component provides some cost certainty for the government, mitigating unlimited cost escalation.
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 offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which should theoretically lead to more favorable pricing for the government. The open competition suggests that the agency sought the best value from a wide range of potential contractors.
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 competitive bids.
Public Impact
The Department of the Navy benefits from specialized engineering and technical support services. Services delivered are crucial for maintaining and advancing naval engineering capabilities. Geographic impact is likely concentrated around naval facilities where the contractor's support is deployed. Workforce implications include the employment of engineers and technical specialists by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in CPFF contracts if not managed diligently.
- Reliance on a single contractor for critical engineering functions could pose a risk if performance falters.
- Ensuring adequate technical oversight to validate costs and deliverables under the CPFF structure.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Fixed fee component provides a degree of cost predictability for the government.
- Contractor's established presence in defense services suggests relevant expertise.
Sector Analysis
The defense engineering services sector is a significant market, characterized by complex requirements and long-term contracts. Companies like Science Applications International Corporation (SAIC) are key players, providing specialized technical expertise to government agencies. This contract fits within the broader category of professional, scientific, and technical services, with an estimated market size in the billions annually for defense-related engineering support.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, Science Applications International Corporation, is a large business. There is no explicit information regarding subcontracting plans for small businesses. This means that opportunities for small businesses to participate in this specific contract may be limited unless SAIC voluntarily includes them in their supply chain.
Oversight & Accountability
Oversight for this contract is likely managed by the Department of the Navy's contracting and technical offices. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases, though detailed cost breakdowns and performance metrics may be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Engineering Services
- Department of Defense Research and Development Contracts
- Defense Technical Support Services
- Engineering Consulting Services
Risk Flags
- Cost Overrun Risk (CPFF)
- Performance Management
- Scope Creep Potential
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, large-business, technical-support, systems-engineering, professional-services, federal-contract, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SEA04Z - TSM ENGINEERING AND TECHNICAL SUPPORT
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 $15.0 million.
What is the period of performance?
Start: 2019-02-06. End: 2025-03-07.
What is the specific breakdown of services provided under this contract?
The provided data indicates the contract is for 'TSM ENGINEERING AND TECHNICAL SUPPORT' (SEA04Z) awarded to Science Applications International Corporation (SAIC). While the broad category is engineering services, the specific nature of 'TSM' (which could stand for various technical or management terms depending on the agency's internal nomenclature) is not detailed. Typically, such contracts involve a range of activities including systems engineering, technical analysis, program support, logistics support, and potentially research and development activities related to naval systems. A more granular understanding would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS).
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar services?
The CPFF structure is common for R&D or complex services where the scope is not fully defined at the outset, allowing flexibility. However, it carries higher risk for the government compared to Firm-Fixed-Price (FFP) contracts, as costs can escalate. FFP contracts offer greater cost certainty but are best suited for well-defined scopes. For engineering services, CPFF is often used when innovation or evolving requirements are expected. The government's ability to manage costs effectively relies heavily on robust oversight and clear performance metrics to prevent contractor inefficiencies from driving up the price beyond the fixed fee.
What is SAIC's track record with similar DoD engineering support contracts?
Science Applications International Corporation (SAIC) is a major defense contractor with extensive experience in providing engineering and technical support services across various branches of the U.S. military, including the Department of the Navy. They have a long history of securing and performing on large-scale contracts involving complex systems engineering, IT integration, and program management. While specific performance metrics for this particular contract (SEA04Z) are not detailed here, SAIC's overall track record suggests a capacity to handle such requirements. However, like any large contractor, their performance history may include both successes and areas for improvement, which would be reflected in past performance evaluations during the bidding process.
What are the potential risks associated with this contract's duration and value?
The contract has a duration of approximately 2221 days (around 6 years) and a total value of $15,003,163.03. Potential risks include the contractor becoming complacent due to the long duration, leading to reduced efficiency or innovation. For the government, there's a risk of locking into a potentially suboptimal solution or pricing structure for an extended period. The CPFF nature also means that if the project scope expands or unforeseen technical challenges arise, costs could increase, although the fixed fee provides a ceiling on the contractor's profit. Effective program management and regular performance reviews are crucial to mitigate these risks over the contract's lifecycle.
How does this contract's spending compare to overall DoD engineering services spending?
This contract represents a $15 million award for engineering and technical support. The Department of Defense (DoD) spends hundreds of billions of dollars annually across all its services, including a substantial portion on engineering, research, development, and technical support. A $15 million contract, while significant for the specific task, is a relatively small fraction of the total DoD budget. For context, the DoD's overall budget often exceeds $700 billion annually, with engineering and technical services forming a critical, albeit diverse, component of that spending. This specific contract likely supports a niche but important function within the Navy's broader engineering enterprise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0017418R3011
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: $15,030,164
Exercised Options: $15,030,164
Current Obligation: $15,003,163
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $3,303,183
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4143
IDV Type: IDC
Timeline
Start Date: 2019-02-06
Current End Date: 2025-03-07
Potential End Date: 2025-03-07 00:00:00
Last Modified: 2025-09-24
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