DoD's $27.9M Training Support Contract Awarded to SAIC Raises Questions on Competition and Value
Contract Overview
Contract Amount: $27,887,281 ($27.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2014-07-30
End Date: 2015-04-30
Contract Duration: 274 days
Daily Burn Rate: $101.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF USFF FLEET DEPLOYMENT TRAINING PROGRAM SUPPORT SERVICES
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF USFF FLEET DEPLOYMENT TRAINING PROGRAM SUPPORT SERVICES Key points: 1. The contract awarded to Science Applications International Corporation (SAIC) for fleet deployment training support services is a significant expenditure. 2. The lack of competition is a major concern, potentially leading to suboptimal pricing. 3. The 'Other Computer Related Services' NAICS code suggests a focus on IT, but the specific services need further clarification. 4. The contract's short duration (274 days) and the 'cost plus fixed fee' pricing structure warrant scrutiny for efficiency.
Value Assessment
Rating: questionable
The contract's 'cost plus fixed fee' structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks or competitive bids, it's hard to determine if the $27.9 million represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially allows the contractor to set higher prices than might be achieved in a competitive environment.
Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for these training support services, as there was no market pressure to drive down costs.
Public Impact
Fleet readiness and training effectiveness could be impacted by the quality and cost of these support services. Taxpayer funds allocated to defense training programs are subject to scrutiny regarding efficiency and value. The reliance on a single contractor for critical support services raises concerns about long-term strategic sourcing and potential vendor lock-in.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus pricing structure
- Limited transparency on specific services
Positive Signals
- Contract supports critical fleet deployment training
Sector Analysis
The IT services sector, particularly under NAICS code 541519, often involves complex solutions. Benchmarking costs in this area requires detailed service descriptions and comparison with similar government or commercial contracts.
Small Business Impact
The contract was awarded to Science Applications International Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The 'VA' status suggests the contract may have undergone some level of review, but the lack of competition and the cost-plus structure necessitate robust oversight to ensure cost control and performance.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Cost-plus contract type can incentivize spending.
- Limited information on specific services provided.
- Short contract duration may indicate a stop-gap measure or require follow-on work.
- Potential for cost overruns without strong oversight.
Tags
other-computer-related-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF USFF FLEET DEPLOYMENT TRAINING PROGRAM SUPPORT SERVICES
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 $27.9 million.
What is the period of performance?
Start: 2014-07-30. End: 2015-04-30.
What specific training support services were provided under this contract, and how did they directly contribute to fleet readiness?
The contract details are limited, but 'Fleet Deployment Training Program Support Services' likely encompass logistical, technical, or instructional support crucial for preparing naval units for deployment. Understanding the precise nature of these services is key to assessing their necessity and impact on operational effectiveness.
Were there any attempts to solicit competitive bids, or were there documented justifications for a sole-source award?
The data explicitly states 'NOT COMPETED,' indicating a sole-source award. Further investigation would be required to determine the specific justifications provided by the Department of Defense for bypassing the competitive bidding process, such as unique capabilities or urgent needs.
How was the 'fixed fee' component determined in this cost-plus contract, and what mechanisms were in place to control overall project costs?
In a Cost Plus Fixed Fee (CPFF) contract, the fixed fee is negotiated separately from the estimated costs. While the fee is fixed, the government pays the actual allowable costs incurred by the contractor. Oversight would focus on ensuring costs are reasonable and allocable, and that the fixed fee adequately incentivizes performance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0018914R0026
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: $28,098,476
Exercised Options: $28,098,476
Current Obligation: $27,887,281
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $3,294,150
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-07-30
Current End Date: 2015-04-30
Potential End Date: 2015-04-30 00:00:00
Last Modified: 2020-09-09
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