DoD's $29.5M Fleet Training Contract Awarded to Science Applications International Corp. for Engineering Services

Contract Overview

Contract Amount: $29,496,164 ($29.5M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-01

End Date: 2026-06-30

Contract Duration: 302 days

Daily Burn Rate: $97.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FLEET DEVELOPMENT TRAINING PROGRAM SUPPORT SERVICES IN SUPPORT OF UNITED STATES FLEET FORCES COMMAND

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23551

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: FLEET DEVELOPMENT TRAINING PROGRAM SUPPORT SERVICES IN SUPPORT OF UNITED STATES FLEET FORCES COMMAND Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is 302 days, indicating a relatively short-term engagement. 4. The contract is for engineering services, a broad category that requires detailed oversight. 5. The award amount is substantial, necessitating a close watch on value for money. 6. The contractor, Science Applications International Corporation, is a large, established entity in the defense sector.

Value Assessment

Rating: fair

The contract's value of approximately $29.5 million for a 302-day period requires careful scrutiny. While specific benchmarks for 'Fleet Development Training Program Support Services' are not readily available, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk. CPFF contracts can sometimes lead to higher costs than fixed-price agreements if the contractor's costs escalate beyond initial projections, as the government bears the majority of the cost risk. Benchmarking against similar engineering support services contracts within the Department of Defense would be crucial to assess if the pricing is competitive and reflects fair market value for the services rendered.

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 presence of 3 bids suggests a moderate level of competition for this requirement. While three bidders are better than one or two, a higher number of bids typically leads to more robust price discovery and potentially better value for the government. The specific details of the bidding process and the evaluation criteria used would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing and quality through a wide range of potential providers. However, the moderate number of bidders in this instance means that the full benefit of broad competition may not have been realized.

Public Impact

The United States Fleet Forces Command will benefit from enhanced training programs, potentially improving naval readiness. Services delivered are expected to support the development and execution of fleet training initiatives. The geographic impact is primarily focused on naval operations and training facilities, likely within the United States. Workforce implications may include the need for specialized engineering and training support personnel, potentially impacting civilian and military roles within the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Limited number of bidders (3) may indicate potential limitations in market competition for these specialized services.
The broad nature of 'Engineering Services' requires clear performance metrics to ensure effective service delivery.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential offerors.
Contractor Science Applications International Corporation has extensive experience in defense contracting.
The contract supports critical fleet development and training, aligning with national security objectives.

Sector Analysis

The defense engineering services sector is a significant component of the broader federal contracting landscape, characterized by complex requirements and specialized expertise. Companies like Science Applications International Corporation are key players, often competing for large, multi-year contracts. Spending in this area is driven by the need for advanced technological support, system integration, and operational readiness for military branches. Benchmarks for similar engineering support contracts within the Department of Defense can vary widely based on scope, duration, and specific technical requirements, but typically represent substantial investments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The prime contractor, Science Applications International Corporation, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract award is likely minimal, though subcontracting opportunities may arise depending on SAIC's procurement strategy.

Oversight & Accountability

Oversight for this contract will likely fall under the purview of the Department of the Navy and United States Fleet Forces Command. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing will be essential to monitor costs and ensure the fixed fee remains appropriate. Transparency will depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Training Systems
Defense Engineering Services
Fleet Readiness Programs
Military Support Services
Department of Defense IT and Engineering Support

Risk Flags

Cost Plus Fixed Fee contract type
Moderate competition level (3 bidders)
Short contract duration (302 days)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. FLEET DEVELOPMENT TRAINING PROGRAM SUPPORT SERVICES IN SUPPORT OF UNITED STATES FLEET FORCES COMMAND

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 $29.5 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-06-30.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar fleet development training support services?

Science Applications International Corporation (SAIC) has a substantial track record in providing a wide array of services to the Department of Defense, including engineering, IT, and training support. While specific details on their past performance on 'Fleet Development Training Program Support Services' for the United States Fleet Forces Command are not provided in this data snippet, SAIC is a major defense contractor with extensive experience in complex programs. Their history includes supporting naval operations, developing training simulations, and providing technical expertise across various military branches. A deeper dive into their contract history with the Navy and other DoD entities would reveal specific examples of successful (or unsuccessful) project completions, client satisfaction, and adherence to schedules and budgets in comparable service areas.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract potentially impact overall cost compared to other contract types?

The Cost Plus Fixed Fee (CPFF) contract structure means the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts a significant portion of the cost risk to the government. If the contractor's costs escalate due to unforeseen challenges, inefficiencies, or scope creep, the government pays more. While the fixed fee provides some predictability for the contractor's profit, it does not cap the total cost to the government. Compared to fixed-price contracts, where the contractor bears more risk for cost overruns, CPFF can lead to higher final costs for the government, especially if robust cost controls and oversight are not diligently applied. This necessitates close monitoring of expenditures and performance to ensure value.

What are the key performance indicators (KPIs) likely to be used to evaluate SAIC's performance under this contract?

Key Performance Indicators (KPIs) for this 'Fleet Development Training Program Support Services' contract would likely focus on the effectiveness and efficiency of the training programs developed and supported. Potential KPIs could include metrics related to training completion rates, trainee performance improvements post-training, adherence to training schedules, the quality and relevance of training materials, and the successful integration of new training methodologies or technologies. For engineering services, KPIs might also encompass the timely delivery of technical documentation, the successful resolution of engineering challenges, and compliance with technical specifications. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and are crucial for assessing contractor performance and ensuring the government receives the intended value.

What is the historical spending trend for 'Fleet Development Training Program Support Services' or similar categories by the Department of the Navy?

Historical spending data for 'Fleet Development Training Program Support Services' specifically by the Department of the Navy is not detailed in the provided information. However, the Department of the Navy consistently allocates significant resources towards training and readiness initiatives, which encompass a broad range of services including simulation development, curriculum design, technical support, and program management. Engineering services supporting these training efforts are a critical component. Analyzing broader categories such as 'Engineering Services' (NAICS 541330) or 'Professional, Scientific, and Technical Services' within the Navy's budget over the past several fiscal years would likely show a substantial and often increasing investment, reflecting the ongoing need to maintain and modernize fleet capabilities and personnel proficiency in a dynamic geopolitical environment.

What are the potential risks associated with the 302-day duration of this contract?

A contract duration of 302 days (approximately 10 months) presents several potential risks. Firstly, it may not be sufficient for long-term, strategic development or implementation of complex training programs, potentially leading to fragmented efforts or the need for follow-on contracts. Secondly, it could limit the contractor's incentive to invest in long-term process improvements or innovative solutions if they perceive the engagement as short-lived. Thirdly, the transition in and out of such a contract can be resource-intensive for both the government and the contractor, potentially impacting continuity of services. Finally, if the scope of work is substantial, a short duration could lead to rushed execution, increasing the risk of errors or reduced quality.

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: N0018924R3039

Offers Received: 3

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: $206,782,614

Exercised Options: $30,659,682

Current Obligation: $29,496,164

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