DoD's $53M contract for navigation systems awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $52,940,846 ($52.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2020-10-01
End Date: 2026-08-06
Contract Duration: 2,135 days
Daily Burn Rate: $24.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FUNDING FOR CLIN 0006
Place of Performance
Location: BEDFORD, LAWRENCE County, INDIANA, 47421
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $52.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: FUNDING FOR CLIN 0006 Key points: 1. Value for money assessed through benchmarking against similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are being monitored for performance and delivery timelines. 4. Performance context is crucial for understanding the long-term impact of navigation system development. 5. Sector positioning places this contract within the broader defense electronics manufacturing industry.
Value Assessment
Rating: good
The contract's value of approximately $53 million over its period of performance appears reasonable when benchmarked against similar defense contracts for navigation systems. Pricing is assessed as firm fixed price, which typically offers cost certainty. However, a detailed comparison to specific market rates for comparable systems would provide a more robust value assessment. The benchmarked value of $24.8 million suggests a significant portion of the total award is for services or advanced development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The number of bidders is not specified, but the nature of the competition implies a robust process. This level of competition is generally expected to foster price discovery and potentially lead to more favorable pricing for the government.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by allowing a wide range of qualified contractors to compete, driving down costs through market forces.
Public Impact
The Department of Defense benefits from advanced navigation systems for its operational readiness. Services delivered include the development and manufacturing of critical navigation and guidance instruments. Geographic impact is primarily within the defense sector, supporting naval operations. Workforce implications include employment for engineers, technicians, and manufacturing personnel within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if development complexities are underestimated.
- Risk of schedule delays impacting operational deployment timelines.
- Dependence on a single contractor for critical system components.
Positive Signals
- Firm fixed price contract provides cost predictability.
- Award to a large, established defense contractor suggests technical capability.
- Full and open competition indicates a competitive bidding process.
Sector Analysis
This contract falls within the defense electronics manufacturing sector, specifically focusing on navigation, guidance, and control systems. This industry is characterized by high technological sophistication, stringent quality requirements, and significant government procurement. The market size for such specialized defense systems is substantial, driven by ongoing modernization efforts and national security needs. This contract represents a component of broader defense spending aimed at enhancing military capabilities.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, direct benefits to small businesses through this specific award are unlikely unless they are subcontractors. The prime contractor, Science Applications International Corporation, is a large business, suggesting that subcontracting opportunities may exist, but the extent of small business participation is not detailed.
Oversight & Accountability
Oversight for this contract is likely managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm fixed price contract terms, requiring delivery of specified systems. Transparency is generally maintained through contract award databases, though detailed performance metrics may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Navigation Systems Procurement
- Naval Aviation Support Systems
- Guidance and Control Systems Manufacturing
- DoD Electronics Research and Development
- Military Navigation Technology Advancement
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Potential for schedule slippage in complex system development.
- Dependence on a single contractor for critical navigation technology.
Tags
defense, department-of-defense, department-of-the-navy, definitive-contract, full-and-open-competition, firm-fixed-price, large-business, navigation-systems, electronics-manufacturing, indiana, science-applications-international-corporation, search-detection-navigation-guidance-aeronautical-and-nautical-system-and-instrument-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. FUNDING FOR CLIN 0006
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 $52.9 million.
What is the period of performance?
Start: 2020-10-01. End: 2026-08-06.
What is the historical spending trend for similar navigation system contracts awarded by the Department of the Navy?
Analyzing historical spending for similar navigation system contracts by the Department of the Navy reveals a consistent investment in advanced guidance and control technologies. Over the past five fiscal years, spending in this category has fluctuated, influenced by modernization cycles and specific platform requirements. For instance, contracts awarded between FY2018 and FY2022 for search, detection, navigation, guidance, aeronautical, and nautical systems (NAICS 334511) have ranged from tens of millions to over a hundred million dollars annually. This specific $53 million contract awarded in late 2020 for a period extending to 2026 aligns with the typical duration and value of such development and production contracts. Benchmarking against these historical figures suggests that while substantial, this award is within the expected range for critical defense systems, reflecting ongoing needs for technological superiority in navigation.
How does the awarded price compare to industry benchmarks for similar navigation system components?
The awarded value of approximately $53 million for this navigation system contract, with a benchmarked value of $24.8 million, warrants further investigation into the specific components and services included. The benchmarked value likely represents a portion of the total award, possibly for specific hardware or a subset of development. Without detailed line-item breakdowns, a precise comparison to industry benchmarks for individual components is challenging. However, the significant difference suggests that a substantial portion of the contract value may be allocated to research and development, integration, testing, software, or specialized services rather than just off-the-shelf hardware. Firm fixed-price contracts aim to control costs, but the overall value should be assessed against the complexity and novelty of the systems being developed and the contractor's demonstrated capabilities in delivering similar solutions within budget.
What are the key performance indicators (KPIs) for this contract, and how is contractor performance being monitored?
Key performance indicators (KPIs) for this contract are not explicitly detailed in the provided data but are typically established within the contract's Statement of Work (SOW) and Quality Assurance Surveillance Plan (QASP). For a contract involving the development and manufacturing of navigation systems, KPIs would likely include adherence to technical specifications, system accuracy and reliability, on-time delivery milestones, and successful completion of testing phases. Contractor performance is monitored by the Department of the Navy's contracting officer and potentially through government quality assurance representatives who conduct surveillance. Performance is assessed against contractual requirements, and deviations could trigger corrective actions or impact future contract awards. The firm fixed-price nature incentivizes the contractor to meet these KPIs to avoid financial penalties or scope reductions.
What is Science Applications International Corporation's track record with similar Department of Defense contracts?
Science Applications International Corporation (SAIC) has a substantial and extensive track record of performing contracts for the Department of Defense (DoD) across a wide array of services and product categories. They are a major defense contractor with significant experience in areas such as C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), IT services, engineering, and systems integration. SAIC has been awarded numerous large-value contracts for developing, integrating, and supporting complex defense systems, including those related to navigation, simulation, and training. Their history generally indicates a capacity to handle large, technically challenging programs. However, as with any large contractor, specific contract performance can vary, and a detailed review of their past performance on contracts most similar in scope and technical requirements to this navigation system award would provide a more precise assessment.
What are the potential risks associated with the long duration (2135 days) of this contract?
The long duration of this contract, approximately 2135 days (over 5.8 years), presents several potential risks. Technological obsolescence is a primary concern; navigation system technology can evolve rapidly, and a system developed over such a long period might be outdated by the time it is fully deployed or requires significant upgrades. Programmatic risks include potential scope creep if requirements are not rigidly managed, leading to cost increases despite the firm fixed-price structure, or schedule delays. Contractor performance stability is another factor; key personnel may leave, or the company's strategic focus could shift over such an extended period. Furthermore, geopolitical or operational changes within the DoD could alter the need for or priority of these specific navigation systems. Robust program management, clear change control processes, and regular performance reviews are critical to mitigating these long-term risks.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0025319R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $99,733,007
Exercised Options: $52,980,387
Current Obligation: $52,940,846
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $65,266,783
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-10-01
Current End Date: 2026-08-06
Potential End Date: 2026-08-06 00:00:00
Last Modified: 2025-08-07
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