DoD's $57.9M Engineering Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $57,904,182 ($57.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2016-08-01
End Date: 2018-07-31
Contract Duration: 729 days
Daily Burn Rate: $79.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF SYSTEMS ENGINEERING
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $57.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF SYSTEMS ENGINEERING Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of 729 days suggests a substantial, long-term need. 3. Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns. 4. The engineering services sector is critical for defense modernization. 5. No small business set-aside was applied to this contract. 6. The contract was awarded by the Department of the Navy. 7. The North American Industry Classification System (NAICS) code is 541330 (Engineering Services).
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without detailed cost breakdowns and comparison to similar sole-source engineering services contracts. The CPFF structure, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. The absence of competitive bidding means there was no market pressure to ensure the most economical price was achieved. Further analysis of the contractor's historical performance and pricing on similar engagements would be necessary for a more definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or proprietary technology required for the service. However, the lack of competition limits the government's ability to explore alternative solutions or secure the best possible pricing through a bidding process. The justification for sole-source procurement would need to be robust to ensure fair value.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to secure government contracts.
Public Impact
The Department of the Navy benefits from specialized engineering services to support its operations and modernization efforts. This contract likely supports critical defense infrastructure and technological development. The geographic impact is primarily within Maryland, where the contractor is based. Workforce implications include employment for engineers and technical specialists at Science Applications International Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs.
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely managed.
- Lack of transparency in sole-source justification requires scrutiny.
- No small business participation noted, potentially missing opportunities for smaller firms.
Positive Signals
- Award to a large, established contractor like SAIC suggests access to significant technical expertise.
- Engineering services are crucial for maintaining and advancing defense capabilities.
- Contract duration indicates a sustained need and potential for long-term partnership.
Sector Analysis
The engineering services sector is a vital component of the defense industrial base, providing essential expertise for the design, development, and maintenance of complex military systems. This contract falls within the broader professional, scientific, and technical services market, which is characterized by high specialization and significant government spending. Comparable spending benchmarks in this sector are often tied to specific defense platforms or research initiatives, making direct comparisons difficult without more granular data on the services rendered.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this significant contract are limited unless they are direct subcontractors to the prime. The absence of a small business focus in this award may not align with broader government goals to foster small business participation in the defense supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Inspector General's office for the Department of Defense may also conduct audits or investigations into contract performance and cost management, particularly given the CPFF structure. Transparency is limited due to the sole-source nature, making public oversight more challenging without access to the justification for the award and detailed performance metrics.
Related Government Programs
- Defense Engineering Services
- Naval Systems Engineering Support
- Professional, Scientific, and Technical Services
- Cost-Plus Contracts
- Sole-Source Procurements
Risk Flags
- Sole-source procurement
- Cost Plus Fixed Fee contract type
- Lack of competition
- Potential for cost overruns
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, science-applications-international-corporation, sole-source, cost-plus-fixed-fee, definitive-contract, maryland, naics-541330, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF SYSTEMS ENGINEERING
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 $57.9 million.
What is the period of performance?
Start: 2016-08-01. End: 2018-07-31.
What is the track record of Science Applications International Corporation (SAIC) on similar Department of Defense contracts?
Science Applications International Corporation (SAIC) is a major defense contractor with a long history of performing a wide range of services for the Department of Defense (DoD) and other federal agencies. Their track record includes significant work in areas such as systems engineering, IT services, cybersecurity, and logistics support. Analyzing SAIC's past performance on Cost Plus Fixed Fee (CPFF) contracts, particularly those involving engineering services for the Navy, would be crucial. This would involve reviewing past performance evaluations, any documented issues with cost control or schedule adherence, and their overall success in meeting contract requirements. Data from contract databases and government performance reports would be essential for a comprehensive assessment.
How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar engineering services?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when there is uncertainty about the costs involved, such as in research and development or complex engineering projects. Under CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF offers more flexibility but carries a higher risk of cost overruns for the government, as the final cost is not predetermined. Other contract types like Firm-Fixed-Price (FFP) provide cost certainty but may require a very well-defined scope. Incentive contracts aim to align contractor performance with government goals on cost, schedule, and performance. For routine engineering services with a clear scope, FFP or other fixed-price variants are generally preferred for better cost control.
What are the specific engineering services provided under this contract, and how do they align with Navy priorities?
The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330, with the Department of the Navy as the procuring agency. However, the specific nature of these services is not detailed. To assess alignment with Navy priorities, one would need to examine the contract's Statement of Work (SOW). This would reveal whether the services support critical areas such as naval platform design, modernization programs, weapons systems development, cybersecurity engineering, or operational support. Understanding the specific technical challenges the Navy is addressing through this contract is key to evaluating its strategic importance and effectiveness.
What is the historical spending trend for engineering services by the Department of the Navy in this category?
Analyzing historical spending trends for engineering services by the Department of the Navy (DoN) within the 541330 NAICS code would provide valuable context. This involves examining contract awards over several fiscal years to identify patterns in spending levels, types of contracts used (competitive vs. sole-source), and major contractors. Significant increases or decreases in spending could indicate shifts in Navy priorities, budget allocations, or acquisition strategies. Understanding these trends helps in assessing whether the $57.9 million awarded in this instance is consistent with past investments or represents a notable change. Access to historical contract databases and budget reports is necessary for this analysis.
What are the potential risks associated with a sole-source award of this magnitude and duration?
A sole-source award of this magnitude ($57.9 million) and duration (729 days) carries several potential risks. Firstly, the lack of competition means the government may not have secured the most cost-effective solution, potentially leading to higher expenditures than if the contract had been competed. Secondly, the absence of multiple bidders can reduce the incentive for the awarded contractor to innovate or maintain high service levels, as there is no direct competitive pressure. Thirdly, sole-source procurements can raise concerns about fairness and transparency if the justification for not competing is not adequately documented or scrutinized. Finally, it limits opportunities for other capable firms to demonstrate their value and potentially enter the market.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $70,834,850
Exercised Options: $70,834,850
Current Obligation: $57,904,182
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $7,281
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-08-01
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 00:00:00
Last Modified: 2024-12-04
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