DoD's $27.6M Engineering Services Contract Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $27,604,120 ($27.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2012-02-24

End Date: 2017-12-15

Contract Duration: 2,121 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PR N66604-11-NR-55015 IGF::OT::IGF

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PR N66604-11-NR-55015 IGF::OT::IGF Key points: 1. Contract awarded through 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 substantial at 2121 days, indicating a long-term need for these services. 4. The award was made by the Defense Contract Management Agency, a key oversight body. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense operations. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this $27.6 million contract requires more detailed cost breakdowns and comparisons to similar engineering service contracts within the Department of Defense. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. Without specific performance metrics and a detailed breakdown of costs versus fixed fee, it is difficult to definitively assess value for money. However, the duration of the contract (2121 days) suggests a sustained need, and the award through full and open competition implies a degree of market validation.

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 a bid. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The agency sought proposals from a wide range of qualified engineering service providers, aiming to secure the best value through a transparent and inclusive process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most advantageous price point, reducing the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, receiving essential engineering support. Services delivered likely include design, analysis, testing, and technical consultation critical for defense systems and infrastructure. The geographic impact is likely concentrated around defense installations and operational areas where the DCMA operates. Workforce implications include employment opportunities for engineers and technical specialists, both within the contractor's organization and potentially in supporting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not rigorously monitored.
Long contract duration (2121 days) increases the potential for scope creep or evolving requirements that may not be optimally priced.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency and effectiveness.
The 'delivery order' nature suggests this might be one of many task orders under a larger IDIQ, making comprehensive analysis challenging without the parent contract details.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The Defense Contract Management Agency (DCMA) is responsible for oversight, suggesting established accountability mechanisms.
Engineering services are critical for national defense, implying a high level of scrutiny and importance for this contract.
The contractor, Science Applications International Corporation (SAIC), is a large and established entity with significant experience in government contracting.

Sector Analysis

Engineering services, classified under NAICS code 541330, represent a significant segment of the professional, scientific, and technical services industry. This sector is crucial for government operations, particularly in defense, infrastructure, and research and development. The market is characterized by a mix of large, established firms like SAIC and smaller specialized companies. Federal spending in engineering services supports a wide array of activities, from initial design and feasibility studies to complex system integration and lifecycle support, often involving substantial contract values due to the technical expertise and project scale required.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, the primary impact on small businesses would likely be through subcontracting opportunities. The extent to which SAIC engages small businesses as subcontractors for specialized services or support roles would determine the direct benefit to the small business ecosystem. Without specific subcontracting plans or data, it's presumed that the focus is on prime contract performance by a large entity.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with terms, conditions, and performance requirements. Accountability measures are typically embedded within the contract's clauses, including reporting requirements, performance standards, and payment schedules tied to milestones. Transparency is facilitated through contract award databases and reporting mechanisms, though detailed operational specifics may be sensitive. The DCMA's role is critical in monitoring costs, schedule, and performance, especially under a CPFF arrangement.

Related Government Programs

Defense Engineering Services
Department of Defense IT Services
Military Construction Support
Research and Development Contracts
Logistics and Support Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration increases exposure to changing requirements and technological obsolescence.
Lack of specific performance metrics makes objective assessment of value difficult.
Delivery Order implies potential for broader scope and spending under a parent IDIQ contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PR N66604-11-NR-55015 IGF::OT::IGF

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $27.6 million.

What is the period of performance?

Start: 2012-02-24. End: 2017-12-15.

What is the track record of Science Applications International Corporation (SAIC) with the Department of Defense?

Science Applications International Corporation (SAIC) has a long and extensive history of contracting with the Department of Defense (DoD). As a major government contractor, SAIC provides a wide array of services including IT, engineering, logistics, and mission support. Their track record with the DoD is generally characterized by large-scale, complex projects. While specific performance details for individual contracts vary, SAIC is a well-established player with significant experience navigating the DoD's procurement processes and operational requirements. Analyzing their past performance on similar engineering contracts, particularly those involving Cost Plus Fixed Fee structures and long durations, would provide further insight into their reliability and efficiency in delivering defense-related services.

How does the $27.6 million value compare to similar engineering service contracts awarded by the DoD?

The $27.6 million value for this engineering services contract is substantial but falls within a common range for significant defense support contracts. The DoD frequently awards contracts in the tens to hundreds of millions of dollars for specialized engineering, IT, and technical services. Contracts of this magnitude typically involve complex projects, long-term support, or critical system development. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration (2121 days), and service type (NAICS 541330) awarded within the same timeframe. However, it is reasonable to infer that this contract represents a significant investment in engineering capabilities necessary for defense operations.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, such as this $27.6 million engineering services award, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total project cost. Effective risk mitigation requires robust oversight from the contracting agency (in this case, the Defense Contract Management Agency) to meticulously audit and approve all costs. Without stringent cost controls and clear performance metrics, the government may end up paying significantly more than initially anticipated, diminishing the overall value for money.

What does the 'delivery order' designation imply for this contract?

The designation of this award as a 'delivery order' (aw: DELIVERY ORDER) implies that it is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services over a period, allowing the government to issue specific orders (delivery or task orders) for goods or services as needed, up to a certain ceiling amount. This approach provides flexibility for the agency to procure services incrementally. For this specific contract, it means that the $27.6 million is the value of this particular order, and the overall IDIQ contract likely has a higher ceiling and potentially covers a broader scope of engineering services. Analysis of the parent IDIQ contract would be necessary for a complete understanding of the total potential spending and scope.

How does the contract's duration of 2121 days impact its risk profile?

A contract duration of 2121 days, approximately 5.8 years, significantly impacts the risk profile of this $27.6 million engineering services contract. Longer contract durations increase the exposure to changing technological landscapes, evolving mission requirements, and potential shifts in strategic priorities within the Department of Defense. There is a heightened risk of scope creep, where the project's objectives may expand beyond the original intent, potentially leading to cost increases if not managed through contract modifications. Furthermore, maintaining consistent performance and contractor engagement over such an extended period requires sustained oversight and proactive management from the Defense Contract Management Agency to ensure objectives remain aligned and value is delivered throughout the contract's lifecycle.

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: N0002411R3159

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: $29,050,923

Exercised Options: $29,050,923

Current Obligation: $27,604,120

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $6,392,329

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline