SAIC awarded $35.3M for NUWC Division Newport facility operations and maintenance

Contract Overview

Contract Amount: $35,255,934 ($35.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2015-05-08

End Date: 2024-01-25

Contract Duration: 3,184 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE CONTRACTOR SHALL PERFORM FACILITY OPERATIONS, MAINTENANCE AND UPGRADES, OF NUWCDIVNPT'S PROPULSION TEST FACILITY (CODE 85). IGF::CT::IGF

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $35.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THE CONTRACTOR SHALL PERFORM FACILITY OPERATIONS, MAINTENANCE AND UPGRADES, OF NUWCDIVNPT'S PROPULSION TEST FACILITY (CODE 85). IGF::CT::IGF Key points: 1. Contract value of $35.3M over nearly 9 years suggests a long-term need for facility support. 2. Full and open competition indicates a potentially competitive bidding process, which can drive better pricing. 3. The cost-plus-fixed-fee (CPFF) contract type carries some risk of cost overruns, though the fixed fee component provides a ceiling. 4. This contract supports critical infrastructure for the Navy's propulsion test facility, highlighting its strategic importance. 5. The contract's duration and scope suggest a significant role for the contractor in maintaining specialized government assets. 6. The absence of small business set-aside or subcontracting requirements may limit opportunities for smaller firms in this specific award.

Value Assessment

Rating: good

The contract's total value of $35.3M over approximately 9 years averages to about $3.9M annually. Benchmarking this against similar facility operations and maintenance contracts for specialized government facilities is challenging without more specific details on the scope of services. However, the CPFF structure, while common for complex services, requires careful oversight to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The data indicates two bids were received. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions. With two bidders, the government secured a competitive offer, but the potential for even greater price discovery might have existed with more participants.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiary is the Naval Undersea Warfare Center (NUWC) Division Newport, which relies on these services for its propulsion test facility. Services include operations, maintenance, and upgrades to a critical national defense asset. The geographic impact is localized to the NUWC Division Newport facility in Massachusetts. The contract supports specialized technical and facility management roles, potentially impacting the local workforce in engineering and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, requiring robust oversight to manage expenditures effectively.
The long duration of the contract (nearly 9 years) necessitates continuous monitoring to ensure performance remains high and costs are controlled.
Limited competition (2 bidders) might mean less aggressive pricing than a more crowded field could have produced.
The absence of explicit small business subcontracting goals could limit the flow-down of work to smaller enterprises.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified vendors.
The contractor, Science Applications International Corporation (SAIC), is a large, established entity with significant experience in government contracting.
The contract supports a critical national defense function (propulsion test facility), ensuring operational readiness.
The fixed fee component of the CPFF contract provides a defined profit margin, offering some cost predictability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting specialized government facilities. The market for facility operations and maintenance for defense installations is substantial, often characterized by long-term contracts and a mix of large prime contractors and specialized subcontractors. Spending in this area is driven by the need to maintain aging infrastructure and support advanced research and testing capabilities for national security.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no explicit indication of small business subcontracting requirements in the provided data. This means that opportunities for small businesses to directly participate as prime contractors were limited for this specific award. While SAIC may engage small businesses as subcontractors, the absence of mandated goals means their involvement is at the discretion of the prime contractor.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to ensure compliance with terms and conditions. Oversight for cost-plus-fixed-fee contracts typically involves detailed review of incurred costs, progress reports, and performance metrics. Transparency is facilitated through contract reporting mechanisms, and the Inspector General's office within the Department of Defense would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Naval Undersea Warfare Center (NUWC) Operations and Maintenance
Department of Defense Facility Support Services
Engineering Services for Government Facilities
Propulsion Systems Testing Infrastructure

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates sustained performance monitoring.
Limited number of bidders may indicate potential for less competitive pricing.
Absence of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THE CONTRACTOR SHALL PERFORM FACILITY OPERATIONS, MAINTENANCE AND UPGRADES, OF NUWCDIVNPT'S PROPULSION TEST FACILITY (CODE 85). IGF::CT::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 $35.3 million.

What is the period of performance?

Start: 2015-05-08. End: 2024-01-25.

What is SAIC's track record with similar facility operations and maintenance contracts for the Department of Defense?

Science Applications International Corporation (SAIC) has a substantial history of performing complex service contracts for the Department of Defense, including facility operations, maintenance, and technical support. While specific details on their performance for NUWC's propulsion test facility prior to this award are not detailed here, SAIC's extensive experience suggests a capacity to manage such requirements. Their broader portfolio includes large-scale engineering, IT, and logistics support across various military branches. Performance on similar contracts would typically be assessed through past performance evaluations during the bidding process, which are crucial for determining contractor suitability and reliability in securing new awards.

How does the average annual cost of this contract compare to similar facility support contracts at other Navy research and development centers?

The average annual cost for this contract is approximately $3.9M ($35.3M / ~9 years). Comparing this figure directly to similar contracts at other Navy R&D centers requires detailed knowledge of the specific services rendered, facility size, complexity, and criticality. Contracts for facility operations and maintenance can vary significantly based on these factors. For instance, a facility with highly specialized testing equipment, like a propulsion test facility, may incur higher operational and maintenance costs than a standard administrative building. Without a standardized benchmark for 'similar' facilities and services, a precise comparison is difficult. However, this annual figure provides a basis for internal government cost analysis and future benchmarking.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this facility operations and maintenance work?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their fee is fixed regardless of the actual costs incurred (within the ceiling). This necessitates robust government oversight to scrutinize all costs submitted by the contractor. If costs escalate significantly, the total contract value could increase substantially, potentially exceeding initial estimates. However, the fixed fee component does provide the government with a predictable profit margin for the contractor, and the overall contract value has a ceiling, offering some level of cost control.

How effective are the current oversight mechanisms in ensuring value for money and preventing cost overruns on this contract?

The effectiveness of oversight mechanisms hinges on the diligence of the Defense Contract Management Agency (DCMA) and the technical representatives within NUWC. For a CPFF contract, oversight typically involves rigorous auditing of contractor expenditures, regular performance reviews, and adherence to the contract's scope of work. The presence of DCMA suggests a structured approach to administration. Value for money is assessed by comparing performance against contract requirements and market rates, while cost overrun prevention relies on proactive identification and management of potential issues. The success of these mechanisms depends on adequate resourcing for oversight personnel and robust data-driven performance monitoring.

What is the historical spending trend for facility operations and maintenance at NUWC Division Newport over the last five years?

The provided data focuses on a single contract award and does not offer historical spending trends for facility operations and maintenance at NUWC Division Newport. To determine historical spending patterns, one would need to access broader contract databases and analyze all awards related to facility support at this specific command over the past five years or more. This would involve identifying all relevant contracts, their values, durations, and the nature of services provided. Such an analysis would reveal whether spending has been consistent, increasing, or decreasing, and whether this current contract represents a continuation, expansion, or shift in the command's investment in facility support.

Given the 'full and open competition' and two bidders, what does this imply about the market for specialized facility operations and maintenance services for defense research centers?

The fact that this contract was awarded under full and open competition with two bidders suggests that the market for specialized facility operations and maintenance services for defense research centers is not overly saturated but does attract established players. Two bidders indicate that there are at least a couple of capable companies vying for such work. This level of competition is generally considered moderate; it's sufficient to ensure some level of price discovery and choice for the government, but a larger pool of bidders might have yielded even more competitive pricing or a wider array of innovative solutions. It implies that while specialized, the niche is accessible to qualified large businesses.

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: N0002414R3435

Offers Received: 2

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: $36,566,297

Exercised Options: $36,566,297

Current Obligation: $35,255,934

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $647,470

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