DoD's Navy awards $61.6M for Joint Expeditionary Command and Control software support to SAIC

Contract Overview

Contract Amount: $61,592,884 ($61.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2021-06-15

End Date: 2026-12-14

Contract Duration: 2,008 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: JOINT EXPEDITIONARY COMMAND AND CONTROL FAMILY OF SYSTEMS SOFTWARE SUPPORT.

Place of Performance

Location: PANAMA CITY BEACH, BAY County, FLORIDA, 32407

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $61.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: JOINT EXPEDITIONARY COMMAND AND CONTROL FAMILY OF SYSTEMS SOFTWARE SUPPORT. Key points: 1. The contract value of $61.6 million over approximately 5.5 years represents a significant investment in C2 systems. 2. SAIC, a large defense contractor, is the incumbent, suggesting potential for continued reliance on existing expertise. 3. The primary risk lies in potential cost overruns given the Cost Plus Fixed Fee (CPFF) contract type. 4. This spending falls within the broader IT and Engineering Services sector, crucial for modern military operations.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can lead to cost growth if not managed tightly. Benchmarking against similar complex software support contracts is difficult without detailed scope and labor hour data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific pricing mechanisms and the impact of the CPFF structure on price discovery require further scrutiny to ensure optimal value.

Taxpayer Impact: While competition is positive, the CPFF contract type introduces risk of cost escalation, potentially impacting taxpayer funds if not rigorously overseen.

Public Impact

Ensures continued operational capability for critical joint command and control systems. Supports advanced software development and maintenance for the U.S. Navy. Contributes to the readiness and effectiveness of expeditionary forces. Potential for technological advancements in C2 capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor spending.
Long contract duration increases exposure to potential scope creep and cost increases.
Incumbent contractor may face less pressure to innovate on price.
Lack of specific performance metrics makes value assessment challenging.

Positive Signals

Awarded under full and open competition.
Supports critical national defense systems.
Contractor has a history with the system, implying familiarity.
Clear end date provides a defined project lifecycle.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) and IT support, a significant area of federal spending. Benchmarks for similar complex software development and sustainment contracts vary widely based on system criticality and complexity, but $61.6M over 5.5 years suggests a substantial, ongoing program.

Small Business Impact

The contract was awarded to Science Applications International Corporation (SAIC), a large business. There is no explicit indication of small business participation or subcontracting goals within the provided data, suggesting limited direct benefit to small businesses from this prime contract.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight from the Department of the Navy to monitor costs, ensure performance, and prevent contractor overreach. Regular audits and performance reviews are critical for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type.
Long contract duration.
Potential for cost overruns.
Lack of specific performance metrics in provided data.
Incumbent contractor reliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. JOINT EXPEDITIONARY COMMAND AND CONTROL FAMILY OF SYSTEMS SOFTWARE SUPPORT.

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 $61.6 million.

What is the period of performance?

Start: 2021-06-15. End: 2026-12-14.

How does the fixed fee component of the CPFF contract align with the actual costs incurred and the value delivered for the software support?

The fixed fee is determined at the outset and represents the contractor's profit margin, independent of actual costs. For a CPFF contract, the government reimburses allowable costs plus this fixed fee. Effective oversight is crucial to ensure costs are reasonable and allocable, and that the fixed fee remains a fair incentive for performance without encouraging unnecessary spending. The value delivered is assessed through performance metrics and system availability.

What are the specific risks associated with the long duration (over 5 years) of this contract for the government?

A long contract duration increases the risk of technological obsolescence, requiring potential modifications or re-competition. It also exposes the government to potential cost escalations due to inflation, changing requirements, or unforeseen technical challenges. Furthermore, it can reduce flexibility to adapt to evolving threats or adopt newer, more cost-effective solutions if not managed proactively.

How effectively does this contract ensure the continued operational readiness and modernization of the Joint Expeditionary Command and Control systems?

The contract's effectiveness hinges on SAIC's ability to maintain and potentially enhance the C2 systems. While the award suggests confidence in SAIC's capabilities, the CPFF structure requires diligent government monitoring of performance metrics, software updates, and cybersecurity measures. Continuous assessment against evolving operational needs is vital to ensure the systems remain relevant and effective.

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: N6133121R3004

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: $84,975,166

Exercised Options: $84,975,166

Current Obligation: $61,592,884

Actual Outlays: $53,703

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $87,144,778

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