DoD awards $7.8M for ACV Hull, Mechanical, Electrical Systems Prototype Development to Science Applications International Corporation

Contract Overview

Contract Amount: $7,842,316 ($7.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2024-08-19

End Date: 2026-08-18

Contract Duration: 729 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Defense

Official Description: AIR CUSHION VEHICLE (ACV) HULL, MECHANICAL, AND ELECTRICAL SYSTEMS PROTOTYPE DEVELOPMENT AND ENGINEERING SUPPORT

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $7.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: AIR CUSHION VEHICLE (ACV) HULL, MECHANICAL, AND ELECTRICAL SYSTEMS PROTOTYPE DEVELOPMENT AND ENGINEERING SUPPORT Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for critical ACV systems. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is $7.84 million for prototype development and engineering support. 4. This award falls under the Engineering Services NAICS code (541330).

Value Assessment

Rating: good

The contract is a Cost No Fee type, which is common for prototype development where costs are reimbursed but profit is tied to meeting specific milestones. The award amount of $7.84 million for a 2-year prototype development effort appears reasonable given the complexity of ACV systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value solution.

Taxpayer Impact: Taxpayer funds are being used for advanced defense technology development, aiming for improved naval capabilities. The competitive award process is intended to ensure efficient use of these funds.

Public Impact

Enhances naval capabilities with advanced Air Cushion Vehicle technology. Supports the development of critical systems for future maritime operations. Invests in engineering and technical expertise within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in prototype development.
  • Reliance on a single vendor for critical system components.
  • Schedule delays impacting broader ACV program timelines.

Positive Signals

  • Awarded through full and open competition.
  • Focus on advanced engineering and prototype development.
  • Supports a key naval platform.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's naval aviation programs. Spending in this area is crucial for maintaining technological superiority and developing next-generation defense platforms.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded under full and open competition. Therefore, small businesses were likely not the primary focus of this specific award, though they may participate as subcontractors.

Oversight & Accountability

The Department of the Navy is responsible for overseeing this contract. The Cost No Fee structure implies performance metrics will be closely monitored to ensure successful prototype development and engineering support.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for cost overruns due to prototype complexity.
  • Schedule slippage impacting follow-on production.
  • Technical challenges in integrating complex systems.
  • Dependence on a single contractor for critical technology.

Tags

engineering-services, department-of-defense, fl, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. AIR CUSHION VEHICLE (ACV) HULL, MECHANICAL, AND ELECTRICAL SYSTEMS PROTOTYPE DEVELOPMENT AND ENGINEERING 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 $7.8 million.

What is the period of performance?

Start: 2024-08-19. End: 2026-08-18.

What are the key performance indicators (KPIs) for this prototype development contract, and how will SAIC's success be measured against them?

Key performance indicators likely include successful completion of design reviews, fabrication of functional prototypes, integration testing of hull, mechanical, and electrical systems, and adherence to specified technical requirements. Success will be measured through government acceptance of deliverables, performance test results, and demonstration of system capabilities meeting the contract's objectives.

What are the potential risks associated with the 'Cost No Fee' contract type for this complex prototype development, particularly regarding cost control and contractor motivation?

The 'Cost No Fee' structure can reduce contractor motivation for cost efficiency as profit is not directly tied to cost savings. Risks include potential for scope creep without adequate cost controls, and the government bearing the full financial burden if costs exceed estimates. Oversight is critical to manage these risks.

How does the successful development of these ACV systems align with the broader strategic goals and modernization efforts of the Department of the Navy?

The development of advanced ACV hull, mechanical, and electrical systems is crucial for the Navy's modernization efforts, particularly in enhancing amphibious assault capabilities and expanding operational reach in littoral zones. These systems are foundational for future naval platforms designed for contested environments.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N6133124R3000

Offers Received: 3

Pricing Type: COST NO FEE (S)

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: $21,438,987

Exercised Options: $9,127,432

Current Obligation: $7,842,316

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,914,032

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

Start Date: 2024-08-19

Current End Date: 2026-08-18

Potential End Date: 2029-08-18 00:00:00

Last Modified: 2026-02-12

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