DoD awards $38.7M Naval Surveillance Radar Engineering Support Services contract to Science Applications International Corporation

Contract Overview

Contract Amount: $38,736,275 ($38.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2015-05-29

End Date: 2025-02-20

Contract Duration: 3,555 days

Daily Burn Rate: $10.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF NAVAL SURVEILLANCE RADAR ENGINEERING SUPPORT SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CT::IGF NAVAL SURVEILLANCE RADAR ENGINEERING SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market engagement. 2. Significant contract duration of 10 years suggests a long-term need for specialized engineering expertise. 3. The 'NOT COMPETED' status indicates a lack of competitive pressure, potentially impacting cost-effectiveness. 4. Engineering services are critical for maintaining and upgrading complex defense systems. 5. Contract value of $38.7M over 10 years averages $3.87M annually, requiring careful performance monitoring. 6. The contract's focus on naval surveillance radar points to a niche but vital area of defense technology.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specialized engineering focus. Without competitive bids, it's difficult to ascertain if the pricing reflects market rates or represents a premium for a specific provider. The contract's long duration and significant total value necessitate robust oversight to ensure continued value for money. Further analysis would require access to detailed cost breakdowns and comparisons with similar sole-source engineering support contracts within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or when urgency precludes a full and open competition. The absence of multiple bidders limits the government's ability to leverage price competition to achieve the best possible value. The rationale for this sole-source award should be thoroughly documented and justified.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. Without competitive bids, there is less downward pressure on pricing, potentially leading to higher costs than if multiple firms had vied for the contract.

Public Impact

The Department of Defense benefits from continued specialized engineering support for critical naval surveillance radar systems. This contract ensures the maintenance, upgrade, and potential development of advanced radar technologies essential for national security. The primary beneficiaries are the naval forces relying on effective surveillance capabilities. Workforce implications include continued employment for specialized engineers and technical staff at Science Applications International Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Long contract duration (10 years) may reduce flexibility to adapt to changing technological needs or market conditions.
Lack of transparency in the sole-source justification could obscure potential inefficiencies.
Reliance on a single contractor for critical engineering support poses a risk if performance falters or if the contractor faces financial instability.

Positive Signals

Contract provides specialized, high-demand engineering services crucial for national defense.
Science Applications International Corporation is a known entity in defense contracting, suggesting a degree of familiarity and established processes.
The definitive contract structure provides a clear framework for service delivery and payment.
Long-term nature of the contract allows for sustained development and integration of radar technologies.

Sector Analysis

The defense sector relies heavily on specialized engineering services for the development, maintenance, and upgrade of complex technological systems. This contract falls within the broader engineering services market, specifically focusing on radar technology for naval applications. The market for such specialized defense engineering is often characterized by a limited number of highly qualified contractors due to the stringent security clearances, technical expertise, and established relationships required. Comparable spending benchmarks are difficult to establish without more specific details on the scope of work, but significant investments are typical for advanced defense systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large prime contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless explicitly mandated within the contract's terms. The absence of a small business set-aside suggests that the primary focus was on securing specialized capabilities rather than promoting small business participation. Further review of subcontracting plans would be necessary to assess any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. The 'pt' (contract type) being 'COST PLUS FIXED FEE' suggests that the contractor is reimbursed for allowable costs plus a fixed fee, requiring diligent oversight of incurred costs. Accountability measures would stem from the contract's performance clauses and reporting requirements. Transparency may be limited due to the sole-source nature, but contract awards are generally publicly reported. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Radar Systems
Defense Engineering Services
Surveillance Technology Contracts
Department of Defense IT and Engineering Support

Risk Flags

Sole-source award
Long contract duration
Cost-reimbursable elements (implied by CPFF type)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CT::IGF NAVAL SURVEILLANCE RADAR ENGINEERING SUPPORT SERVICES

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 $38.7 million.

What is the period of performance?

Start: 2015-05-29. End: 2025-02-20.

What is the specific technical scope of work covered by this 'Naval Surveillance Radar Engineering Support Services' contract?

The provided data does not detail the specific technical scope of work. However, 'Naval Surveillance Radar Engineering Support Services' typically encompasses a range of activities including the design, development, testing, integration, maintenance, and upgrade of radar systems used on naval vessels. This could involve hardware and software engineering, signal processing, performance analysis, reliability engineering, and technical documentation. The long duration and sole-source nature suggest highly specialized or proprietary knowledge is involved, potentially related to specific radar platforms or advanced capabilities critical to naval operations.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The specific justification for this sole-source award is not provided in the data. Common reasons for sole-source procurements in defense include the unique capability or proprietary technology held by a single contractor, the urgency of the requirement where competition is not feasible, or if the contract is a follow-on to a previous competitive award where only one contractor can provide the necessary integration or compatibility. For this contract, it's possible that Science Applications International Corporation possesses unique expertise or intellectual property related to the specific naval surveillance radar systems in question, making them the only viable option.

How does the annual average cost of this contract compare to similar engineering support contracts within the Department of Defense?

Comparing the annual average cost of $3.87 million ($38.7M / 10 years) to similar contracts is difficult without more specific information on the scope of work and the level of expertise required. However, for specialized engineering services within the defense sector, this figure could be within a reasonable range, especially if it involves highly technical, long-term support for critical systems. The lack of competition makes a direct value-for-money assessment challenging. A more robust comparison would require analyzing contracts for similar radar systems, engineering complexity, and contractor experience, ideally those awarded competitively.

What are the potential risks associated with a 10-year sole-source contract for engineering services?

A 10-year sole-source contract presents several risks. Firstly, the lack of competition over such a long period can lead to complacency and potentially higher costs than if the contract were re-competed periodically. Secondly, technological advancements might outpace the services provided if the contractor is not incentivized to innovate. Thirdly, the government's flexibility to switch providers or adopt new technologies is significantly reduced. Finally, there's a risk of vendor lock-in, where the government becomes heavily dependent on the incumbent contractor, making future transitions difficult and potentially expensive.

What is Science Applications International Corporation's track record with similar defense contracts, particularly in radar engineering?

Science Applications International Corporation (SAIC) is a major defense contractor with a substantial history of providing a wide range of technical, engineering, and IT services to the U.S. military. While the provided data doesn't detail SAIC's specific performance on this particular contract (as it's ongoing), their general track record includes numerous large-scale contracts across various defense domains. They are known to have significant experience in areas like command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR), which often includes radar systems. A deeper dive into SAIC's contract history, past performance reviews, and any reported issues would be necessary for a comprehensive assessment.

What performance metrics or oversight mechanisms are in place to ensure the effectiveness and value of these engineering services over the contract's duration?

The provided data does not specify the performance metrics or detailed oversight mechanisms for this contract. However, typical oversight for a Cost Plus Fixed Fee (CPFF) contract of this nature involves rigorous monitoring of incurred costs, adherence to technical specifications, and delivery schedules. Performance metrics would likely be defined in the contract's Statement of Work (SOW) and could include factors like system uptime, reliability, response times for support, successful implementation of upgrades, and adherence to budget constraints for the fixed fee portion. The Defense Contract Management Agency (DCMA) would be responsible for day-to-day oversight.

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

Solicitation ID: N6339415R0014

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: $52,740,190

Exercised Options: $52,740,190

Current Obligation: $38,736,275

Actual Outlays: $-7

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline