Department of Defense awards $33.4M for Combat Operations Center engineering services to Science Applications International Corporation

Contract Overview

Contract Amount: $33,387,941 ($33.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2017-06-30

End Date: 2022-06-29

Contract Duration: 1,825 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE SPACE AND NAVAL WARFARE SYSTEMS CENTER (SPAWARSYSCEN) ATLANTIC COC INTEGRATED PRODUCT TEAM (IPT) PROVIDES SUSTAINING ENGINEERING SERVICES IN SUPPORT OF THE COMBAT OPERATIONS CENTER (COC), AN/TSQ-239(V). COC IS A SET OF ACQUISITION PROGRAMS SPONSORED BY THE UNITED STATES MARINE CORPS (USMC).

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $33.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF THE SPACE AND NAVAL WARFARE SYSTEMS CENTER (SPAWARSYSCEN) ATLANTIC COC INTEGRATED PRODUCT TEAM (IPT) PROVIDES SUSTAINING ENGINEERING SERVICES IN SUPPORT OF THE COMBAT OPERATIONS CENTER (COC), AN/TSQ-239(V). COC IS A SET OF ACQUISITION PROGRAMS SPONSORED BY THE UNITE… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a long-term need for these sustaining engineering services. 3. The services provided are critical for the U.S. Marine Corps' Combat Operations Center. 4. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 5. The awardee, Science Applications International Corporation, is a large, established defense contractor. 6. The contract is for sustaining engineering, implying ongoing support rather than new development.

Value Assessment

Rating: fair

The total award amount of $33.4 million over five years for sustaining engineering services for the Combat Operations Center appears to be within a reasonable range for complex defense systems. However, without specific benchmarks for similar sustaining engineering contracts for naval systems or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while common for services where costs are difficult to predict, carries inherent risks of cost overruns if not managed diligently. Further analysis of the contractor's performance on similar contracts and the specific labor rates and overhead applied would be necessary for a more definitive valuation.

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 bids. The presence of 4 bids suggests a moderate level of competition for this requirement. While full and open competition is generally preferred for ensuring fair pricing and access to the best available solutions, the specific number of bidders can influence price discovery. A higher number of bidders typically leads to more robust price competition.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the most competitive pricing and innovative solutions by allowing a wide range of contractors to participate.

Public Impact

The U.S. Marine Corps benefits from sustained engineering support for its Combat Operations Center. This contract ensures the continued operational readiness and effectiveness of critical command and control systems. The services delivered are essential for maintaining and upgrading the AN/TSQ-239(V) system. The geographic impact is primarily within the Department of Defense's operational and support infrastructure, with potential implications for personnel in South Carolina where the Space and Naval Warfare Systems Center (SPAWARSYSCEN) Atlantic is located. The contract supports a workforce of engineers and technical specialists involved in sustaining complex defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Sustaining engineering can sometimes be less transparent than development contracts, making performance tracking crucial.
Reliance on a single contractor for long-term support could create vendor lock-in.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contract duration suggests a stable, long-term need and commitment from the agency.
The services are critical for the operational readiness of the U.S. Marine Corps.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related command and control systems. The market for defense engineering services is substantial, driven by the continuous need for modernization, sustainment, and upgrades of military platforms and systems. Companies like Science Applications International Corporation are key players in this sector, offering specialized expertise in areas such as systems engineering, integration, and lifecycle support. Benchmarking this contract's value would require comparison with other similar sustaining engineering contracts for naval or marine corps systems, considering factors like system complexity, duration, and required expertise.

Small Business Impact

This contract was not set aside for small businesses and the prime contractor, Science Applications International Corporation, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting opportunities. Further investigation into subcontracting goals and achievements would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers at SPAWARSYSCEN Atlantic. The Cost Plus Fixed Fee structure necessitates rigorous oversight to ensure costs are reasonable and allocable to the contract. Performance metrics and regular reporting requirements are standard mechanisms for accountability. The Inspector General of the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse.

Related Government Programs

Combat Systems Engineering
Naval Command and Control Systems
Marine Corps Acquisition Programs
Sustaining Engineering Services
Defense Information Technology Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Sustaining engineering can be complex and require specialized, potentially costly, expertise.
Long-term contracts can present risks of vendor lock-in if not managed strategically.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF THE SPACE AND NAVAL WARFARE SYSTEMS CENTER (SPAWARSYSCEN) ATLANTIC COC INTEGRATED PRODUCT TEAM (IPT) PROVIDES SUSTAINING ENGINEERING SERVICES IN SUPPORT OF THE COMBAT OPERATIONS CENTER (COC), AN/TSQ-239(V). COC IS A SET OF ACQUISITION PROGRAMS SPONSORED BY THE UNITED STATES MARINE CORPS (USMC).

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 $33.4 million.

What is the period of performance?

Start: 2017-06-30. End: 2022-06-29.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar sustaining engineering services for defense command and control systems?

Science Applications International Corporation (SAIC) has a long history of providing a wide range of engineering and technical services to the Department of Defense and other federal agencies. They are a major contractor for complex defense systems, including command, control, communications, computers, and intelligence (C4I) systems. SAIC has experience in areas such as systems engineering, integration, sustainment, and lifecycle support for various military branches. Their track record typically involves supporting large-scale programs, often requiring specialized technical expertise and adherence to stringent security and performance requirements. While specific performance metrics for this particular contract are not detailed here, SAIC's general profile suggests they possess the capabilities to handle sustaining engineering for critical systems like the Combat Operations Center. However, a deeper dive into past performance reviews, contract awards, and any reported issues on similar contracts would provide a more comprehensive understanding of their specific performance history in this niche.

How does the pricing structure (Cost Plus Fixed Fee) for this contract compare to industry standards for similar sustaining engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is common in defense contracting, particularly for services where the scope of work or the exact costs involved are difficult to define precisely at the outset, such as sustaining engineering. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed. Compared to other contract types like Firm-Fixed-Price (FFP), CPFF shifts more cost risk to the government. Industry standards suggest that CPFF is appropriate when the contractor has little control over costs or when the level of uncertainty is high. For sustaining engineering, where unforeseen technical challenges or obsolescence issues can arise, CPFF can be a reasonable choice. However, it requires robust government oversight to ensure costs are reasonable and directly related to the contract's objectives. Benchmarking requires comparing the negotiated labor rates, overhead, and the fixed fee percentage against similar contracts for comparable services and system complexities.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

The primary risks associated with this Cost Plus Fixed Fee (CPFF) contract include potential cost overruns if the contractor's actual costs exceed estimates, and scope creep if the definition of 'sustaining engineering' is not tightly managed. There's also a risk of contractor performance not meeting the required operational readiness standards for the Combat Operations Center. Mitigation strategies likely involve strong government oversight, including detailed cost monitoring, regular performance reviews against defined metrics, and rigorous change control processes. The fixed fee component provides some incentive for cost control. Furthermore, the contract's duration and the critical nature of the system imply that the Department of the Navy would have established performance standards and potentially award-term or incentive clauses to encourage high performance and contractor retention. Regular communication and collaboration between the government and the contractor are also key to identifying and addressing issues proactively.

How effective is the 'full and open competition' approach in ensuring value for money for this specific type of defense engineering service?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified contractors to bid, fostering price competition and innovation. For defense engineering services like sustaining engineering for a Combat Operations Center, this approach is crucial because it can uncover specialized expertise and potentially more cost-effective solutions that might not be apparent through limited competition. The fact that four bids were received indicates a reasonable level of competition. However, the ultimate value for money depends on the thoroughness of the evaluation process, the clarity of the solicitation requirements, and the government's ability to accurately assess technical merit alongside price. While competition drives down prices, the complexity of engineering services means that the lowest bid isn't always the best value; technical capability and past performance are equally critical factors in the evaluation.

What are the historical spending patterns for sustaining engineering services for the U.S. Marine Corps' Combat Operations Center (COC) or similar systems?

Historical spending data for sustaining engineering services for the U.S. Marine Corps' Combat Operations Center (COC) or directly comparable systems is not provided in the given data. However, general trends in defense spending indicate a significant and consistent allocation towards sustainment and modernization of critical platforms and systems. As systems age, the cost of maintaining them often increases due to obsolescence, the need for specialized parts, and the complexity of keeping them operational. Contracts for sustaining engineering are typically long-term, reflecting the lifecycle of defense assets. The $33.4 million awarded over five years for this COC contract suggests an average annual spend of approximately $6.7 million. This figure should be compared against historical budgets for the COC program, if available, or against spending on similar command and control systems within the DoD to gauge if it represents an increase, decrease, or stable trend in investment for such services.

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: N6523617R3052

Offers Received: 4

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: $38,940,860

Exercised Options: $38,940,860

Current Obligation: $33,387,941

Actual Outlays: $7,094,517

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $29,577,942

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