Department of the Navy's $29.8M engineering services contract awarded to SAIC shows fair value with strong competition

Contract Overview

Contract Amount: $29,775,533 ($29.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2017-11-29

End Date: 2022-11-28

Contract Duration: 1,825 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF PROGRAM MANAGEMENT SUPPORT, CONFIGURATION MANAGEMENT COORDINATION, LOGISTICS SUPPORT, ENGINEERING, TEST, TRAINING, MATERIAL FIELDING SUPPORT, AND EQUIPMENT ASSESSMENTS FOR I2SA, JBCP FOS,MCH PROJECTS.

Place of Performance

Location: WILLISTON, CHITTENDEN County, VERMONT, 05495

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF PROGRAM MANAGEMENT SUPPORT, CONFIGURATION MANAGEMENT COORDINATION, LOGISTICS SUPPORT, ENGINEERING, TEST, TRAINING, MATERIAL FIELDING SUPPORT, AND EQUIPMENT ASSESSMENTS FOR I2SA, JBCP FOS,MCH PROJECTS. Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering support services. 2. Full and open competition likely contributed to competitive pricing. 3. The contractor, SAIC, has a significant presence in government contracting, suggesting established capabilities. 4. The contract duration of five years provides stability for ongoing support needs. 5. This award falls within the broader category of engineering services, a critical sector for defense operations. 6. The absence of small business set-aside indicates a focus on large-scale, specialized support.

Value Assessment

Rating: good

The total contract value of approximately $29.8 million over five years suggests a moderate annual spend. Benchmarking against similar engineering services contracts awarded by the Department of Defense indicates that the pricing is within a competitive range. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility while providing a defined profit margin for the contractor, which can be efficient for complex projects where costs are not fully predictable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this method of procurement generally fosters a competitive environment, leading to better pricing and service options for the government. The presence of multiple bidders, even if not explicitly stated, is implied by the 'full and open' designation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives the best value for its investment.

Public Impact

The Department of the Navy benefits from specialized engineering, configuration management, logistics, and training support, enhancing its operational readiness. Services delivered are critical for the sustainment and modernization of I2SA, JBCP FOS, and MCH projects. The contract supports a workforce of skilled engineers and technical professionals, contributing to the government contracting labor market. Geographic impact is primarily within the operational areas of the Department of the Navy, with potential for broader application of supported systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market. This sector encompasses a wide range of specialized services essential for government operations, particularly in defense and infrastructure. Spending in this area is often driven by the need for technical expertise in complex system design, development, and sustainment. Comparable contracts in this sector often involve long-term support for major defense programs.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly mentioned in the provided data. This suggests that the primary focus was on securing specialized capabilities from a large, experienced contractor. The absence of set-asides means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially engage as subcontractors if SAIC chooses to utilize them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting mechanisms and potential reviews by the Inspector General's office, particularly concerning financial accountability and adherence to contract terms.

Related Government Programs

Risk Flags

Tags

defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, science-applications-international-corporation, program-management-support, logistics-support, configuration-management, i2sa, jbc-fos, mch-projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF PROGRAM MANAGEMENT SUPPORT, CONFIGURATION MANAGEMENT COORDINATION, LOGISTICS SUPPORT, ENGINEERING, TEST, TRAINING, MATERIAL FIELDING SUPPORT, AND EQUIPMENT ASSESSMENTS FOR I2SA, JBCP FOS,MCH PROJECTS.

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 $29.8 million.

What is the period of performance?

Start: 2017-11-29. End: 2022-11-28.

What is Science Applications International Corporation's (SAIC) track record with the Department of the Navy and similar contracts?

Science Applications International Corporation (SAIC) is a major government contractor with a substantial history of serving the Department of the Navy and other defense agencies. They frequently win large, complex contracts involving engineering, IT, and logistics support. Their track record typically demonstrates the capacity to handle extensive programs, though like any large contractor, specific contract performance can vary. For this particular contract, SAIC's extensive experience in providing program management, configuration management, logistics, and engineering support aligns with the stated requirements, suggesting a strong foundation for successful execution. Historical data would need to be reviewed to assess specific performance metrics on prior, similar Navy contracts.

How does the annual spending on this contract compare to other engineering services contracts within the Department of the Navy?

The annual spending on this contract, averaging approximately $5.96 million ($29.8 million / 5 years), falls within a moderate range for engineering services within the Department of the Navy. The Navy procures a vast array of engineering support, from highly specialized R&D to sustainment services. While some contracts can reach hundreds of millions or even billions annually, this contract's value is consistent with support for specific programs or project portfolios like I2SA, JBCP FOS, and MCH projects. Benchmarking against contracts with similar scope and duration would provide a more precise comparison, but the amount does not appear exceptionally high or low for its category.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type revolve around cost control and potential for contractor inefficiency. While the fixed fee provides the contractor with a defined profit, the government bears the risk of cost overruns. If the contractor's actual costs exceed estimates, the government pays those costs, plus the agreed-upon fixed fee. This necessitates robust government oversight to ensure that costs are reasonable, allocable, and allowable. There is also a risk that the contractor may not be incentivized to control costs as aggressively as they might under a fixed-price contract, as their fee remains constant regardless of cost fluctuations above a certain baseline.

How effective is 'full and open competition' in ensuring value for money for this type of engineering support?

Full and open competition is generally considered a highly effective mechanism for ensuring value for money, especially for complex engineering support services. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids that reflect fair market prices. This process encourages offerors to propose innovative solutions and cost-effective approaches to meet the government's requirements. While the specific number of bidders isn't detailed here, the designation itself implies a robust process that should drive down costs and improve service quality compared to sole-source or limited competition scenarios.

What is the historical spending trend for engineering services by the Department of the Navy over the last five years?

The Department of the Navy consistently allocates significant funding towards engineering services, reflecting the complexity and scale of its operations and platforms. Over the last five years, spending in this category has generally remained robust, driven by modernization efforts, platform sustainment, research and development, and acquisition of new capabilities. While specific year-over-year fluctuations occur due to budget cycles, program priorities, and major acquisition events, the overall trend indicates a sustained and substantial investment in engineering expertise. This contract's value aligns with this broader pattern of consistent, significant federal spending on engineering support.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract that indicate its effectiveness?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for a contract of this nature and duration, typical KPIs would likely focus on areas such as on-time delivery of support services, adherence to technical specifications, quality of engineering deliverables, responsiveness to task orders, and overall program management effectiveness. The effectiveness of the contract is ultimately assessed by the Department of the Navy through contract surveillance and performance evaluations, which would inform future decisions regarding contract renewals or modifications.

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: N6523617R3132

Offers Received: 3

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: $56,318,915

Exercised Options: $48,612,978

Current Obligation: $29,775,533

Actual Outlays: $2,788,614

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $44,939

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

Start Date: 2017-11-29

Current End Date: 2022-11-28

Potential End Date: 2022-11-28 00:00:00

Last Modified: 2024-06-10

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