DoD Awards $37.7M Engineering Services Contract to SAIC for GCCS-TCO/JTCW Sustainment

Contract Overview

Contract Amount: $37,702,461 ($37.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2018-04-27

End Date: 2023-04-26

Contract Duration: 1,825 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: GCCS-TCO/JTCW SUSTAINMENT SUPPORT IGF::OT::IGF

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: GCCS-TCO/JTCW SUSTAINMENT SUPPORT IGF::OT::IGF Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for sustainment support. 2. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is 5 years, with a significant value of $37.7 million. 5. Engineering services (NAICS 541330) are a critical component of defense systems.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar sustainment contracts for complex systems is needed to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure requires robust oversight to ensure the government receives fair value and that pricing is justified.

Taxpayer Impact: The use of full and open competition is positive for taxpayer value. However, the CPFF structure necessitates diligent oversight to prevent unnecessary cost escalation.

Public Impact

Ensures continued operational capability for critical Department of the Navy systems. Supports the Global Command and Control System - Tactical (GCCS-T) and Joint Tactical Command Workstation (JTCW). Sustainment is crucial for maintaining readiness and effectiveness of military operations. Potential for cost growth due to CPFF contract type requires close monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type
  • Long contract duration
  • Lack of specific performance metrics in provided data

Positive Signals

  • Full and open competition
  • Experienced contractor (SAIC)
  • Critical system sustainment

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting complex defense information systems. Spending benchmarks for similar sustainment contracts for large-scale IT infrastructure are typically in the millions of dollars annually.

Small Business Impact

The data indicates the prime contractor is SAIC, a large business. There is no explicit information provided regarding subcontracting to small businesses on this specific contract.

Oversight & Accountability

The Cost Plus Fixed Fee contract type requires strong government oversight to manage costs and ensure performance. Regular audits and performance reviews are essential for accountability.

Related Government Programs

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

Risk Flags

  • Cost Plus Fixed Fee contract type may lead to cost overruns.
  • Long contract duration (5 years) increases exposure to potential inefficiencies.
  • Lack of detailed performance metrics in the provided data.
  • Potential for scope creep without strict management.
  • Reliance on a single large contractor for critical sustainment.

Tags

engineering-services, department-of-defense, sc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. GCCS-TCO/JTCW SUSTAINMENT SUPPORT IGF::OT::IGF

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 $37.7 million.

What is the period of performance?

Start: 2018-04-27. End: 2023-04-26.

What is the projected total cost if the fixed fee is applied to the estimated costs, and how does this compare to fixed-price alternatives?

The contract is Cost Plus Fixed Fee (CPFF), meaning the government pays the actual costs plus a negotiated fixed fee. The total cost is the sum of incurred costs and the fixed fee. Without knowing the estimated costs and the fixed fee percentage, a precise total cannot be determined. However, CPFF contracts are generally less predictable in final cost than fixed-price contracts and require robust oversight to ensure costs remain reasonable and the fee is justified.

What are the specific performance metrics and key performance indicators (KPIs) tied to this contract to ensure effective sustainment?

The provided data does not detail specific performance metrics or KPIs. Effective sustainment relies on metrics such as system uptime, response times for support requests, successful patch deployments, and adherence to security protocols. The Department of the Navy's contracting officers and technical representatives would be responsible for defining and monitoring these KPIs to ensure SAIC meets its obligations.

How does the sustainment cost per system or user compare to industry benchmarks for similar GCCS-TCO/JTCW functionalities?

Benchmarking the sustainment cost requires detailed data on the number of systems or users supported and the specific services provided. Without this granular information, a direct comparison is difficult. However, the total contract value of $37.7 million over five years suggests a significant investment, underscoring the importance of efficient service delivery and cost control to meet or beat industry averages for complex defense IT sustainment.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523618R3029

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: $40,208,581

Exercised Options: $40,131,226

Current Obligation: $37,702,461

Actual Outlays: $2,456,614

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $843,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4143

IDV Type: IDC

Timeline

Start Date: 2018-04-27

Current End Date: 2023-04-26

Potential End Date: 2023-04-26 00:00:00

Last Modified: 2025-06-09

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