DoD's $5.5M contract for ground support services awarded to SAIC, with 3004 days duration

Contract Overview

Contract Amount: $5,482,722 ($5.5M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2021-04-26

End Date: 2026-04-25

Contract Duration: 1,825 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING, DESIGN, SOFTWARE DEVELOPMENT, TESTING, TRAINING, LOGISTICS, CONFIGURATION MANAGEMENT (CM), TECHNICAL SUPPORT, AND INTERNATIONAL SITE SUPPORT (ISS) SERVICES FOR THE GROUND SUPPORT CENTERS THAT PROVIDE COMMAND AND CONTROL, MISSION DIRECTIO

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING, DESIGN, SOFTWARE DEVELOPMENT, TESTING, TRAINING, LOGISTICS, CONFIGURATION MANAGEMENT (CM), TECHNICAL SUPPORT, AND INTERNATIONAL SITE SUPPORT (ISS) SERVICES FOR THE GROUND SUPPORT CENTERS THAT PROVIDE COMMAND AND CONTROL, MISSION DIRECTIO Key points: 1. Value for money assessed through comparison with similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract type (Cost Plus Fixed Fee) which may shift risk to the government. 4. Performance context is tied to critical ground support for command and control. 5. Sector positioning within Defense IT and Engineering services. 6. Contract duration of 3004 days suggests a long-term need for these services.

Value Assessment

Rating: fair

The contract value of $5.5 million over approximately 8 years represents a modest annual spend. Benchmarking against similar engineering and technical support contracts within the Department of Defense is crucial for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) contract type, while providing flexibility, can sometimes lead to higher costs for the government compared to fixed-price arrangements if not managed diligently. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The presence of a competitive bidding process is generally positive for price discovery and can lead to more favorable pricing for the government. The number of bidders is not specified, but the 'full and open' designation implies a robust competition.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of companies to compete, potentially driving down costs and increasing the likelihood of selecting the most cost-effective solution.

Public Impact

The Department of Defense benefits from essential engineering, design, software development, testing, training, logistics, and technical support services. Services are critical for the command and control and mission direction of ground support centers. The contract supports operations within Virginia, indicated by the 'ST' and 'SN' codes. Workforce implications include potential employment for engineers, technicians, and support staff involved in these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type may incentivize cost overruns if not closely monitored.
Long contract duration (3004 days) requires sustained oversight to ensure continued value and performance.
Reliance on a single contractor (SAIC) for critical ground support functions could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Contractor (SAIC) is a large, established entity with significant experience in government contracting.
Services are essential for critical defense operations, suggesting a high level of importance and potential for positive mission impact.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related IT and ground support infrastructure. The market for such services is substantial within the federal government, driven by the need for specialized technical expertise in areas like software development, testing, and logistics. Comparable spending benchmarks would involve analyzing other large-scale IT and engineering support contracts awarded by the Department of Defense and other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The primary contractor, Science Applications International Corporation (SAIC), is a large business, and any subcontracting opportunities would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Accountability measures are inherent in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be restricted. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense IT Services
Engineering Services
Command and Control Systems
Ground Support Equipment Maintenance
Technical Support Services

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to higher costs for the government.
Long contract duration requires sustained oversight to ensure performance and value.
Potential for technology obsolescence over the contract's 8-year lifespan.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING, DESIGN, SOFTWARE DEVELOPMENT, TESTING, TRAINING, LOGISTICS, CONFIGURATION MANAGEMENT (CM), TECHNICAL SUPPORT, AND INTERNATIONAL SITE SUPPORT (ISS) SERVICES FOR THE GROUND SUPPORT CENTERS THAT PROVIDE COMMAND AND CONTROL, MISSION DIRECTIO

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 $5.5 million.

What is the period of performance?

Start: 2021-04-26. End: 2026-04-25.

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

Science Applications International Corporation (SAIC) has a long and extensive history of contracting with the Department of Defense across a wide array of services, including IT, engineering, logistics, and technical support. They are a major federal contractor with numerous awards for complex programs. Analyzing SAIC's past performance on similar ground support, command and control, or engineering services contracts would provide insight into their reliability, quality of service, and ability to manage large-scale, long-duration efforts. Specific metrics such as on-time delivery, budget adherence, and customer satisfaction ratings from previous DoD contracts would be valuable for assessing their suitability for this specific award.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty in the costs involved. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF generally shifts more cost risk to the government, as the final price can fluctuate based on actual costs incurred. However, it offers flexibility and can be advantageous for research and development or services where innovation and adaptation are key. For routine engineering and support services, fixed-price or cost-plus-incentive-fee (CPIF) contracts might offer better value if performance metrics can be clearly defined and measured, potentially providing greater cost control for the government.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical metrics for engineering, design, software development, testing, training, logistics, and technical support services for ground support centers would likely include: system uptime and availability for command and control functions, response times for technical support requests, successful completion of software development cycles and testing phases, adherence to project schedules and milestones, quality of training delivered, and efficiency of logistics operations. The 'technical support' and 'international site support' aspects would also have specific service level agreements (SLAs) tied to response and resolution times. The effectiveness of these KPIs would be evaluated against the overall mission objectives of the ground support centers.

What is the historical spending trend for similar ground support services within the Department of the Navy?

Analyzing historical spending trends for similar ground support services within the Department of the Navy is essential for contextualizing the $5.5 million award. This involves examining contract databases to identify previous awards for command and control systems support, engineering services, and logistics for ground facilities over the past several fiscal years. Trends might reveal an increasing or decreasing demand for such services, fluctuations in pricing, or shifts in the types of contractors being awarded these agreements. Understanding these patterns can help determine if the current contract represents a typical investment, an increase, or a decrease in spending for these critical functions, and whether the current award amount is in line with historical expenditures.

What are the potential risks associated with the long duration (3004 days) of this contract?

The long duration of this contract, spanning over 8 years, presents several potential risks. Firstly, technology can rapidly evolve, meaning the systems and software being supported may become outdated or require significant upgrades during the contract period, potentially leading to scope creep or the need for contract modifications. Secondly, maintaining consistent performance and quality over such an extended period requires robust contractor management and oversight from the government. Thirdly, economic conditions and budget priorities can change, potentially impacting funding availability or leading to contract restructuring. Finally, there's a risk of contractor complacency or a decline in service quality over time if performance is not continuously monitored and managed effectively.

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: N6523621R3006

Offers Received: 2

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: $20,601,837

Exercised Options: $7,803,582

Current Obligation: $5,482,722

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $217,717

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