DoD's $35.6M C2SA contract to SAIC for engineering services shows strong competition and long-term support

Contract Overview

Contract Amount: $35,641,287 ($35.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2022-10-27

End Date: 2026-07-26

Contract Duration: 1,368 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SHORT TITLE: COMMAND AND CONTROL SITUATIONAL AWARENESS (C2SA) LIFECYCLE SYSTEMS SUPPORT.

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $35.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SHORT TITLE: COMMAND AND CONTROL SITUATIONAL AWARENESS (C2SA) LIFECYCLE SYSTEMS SUPPORT. Key points: 1. Contract provides essential lifecycle systems support for command and control situational awareness. 2. Full and open competition indicates a healthy market for these specialized engineering services. 3. Long contract duration suggests a need for sustained, integrated support. 4. The award to a large, established contractor like SAIC points to complex system requirements. 5. Focus on engineering services highlights the technical depth required for C2SA systems. 6. The contract's value, while significant, needs to be benchmarked against similar long-term system support contracts.

Value Assessment

Rating: good

The contract value of $35.6 million over its period of performance (2022-2026) appears reasonable for comprehensive lifecycle systems support of complex Command and Control Situational Awareness (C2SA) systems. Benchmarking against similar long-term engineering support contracts for defense systems would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type suggests that while direct costs are reimbursed, the contractor's profit is fixed, incentivizing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and submitted proposals. This competitive process is expected to drive better pricing and service quality. The presence of two bids suggests a moderately competitive environment for this specific requirement, which is positive for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The Department of the Navy benefits from sustained engineering and lifecycle support for critical C2SA systems. This contract ensures the continued operational readiness and effectiveness of command and control capabilities. Personnel involved in operating and maintaining these systems will receive ongoing technical support. The contract supports high-skilled engineering jobs within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not closely managed, as the contractor is reimbursed for costs incurred.
The long duration of the contract may reduce flexibility to adopt newer technologies if not managed proactively.
Reliance on a single contractor for lifecycle support could create vendor lock-in if not carefully monitored.

Positive Signals

Full and open competition is a strong positive signal, indicating a robust market and potential for competitive pricing.
The award to a reputable contractor like SAIC suggests a high likelihood of successful performance given their experience.
The contract's focus on lifecycle support ensures long-term system viability and reduces the risk of obsolescence.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related IT and command systems. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and upgrades of complex military platforms. Comparable spending often involves multi-year support contracts for major defense systems, where lifecycle management is critical for operational readiness.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This suggests that the primary contractor, Science Applications International Corporation (SAIC), is expected to perform the majority of the work. Further analysis would be needed to determine if SAIC has a robust small business subcontracting plan in place for this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting requirements, and the Inspector General's office would have jurisdiction for audits and investigations into fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Support Services
Command and Control Systems Modernization
Naval Systems Engineering Support
Lifecycle Management Contracts
IT Services for Department of Defense

Risk Flags

Potential for cost growth in CPFF contracts requires diligent oversight.
Long contract duration may pose risks of technological obsolescence if not managed proactively.
Need for clear performance metrics and deliverables to ensure accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SHORT TITLE: COMMAND AND CONTROL SITUATIONAL AWARENESS (C2SA) LIFECYCLE SYSTEMS SUPPORT.

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 $35.6 million.

What is the period of performance?

Start: 2022-10-27. End: 2026-07-26.

What is Science Applications International Corporation's (SAIC) track record with similar Command and Control Situational Awareness (C2SA) systems support contracts?

Science Applications International Corporation (SAIC) has a significant and extensive track record supporting the Department of Defense and various agencies with complex IT, engineering, and systems integration services. Their experience often includes providing lifecycle support, sustainment, and modernization for critical defense systems, including command and control platforms. SAIC has been a prime contractor on numerous large-scale defense contracts, demonstrating their capability to manage complex projects, large workforces, and long-term support requirements. While specific details on C2SA contracts would require deeper database analysis, SAIC's overall profile suggests they are well-positioned to handle the technical and programmatic demands of this particular contract, having likely supported similar systems in the past.

How does the $35.6 million contract value compare to other similar C2SA lifecycle support contracts awarded by the DoD?

The $35.6 million contract value for C2SA lifecycle systems support, spanning approximately four years (October 2022 to July 2026), represents a moderate investment for sustained engineering services. To provide a precise comparison, one would need to analyze the scope, duration, and specific technical requirements of other C2SA or similar command and control system support contracts. However, for a full and open competition award with a large, established contractor like SAIC, this figure is not unusually high, especially considering the complexity and criticality of situational awareness systems in defense. Annual spending would average around $8.9 million, which is within the typical range for specialized engineering support for major defense IT systems.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for complex IT systems support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to SAIC for C2SA support, is the potential for cost growth if the contractor's actual costs exceed initial estimates, although the fixed fee limits the contractor's profit. While the CPFF structure aims to provide flexibility for evolving requirements and reimburse necessary costs, it places a significant burden on the government to meticulously monitor and audit the contractor's expenditures to ensure they are reasonable, allocable, and allowable. If oversight is insufficient, the government might end up paying more than necessary for the services rendered. Additionally, the contractor may have less incentive to control costs aggressively compared to fixed-price contracts, as their fee is fixed regardless of cost variations.

How effective is full and open competition in ensuring value for money for defense IT engineering services?

Full and open competition is generally considered the most effective method for ensuring value for money in defense IT engineering services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This broad competition drives down costs as contractors vie for the award. Furthermore, it provides the government with a wider range of technical approaches and capabilities to choose from, increasing the probability of selecting the best-value solution. The presence of multiple bidders, as indicated by the two bids received in this case, further supports price discovery and accountability, ultimately benefiting taxpayers.

What are the implications of the contract's duration (1368 days) on system modernization and technological relevance?

A contract duration of 1368 days (approximately 3.75 years) for lifecycle systems support of C2SA systems has significant implications for modernization and technological relevance. On the positive side, it provides stability and allows the contractor, SAIC, to invest in understanding the system deeply and implementing long-term improvements and sustainment strategies. This continuity is crucial for maintaining operational readiness. However, the IT landscape evolves rapidly. A long duration could potentially lead to technological obsolescence if the contract doesn't explicitly include mechanisms for incorporating newer technologies or if the contractor lacks the incentive to propose upgrades. Effective contract management, including regular reviews and potential modifications, is essential to ensure the C2SA systems remain technologically relevant throughout the contract period.

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: N6523621R3051

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: $74,994,686

Exercised Options: $59,532,742

Current Obligation: $35,641,287

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,061,737

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