Navy awards $19.7M for SUSV C3 production and integration, with a significant portion for platform integration

Contract Overview

Contract Amount: $19,682,836 ($19.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2025-03-03

End Date: 2025-09-30

Contract Duration: 211 days

Daily Burn Rate: $93.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SUSV C3 FULL RATE PRODUCTION AND PLATFORM INTEGRATION FY25 DELIVERY ORDER

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SUSV C3 FULL RATE PRODUCTION AND PLATFORM INTEGRATION FY25 DELIVERY ORDER Key points: 1. Value for money assessed through comparison to similar platform integration contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include the cost-plus-fixed-fee pricing structure, which can lead to cost overruns. 4. Performance context is tied to the delivery order for FY25, focusing on immediate production needs. 5. Sector positioning within defense manufacturing, specifically for vehicle systems and integration.

Value Assessment

Rating: good

The contract value of $19.7 million for the SUSV C3 Full Rate Production and Platform Integration appears reasonable given the scope. While specific benchmarks for this exact system are proprietary, similar large-scale defense platform integration efforts often fall within this cost range. The cost-plus-fixed-fee structure necessitates close monitoring to ensure costs remain within projections and deliver value. The awarded amount represents a significant investment in advancing the capabilities of the SUSV platform.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a robust market response. This approach is generally expected to foster competitive pricing and encourage innovation as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for the required services and products, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational forces who will receive the integrated SUSV C3 platforms. Services delivered include full rate production and critical platform integration for the SUSV. Geographic impact is likely concentrated around manufacturing and integration facilities, with eventual deployment to naval operational areas. Workforce implications include skilled labor in manufacturing, engineering, and systems integration within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts carry inherent risks of cost escalation if not managed diligently.
The specific nature of 'platform integration' can be complex and prone to unforeseen technical challenges.
Reliance on a single delivery order for FY25 production may indicate a phased approach with potential for future funding needs.
The NAICS code 335999 (All Other Miscellaneous Electrical Equipment and Component Manufacturing) is broad and may not fully capture the complexity of platform integration.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially favorable pricing.
The contract is for a specific, defined period (FY25 delivery order), allowing for focused execution.
The contractor, Science Applications International Corporation (SAIC), has a significant track record in defense systems integration.
The contract supports the production and integration of a key military platform, aligning with defense modernization goals.

Sector Analysis

The defense sector, particularly the segment focused on ground vehicle systems and integration, is characterized by high technological complexity and significant government investment. The market for such specialized manufacturing and integration services is competitive, with a few large prime contractors often leading major programs. This contract fits within the broader trend of modernizing military platforms to enhance operational capabilities and interoperability. Comparable spending benchmarks in this area are often in the multi-million to billion-dollar range for full system development and production.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the nature of full rate production and platform integration for a major defense system, the prime contractor, SAIC, is likely to utilize a supply chain that may include small businesses for components or specialized services. However, the primary award is not directly to small businesses, and subcontracting plans would need to be reviewed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is typically managed through contract reporting mechanisms and potential audits by the Defense Contract Audit Agency (DCAA). The Inspector General for the Department of Defense would have jurisdiction over any allegations of fraud or mismanagement.

Related Government Programs

Family of Special Operations Vehicles (FOSOV)
Joint Light Tactical Vehicle (JLTV)
Ground Vehicle Systems
Defense Platform Modernization Programs

Risk Flags

Cost Overrun Risk (CPFF)
Technical Complexity of Integration
Supply Chain Dependencies
Performance Specification Adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SUSV C3 FULL RATE PRODUCTION AND PLATFORM INTEGRATION FY25 DELIVERY ORDER

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 $19.7 million.

What is the period of performance?

Start: 2025-03-03. End: 2025-09-30.

What is Science Applications International Corporation's (SAIC) track record with similar defense platform integration contracts?

SAIC has a substantial history of performing complex systems integration and production for various defense platforms. They have been involved in programs ranging from naval systems to aviation and ground vehicles. Their experience often includes integrating new technologies, upgrading existing platforms, and managing production lines for critical defense assets. Specific to ground vehicles, SAIC has participated in programs involving vehicle modernization, survivability enhancements, and the integration of advanced electronics and communication systems. This background suggests a strong capability to handle the technical demands of the SUSV C3 integration and production.

How does the $19.7 million award compare to historical spending on SUSV program phases?

Without access to detailed historical contract data specifically for the SUSV program's various phases (e.g., R&D, prototyping, earlier production runs), a direct comparison is challenging. However, $19.7 million for 'Full Rate Production and Platform Integration' for a specific fiscal year delivery order suggests a mature phase of the program. Earlier phases, such as initial development and testing, would likely have involved different contract types and potentially lower cumulative values, while full-scale production over multiple years could represent significantly higher total program spending. This award represents a substantial, but likely not the entirety of, the program's lifecycle cost.

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

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is guaranteed a fixed fee, the government bears the risk of increased costs incurred during performance. If the contractor's actual costs exceed the estimated cost, the government pays the actual costs plus the agreed-upon fixed fee. This necessitates rigorous oversight, detailed cost tracking, and effective negotiation by the government to ensure the contractor exercises cost control. For complex integration tasks, unforeseen technical challenges can drive up costs, making diligent program management crucial.

How effective is the 'Full and Open Competition' strategy likely to be in ensuring value for this specific contract?

Full and open competition is generally considered the most effective strategy for ensuring value, as it maximizes the pool of potential bidders and encourages competitive pricing. For a contract involving production and integration of a defense platform, this approach allows the Navy to solicit proposals from all qualified contractors. The resulting competition should drive down prices and incentivize contractors to offer the most technically sound and cost-effective solutions. The success of this strategy hinges on the clarity of the solicitation requirements and the rigor of the evaluation process to ensure the best value is selected, not just the lowest price.

What are the potential performance challenges or delays that could arise during the platform integration phase?

Platform integration is inherently complex and can face several challenges. These include ensuring seamless interoperability between different subsystems (e.g., power, communication, sensors, weapon systems), managing software integration and testing, addressing unforeseen hardware compatibility issues, and meeting stringent performance specifications under various operational conditions. Delays can arise from design modifications, supply chain disruptions for critical components, or extended testing and validation cycles required to certify the integrated system. Effective project management, clear communication, and robust risk mitigation strategies are essential to overcome these potential hurdles.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6523615R0010

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: $19,682,836

Exercised Options: $19,682,836

Current Obligation: $19,682,836

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $9,990,356

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523618D8014

IDV Type: IDC

Timeline