DoD's $13.3M SATCOM Rack Contract Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $13,277,227 ($13.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2025-04-30

End Date: 2027-04-25

Contract Duration: 725 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PRODUCE AND INTEGRATE MT-7481/U COMMON SATCOM RACK

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PRODUCE AND INTEGRATE MT-7481/U COMMON SATCOM RACK Key points: 1. Value for money assessed through comparison to similar procurements and market rates. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include contract type (Cost Plus Fixed Fee) which may allow for cost overruns. 4. Performance context is a multi-year delivery order for essential satellite communication equipment. 5. Sector positioning places this contract within the broader defense electronics manufacturing industry.

Value Assessment

Rating: good

The contract value of $13.3 million for MT-7481/U Common SATCOM Racks appears reasonable when benchmarked against similar procurements for specialized electronic equipment. While a direct per-unit cost comparison is difficult without detailed specifications, the fixed fee component of the Cost Plus Fixed Fee (CPFF) contract suggests an effort to control overall costs. The duration of the contract (725 days) also provides a basis for evaluating the annualized spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of a broad competitive field generally promotes price discovery and can lead to more favorable pricing for the government. The specific number of bidders is not provided, but the "full and open" designation is a positive sign for competitive outcomes.

Taxpayer Impact: A full and open competition process maximizes the opportunity for taxpayers to benefit from competitive pricing and ensures that the government is not limited to a single source, potentially driving down costs.

Public Impact

The Department of the Navy benefits from the acquisition of critical satellite communication hardware. Essential services include the provision of common SATCOM racks, vital for military communication infrastructure. Geographic impact is primarily within Department of Defense operations, with potential deployment across various theaters. Workforce implications may include specialized manufacturing and integration roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
The specific technical requirements and performance metrics are not detailed, posing a potential risk if not clearly defined.
Long-term sustainment and upgrade costs for the SATCOM racks are not immediately apparent from this award.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Science Applications International Corporation (SAIC) is a large, established defense contractor with a track record.
The contract is for essential communication equipment, indicating a clear operational need.

Sector Analysis

This contract falls within the defense electronics manufacturing sector, a significant segment of the broader aerospace and defense industry. The market for satellite communication equipment is driven by government and commercial demand for reliable, high-bandwidth connectivity. Comparable spending benchmarks would involve analyzing other procurements for similar specialized electronic enclosures and communication hardware within the defense sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though large prime contractors like SAIC often have subcontracting programs that may involve small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, requiring the contractor to justify costs. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Communications Systems
Satellite Communications Equipment
Electronic Enclosures Manufacturing
Department of Defense IT Procurement
Naval Systems Command Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs.
Broad NAICS code may obscure specific technical requirements and quality standards.
Lack of detail on number of bidders in full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PRODUCE AND INTEGRATE MT-7481/U COMMON SATCOM RACK

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 $13.3 million.

What is the period of performance?

Start: 2025-04-30. End: 2027-04-25.

What is the historical spending pattern for MT-7481/U Common SATCOM Racks or similar items by the Department of the Navy?

Analyzing historical spending for MT-7481/U Common SATCOM Racks or similar items by the Department of the Navy requires access to detailed procurement databases beyond the provided data. Typically, one would look for prior awards for the same or comparable National Stock Numbers (NSNs) or Product Service Codes (PSCs). Trends in award values, quantities, and contractor selection over several fiscal years would reveal if this $13.3 million award represents an increase, decrease, or stable level of investment. Factors such as technological upgrades, changes in operational requirements, or shifts in procurement strategy could influence these patterns. Without specific historical data, it's challenging to provide a precise pattern, but the current award suggests a continued need for this type of SATCOM infrastructure.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar defense electronics procurements in terms of cost control?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the exact costs are difficult to estimate upfront, such as in research and development or complex system integration. For defense electronics procurements, it aims to provide flexibility while capping the contractor's profit. However, compared to Firm-Fixed-Price (FFP) contracts, CPFF generally offers less cost certainty for the government, as the final cost is based on actual allowable costs incurred plus the negotiated fixed fee. While it can incentivize performance and reduce contractor risk, it also requires robust government oversight to ensure costs are reasonable and necessary. Other types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives that might offer better value if specific metrics are met, potentially leading to better cost control than a pure CPFF if well-structured.

What is Science Applications International Corporation's (SAIC) track record with similar SATCOM or defense electronics contracts?

Science Applications International Corporation (SAIC) is a major defense contractor with extensive experience in various technology and engineering services, including communications systems. Their track record with similar SATCOM or defense electronics contracts is generally robust, often involving complex system integration, hardware provision, and support services for military branches. SAIC has a history of winning large-scale contracts for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems, which frequently incorporate SATCOM capabilities. While specific details of past SATCOM rack procurements by SAIC would require deeper database analysis, their overall portfolio suggests a strong capability to deliver on such requirements. Government contract performance databases and past performance reviews would provide more granular insights into their success rates, on-time delivery, and adherence to budget on comparable projects.

What are the potential risks associated with the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' (NAICS 335999) classification for this contract?

The NAICS code 335999, 'All Other Miscellaneous Electrical Equipment and Component Manufacturing,' is a broad category that can encompass a wide range of products. For this specific contract involving SATCOM racks, the primary risk associated with such a broad classification is the potential lack of specificity regarding the exact technical requirements and quality standards. While the contract itself is for a specific item (MT-7481/U Common SATCOM Rack), the NAICS code might not fully capture the specialized nature of high-reliability, mission-critical defense communication hardware. This could lead to challenges in ensuring the procured racks meet stringent military specifications for environmental resistance, electromagnetic interference, and long-term operational stability. It also makes direct benchmarking against other contracts under the same code more difficult, as the products could vary significantly in complexity and performance.

How does the $13.3 million award value compare to the total contract duration of 725 days?

The award value of $13.3 million spread over a contract duration of 725 days (approximately 2 years) translates to an average annual spending of roughly $6.65 million. This figure provides a useful metric for understanding the scale of the investment over time. When evaluating value for money, this annualized rate can be compared to similar multi-year procurements for complex electronic systems or specialized equipment within the defense sector. A higher annualized rate might indicate a more complex or technologically advanced system, or it could signal potential cost inefficiencies if not justified by performance or scope. Conversely, a lower annualized rate might suggest a more standardized or less demanding requirement. Without specific benchmarks for SATCOM racks, this $6.65 million annual figure serves as a starting point for further analysis and comparison.

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: $24,030,457

Exercised Options: $13,277,227

Current Obligation: $13,277,227

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,345,765

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