DoD awards $24.4M contract for MADIS FRP Support to Science Applications International Corporation

Contract Overview

Contract Amount: $24,355,396 ($24.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2025-06-12

End Date: 2026-12-31

Contract Duration: 567 days

Daily Burn Rate: $43.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MADIS FY25-27 FRP SUPPORT

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: MADIS FY25-27 FRP SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 3. The duration of 567 days indicates a medium-term project. 4. The award is for 'All Other Miscellaneous Electrical Equipment and Component Manufacturing', a broad category. 5. The contract value is substantial, requiring careful monitoring of performance and costs. 6. The awardee, Science Applications International Corporation, is a large, established government contractor.

Value Assessment

Rating: fair

The contract value of $24.4 million over approximately 1.5 years for 'MADIS FY25-27 FRP SUPPORT' appears to be within a reasonable range for complex defense support services. Benchmarking against similar contracts for system support and component manufacturing is difficult without more specific details on the services rendered. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses the contractor for allowable costs plus a fixed fee, which can lead to cost overruns if not managed tightly. The initial award amount is an estimate, and the final cost could vary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes a competitive environment, which should theoretically lead to better pricing and value for the government. The government's ability to solicit bids from a wide range of qualified contractors is a positive sign for price discovery.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, potentially saving taxpayer dollars.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, receiving support for the MADIS system. The contract supports the maintenance, sustainment, or enhancement of the MADIS (Mobile Acoustic Data Information System) FRP (Fleet Readiness Program) components. The geographic impact is likely concentrated around naval facilities and operational areas where MADIS is deployed or supported. Workforce implications may include specialized technical personnel required for the manufacturing and support of electrical components and systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not closely monitored.
Broad 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' category lacks specificity, making performance assessment challenging.
Potential for scope creep given the nature of CPFF contracts.
Reliance on a single large contractor for critical support functions.
Limited visibility into the specific components or systems being supported without further detail.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contractor, SAIC, has extensive experience in defense contracting.
Clear contract end date provides a defined period for service delivery.
The contract is for a specific program (MADIS FRP), suggesting a defined need.

Sector Analysis

The defense electronics and manufacturing sector is highly specialized, with significant government spending driven by national security requirements. Companies like Science Applications International Corporation (SAIC) operate within this complex ecosystem, providing a range of services from research and development to sustainment and manufacturing. This contract likely fits within the broader category of defense readiness and sustainment, where components and systems require ongoing support and potential upgrades. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the MADIS FRP support, but defense contracts for specialized manufacturing and system integration often run into the tens or hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Given the nature of the work and the prime contractor (SAIC), it is unlikely that significant subcontracting opportunities for small businesses will be mandated unless specified within the contract's statement of work. The focus is on a large prime contractor, suggesting that the primary awardee will handle the bulk of the work, potentially limiting direct opportunities for small businesses in this specific procurement.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure that costs are allowable and reasonable, and that the fixed fee is earned appropriately. Transparency will depend on the reporting requirements outlined in the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

MADIS System Support
Fleet Readiness Programs
Naval Systems Command Contracts
Defense Electronics Manufacturing
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust government oversight.
Broad service category lacks specificity, increasing risk of scope creep and performance assessment challenges.
Potential for cost overruns due to CPFF structure.
Limited information on specific components or systems being manufactured/supported.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. MADIS FY25-27 FRP 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 $24.4 million.

What is the period of performance?

Start: 2025-06-12. End: 2026-12-31.

What is the specific nature of the 'MADIS FY25-27 FRP SUPPORT' and the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' involved?

The provided data offers limited specifics on the 'MADIS FY25-27 FRP SUPPORT' beyond its association with the Mobile Acoustic Data Information System (MADIS) and the Fleet Readiness Program (FRP). The classification 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' is extremely broad and could encompass a wide array of items, from simple wiring harnesses to complex circuit boards or specialized sensors. Without a detailed Statement of Work (SOW) or Product Service Code (PSC), it is difficult to ascertain the precise technical requirements, the criticality of the components, or the specific manufacturing processes involved. This lack of specificity makes it challenging to benchmark the value or assess the technical risks associated with the contract.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and potential for overruns in this contract?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor (Science Applications International Corporation) for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure is often used when the exact scope or costs are uncertain, it places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable and allocable to the contract. The 'fixed fee' component incentivizes the contractor to complete the work within the estimated cost to maximize their profit margin. However, if costs escalate significantly beyond initial estimates, the government still bears those costs, and the fixed fee remains constant, potentially leading to a lower profit percentage for the contractor but higher overall expenditure for the government. Effective oversight, clear cost accounting standards, and robust auditing are crucial to mitigate the risk of cost overruns inherent in CPFF contracts.

What is Science Applications International Corporation's track record with similar defense contracts, particularly involving electrical component manufacturing and system support?

Science Applications International Corporation (SAIC) is a major defense contractor with a long history of supporting various branches of the U.S. military, including the Department of the Navy. Their portfolio typically includes a wide range of services, such as systems engineering, integration, IT support, and logistics. While SAIC is known for its broad capabilities, specific details regarding their recent performance in 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' for naval systems would require a deeper dive into contract databases and performance reviews. Generally, large contractors like SAIC have established processes for quality control and program management, but the success of any given contract depends heavily on the specific program requirements, execution, and oversight.

How does the $24.4 million contract value compare to historical spending on MADIS system support or similar electrical component manufacturing for the Navy?

Comparing the $24.4 million contract value requires context regarding the specific scope and duration of the 'MADIS FY25-27 FRP SUPPORT'. Historical spending on the MADIS system or similar naval electrical component manufacturing can vary significantly based on technological upgrades, system sustainment needs, and the number of components required. Without access to detailed historical spending data for the MADIS program or comparable contracts for electrical components, it's challenging to definitively state whether this award represents an increase, decrease, or is in line with past expenditures. However, $24.4 million over approximately 1.5 years suggests a moderately sized, ongoing support or manufacturing effort within the defense sector.

What are the primary risks associated with this contract, considering the CPFF structure and the broad service category?

The primary risks associated with this contract stem from the Cost Plus Fixed Fee (CPFF) structure and the vague description of services. The CPFF model inherently carries a risk of cost escalation if the government's oversight and auditing are insufficient, potentially leading to expenditures exceeding initial projections. The broad category of 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' presents a risk of scope creep, where the requirements may expand beyond the original intent without adequate adjustments to the contract's cost and schedule. Furthermore, there's a risk related to the contractor's ability to deliver the specific, potentially complex, electrical components and support required for the MADIS FRP, especially if the components are highly specialized or require novel manufacturing techniques. Finally, performance risk exists if the contractor fails to meet quality standards or delivery timelines.

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: $24,355,396

Exercised Options: $24,355,396

Current Obligation: $24,355,396

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $3,525,060

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