Navy awards $38.2M for aviation logistics software support, with 26 bids received
Contract Overview
Contract Amount: $38,239,965 ($38.2M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2016-12-15
End Date: 2020-12-14
Contract Duration: 1,460 days
Daily Burn Rate: $26.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF DESCRIPTION: THIS TASK ORDER PROVIDES NAVAIR AVIATION LOGISTICS ENVIRONMENT (ALE) PRODUCT LINE SYSTEM ENGINEERING&SOFTWARE SUPPORT SERVICES FOR MV-22, CV-22, CMV AND E-2D CONDITION BASED MAINTENANCE.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152
Plain-Language Summary
Department of Defense obligated $38.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF DESCRIPTION: THIS TASK ORDER PROVIDES NAVAIR AVIATION LOGISTICS ENVIRONMENT (ALE) PRODUCT LINE SYSTEM ENGINEERING&SOFTWARE SUPPORT SERVICES FOR MV-22, CV-22, CMV AND E-2D CONDITION BASED MAINTENANCE. Key points: 1. Value for money assessed through comparison with similar IT services contracts. 2. Competition dynamics indicate a robust bidding process with 26 offers. 3. Risk indicators include the cost-plus-fixed-fee contract type, which can allow for cost overruns. 4. Performance context is tied to critical aviation logistics systems for multiple aircraft. 5. Sector positioning within IT services for defense logistics is a key aspect.
Value Assessment
Rating: good
The contract value of $38.2 million over four years for specialized aviation logistics software support appears reasonable given the complexity of the systems involved. Benchmarking against similar IT services contracts for defense logistics indicates that the pricing is within an expected range. The cost-plus-fixed-fee structure, while common for complex IT projects, warrants close monitoring to ensure cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, attracting 26 bidders. The high number of bids suggests a competitive market for these specialized services and likely contributed to achieving a fair price. The extensive competition indicates that the Navy had a wide range of qualified vendors to choose from, promoting price discovery and innovation.
Taxpayer Impact: The broad competition benefits taxpayers by driving down costs and ensuring that the government receives competitive pricing for essential aviation logistics support services.
Public Impact
The primary beneficiaries are the Department of the Navy and the U.S. Marine Corps, who rely on these systems for operational readiness. Services delivered include product line system engineering and software support for critical aviation logistics. The geographic impact is primarily within naval aviation commands, supporting aircraft maintenance and readiness. Workforce implications include the need for skilled software engineers and logistics specialists to maintain and enhance the systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type may lead to higher costs if not managed tightly.
- Reliance on a single contractor for critical system support could pose a risk if performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- High number of bidders (26) suggests strong market interest and potential for good value.
- Contract supports critical aviation logistics systems, essential for military operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on software development, engineering, and support for defense logistics. The market for such specialized services is competitive, with a mix of large defense contractors and niche IT providers. Comparable spending benchmarks for similar systems engineering and software support for military logistics platforms can vary significantly based on scope and duration, but this contract's value is in line with typical large-scale IT support efforts.
Small Business Impact
While this contract was not specifically set aside for small businesses and the prime contractor is a large entity, the competitive nature of the award may create opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the task order.
Oversight & Accountability
Oversight for this contract is likely managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the contract terms, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be proprietary. The Inspector General's office may conduct audits or investigations if performance or cost issues arise.
Related Government Programs
- Naval Aviation Logistics Command Information Support System (NALCISS)
- Aviation Logistics Support
- Defense Logistics Management Systems
- Product Lifecycle Management Software
Risk Flags
- Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
- Potential for vendor lock-in if system integration is highly specialized.
Tags
it-services, defense-logistics, aviation-support, software-engineering, department-of-defense, department-of-the-navy, full-and-open-competition, cost-plus-fixed-fee, california, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF DESCRIPTION: THIS TASK ORDER PROVIDES NAVAIR AVIATION LOGISTICS ENVIRONMENT (ALE) PRODUCT LINE SYSTEM ENGINEERING&SOFTWARE SUPPORT SERVICES FOR MV-22, CV-22, CMV AND E-2D CONDITION BASED MAINTENANCE.
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 $38.2 million.
What is the period of performance?
Start: 2016-12-15. End: 2020-12-14.
What is the track record of Science Applications International Corporation (SAIC) in providing similar aviation logistics software support to the Department of Defense?
Science Applications International Corporation (SAIC) has a significant track record in providing IT and engineering services to the Department of Defense, including extensive experience in logistics and aviation support systems. They have been involved in numerous large-scale contracts for various military branches, focusing on areas such as system modernization, software development, and integrated logistics support. SAIC's past performance often includes managing complex software environments and ensuring the operational readiness of critical defense systems. Their experience with aviation platforms and logistics management suggests a strong capability to fulfill the requirements of this specific task order, though a detailed review of past performance on similar contracts would be necessary for a comprehensive assessment.
How does the $38.2 million contract value compare to similar aviation logistics software support contracts awarded by the Navy or other branches?
The $38.2 million contract value for four years of aviation logistics software support is within a typical range for specialized IT services supporting complex military systems. Similar contracts for product line system engineering and software support for aviation platforms can range from tens to hundreds of millions of dollars, depending on the scope, duration, and specific aircraft supported. For instance, contracts for broader aviation maintenance IT systems or enterprise resource planning solutions for logistics might exceed this value significantly. However, for focused support on specific aircraft systems like the MV-22, CV-22, CMV, and E-2D Condition Based Maintenance, this value appears commensurate with the technical expertise and ongoing support required. Benchmarking against contracts with similar service descriptions and contract types (Cost Plus Fixed Fee) would provide a more precise comparison.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this aviation logistics support task order?
The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this aviation logistics support task order is the potential for cost overruns. While the fixed fee provides a guaranteed profit margin for the contractor, the 'cost plus' portion means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the government bears the financial burden, potentially leading to a higher total contract price than initially anticipated. This risk is amplified in complex IT projects where unforeseen technical challenges or scope creep can drive up expenses. Effective oversight, stringent cost controls, and clear definition of work are crucial to mitigate these risks and ensure the government receives good value.
How effective is the Condition Based Maintenance (CBM) system supported by this contract in improving aviation readiness and reducing costs?
Condition Based Maintenance (CBM) systems, like the Aviation Logistics Environment (ALE) product line system supported by this contract, are designed to significantly improve aviation readiness and reduce costs by shifting from scheduled maintenance to condition-driven maintenance. Instead of performing maintenance at fixed intervals, CBM utilizes sensor data and predictive analytics to determine when maintenance is actually needed. This proactive approach helps prevent unexpected failures, optimizes maintenance scheduling, reduces unnecessary part replacements, and minimizes aircraft downtime. For the MV-22, CV-22, CMV, and E-2D aircraft, effective CBM can lead to higher operational availability, lower overall maintenance expenditures, and extended component life, thereby enhancing mission effectiveness and saving taxpayer dollars in the long run.
What is the historical spending trend for aviation logistics software support services by the Department of the Navy over the past five years?
Historical spending trends for aviation logistics software support services by the Department of the Navy over the past five years show a consistent and significant investment in maintaining and modernizing critical IT infrastructure. While specific figures for this exact task order are not indicative of the entire trend, the Navy, like other branches of the DoD, has prioritized digital transformation and advanced logistics capabilities. Spending in this area typically fluctuates based on major program milestones, system upgrades, and evolving operational requirements. There has been a general upward trend in spending on data analytics, predictive maintenance, and integrated logistics management systems, driven by the need for greater efficiency, readiness, and cost savings across its vast aviation fleet. This $38.2 million award aligns with this broader strategic focus.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6600116R0348
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: $40,596,730
Exercised Options: $40,596,730
Current Obligation: $38,239,965
Actual Outlays: $4,623,345
Subaward Activity
Number of Subawards: 49
Total Subaward Amount: $58,959,109
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0048
IDV Type: GWAC
Timeline
Start Date: 2016-12-15
Current End Date: 2020-12-14
Potential End Date: 2020-12-14 00:00:00
Last Modified: 2022-09-28
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