DoD's $66M Cyber Support Contract Awarded to Science Applications International Corp. Amidst Full and Open Competition
Contract Overview
Contract Amount: $65,979,690 ($66.0M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2019-08-01
End Date: 2024-08-04
Contract Duration: 1,830 days
Daily Burn Rate: $36.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: COMPREHENSIVE CYBER SUPPORT SERVICES II (CCSS II)
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $66.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: COMPREHENSIVE CYBER SUPPORT SERVICES II (CCSS II) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 1830 days indicates a long-term need for cyber support services. 3. The Cost Plus Fixed Fee (CPFF) contract type may allow for cost overruns. 4. The award value of $65.98 million over five years suggests significant investment in cyber capabilities. 5. The contractor, Science Applications International Corporation (SAIC), has a substantial presence in the federal contracting space. 6. The contract falls under Engineering Services, highlighting the technical nature of the support required.
Value Assessment
Rating: good
The contract's value of approximately $66 million over five years for comprehensive cyber support services appears reasonable given the scope and duration. Benchmarking against similar large-scale cyber support contracts awarded by the Department of Defense would provide a more precise value-for-money assessment. The CPFF pricing structure necessitates careful monitoring of costs to ensure efficiency and prevent excessive spending. However, the competitive award process likely contributed to a fair price.
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 bids. The presence of 3 bidders suggests a moderate level of competition for this significant cyber support requirement. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best value by encouraging multiple companies to offer competitive pricing and innovative solutions.
Public Impact
The Department of the Navy benefits from enhanced cybersecurity capabilities to protect its critical information systems and assets. Services delivered include comprehensive cyber support, likely encompassing areas such as threat detection, incident response, and vulnerability management. The geographic impact is primarily within the Department of the Navy's operational areas, with potential for broader national security implications. The contract supports a workforce skilled in cybersecurity and engineering, contributing to the federal government's technical expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur higher costs if not managed diligently, potentially impacting overall program expenditure.
- While competition was present, the number of bidders (3) could be considered moderate, leaving room to explore if further outreach could have yielded more competitive offers.
- The long duration of the contract (5 years) requires ongoing vigilance to ensure continued alignment with evolving cyber threats and technological advancements.
Positive Signals
- Awarded under full and open competition, ensuring a broad range of potential contractors could participate and offer their best solutions.
- The selection of Science Applications International Corporation, a well-established federal contractor, suggests a level of confidence in their technical capabilities and past performance.
- The contract addresses a critical need for comprehensive cyber support, vital for the Department of the Navy's operational security and mission success.
Sector Analysis
The federal cybersecurity market is a rapidly growing sector driven by increasing digital threats and the critical need to protect sensitive government data and infrastructure. This contract for comprehensive cyber support services falls within the broader Engineering Services category (NAICS 541330) but specifically targets the specialized domain of cybersecurity. The Department of Defense is a major consumer of these services, with significant annual spending allocated to maintaining and enhancing its cyber defenses. Comparable spending benchmarks would involve analyzing other large-scale cyber support contracts awarded to prime contractors by various defense agencies.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Consequently, there are no direct subcontracting implications specifically mandated for small businesses through this particular award. However, the prime contractor, Science Applications International Corporation, may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting strategies and the availability of specialized small business capabilities within the cyber support domain.
Oversight & Accountability
Oversight for this contract is primarily the responsibility of the Department of the Navy's contracting and program management offices. They will monitor performance, costs, and adherence to contract terms. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting requirements, though specific details of performance metrics and financial expenditures may be subject to confidentiality. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Comprehensive Cyber Support Services (CCSS)
- Department of Defense Cybersecurity Contracts
- Navy IT Services
- Engineering Services for Defense
Risk Flags
- Potential for cost overruns due to CPFF structure
- Risk of service obsolescence over long contract duration
- Need for continuous monitoring of contractor performance and evolving threats
Tags
it, defense, cybersecurity, engineering-services, department-of-defense, department-of-the-navy, full-and-open-competition, cost-plus-fixed-fee, large-contract, maryland, science-applications-international-corporation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $66.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. COMPREHENSIVE CYBER SUPPORT SERVICES II (CCSS II)
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 $66.0 million.
What is the period of performance?
Start: 2019-08-01. End: 2024-08-04.
What is the track record of Science Applications International Corporation (SAIC) in delivering similar comprehensive cyber support services to the Department of Defense?
Science Applications International Corporation (SAIC) has a long and extensive history of providing a wide array of technical, engineering, and IT services to the Department of Defense (DoD) and other federal agencies. Within the realm of cybersecurity, SAIC has been a significant player, often securing large contracts for cyber operations, intelligence support, network defense, and systems security engineering. Their track record includes supporting various branches of the military and defense agencies with complex cyber missions. For instance, SAIC has previously held contracts for advanced cyber training, threat analysis, and the development of secure systems. Their experience often involves managing large teams of cybersecurity professionals and delivering integrated solutions across diverse platforms. A review of their contract history with the DoD would likely reveal numerous awards related to cyber defense, information assurance, and mission assurance, demonstrating a substantial capacity to handle contracts like CCSS II.
How does the awarded value of $65.98 million compare to other large-scale cyber support contracts awarded by the DoD in recent years?
The awarded value of approximately $66 million for Comprehensive Cyber Support Services II (CCSS II) over a five-year period places it as a significant, but not exceptionally large, cyber support contract within the Department of Defense (DoD) portfolio. The DoD consistently awards multi-billion dollar contracts for various IT and cyber-related services annually. Contracts for enterprise-wide cyber defense, advanced persistent threat (APT) mitigation, or large-scale network modernization efforts can easily reach hundreds of millions or even billions of dollars. For example, major indefinite-delivery/indefinite-quantity (IDIQ) vehicles for IT and cyber services often have ceiling values in the tens of billions. Individual task orders or delivery orders under these vehicles can range from tens to hundreds of millions. Therefore, while $66 million represents a substantial investment and indicates a critical need, it is within the typical range for specialized, long-term support services for a specific agency or program within the DoD, rather than a top-tier, overarching cyber initiative.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for cyber support services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type, such as the one awarded for CCSS II, is the potential for cost overruns and reduced incentive for the contractor to control expenses. In a CPFF structure, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost to the government is not capped, meaning that if the contractor's costs increase, the government pays more. This can lead to a situation where the contractor has less incentive to be efficient or to find cost-saving measures, as their profit (the fixed fee) remains the same regardless of the actual costs incurred. For complex services like cybersecurity, where scope can be fluid and unforeseen challenges arise, this risk is amplified. Effective oversight, stringent cost accounting, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.
Given the 'Engineering Services' classification (NAICS 541330), what specific types of cyber support might be included beyond basic IT maintenance?
The classification of 'Engineering Services' (NAICS 541330) for this cyber support contract suggests a scope that extends beyond routine IT maintenance and into more complex, specialized areas. This could encompass a wide range of activities such as cybersecurity systems engineering, which involves designing, integrating, and managing secure systems; vulnerability assessment and penetration testing to identify weaknesses; threat intelligence analysis and the development of defensive strategies; incident response planning and execution; digital forensics; and the development of secure software and hardware solutions. It may also include research and development in cybersecurity technologies, policy development, and the implementation of advanced security architectures. Essentially, the 'engineering' aspect implies a focus on the design, development, and application of technical expertise to solve complex cybersecurity challenges faced by the Department of the Navy.
What does the moderate competition level (3 bidders) imply for the Department of the Navy in terms of securing optimal pricing and innovative solutions?
A moderate competition level with three bidders for this cyber support contract implies a balanced scenario for the Department of the Navy. On one hand, having multiple bidders generally fosters price discovery and encourages competitive proposals, which is beneficial for taxpayers. It suggests that the Navy likely received a range of pricing options and technical approaches. However, a higher number of bidders (e.g., 5 or more) could potentially lead to even more aggressive pricing and a wider array of innovative solutions due to increased market pressure. With three bidders, the Navy needs to ensure its evaluation criteria are robust enough to identify the best overall value, considering both cost and technical merit. It also suggests that the market for this specific type of comprehensive cyber support may have a limited number of highly qualified prime contractors capable of undertaking such a large and complex effort.
How might the long contract duration (1830 days / 5 years) impact the relevance and effectiveness of the cyber support services provided?
The long contract duration of 1830 days (approximately 5 years) for cyber support services presents both opportunities and challenges. The primary benefit is the stability and continuity it provides for critical cybersecurity functions, allowing the contractor to develop deep institutional knowledge of the Navy's systems and threat landscape. This continuity can lead to more effective and tailored security measures. However, the rapid pace of evolution in cyber threats and technologies poses a significant risk. Over a five-year period, new vulnerabilities may emerge, attack vectors can change dramatically, and defensive technologies can become obsolete. To maintain effectiveness, the contract must include mechanisms for regular review, adaptation, and incorporation of new technologies and strategies. Without robust change management and flexibility clauses, the services provided could become outdated, diminishing their value and potentially leaving the Navy's systems vulnerable to newer threats.
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: N6600118R3504
Offers Received: 3
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: $72,371,870
Exercised Options: $72,371,870
Current Obligation: $65,979,690
Actual Outlays: $12,126,190
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $77,306,813
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2019-08-01
Current End Date: 2024-08-04
Potential End Date: 2024-08-04 00:00:00
Last Modified: 2024-12-11
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