Naval Undersea Warfare Center contract for professional services awarded to Science Applications International Corporation for over $18.6 million

Contract Overview

Contract Amount: $18,655,231 ($18.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2003-07-08

End Date: 2007-09-30

Contract Duration: 1,545 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: 200310!030665!1700!BW24A !NAVAL UNDERSEA WARFARE CENTER, N!N6660403C0665 !A!N! !N! !20030708!20080814!001729128!001729128!001729128!N!AQUIDNECK MANAGEMENT ASSOCIATE!AQUIDNECK CORPORATE PARK !MIDDLETOWN !RI!02842!45640!005!44!MIDDLETOWN !NEWPORT !RHODE ISLD!+000000485900!N!N!000015411909!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541513!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!R!2!001!B! !Z!N!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! !N66604!0001! !

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: 200310!030665!1700!BW24A !NAVAL UNDERSEA WARFARE CENTER, N!N6660403C0665 !A!N! !N! !20030708!20080814!001729128!001729128!001729128!N!AQUIDNECK MANAGEMENT ASSOCIATE!AQUIDNECK CORPORATE PARK !MIDDLETOWN !RI!02842!45640!005!44!MIDDLETOWN !NEWPO… Key points: 1. Contract awarded for professional services, specifically Computer Facilities Management Services. 2. The contract was competed on a full and open basis, suggesting a competitive bidding process. 3. Awarded as a Definitive Contract with a Cost Plus Award Fee pricing structure. 4. The contract duration was 1545 days, indicating a medium-to-long term engagement. 5. The contractor, Science Applications International Corporation, is a large business. 6. The contract was managed by the Defense Contract Management Agency.

Value Assessment

Rating: fair

The contract value of over $18.6 million for a period of approximately 4 years for Computer Facilities Management Services appears to be within a reasonable range for large-scale government IT support. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, which can drive efficiency, but also carries inherent risks if not managed tightly.

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 in the provided data, but the 'full and open' designation suggests a robust competitive environment. This approach is generally expected to yield fair market pricing and encourage innovation from multiple vendors.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality, as multiple companies vie for the contract.

Public Impact

The primary beneficiary is the Naval Undersea Warfare Center, which receives essential IT and management support services. Services delivered include computer facilities management, crucial for the operation of naval warfare systems. The geographic impact is centered around the Naval Undersea Warfare Center's facilities, likely in Rhode Island. The contract supports the workforce of Science Applications International Corporation, a major defense contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if performance metrics and award fees are not carefully defined and monitored.
The duration of the contract (over 4 years) necessitates ongoing oversight to ensure continued value and alignment with evolving naval warfare needs.
Lack of specific details on deliverables makes it difficult to fully assess performance against the award fee structure.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should drive value.
The contractor, Science Applications International Corporation, is a well-established entity in the defense sector with a track record.
The Cost Plus Award Fee structure incentivizes contractor performance, potentially leading to higher quality services.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on Computer Facilities Management. The defense IT services market is substantial, with significant government spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the Department of Defense's investment in ensuring the operational readiness of its undersea warfare capabilities through robust IT infrastructure and support.

Small Business Impact

The data indicates this contract was awarded to a large business (Science Applications International Corporation) and was not set aside for small businesses. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless SAIC actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Award Fee structure implies performance metrics that would be monitored. Transparency is generally maintained through contract reporting mechanisms, though specific details of performance and fee allocation may be sensitive.

Related Government Programs

Naval Warfare Systems Support
Defense IT Services
Computer Facilities Management
Professional Services Contracts
Cost Plus Award Fee Contracts

Risk Flags

Cost Plus Award Fee structure requires careful monitoring
Long contract duration may lead to misalignment with evolving needs
Performance metrics for award fee need rigorous definition
Potential for vendor lock-in over the contract's lifespan

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 200310!030665!1700!BW24A !NAVAL UNDERSEA WARFARE CENTER, N!N6660403C0665 !A!N! !N! !20030708!20080814!001729128!001729128!001729128!N!AQUIDNECK MANAGEMENT ASSOCIATE!AQUIDNECK CORPORATE PARK !MIDDLETOWN !RI!02842!45640!005!44!MIDDLETOWN !NEWPORT !RHODE ISLD!+000000485900!N!N!000015411909!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541513!E! !3! ! ! ! ! !99990909!B

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2003-07-08. End: 2007-09-30.

What is the historical spending pattern for Computer Facilities Management Services at the Naval Undersea Warfare Center?

Analyzing historical spending for Computer Facilities Management Services at the Naval Undersea Warfare Center (NUWC) requires access to detailed contract databases beyond the single award provided. However, the provided data shows a single definitive contract valued at over $18.6 million awarded to Science Applications International Corporation (SAIC) from July 2003 to September 2007. This suggests a significant, multi-year investment in IT infrastructure support. To understand the broader pattern, one would need to examine previous and subsequent contracts for similar services at NUWC, looking for trends in contract types (e.g., cost-plus, fixed-price), awardees, and overall expenditure levels. This would help determine if this $18.6 million award was typical, an increase, or a decrease in spending for these critical services over time.

How does the Cost Plus Award Fee (CPAF) structure of this contract compare to industry standards for similar IT services?

The Cost Plus Award Fee (CPAF) structure is common in defense contracting, particularly for services where performance outcomes are critical but difficult to define precisely upfront, such as complex IT management. For Computer Facilities Management Services, CPAF allows the government to reimburse the contractor for allowable costs plus a base fee, with an additional award fee determined by the government's assessment of the contractor's performance against predefined criteria. Industry standards often favor performance-based contracts to incentivize efficiency and quality. Compared to fixed-price contracts, CPAF offers more flexibility for the government to adjust payments based on performance, but it requires robust oversight to prevent cost escalation. The effectiveness of CPAF hinges on well-defined performance metrics and objective evaluation processes, which are crucial for ensuring value for taxpayers.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar IT management services to the Department of Defense?

Science Applications International Corporation (SAIC) has a long and extensive track record of delivering a wide range of IT and technical services to the Department of Defense (DoD) and other federal agencies. As a major defense contractor, SAIC has consistently secured large contracts for systems engineering, integration, cybersecurity, enterprise IT, and mission support. Their experience spans various military branches and agencies, including significant work with the Navy. For Computer Facilities Management Services specifically, SAIC's history suggests they possess the scale, expertise, and security clearances necessary to manage complex IT environments. Evaluating their past performance on similar DoD contracts, including any past performance ratings or disputes, would provide further insight into their reliability and capability in fulfilling the requirements of this specific contract.

What are the potential risks associated with a definitive contract of this value and duration for IT services?

A definitive contract valued at over $18.6 million with a duration of approximately 4 years for IT services carries several potential risks. Firstly, the long duration increases the risk of scope creep or misalignment with evolving technological needs and mission requirements. Secondly, the Cost Plus Award Fee (CPAF) structure, while incentivizing, can lead to cost overruns if performance metrics are not rigorously defined and monitored, or if the base fee is too high. Thirdly, contractor performance is a key risk; if SAIC underperforms, the Naval Undersea Warfare Center (NUWC) might face disruptions in critical IT services, impacting its operational capabilities. Finally, there's a risk of vendor lock-in, making it difficult and costly to transition to a new provider if performance issues arise or if requirements change significantly.

How does the geographic location of the contractor's performance (Middletown, RI) influence the contract's execution and oversight?

The geographic location of the contractor's performance, indicated as Middletown, Rhode Island, directly influences the contract's execution and oversight by placing the primary service delivery site near the Naval Undersea Warfare Center (NUWC) facilities. This proximity is generally advantageous for IT management contracts, facilitating on-site support, rapid response to issues, and closer collaboration between the contractor's personnel and NUWC staff. For oversight, the Defense Contract Management Agency (DCMA) would likely have a local presence or assign personnel to monitor contractor activities directly. While proximity can enhance communication and reduce travel costs, it also means that any disruptions in the local economy or infrastructure could potentially impact service delivery. The concentration of critical naval assets in this region underscores the importance of reliable IT support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline