Navy awards $9.4M engineering services contract to SAIC for undersea warfare support
Contract Overview
Contract Amount: $9,394,757 ($9.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2018-08-07
End Date: 2025-08-09
Contract Duration: 2,559 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROJECT MANAGEMENT, SCHEDULE DEVELOPMENT, EARNED VALUE MANAGEMENT SYSTEMS (EVMS), FINANCIAL MANAGEMENT, AND BUSINESS PROCESS ASSESSMENT SERVICES IN SUPPORT OF THE NAVAL UNDERSEA WARFARE CENTER DIVISION NEWPORT CODE 85 AND CODE 70.
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $9.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PROJECT MANAGEMENT, SCHEDULE DEVELOPMENT, EARNED VALUE MANAGEMENT SYSTEMS (EVMS), FINANCIAL MANAGEMENT, AND BUSINESS PROCESS ASSESSMENT SERVICES IN SUPPORT OF THE NAVAL UNDERSEA WARFARE CENTER DIVISION NEWPORT CODE 85 AND CODE 70. Key points: 1. Contract focuses on critical project management and financial services for naval undersea programs. 2. SAIC, a large defense contractor, holds this delivery order under a broader contract. 3. The contract duration extends over several years, indicating a long-term need for these services. 4. Services include EVMS and business process assessment, crucial for program efficiency. 5. The award was made through full and open competition, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract value of $9.4 million for engineering services appears reasonable given the multi-year duration and the specialized nature of the support required for the Naval Undersea Warfare Center. While specific benchmarks for 'project management, schedule development, and EVMS' are difficult to ascertain without more granular data, the services are critical for managing complex defense projects. The cost-plus-fixed-fee (CPFF) structure allows for flexibility but requires careful oversight to ensure costs remain controlled.
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 had the opportunity to submit proposals. The presence of 3 bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing for the services rendered.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and pricing for essential engineering and project management support.
Public Impact
The primary beneficiaries are the Naval Undersea Warfare Center Division Newport (Code 85 and Code 70), which will receive essential project management and financial support. Services delivered include project management, schedule development, earned value management systems (EVMS), financial management, and business process assessment. The geographic impact is centered in Rhode Island, where the Naval Undersea Warfare Center Division Newport is located. This contract supports the technical and administrative workforce involved in naval undersea warfare development and sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The CPFF contract type can lead to cost overruns if not closely monitored.
- Long contract duration requires sustained oversight to ensure continued value.
- Reliance on a single large contractor for critical support functions.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Multiple bids received (3), suggesting market interest and options.
- Services are essential for effective management of complex naval programs.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader defense industry. The market for specialized engineering and program management support for defense agencies is substantial, driven by the need for advanced technological development and complex project execution. Comparable spending benchmarks would involve other contracts for similar project management and technical support services awarded to large defense contractors by agencies like the Department of Defense.
Small Business Impact
This contract was not set aside for small businesses and was awarded to Science Applications International Corporation (SAIC), a large prime contractor. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The impact on the small business ecosystem is indirect, as SAIC's prime contract may have broader subcontracting requirements not detailed here.
Oversight & Accountability
Oversight is likely managed by the Naval Undersea Warfare Center Division Newport's contracting and program management offices. Accountability measures would be tied to performance metrics within the CPFF contract, including adherence to schedules and budgets. Transparency is facilitated by the contract award process being public, though detailed performance data may be internal.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Department of Defense Project Management Support
- Engineering Services for Naval Warfare
- Earned Value Management Systems Support
- Defense Contract Management Agency (DCMA) Oversight
Risk Flags
- Cost Overrun Risk (CPFF)
- Schedule Slippage
- Performance Measurement Accuracy
Tags
defense, department-of-defense, department-of-the-navy, naval-undersea-warfare-center, engineering-services, project-management, earned-value-management, cost-plus-fixed-fee, full-and-open-competition, delivery-order, science-applications-international-corporation, rhode-island
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PROJECT MANAGEMENT, SCHEDULE DEVELOPMENT, EARNED VALUE MANAGEMENT SYSTEMS (EVMS), FINANCIAL MANAGEMENT, AND BUSINESS PROCESS ASSESSMENT SERVICES IN SUPPORT OF THE NAVAL UNDERSEA WARFARE CENTER DIVISION NEWPORT CODE 85 AND CODE 70.
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 $9.4 million.
What is the period of performance?
Start: 2018-08-07. End: 2025-08-09.
What is SAIC's track record with similar project management and EVMS contracts for the Department of Defense?
Science Applications International Corporation (SAIC) has a significant track record of performing project management, financial management, and systems engineering services for the Department of Defense and its various branches, including the Navy. They frequently hold large IDIQ (Indefinite Delivery/Indefinite Quantity) contracts that encompass a wide range of support services, including those related to Earned Value Management Systems (EVMS). SAIC's experience typically involves supporting complex weapon systems development, acquisition, and sustainment programs. Their past performance on similar contracts would be a key factor in the evaluation process for awards like this delivery order, demonstrating their capability to manage schedules, budgets, and technical requirements effectively. Specific details on past performance metrics would be found in their contract history and performance evaluations.
How does the $9.4 million value compare to similar engineering services contracts for naval programs?
The $9.4 million value for this specific delivery order, spanning approximately 2559 days (about 7 years), translates to an average annual value of roughly $1.2 million. This figure appears to be within a reasonable range for specialized engineering, project management, and financial support services required by a major naval command like the Naval Undersea Warfare Center Division Newport. Comparable contracts for similar services often range from several hundred thousand to several million dollars annually, depending on the scope, duration, and complexity of the support. Larger, more comprehensive support contracts for naval programs can reach tens or hundreds of millions of dollars. This contract's value suggests a focused scope of work rather than a broad program support effort.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks include potential cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, schedule delays in critical project management tasks, and performance issues in delivering accurate EVMS and financial data. Mitigation strategies likely involve rigorous oversight by the Naval Undersea Warfare Center Division Newport's program managers, regular performance reviews, detailed financial audits, and adherence to strict reporting requirements. The contract's full and open competition and the receipt of multiple bids also serve as risk mitigators by ensuring a competitive environment that incentivizes performance. SAIC's established presence and experience in defense contracting also reduce the risk of contractor failure.
How effective is the Earned Value Management Systems (EVMS) support likely to be given the contractor and contract type?
The effectiveness of the EVMS support is likely to be high, given SAIC's extensive experience in providing such services to the Department of Defense. EVMS is a standard and critical tool for managing defense contracts, and SAIC is a major provider of these capabilities. The CPFF contract type, while requiring careful oversight, allows for the contractor to be reimbursed for allowable costs plus a negotiated fixed fee, which can incentivize efficient performance if the fee is structured appropriately. The Naval Undersea Warfare Center Division Newport's own program management team will play a crucial role in utilizing the EVMS data provided by SAIC to monitor progress, identify variances, and make informed decisions, thus ensuring the overall effectiveness of the program.
What are the historical spending patterns for project management and engineering services at NUWC Newport?
Historical spending patterns for project management and engineering services at the Naval Undersea Warfare Center Division Newport (NUWC Newport) indicate a consistent and significant investment in these areas. NUWC Newport, as a key research, development, test, and evaluation (RDT&E) center for undersea warfare, relies heavily on specialized engineering and program management support. Spending in these categories typically fluctuates based on the lifecycle stage of major programs, the initiation of new research initiatives, and the need for sustainment engineering. Contracts awarded often involve large, established defense contractors like SAIC, Booz Allen Hamilton, and others, through various contract vehicles including IDIQs and specific delivery orders. The overall trend reflects the ongoing need for advanced technical expertise and robust program management to maintain the U.S. Navy's undersea superiority.
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: N6660417R3061
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: $10,064,416
Exercised Options: $10,064,416
Current Obligation: $9,394,757
Actual Outlays: $428,003
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $4,224,658
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: 2018-08-07
Current End Date: 2025-08-09
Potential End Date: 2025-08-09 00:00:00
Last Modified: 2025-12-15
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