DoD Awards $19.6M Contract for WAS/WES First Article Development to Science Applications International Corp

Contract Overview

Contract Amount: $19,640,069 ($19.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2021-09-27

End Date: 2026-01-26

Contract Duration: 1,582 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: WAS/WES FIRST ARTICLE DEVELOPMENT AND PRODUCTION UNIT DELIVERY

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: WAS/WES FIRST ARTICLE DEVELOPMENT AND PRODUCTION UNIT DELIVERY Key points: 1. Contract awarded to Science Applications International Corporation (SAIC) for WAS/WES first article development and production. 2. The contract value is $19,640,006.71, with a duration of 1582 days. 3. This award falls under the Small Arms, Ordnance, and Ordnance Accessories Manufacturing sector. 4. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 5. The Department of the Navy is the contracting agency.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type allows for costs plus a negotiated fee. While this can be suitable for development, it carries inherent risk of cost escalation compared to fixed-price contracts. Benchmarking against similar development contracts is difficult without specific per-unit data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently, though the CPFF structure requires careful monitoring to control costs.

Public Impact

Ensures the development and delivery of critical WAS/WES systems for the Navy. Supports the defense industrial base through a significant contract award. Potential for technological advancements in ordnance manufacturing. Requires ongoing oversight to manage costs and ensure timely delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type increases cost risk.
  • Long contract duration (1582 days) requires sustained oversight.
  • No specific small business participation noted.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical defense capabilities.
  • Experienced contractor (SAIC) likely to manage complex development.

Sector Analysis

This contract falls within the Small Arms, Ordnance, and Ordnance Accessories Manufacturing sector, a critical area for defense procurement. Spending in this sector is often driven by modernization efforts and operational readiness requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary awardees, though they may participate as subcontractors.

Oversight & Accountability

The contract's long duration and CPFF structure necessitate robust oversight from the Department of the Navy to ensure cost control, adherence to specifications, and timely delivery of the WAS/WES system.

Related Government Programs

  • Small Arms, Ordnance, and Ordnance Accessories Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Long contract duration.
  • No explicit small business set-aside.
  • Potential for scope creep in development phase.
  • Reliance on contractor's technical expertise.

Tags

small-arms-ordnance-and-ordnance-accesso, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. WAS/WES FIRST ARTICLE DEVELOPMENT AND PRODUCTION UNIT DELIVERY

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 $19.6 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-01-26.

What is the expected impact of the Cost Plus Fixed Fee structure on the final cost of the WAS/WES system?

The Cost Plus Fixed Fee (CPFF) structure means the government will reimburse the contractor for all allowable costs incurred, plus a predetermined fixed fee. While this encourages the contractor to perform the work, it shifts some cost risk to the government. The final cost could exceed initial estimates if actual costs are higher than anticipated, making diligent oversight crucial to manage expenditures effectively.

How does the full and open competition impact the risk associated with this contract?

Full and open competition generally reduces risk by allowing multiple qualified vendors to bid, fostering a competitive environment that can lead to better pricing and innovation. This increases the likelihood that the government is receiving a fair price and a quality product. However, the CPFF nature of the contract still introduces cost risk that requires careful management regardless of the competition method.

What are the potential effectiveness challenges given the contract's focus on first article development?

Effectiveness challenges in first article development often stem from unforeseen technical hurdles, integration issues with existing systems, or difficulties in meeting stringent performance specifications. The CPFF structure can mitigate some contractor risk related to these challenges, but the government must ensure clear requirements and robust testing protocols are in place to guarantee the final product is effective and meets its intended purpose.

Industry Classification

NAICS: ManufacturingOther Fabricated Metal Product ManufacturingSmall Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660421Q0357

Offers Received: 4

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: $19,640,069

Exercised Options: $19,640,069

Current Obligation: $19,640,069

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $1,306,375

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6660420DE013

IDV Type: IDC

Timeline

Start Date: 2021-09-27

Current End Date: 2026-01-26

Potential End Date: 2026-01-26 00:00:00

Last Modified: 2025-11-26

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