DoD's $5.6M contract for propulsion test facility operations awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $5,635,000 ($5.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2025-10-24
End Date: 2026-10-26
Contract Duration: 367 days
Daily Burn Rate: $15.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROPULSION TEST FACILITY OPERATIONS AND MAINTENANCE SERVICES
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $5.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PROPULSION TEST FACILITY OPERATIONS AND MAINTENANCE SERVICES Key points: 1. Contract value appears reasonable for specialized facility operations and maintenance. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include contractor performance and adherence to cost-plus fixed fee structure. 4. This contract supports critical defense research and development infrastructure. 5. The award falls within the broader IT and R&D sectors due to its technical nature.
Value Assessment
Rating: good
The contract value of $5.6 million for a 367-day period for propulsion test facility operations and maintenance seems within a reasonable range for specialized government services. Benchmarking against similar contracts for facility operations and specialized testing services would provide a more precise value-for-money assessment. The cost-plus fixed fee (CPFF) pricing structure allows for cost reimbursement plus a fixed fee, which can incentivize efficiency while managing risk for complex projects. However, without specific details on the scope of work and overhead, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method typically fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the use of full and open competition suggests a robust market for these specialized services. This approach is generally favored for ensuring fair market value and access to the best available solutions.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to market forces driving efficiency and innovation among bidders.
Public Impact
The primary beneficiaries are the Department of Defense and its research and development initiatives. The contract ensures the continued operation and maintenance of a critical propulsion test facility. This facility likely supports the development and testing of advanced propulsion systems for naval applications. The contract may indirectly support a specialized workforce in engineering, maintenance, and technical support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
- Dependence on a single contractor for critical facility operations could pose a risk if performance falters.
- Ensuring adequate technical expertise and safety protocols are maintained throughout the contract duration.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process and potential for good value.
- The contractor, Science Applications International Corporation, is a large, established entity with significant government contracting experience.
- The contract supports a critical national defense capability, aligning with strategic priorities.
Sector Analysis
This contract falls within the broader defense industrial base, specifically supporting research, development, testing, and evaluation (RDT&E) activities. The market for specialized facility operations and maintenance services for defense contractors is significant, driven by the need for secure and advanced testing environments. Comparable spending benchmarks would typically be found within the Department of Defense's RDT&E budget, particularly for aerospace and naval propulsion systems. The North American Industry Classification System (NAICS) code 325920 (Explosives Manufacturing) suggests a focus on energetic materials or related testing, a niche but critical area within defense.
Small Business Impact
The data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. While there is no explicit mention of subcontracting requirements for small businesses, larger prime contractors are often encouraged or required to subcontract portions of their work to small businesses to foster their participation in the federal contracting ecosystem. The absence of set-aside status means the primary competition was likely among large businesses.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy, a component of the Department of Defense. Mechanisms would include contract performance reviews, financial audits, and technical inspections to ensure compliance with the terms and conditions of the Cost Plus Fixed Fee award. Transparency is typically maintained through contract databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction for investigating any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Defense Research and Development Programs
- Naval Propulsion Systems Development
- Aerospace and Defense Testing Facilities
- Explosives and Energetic Materials Research
Risk Flags
- Cost-Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
- Specialized nature of propulsion testing implies inherent safety and operational risks.
- Dependence on contractor performance for critical R&D infrastructure.
Tags
defense, department-of-defense, department-of-the-navy, science-applications-international-corporation, full-and-open-competition, cost-plus-fixed-fee, delivery-order, propulsion-test-facility, operations-and-maintenance, rhode-island, research-and-development, explosives-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PROPULSION TEST FACILITY OPERATIONS AND MAINTENANCE SERVICES
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 $5.6 million.
What is the period of performance?
Start: 2025-10-24. End: 2026-10-26.
What is the track record of Science Applications International Corporation (SAIC) in managing similar propulsion test facility operations and maintenance contracts for the Department of Defense?
Science Applications International Corporation (SAIC) has a substantial track record as a prime contractor for the Department of Defense, involved in a wide array of services including R&D support, systems engineering, and facility operations. While specific details on their past performance managing propulsion test facilities are not provided in this data snippet, SAIC's extensive experience with complex government contracts suggests they possess the organizational capacity and technical expertise to handle such requirements. A deeper dive into their contract history, performance evaluations (e.g., CPARS reports), and any past issues or successes related to similar operations would be necessary for a comprehensive assessment of their suitability and reliability for this specific contract.
How does the awarded amount of $5.6 million compare to the estimated cost or budget for similar propulsion test facility operations and maintenance services?
The awarded amount of $5.6 million for a 367-day contract period (approximately 1 year) for propulsion test facility operations and maintenance provides a baseline for comparison. To assess value for money, this figure needs to be benchmarked against historical spending on similar services by the Department of the Navy or other DoD components, as well as against industry standards for operating and maintaining specialized testing infrastructure. Factors such as the complexity of the propulsion systems tested, the scale of the facility, required safety protocols, and the specific maintenance tasks involved will influence costs. Without access to detailed cost breakdowns or comparable contract data, it is difficult to definitively state whether $5.6 million represents excellent, fair, or questionable value. However, given the specialized nature of propulsion testing, costs can be substantial.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for facility operations and maintenance, and how are they mitigated?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may not have a strong incentive to control costs, as the government reimburses allowable costs plus a predetermined fixed fee. This can lead to cost overruns if not managed diligently. For facility operations and maintenance, risks also include potential performance deficiencies, safety incidents, and delays in critical testing schedules. Mitigation strategies employed by the government typically involve robust oversight, including regular audits of contractor expenditures, performance monitoring against defined metrics and milestones, and stringent quality assurance procedures. Clear contract terms, detailed statements of work, and proactive communication channels between the government and the contractor are crucial for managing these risks effectively and ensuring mission success.
What is the significance of the NAICS code 325920 (Explosives Manufacturing) in the context of a propulsion test facility contract?
The NAICS code 325920, 'Explosives Manufacturing,' suggests that the propulsion test facility operations and maintenance services may involve the handling, testing, or support of systems related to explosives or energetic materials. This could pertain to rocket propellants, warheads, or other pyrotechnic devices used in propulsion systems. Such operations require highly specialized infrastructure, stringent safety protocols, and expert personnel due to the inherent risks. The classification indicates a focus on a critical, albeit niche, area within defense technology, likely supporting the development and validation of advanced weapon systems or space launch capabilities where precise control and safety are paramount.
What historical spending patterns exist for propulsion test facility operations and maintenance within the Department of the Navy or broader DoD?
Historical spending patterns for propulsion test facility operations and maintenance within the Department of the Navy and the broader DoD are typically substantial, reflecting the critical nature of these assets for national security and technological advancement. These facilities are essential for testing engines, missiles, and other propulsion systems, often involving complex and hazardous materials. Spending can fluctuate based on modernization programs, new platform development, and the lifecycle of existing systems. Analyzing past contract awards for similar services, including contract duration, value, and competition levels, would reveal trends in investment and identify key areas of focus. This contract's value of $5.6 million for a little over a year should be viewed within the context of potentially much larger, multi-year investments in maintaining and upgrading these specialized capabilities.
Industry Classification
NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12010 SUNSET HILLS RD FL 4, 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: $23,649,166
Exercised Options: $23,649,166
Current Obligation: $5,635,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6660426DA600
IDV Type: IDC
Timeline
Start Date: 2025-10-24
Current End Date: 2026-10-26
Potential End Date: 2026-10-26 00:00:00
Last Modified: 2025-12-18
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