Navy awards $29.8M engineering support contract to Science Applications International Corporation
Contract Overview
Contract Amount: $29,818,454 ($29.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2022-12-29
End Date: 2027-01-01
Contract Duration: 1,464 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING, TECHNICAL, AND MANAGEMENT CONTRACTOR SUPPORT SERVICES FOR A WIDE VARIETY OF MILITARY SYSTEMS AND OVERALL MANAGEMENT SUPPORT SERVICES PERFORMED IN SUPPORT OF THE NAVAIR LAKEHURST SUPPORT EQUIPMENT ENGINEERING DIVISION,
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING, TECHNICAL, AND MANAGEMENT CONTRACTOR SUPPORT SERVICES FOR A WIDE VARIETY OF MILITARY SYSTEMS AND OVERALL MANAGEMENT SUPPORT SERVICES PERFORMED IN SUPPORT OF THE NAVAIR LAKEHURST SUPPORT EQUIPMENT ENGINEERING DIVISION, Key points: 1. Contract provides critical engineering, technical, and management support for military systems. 2. Full and open competition suggests a robust bidding process. 3. Contract duration of nearly 5 years indicates a long-term need for these services. 4. The cost-plus-fixed-fee pricing structure may incentivize cost control by the contractor. 5. This award falls within the broader category of engineering services, a vital sector for defense readiness. 6. The contract's value is moderate within the context of large federal IT and engineering procurements.
Value Assessment
Rating: good
The contract value of $29.8 million over approximately 4 years is a significant investment. Benchmarking against similar engineering support contracts for naval systems is crucial for a precise value assessment. The cost-plus-fixed-fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can be effective when project scope is not fully defined, but requires careful oversight to prevent cost overruns. Without specific comparable contract data, it's difficult to definitively state if the pricing is optimal, but it appears within a reasonable range for specialized engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of competition, which is beneficial for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the pressure on contractors to be competitive.
Public Impact
The primary beneficiaries are the Department of the Navy and its military systems, ensuring continued operational readiness and modernization. Services delivered include essential engineering, technical, and management support for various military systems. The contract supports the Lakehurst Support Equipment Engineering Division, indicating a focus on specialized equipment maintenance and development. Workforce implications include the potential for employment of engineers, technicians, and management professionals by Science Applications International Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in CPFF contracts if not managed tightly.
- Reliance on a single contractor for critical support services over a long period.
- Ensuring consistent quality and performance across the contract duration.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Contract duration of nearly 5 years indicates a stable, long-term need and commitment.
- Science Applications International Corporation is a large, established government contractor with a track record.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which is a critical component of the defense industrial base. The market for engineering services supporting military systems is substantial, driven by the continuous need for modernization, maintenance, and development of complex defense platforms. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the Department of Defense, particularly those for naval aviation or specialized equipment.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely to involve significant direct subcontracting opportunities for small businesses unless explicitly required by the prime contractor. The primary impact on the small business ecosystem would be indirect, through the overall health of the defense industrial base that relies on a mix of large and small suppliers.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award announcements and public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Naval Air Systems Command (NAVAIR) Support Equipment Engineering Division
- Department of Defense Engineering Services Contracts
- Military Systems Maintenance and Support
- Defense Contractor Support Services
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Need for sustained performance monitoring over a long contract duration.
- Ensuring adequate competition and preventing contractor lock-in.
Tags
defense, department-of-defense, department-of-the-navy, navair, engineering-services, technical-support, management-support, full-and-open-competition, cost-plus-fixed-fee, long-term-contract, military-systems, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING, TECHNICAL, AND MANAGEMENT CONTRACTOR SUPPORT SERVICES FOR A WIDE VARIETY OF MILITARY SYSTEMS AND OVERALL MANAGEMENT SUPPORT SERVICES PERFORMED IN SUPPORT OF THE NAVAIR LAKEHURST SUPPORT EQUIPMENT ENGINEERING DIVISION,
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 $29.8 million.
What is the period of performance?
Start: 2022-12-29. End: 2027-01-01.
What is Science Applications International Corporation's track record with similar engineering support contracts for the Department of Defense?
Science Applications International Corporation (SAIC) has a long and extensive history of providing engineering, technical, and management support services to the Department of Defense and various military branches. They are a major federal contractor with numerous awards across different agencies and defense programs. Their track record includes supporting complex weapon systems, IT infrastructure, and research and development initiatives. Specific to naval aviation and support equipment, SAIC has likely held multiple contracts over the years, demonstrating their capability and experience in this domain. A detailed review of their past performance on similar contracts, including customer satisfaction ratings and any past performance issues, would provide further insight into their reliability for this specific award.
How does the $29.8 million contract value compare to other engineering support contracts for naval systems?
The $29.8 million contract value for engineering, technical, and management support services is a substantial award, but its relative size depends heavily on the specific scope and duration. For large-scale, multi-year engineering support contracts for naval systems, this figure can be considered moderate. Major platform development or sustainment contracts can easily reach hundreds of millions or even billions of dollars. However, for specialized support to a specific division like the NAVAIR Lakehurst Support Equipment Engineering Division, $29.8 million over nearly five years suggests a significant and focused effort. Benchmarking against similar contracts for specialized engineering support within naval aviation or other naval commands would provide a more precise comparison.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, such as this one, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This structure can incentivize contractors to control costs to maximize their profit, but it also means the government bears the risk of cost increases beyond initial estimates. Effective oversight is crucial to ensure that all claimed costs are reasonable, allocable, and allowable. Scope creep, where the project's requirements expand beyond the original agreement without a corresponding adjustment to the fee, can also inflate costs. Additionally, if the fixed fee is set too low, it might disincentivize the contractor from performing optimally or seeking innovative cost-saving measures.
How does the 'full and open competition' award mechanism impact taxpayer value?
Awarding a contract through 'full and open competition' generally enhances taxpayer value by fostering a competitive environment. When multiple qualified vendors are allowed to bid, they are incentivized to offer their most competitive pricing and the most effective technical solutions to win the contract. This process helps ensure that the government is not overpaying for goods or services and that it is receiving high-quality offerings. The competition can drive innovation and efficiency among bidders. While the specific number of bidders isn't detailed here, the commitment to full and open competition signals an effort to maximize market forces for the benefit of the government and, by extension, the taxpayers.
What are the implications of a nearly 5-year contract duration for service continuity and contractor performance?
A contract duration of approximately 1464 days (nearly 5 years) indicates a long-term, stable requirement for the engineering, technical, and management support services being procured. This extended period allows for greater continuity of operations and knowledge retention within the contractor's team, which can be beneficial for complex, ongoing military systems support. It also provides the contractor with a degree of certainty, potentially allowing for more strategic resource allocation and investment in personnel and capabilities. For performance, a longer duration allows for the assessment of sustained performance rather than just initial delivery. However, it also necessitates robust oversight mechanisms throughout the contract's life to ensure continued quality, adherence to evolving requirements, and effective cost management over the extended period.
What is the significance of the contract being awarded to Science Applications International Corporation (SAIC) for the NAVAIR Lakehurst Support Equipment Engineering Division?
The award to Science Applications International Corporation (SAIC) for the NAVAIR Lakehurst Support Equipment Engineering Division signifies the Navy's reliance on experienced, large-scale contractors for specialized engineering and technical support. SAIC's established presence and broad capabilities in defense contracting suggest they are well-equipped to handle the complexities of supporting naval aviation support equipment. This division is critical for ensuring the readiness and maintainability of the equipment used by naval air operations. The contract award indicates SAIC's successful bid in a competitive process to provide these essential services, contributing to the overall effectiveness and efficiency of naval aviation logistics and maintenance.
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: N6833522R3000
Offers Received: 1
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: $45,242,758
Exercised Options: $35,958,437
Current Obligation: $29,818,454
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,916,886
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8470
IDV Type: IDC
Timeline
Start Date: 2022-12-29
Current End Date: 2027-01-01
Potential End Date: 2028-01-01 00:00:00
Last Modified: 2026-02-12
More Contracts from Science Applications International Corporation
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Department of State)
- Software Life Cycle Development — $1.4B (General Services Administration)
- Unified Nasa Information Technology Services (unites) — $1.4B (National Aeronautics and Space Administration)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (General Services Administration)
- This Effort IS for a Follow on Procurement Requirement. the Name of This Procurement IS the Omnibus Multidiscipline Engineering Services (omes) II. the Principal Purpose of This Contract IS to Provide Multidiscipline Engineering Support Services and Related Work to EED, Istd, SED, MSD, Mesa, Jpss, Ssco, and Related Organizations, AS Required, for the Study, Design, Systems Engineering, Development, Fabrication, Integration, Testing, Verification, and Operations of Space Flight, Airborne, and Ground System Hardware and Software, Including Development and Validation of NEW Technologies to Enable Future Space and Science Missions. to This END, the Contractor Shall Provide On/Off-Site Multidiscipline Engineering Services, Pursuant to Task Orders Issued by the Contracting Officer. These Services Shall Include the Personnel, Facilities, and Materials (unless Otherwise Provided by the Government) to Accomplish the Tasks. Travel MAY BE Required by the Contractor to Support Certain Task Orders, These Travel Requirements Will BE Identified on a Task by Task Basis — $1.0B (National Aeronautics and Space Administration)
View all Science Applications International Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)