DoD's $5.8M Engineering Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $5,802,001 ($5.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-14
End Date: 2026-05-13
Contract Duration: 729 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: POINT MUGU NAWC, VENTURA County, CALIFORNIA, 93042
Plain-Language Summary
Department of Defense obligated $5.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENGINEERING SERVICES Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract's duration of 729 days suggests a medium-term project requirement. 3. Awarded by the Department of the Navy, it aligns with naval operational and developmental needs. 4. The 'Cost Plus Fixed Fee' pricing structure can incentivize cost control by the contractor. 5. The contract was awarded under full and open competition, suggesting a robust bidding process. 6. The base award amount of $7,959 is significantly lower than the total potential value, typical for delivery orders. 7. The North American Industry Classification System (NAICS) code 541330 confirms the focus on engineering services.
Value Assessment
Rating: good
The base award amount of $7,959 is a small initial commitment, with the total potential value of $5.8M to be realized through subsequent task orders. Benchmarking per-unit costs for broad engineering services is challenging without specific task details. However, the fixed fee component within the Cost Plus Fixed Fee (CPFF) structure aims to provide a degree of cost predictability for the government, assuming the contractor manages direct costs effectively. The overall value appears reasonable for specialized engineering support to a major defense agency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. This process typically involves a formal solicitation, evaluation of proposals, and selection of the best value offer. The presence of multiple bidders, though not explicitly stated in the provided data, is implied by 'full and open competition,' which generally leads to more competitive pricing and a wider range of technical solutions.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging innovation. This process ensures that the government receives the best possible value for its investment by selecting from a broad pool of qualified contractors.
Public Impact
The Department of the Navy benefits from specialized engineering expertise to support its missions. Services delivered likely include design, analysis, testing, and technical support for naval systems or infrastructure. The contract's geographic impact is centered in California, where the contractor is located. The contract supports the defense industrial base and potentially creates or sustains jobs in the engineering sector.
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.
- Scope creep could increase the total contract value beyond initial expectations without proper change management.
- Dependence on a single contractor for critical engineering services could pose a risk if performance falters.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that should yield good value.
- The fixed fee component in the CPFF structure provides some level of cost control.
- The contractor, Science Applications International Corporation, is a large and established defense contractor with a significant track record.
Sector Analysis
Engineering services are a critical component of the defense sector, encompassing a wide range of activities from research and development to system design, integration, and lifecycle support. The market for these services is substantial, driven by the continuous need for technological advancement and maintenance of complex military systems. This contract fits within the broader category of professional services supporting defense acquisition and sustainment, where specialized expertise is often outsourced to firms like SAIC.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, large prime contractors like SAIC often engage small businesses as subcontractors on larger contracts, which could indirectly benefit the small business sector.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, review of invoices, and ensuring compliance with contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Services
- Naval Systems Support Contracts
- Professional Services Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Potential for cost overruns in CPFF contracts.
- Scope creep risk without diligent management.
- Contractor performance dependency.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, science-applications-international-corporation, california, professional-services, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENGINEERING 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 $5.8 million.
What is the period of performance?
Start: 2024-05-14. End: 2026-05-13.
What is the historical spending pattern for engineering services by the Department of the Navy with Science Applications International Corporation?
Analyzing historical spending patterns between the Department of the Navy (DoN) and Science Applications International Corporation (SAIC) for engineering services requires access to comprehensive contract databases. Generally, SAIC is a major defense contractor that frequently secures contracts across various agencies, including the DoN, for a wide array of services, including engineering. Historical data would likely show a significant and consistent volume of awards to SAIC over many years, reflecting their established presence and capabilities. The specific amounts would fluctuate based on program needs, competition, and contract types. Without direct access to historical databases filtered for this specific service category and agency-contractor pairing, a precise dollar figure or trend analysis is not possible from the provided data alone. However, it is reasonable to infer that SAIC has been a significant recipient of DoN engineering service contracts.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar engineering services?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve, making it suitable for research, development, and complex engineering services. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. FFP contracts provide greater cost predictability but require a well-defined scope to avoid disputes. Other 'cost-reimbursement' types, like Cost Plus Incentive Fee (CPIF), add performance incentives. For engineering services, CPFF strikes a balance between flexibility and cost control, especially when technical uncertainties are present.
What are the key performance indicators (KPIs) typically used to evaluate engineering services contracts of this nature?
Key Performance Indicators (KPIs) for engineering services contracts like this one often focus on technical performance, schedule adherence, cost control, and quality. Technical KPIs might include the accuracy of designs, the effectiveness of analyses, or the successful integration of systems. Schedule adherence is crucial, measured by on-time delivery of milestones and final deliverables. Cost control is monitored through variance analysis against the estimated costs and the fixed fee. Quality KPIs can encompass the number of design revisions required, the rate of defects found during testing, or adherence to industry standards and best practices. Customer satisfaction surveys and feedback from the government's technical representatives are also vital qualitative measures.
What is the typical market size for engineering services within the US Federal Government, and how does this contract compare?
The US Federal Government procures a vast amount of engineering services annually across numerous agencies, with the Department of Defense being a primary consumer. While precise, real-time market size figures fluctuate, federal spending on engineering services consistently runs into the tens of billions of dollars each year. This contract, with a potential value of $5.8 million, represents a relatively small portion of the overall federal engineering services market. It is a typical size for a specific project or a defined period of support for a particular program or system within a larger agency like the Department of the Navy. Larger, multi-year, enterprise-wide engineering support contracts can reach hundreds of millions or even billions.
What are the potential risks associated with a 'Cost Plus Fixed Fee' contract for engineering services, and how are they mitigated?
The primary risk with Cost Plus Fixed Fee (CPFF) contracts is the potential for cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee itself does not increase. The government bears the risk of cost escalation. Mitigation strategies include robust government oversight, detailed cost tracking and auditing, clearly defined work breakdown structures, and strong contract administration. The government's contracting officer's representative (COR) plays a critical role in monitoring progress and costs. Additionally, well-defined statements of work and change control processes help prevent scope creep, which can inflate costs. The fixed fee incentivizes efficiency, but careful negotiation of the fee and rigorous oversight are essential to ensure value for money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6893624R3003
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: $24,050,484
Exercised Options: $8,204,282
Current Obligation: $5,802,001
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $103,200
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: 2024-05-14
Current End Date: 2026-05-13
Potential End Date: 2029-11-13 00:00:00
Last Modified: 2026-02-12
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