DoD's $9.8M Engineering Services Contract for SPAWAR 053 Systems Support Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $9,855,052 ($9.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2005-10-01

End Date: 2024-01-25

Contract Duration: 6,690 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SPAWAR 053 CERTIFICATION, SYSTEMS IMPLEMENTATION AND ENGINEERING SUPPORT

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SPAWAR 053 CERTIFICATION, SYSTEMS IMPLEMENTATION AND ENGINEERING SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 6690 days (approx. 18 years) is exceptionally long, raising questions about long-term planning and flexibility. 3. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored. 4. The contract is for engineering services, a critical but often complex area for government oversight. 5. The award was a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The contract's significant duration may indicate a need for sustained, specialized support for SPAWAR systems.

Value Assessment

Rating: fair

Benchmarking the value of this $9.8 million contract is challenging without more specific details on the services rendered and the performance period. However, the exceptionally long duration of nearly 18 years for a single delivery order raises concerns about potential inefficiencies and the ability to adapt to evolving technological needs. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex services, requires diligent oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor without excessive profit margins. Comparing this to similar long-term engineering support contracts would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 21 bids suggests a robust level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government. The number of bidders implies that the market has sufficient capacity and interest in providing these specialized engineering services.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for the engineering services.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Space and Naval Warfare Systems Command (SPAWAR) 053, which receives essential systems implementation and engineering support. The services delivered are critical for the ongoing operation, maintenance, and potential upgrades of complex defense systems. The geographic impact is likely concentrated around SPAWAR facilities and associated defense installations, though the ultimate impact is on national defense capabilities. The contract supports a workforce of engineers and technical specialists, contributing to employment in the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extremely long contract duration (nearly 18 years) could lead to complacency and reduced incentive for innovation or efficiency improvements.
Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not rigorously managed, potentially increasing the final cost to taxpayers.
The long duration may not align with the rapid pace of technological change in defense systems, potentially leading to outdated solutions.
Lack of specific performance metrics or clear deliverables in the provided data makes it difficult to assess contractor performance objectively.
The contract's scope is broad ('Systems Implementation and Engineering Support'), which could lead to scope creep if not tightly managed.

Positive Signals

Awarded through full and open competition with 21 bidders, indicating a healthy and competitive market for these services.
The contract provides essential, long-term support for critical defense systems, ensuring operational continuity.
Science Applications International Corporation (SAIC) is a large, established defense contractor with significant experience, suggesting a degree of reliability.
The delivery order structure implies it fits within a broader contracting vehicle, potentially offering some efficiencies.
The contract aims to ensure the successful implementation and engineering of complex systems vital to national security.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the professional services market supporting government and commercial clients. The defense engineering services sub-sector is characterized by high technical complexity, stringent security requirements, and long-term relationships. Spending in this area is substantial, driven by the continuous need to develop, maintain, and upgrade sophisticated military systems. Comparable spending benchmarks would typically involve analyzing other large, long-duration engineering support contracts awarded by the DoD or other federal agencies for similar complex systems.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this contract. This suggests that small businesses were not specifically targeted through set-asides for this particular award. While SAIC is a large prime contractor, there is no information available regarding subcontracting plans to small businesses. Without this data, it's difficult to assess the impact on the small business ecosystem, though it implies that the prime contract was not awarded with a small business focus.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance, compliance with contract terms, and proper cost accounting. The CPFF structure necessitates rigorous financial oversight to monitor costs and ensure the fixed fee remains appropriate. Transparency is generally maintained through contract databases and reporting requirements, though detailed performance metrics and specific oversight activities are often not publicly disclosed. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

SPAWAR Systems Center Atlantic (SSC Atlantic) Contracts
Department of Defense Engineering Services Contracts
Information Technology Support Services Contracts
Naval Systems Engineering Support
Cost Plus Fixed Fee Contracts
Long-Duration Government Contracts

Risk Flags

Long Contract Duration
Cost Plus Fixed Fee Pricing
Potential for Scope Creep
Lack of Small Business Set-Aside Information

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SPAWAR 053 CERTIFICATION, SYSTEMS IMPLEMENTATION AND ENGINEERING SUPPORT

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2005-10-01. End: 2024-01-25.

What is the historical spending pattern for Science Applications International Corporation (SAIC) with the Department of Defense, particularly in engineering services?

Science Applications International Corporation (SAIC) has a long and extensive history of contracting with the Department of Defense (DoD). As a major defense contractor, SAIC consistently secures significant contract awards across various service and technology domains. Historical data indicates substantial spending by the DoD on SAIC for a wide range of services, including IT, engineering, logistics, and systems integration. Analyzing specific spending patterns within the engineering services category (NAICS 541330) would reveal trends in contract types, durations, and specific program support. For this particular contract, the $9.8 million award over nearly 18 years represents a sustained, long-term investment in SAIC's capabilities for SPAWAR 053. Further analysis would involve comparing this contract's value and duration against other SAIC contracts with the DoD to understand its relative significance and SAIC's established role in supporting naval systems engineering.

How does the Cost Plus Fixed Fee (CPFF) contract type typically perform in terms of cost control compared to other contract types for similar engineering services?

Cost Plus Fixed Fee (CPFF) contracts are often used for research and development or complex services where the scope is not fully defined or is expected to change. In CPFF contracts, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fixed fee provides some incentive for the contractor to control costs (as it doesn't increase with higher costs), it can also lead to cost overruns if the initial cost estimates are inaccurate or if scope creep occurs without adequate adjustments to the fee or contract ceiling. Compared to Firm-Fixed-Price (FFP) contracts, CPFF generally offers less cost certainty for the government. However, FFP contracts can be risky for contractors on highly uncertain projects, potentially leading to inflated initial prices to cover perceived risks. For complex, long-term engineering services like those for SPAWAR, CPFF can be appropriate if managed diligently, but it requires robust government oversight to monitor costs, prevent inefficiencies, and ensure the fixed fee remains fair and reasonable throughout the contract's life. Without strong oversight, CPFF contracts can be more expensive than FFP.

What are the potential risks associated with a contract duration of nearly 18 years for engineering support services?

A contract duration of nearly 18 years, as seen in this $9.8 million award for SPAWAR 053 engineering support, presents several significant risks. Firstly, it raises concerns about the government's ability to adapt to rapidly evolving technological landscapes. Defense systems and requirements can change dramatically over such a long period, potentially rendering the contracted services or solutions outdated before the contract concludes. Secondly, such long-term commitments can lead to contractor complacency, reducing the incentive for innovation, efficiency improvements, or proactive problem-solving, as the revenue stream is largely guaranteed. Thirdly, it limits the government's flexibility to re-compete the contract and explore potentially better or more cost-effective solutions from other vendors that may emerge over time. Finally, long durations can obscure the true value proposition, making it difficult to assess whether the ongoing costs represent the best use of funds compared to alternative approaches or more frequent, shorter-term engagements.

How does the level of competition (21 bidders) for this contract potentially influence the final price and quality of services received by the government?

The fact that this contract received 21 bids under full and open competition is a strong positive indicator. A high number of bidders typically signifies a healthy, competitive market for the services required. In such a scenario, the government is more likely to achieve competitive pricing, as contractors vie to win the award by offering attractive terms and rates. Beyond price, robust competition can also drive higher quality service delivery. Bidders are motivated not only by securing the contract but also by establishing a reputation for performance that can lead to future opportunities. This competitive pressure encourages bidders to propose efficient methodologies, skilled personnel, and effective solutions to meet the government's needs. Therefore, 21 bidders suggest that the government likely benefited from both cost savings and potentially enhanced service quality compared to a situation with limited or no competition.

What are the implications of this contract being a 'Delivery Order' under a potentially larger IDIQ or similar contract vehicle?

This contract being a 'Delivery Order' implies it is not a standalone contract but rather an order placed against a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar master agreement. IDIQs are commonly used by government agencies to streamline the procurement of services or supplies that are expected to be needed over time but in unpredictable quantities. The advantage of this structure is that the initial competition occurs when the IDIQ vehicle itself is awarded, often involving a rigorous evaluation of potential contractors' capabilities and pricing structures. Subsequent delivery orders then represent specific taskings under that established vehicle. For taxpayers, this can mean faster acquisition times for specific needs and potentially pre-negotiated favorable rates. However, it also means that the competition for this specific $9.8 million order was likely limited to the pre-qualified awardees of the parent IDIQ contract, rather than a completely open market competition for this particular task.

Can the 'Systems Implementation and Engineering Support' scope be considered mission-critical for SPAWAR 053, and how does that affect oversight?

Yes, 'Systems Implementation and Engineering Support' for SPAWAR 053 is highly likely to be mission-critical. SPAWAR (Space and Naval Warfare Systems Command) is responsible for developing, acquiring, and maintaining the Navy's information technology and communications systems. Therefore, the successful implementation and ongoing engineering of these systems are fundamental to naval operations, command and control, intelligence, and readiness. Given its critical nature, the oversight for this contract must be exceptionally rigorous. This includes not only financial oversight of the CPFF structure but also stringent technical oversight to ensure the systems are implemented correctly, meet performance specifications, and are secure. The long duration further emphasizes the need for continuous monitoring of technical relevance and performance. Any failures or deficiencies in these engineering services could have severe operational consequences for the Navy, underscoring the importance of robust government oversight and contractor accountability.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 21

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

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline