DoD's $36M C4I upgrade for Saudi Navy awarded to SAIC via full and open competition

Contract Overview

Contract Amount: $36,050,527 ($36.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2015-06-30

End Date: 2020-12-29

Contract Duration: 2,009 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF THE CONTRACTOR WILL PROVIDE SUPPORT SERVICES INCLUDING PROGRAM MANAGEMENT, SYSTEMS ENGINEERING, AND OPERATIONS AND MAINTENANCE TO THE ROYAL SAUID NAVAL FOCES IN-KINGDOM OF SAUDIA ARABIA FOR THE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE (C4I) UPGRADE AND REFURBISHMENT FOR THE C4I INTERNATIONAL INTEGRATION PROGRAM OFFICE (PMW 740).

Plain-Language Summary

Department of Defense obligated $36.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF THE CONTRACTOR WILL PROVIDE SUPPORT SERVICES INCLUDING PROGRAM MANAGEMENT, SYSTEMS ENGINEERING, AND OPERATIONS AND MAINTENANCE TO THE ROYAL SAUID NAVAL FOCES IN-KINGDOM OF SAUDIA ARABIA FOR THE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE (C4I) UPGRA… Key points: 1. Contract focuses on critical C4I systems for the Royal Saudi Naval Forces, indicating a significant international defense partnership. 2. The scope includes program management, systems engineering, and operations/maintenance, suggesting a comprehensive support role. 3. Awarded through full and open competition, implying a robust vetting process for the contractor. 4. The contract duration spans over five years, pointing to a long-term commitment for system sustainment. 5. This contract represents a substantial investment in foreign military sales and defense cooperation. 6. The specific nature of C4I systems suggests a focus on advanced communication and intelligence capabilities.

Value Assessment

Rating: good

The contract value of $36 million over approximately five years for comprehensive C4I support services appears reasonable given the scope. Benchmarking against similar foreign military sales contracts for complex systems integration and sustainment would provide a more precise value-for-money assessment. The 'Cost No Fee' contract type suggests the government is primarily focused on ensuring the service is performed, with contractor profit tied to efficient execution rather than direct cost reimbursement.

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 offers. This suggests a competitive bidding process was utilized, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the designation implies a market with multiple capable providers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, ensuring the government receives the best value for its investment.

Public Impact

The Royal Saudi Naval Forces are the primary beneficiaries, receiving upgraded Command, Control, Communications, Computers, and Intelligence (C4I) capabilities. Services delivered include program management, systems engineering, and ongoing operations and maintenance for these critical systems. The geographic impact is in-kingdom Saudi Arabia, supporting a key international defense partner. The contract supports specialized technical roles in program management and systems engineering, potentially impacting the workforce in those areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex C4I upgrade projects.
Geopolitical risks associated with international defense contracts.
Dependence on contractor expertise for critical national security systems.
Ensuring effective knowledge transfer to the end-user for long-term sustainment.

Positive Signals

Awarded via full and open competition, suggesting a competitive and fair process.
Contractor (SAIC) has a significant track record in defense and IT services.
Clear definition of services (program management, systems engineering, O&M) provides focus.
Long contract duration allows for sustained support and relationship building.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on IT and engineering services related to Command, Control, Communications, Computers, and Intelligence (C4I) systems. The market for C4I solutions is highly specialized, involving complex integration of hardware, software, and networking technologies. Spending in this area is driven by the need for advanced situational awareness, secure communication, and effective command structures, particularly in international defense partnerships. Comparable spending benchmarks would likely be found in other foreign military sales or major defense system integration programs.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no specific small business set-aside (st). This suggests the contract was not specifically targeted towards small businesses, and the prime contractor, Science Applications International Corporation (SAIC), is a large business. There is no information on subcontracting plans or implications for the small business ecosystem from this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and potentially the Defense Contract Management Agency (DCMA). Given it's a foreign military sale, there may be additional oversight from relevant State Department or international cooperation bodies. Transparency is generally maintained through contract awards databases and reporting requirements. Accountability measures would be tied to performance metrics and adherence to contract terms, with potential for Inspector General review if issues arise.

Related Government Programs

Foreign Military Sales (FMS)
Naval C4I Systems
Defense IT Services
Systems Engineering Support
Program Management Services

Risk Flags

Geopolitical Risk
Technical Integration Complexity
Long-Term Sustainment Planning
Cybersecurity Vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF THE CONTRACTOR WILL PROVIDE SUPPORT SERVICES INCLUDING PROGRAM MANAGEMENT, SYSTEMS ENGINEERING, AND OPERATIONS AND MAINTENANCE TO THE ROYAL SAUID NAVAL FOCES IN-KINGDOM OF SAUDIA ARABIA FOR THE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE (C4I) UPGRADE AND REFURBISHMENT FOR THE C4I INTERNATIONAL INTEGRATION PROGRAM OFFICE (PMW 740).

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 $36.1 million.

What is the period of performance?

Start: 2015-06-30. End: 2020-12-29.

What is Science Applications International Corporation's (SAIC) track record with similar international C4I contracts?

SAIC has a substantial history of supporting U.S. military and international partners with complex IT, C4I, and systems engineering solutions. They have been involved in numerous programs requiring integration, sustainment, and modernization of communication and intelligence systems across various platforms, including naval applications. Their experience often encompasses program management, cybersecurity, and lifecycle support. Specific details on past international C4I contracts, including value, duration, and performance outcomes, would require a deeper dive into SAIC's contract history and relevant government databases. However, their general profile suggests they are a capable provider for this type of requirement.

How does the $36 million contract value compare to similar C4I upgrade projects for international naval forces?

Benchmarking the $36 million value requires comparing it against contracts of similar scope, complexity, and duration for international naval C4I upgrades. Factors influencing cost include the specific technologies involved (e.g., radar, communication suites, data links), the extent of refurbishment versus new installation, the number of vessels or facilities covered, and the level of integration required. Contracts for major naval platform modernization or new system integration can range from tens to hundreds of millions of dollars. This $36 million award appears to be for a significant but potentially focused upgrade or refurbishment effort, likely falling within the mid-range for such specialized international defense support.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include technical challenges in integrating legacy and new C4I systems, potential geopolitical instability affecting operations in Saudi Arabia, and ensuring effective knowledge transfer for long-term sustainment by the Royal Saudi Naval Forces. Mitigation strategies likely involve robust systems engineering processes, phased implementation, strong cybersecurity protocols, contingency planning for geopolitical events, and comprehensive training programs. The 'Cost No Fee' structure may also incentivize efficient risk management by the contractor. The full and open competition process helps mitigate risks by selecting a contractor with proven capabilities.

How effective is the 'Cost No Fee' contract type in ensuring value for money for this C4I support?

The 'Cost No Fee' (CNF) contract type is typically used when the primary objective is to ensure the availability of a service or item, and the government is less concerned with the contractor's profit margin, often in support of critical national defense needs or foreign military sales where the focus is on delivery. In this context, it means the contractor is reimbursed for allowable costs but receives no additional fee or profit. This structure incentivizes the contractor to control costs diligently to avoid incurring expenses that are not reimbursed and to perform the work efficiently. While it removes direct profit motive, it ensures the government pays only for the necessary costs incurred to deliver the C4I support, potentially leading to cost savings compared to a cost-plus-fee structure if managed well.

What is the historical spending trend for C4I systems and support within the Department of the Navy?

The Department of the Navy consistently allocates significant funding towards Command, Control, Communications, Computers, and Intelligence (C4I) systems due to their critical role in naval operations. Historical spending trends show a continuous investment in modernizing these capabilities to maintain information superiority and enhance interoperability. This includes upgrades to shipboard systems, shore infrastructure, and tactical data networks. Spending fluctuates based on major platform acquisition cycles, technological advancements (e.g., AI, cyber defense), and evolving threat landscapes. While specific figures vary annually, C4I modernization and sustainment represent a substantial and ongoing portion of the Navy's overall IT and procurement budgets.

What are the implications of this contract being awarded to SAIC for the broader defense IT services market?

The award to SAIC, a major defense contractor, reinforces its position in the C4I and systems integration market, particularly within international defense cooperation. It signals continued demand for large, experienced companies capable of managing complex, long-term projects involving sensitive technologies. For the broader market, it highlights the importance of specialized expertise in areas like systems engineering and program management for foreign military sales. It may also indicate opportunities for subcontractors or technology providers that SAIC partners with. The success of this contract could influence future solicitations and the competitive landscape for similar international defense support services.

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: N0002414R3567

Offers Received: 1

Pricing Type: COST NO FEE (S)

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: $36,692,196

Exercised Options: $36,692,196

Current Obligation: $36,050,527

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $44,132,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline