DoD awards $30.3M for war-gaming tech support, extending contract to 2024

Contract Overview

Contract Amount: $30,313,472 ($30.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2007-01-26

End Date: 2024-01-25

Contract Duration: 6,208 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: WARGAMING TECHNICAL SUPPORT FOR TTGP AND EWTGPAC

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $30.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: WARGAMING TECHNICAL SUPPORT FOR TTGP AND EWTGPAC Key points: 1. Contract value represents a significant investment in advanced simulation capabilities. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of over 17 years indicates long-term reliance on contractor expertise. 4. The award type (Delivery Order) implies it's part of a larger indefinite-delivery contract. 5. Pricing structure (Cost Plus Award Fee) allows for performance-based incentives. 6. The contractor has a substantial history with the Department of Defense.

Value Assessment

Rating: good

The contract's total value of $30.3 million over its extended period suggests a moderate annual spend. Benchmarking against similar war-gaming and simulation support contracts is difficult without more specific service details. However, the Cost Plus Award Fee (CPAF) structure indicates that the government aims to incentivize performance and efficiency, which can lead to better value if managed effectively. The contractor's long tenure on this contract may also suggest a stable and competitive pricing arrangement over time.

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 number of bidders is not specified, but full and open competition generally fosters a competitive environment, which can lead to more favorable pricing and better service quality for the government. The extended duration suggests that the initial competition was robust enough to establish a long-term relationship.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best possible value.

Public Impact

The Department of Defense benefits from enhanced war-gaming and simulation capabilities, crucial for strategic planning and training. Personnel involved in training and strategic development will utilize the war-gaming systems supported by this contract. The contract supports advanced technological infrastructure within the defense sector. Workforce implications may include specialized technical roles for system maintenance and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced incentive for innovation if not actively managed.
Cost Plus Award Fee contracts require diligent oversight to ensure award fees are justified and not excessively awarded.
Reliance on a single contractor for such a critical function over an extended period could pose a risk if the contractor's capabilities degrade or if they face financial instability.

Positive Signals

The use of full and open competition suggests a competitive market for these services.
The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
The extended contract period indicates a stable and reliable service delivery over many years.
The contractor, Science Applications International Corporation, is a large and established defense contractor with significant experience.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced simulation and war-gaming technologies for the Department of Defense. The market for defense simulation and training is substantial, driven by the need for realistic and cost-effective training solutions. Companies like Science Applications International Corporation are key players in this niche, providing specialized technical expertise that is critical for maintaining and advancing these complex systems. Spending in this area is often characterized by long-term contracts due to the specialized nature of the technology and the need for continuity.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. While the primary awardee is a large corporation, there is no information provided on subcontracting plans or opportunities for small businesses within this specific contract. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Award Fee (CPAF) structure necessitates robust government oversight to validate performance metrics and justify any awarded fees. Transparency is generally maintained through contract reporting mechanisms, though specific details on public accessibility of performance reviews are not provided. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Simulation and Training Contracts
Engineering Services for Military Applications
Warfare Simulation Technology
Command and Control Systems Support
Information Technology Support for Defense

Risk Flags

Long contract duration
Cost Plus Award Fee structure requires diligent oversight
Potential for technology obsolescence over contract lifespan

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. WARGAMING TECHNICAL SUPPORT FOR TTGP AND EWTGPAC

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 $30.3 million.

What is the period of performance?

Start: 2007-01-26. End: 2024-01-25.

What is the historical spending trend for this specific contract over its lifespan?

The provided data indicates a total award value of $30.3 million for this contract, with an award date of 2007-01-26 and an end date of 2024-01-25, spanning approximately 17 years. While the total value is given, specific annual spending figures or trends are not detailed. However, a total value of $30.3 million over 17 years suggests an average annual spend of roughly $1.78 million. This relatively modest annual figure for a long-term defense contract might indicate that the services provided are highly specialized or that the contract represents a specific task order within a larger vehicle. Further analysis of individual delivery orders or task orders would be necessary to understand fluctuations in spending over time and identify any periods of increased or decreased investment.

How does the annual cost of this contract compare to similar war-gaming simulation support services in the defense sector?

Benchmarking the annual cost of this $30.3 million contract, averaging approximately $1.78 million per year over 17 years, against similar war-gaming and simulation support services is challenging without more granular data. The defense simulation market is diverse, with costs varying significantly based on the complexity of the systems, the scope of services (e.g., software development, hardware maintenance, training integration), and the specific military branch or agency requirements. Contracts for developing cutting-edge virtual reality training environments or large-scale, multi-domain simulation platforms can easily run into tens or hundreds of millions of dollars annually. Conversely, contracts focused on maintaining legacy systems or providing specific technical support might fall within this range. To provide a precise comparison, one would need to identify contracts with comparable technical specifications, service levels, and contract types (e.g., CPAF, FFP) within the DoD.

What are the key performance indicators (KPIs) used to assess the contractor's performance under the Cost Plus Award Fee (CPAF) structure?

Under a Cost Plus Award Fee (CPAF) contract, the government establishes specific performance objectives and criteria that the contractor must meet to earn an award fee, in addition to cost reimbursement. While the exact KPIs for this specific contract are not publicly detailed, typical metrics for war-gaming technical support could include system uptime and availability, response times for technical issues, successful completion of simulation exercises, accuracy and realism of simulated environments, adherence to project schedules, and user satisfaction ratings from military personnel. The government's contracting officer or their representative would regularly evaluate the contractor's performance against these pre-defined KPIs. Based on this evaluation, a determination is made on the percentage of the available award fee the contractor will receive, incentivizing them to exceed minimum performance requirements.

What is Science Applications International Corporation's (SAIC) track record with similar defense simulation and war-gaming contracts?

Science Applications International Corporation (SAIC) is a major defense contractor with extensive experience in simulation, training, and advanced engineering services. They have a well-documented history of supporting the Department of Defense (DoD) and other government agencies with complex technical solutions. SAIC has been involved in developing and maintaining sophisticated simulation systems, including virtual environments, constructive simulations, and live-virtual-constructive (LVC) training capabilities for various military branches. Their portfolio often includes work on command and control systems, intelligence analysis tools, and cybersecurity for defense applications. Given their size and focus, it is highly probable that SAIC has managed numerous contracts similar in scope and technical nature to this war-gaming technical support award, demonstrating a strong capability and established presence in this specialized defense market.

What are the potential risks associated with the long duration (17+ years) of this contract for the government?

The extended duration of this contract, spanning over 17 years, presents several potential risks for the government. Firstly, there's the risk of contractor complacency; a long-standing relationship might reduce the incentive for the contractor to continuously innovate or seek efficiencies, assuming their position is secure. Secondly, technology evolves rapidly, especially in defense. A contract locked in for such a long period might not adequately adapt to new technological advancements, potentially leaving the government with outdated systems or requiring costly modifications. Thirdly, dependency risk arises; the government becomes heavily reliant on a single entity's expertise, making it difficult and costly to transition to a new provider if performance issues emerge or if the contractor's strategic direction changes. Finally, long-term contracts can sometimes obscure true market value, as initial pricing may not reflect current market rates without periodic re-competition or robust benchmarking.

How does the 'Engineering Services' (NAICS 541330) classification impact the type of work performed under this contract?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' signifies that the primary focus of this contract is on providing professional engineering expertise. This typically involves the application of scientific and mathematical principles to design, develop, analyze, and test systems, products, or processes. For a war-gaming technical support contract, this classification suggests that the work likely includes activities such as system design and architecture, performance analysis, simulation modeling, integration of hardware and software components, technical consulting, and potentially research and development related to improving war-gaming capabilities. It implies a high level of technical skill and specialized knowledge is required, going beyond simple IT support to encompass the engineering principles behind the simulation and war-gaming technologies themselves.

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: N0002407R3066

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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: $241,756,778

Exercised Options: $81,463,889

Current Obligation: $30,313,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4143

IDV Type: IDC

Timeline