Navy ERP Program Support Contract Exceeds $11.8M, Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $11,894,981 ($11.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2006-03-12
End Date: 2024-01-25
Contract Duration: 6,528 days
Daily Burn Rate: $1.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: NAVY ENTERPISE RESOURCE PLANNING (ERP) PROGRAM SUPPORT
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $11.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NAVY ENTERPISE RESOURCE PLANNING (ERP) PROGRAM SUPPORT Key points: 1. Contract value is substantial at over $11.8 million. 2. Awarded to a single large business, Science Applications International Corporation. 3. Potential risk associated with long contract duration (over 6,500 days). 4. Engineering Services sector, with a focus on IT/ERP systems.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar ERP support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) and contract type (Cost Plus Award Fee) warrant scrutiny for price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense IT infrastructure support. Ensuring cost-effectiveness through robust oversight is crucial.
Public Impact
Supports a critical Navy Enterprise Resource Planning (ERP) system. Ensures continued operation and modernization of defense financial and logistics systems. Impacts Navy's ability to manage resources efficiently and effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration
- Cost Plus Award Fee contract type
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Supports critical defense infrastructure
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting IT and Enterprise Resource Planning systems for the Department of Defense. Spending in this area is significant across government, focusing on modernization and sustainment of complex IT infrastructure.
Small Business Impact
The contract was awarded to a large business (Science Applications International Corporation) and there is no indication of small business participation in the provided data. This suggests limited direct benefit to small businesses from this specific award.
Oversight & Accountability
The contract's long duration and Cost Plus Award Fee structure necessitate strong oversight from the Defense Contract Management Agency to ensure performance and control costs. Regular reviews of award fee criteria and expenditures are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure
- Long contract duration may indicate lack of flexibility or potential for vendor lock-in
- Limited visibility into specific performance metrics and award fee determination
- No apparent small business participation
Tags
engineering-services, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NAVY ENTERPISE RESOURCE PLANNING (ERP) PROGRAM 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 $11.9 million.
What is the period of performance?
Start: 2006-03-12. End: 2024-01-25.
What is the specific performance achieved by Science Applications International Corporation under this contract, and how does it align with the award fee structure?
The provided data does not detail specific performance metrics or the achieved award fee. A Cost Plus Award Fee contract relies heavily on defined performance standards and objective evaluations. Understanding these metrics is crucial to assess if the contractor's performance justified the awarded fees and if the pricing reflects true value delivered.
Given the long duration and cost-plus nature, what measures are in place to mitigate cost overruns and ensure continued value for taxpayers?
Mitigation likely involves stringent oversight by the Defense Contract Management Agency, clear performance standards within the award fee structure, and regular audits. However, the inherent flexibility of Cost Plus Award Fee contracts requires proactive management to prevent scope creep and ensure costs remain aligned with demonstrable value and mission requirements.
How does the Navy ensure the long-term effectiveness and modernization of its ERP system through this support contract, especially considering the extended period?
Effectiveness is likely ensured through contract clauses requiring system updates, maintenance, and alignment with evolving Navy requirements. The long duration suggests a strategic partnership, but requires continuous evaluation to prevent technological obsolescence and ensure the ERP system remains a modern, efficient tool for Navy operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002407R3546
Offers Received: 2
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: $143,351,911
Exercised Options: $62,179,950
Current Obligation: $11,894,981
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
Start Date: 2006-03-12
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-25
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