DoD's $115.9M Aviation Systems Support Contract Awarded to Science Applications International Corporation

Contract Overview

Contract Amount: $115,874,391 ($115.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2015-05-29

End Date: 2018-05-28

Contract Duration: 1,095 days

Daily Burn Rate: $105.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF AVIATION SYSTEMS AND COMPUTER RESOURCES SUPPORT FOR AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $115.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CT::IGF AVIATION SYSTEMS AND COMPUTER RESOURCES SUPPORT FOR AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of 1095 days indicates a significant, long-term need for these specialized engineering services. 3. The award to a single contractor, Science Applications International Corporation, warrants a review of potential single-source dependency risks. 4. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not closely managed. 5. The geographic location of the performance in Alabama may have implications for local workforce development. 6. The North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services, a critical component of defense research and development.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more granular data on the specific services provided and comparable contract pricing. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. While CPFF can be appropriate for research and development where costs are uncertain, it requires rigorous oversight to ensure value for money. Without specific performance metrics or comparisons to similar engineering support contracts, it's difficult to definitively assess if the $115.9 million represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that the solicitation was made available to all responsible sources. The data does not specify the number of bids received, which is crucial for a complete understanding of the competitive landscape. A high number of bidders typically suggests strong market interest and can lead to more competitive pricing. Conversely, a low number of bidders, even under full and open competition, might indicate a specialized niche or limited contractor pool.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. This approach ensures that the government explores a wide range of potential solutions and contractors, maximizing the chances of securing the best possible value.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Aviation and Missile Research, Development and Engineering Center (AMRDEC), which receives critical engineering and technical support. Services delivered include aviation systems support, contributing to the research, development, and engineering of advanced aviation technologies. The geographic impact is centered in Alabama, where the contract performance is located, potentially creating or sustaining high-skilled jobs in the region. Workforce implications include the employment of engineers, scientists, and technical professionals specializing in aviation and missile systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed diligently.
Lack of specific details on the number of bidders limits the assessment of competitive pressure.
The long-term nature of the contract requires ongoing monitoring to ensure continued value and performance.
Potential for contractor lock-in if specialized knowledge is developed solely by this contractor.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
The contract supports critical research and development for aviation and missile systems, aligning with national security objectives.
The contractor, Science Applications International Corporation, is a well-established entity in the defense sector, suggesting experience and capability.
The contract duration implies a stable and predictable need for these essential services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related research and development. The market for specialized engineering services for the Department of Defense is substantial, driven by the need for advanced technological capabilities. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by DoD agencies for similar R&D functions. The size of this contract, over $115 million, places it in the significant category for engineering services within the defense industrial base.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Science Applications International Corporation, a large business, there is no explicit information regarding subcontracting plans or goals for small businesses. The impact on the small business ecosystem is therefore not directly measurable from this data, though large prime contractors often engage small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense's contracting and program management offices. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, including cost reporting, performance milestones, and adherence to technical specifications. Transparency is facilitated by contract award databases, but detailed operational oversight and Inspector General jurisdiction would depend on specific program reviews and audits conducted by DoD oversight bodies.

Related Government Programs

Department of Defense Research, Development, Test, and Evaluation (RDT&E)
Aviation Systems Engineering Support
Missile Systems Engineering Support
Science and Technology Support Services
Engineering Services for Government

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited information on the number of bidders under full and open competition.
Potential for contractor lock-in due to specialized knowledge development.
No explicit small business subcontracting goals identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $115.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CT::IGF AVIATION SYSTEMS AND COMPUTER RESOURCES SUPPORT FOR AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING CENTER

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 Army).

What is the total obligated amount?

The obligated amount is $115.9 million.

What is the period of performance?

Start: 2015-05-29. End: 2018-05-28.

What is the track record of Science Applications International Corporation (SAIC) in performing similar large-scale engineering support contracts for the Department of Defense?

Science Applications International Corporation (SAIC) is a major government contractor with extensive experience supporting the Department of Defense (DoD) across various domains, including engineering, IT, and logistics. SAIC has a long history of performing complex R&D and systems engineering tasks for military branches. Their track record typically includes managing large, multi-year contracts, often involving advanced technologies and mission-critical systems. While specific performance metrics for individual contracts are not publicly detailed in award data, SAIC's continued success in securing significant DoD contracts suggests a generally positive performance history and capability to meet demanding requirements. However, like any large contractor, they may have faced challenges or scrutiny on specific projects, which would require deeper investigation into contract performance reviews or IG reports if available.

How does the $115.9 million contract value compare to other engineering services contracts for aviation systems within the DoD?

The $115.9 million contract value for aviation systems support is substantial, placing it among significant investments in this specialized area within the DoD. To provide a precise comparison, one would need to analyze a broader dataset of similar contracts awarded over a comparable timeframe, focusing on the NAICS code 541330 (Engineering Services) and specific agencies like the Department of the Army or Air Force, with a focus on aviation R&D. However, contracts in the range of tens to hundreds of millions of dollars are common for major system development, sustainment, and research efforts within the defense sector. This particular contract's value suggests a comprehensive scope of work, likely encompassing multiple phases of the system lifecycle or a broad range of engineering disciplines critical to aviation advancements.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks, primarily related to cost control. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The main risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as cost overruns are generally reimbursed. This can lead to the total contract cost exceeding initial estimates. To mitigate this, rigorous oversight, detailed cost tracking, and clear definition of allowable costs are essential. The fixed fee, however, provides some predictability regarding the contractor's profit margin. For R&D efforts where costs are highly uncertain, CPFF can be appropriate, but it demands strong government program management to ensure value for money.

What is the significance of the contract being performed in Alabama for the local economy and workforce?

The performance location in Alabama signifies a direct economic impact on the state's economy and its specialized workforce. Contracts of this magnitude often translate into job creation and sustainment for highly skilled professionals, including engineers, scientists, technicians, and support staff. Alabama has a notable presence in the aerospace and defense sectors, and this contract likely leverages and further develops that regional expertise. The influx of contract funds can stimulate local businesses through direct employment and indirect spending via supply chains and services. Furthermore, it reinforces Alabama's position as a hub for advanced engineering and defense-related activities, potentially attracting further investment and talent to the region.

How does the 'full and open competition' award mechanism influence the potential for innovation and cost savings in this contract?

The 'full and open competition' award mechanism is designed to maximize both innovation and cost savings. By allowing any responsible source to submit a bid, the government broadens the pool of potential innovators and solution providers. This increased competition encourages offerors to propose novel approaches and technologies to gain a competitive edge. Furthermore, the competitive bidding process itself typically drives down prices as contractors strive to offer the most cost-effective solution to win the contract. While the data doesn't specify the number of bids received, the commitment to full and open competition signals an intent to leverage market forces to achieve the best possible outcome in terms of both technical merit and financial value for the taxpayer.

What are the potential long-term implications of awarding a 3-year contract for aviation systems support to a single entity?

Awarding a 3-year contract for critical aviation systems support to a single entity, Science Applications International Corporation (SAIC), presents both advantages and potential risks. The advantage lies in providing continuity and stability for essential services, allowing SAIC to develop deep expertise and potentially achieve efficiencies through long-term engagement. However, potential risks include a reduced incentive for SAIC to innovate aggressively once the contract is secured, and a potential over-reliance on a single contractor, which could limit future flexibility or access to alternative solutions. From a taxpayer perspective, it necessitates robust performance monitoring and contract management to ensure ongoing value and prevent complacency. If SAIC develops unique, proprietary knowledge, it could also create challenges for future competition if that knowledge is essential for performance.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12010, SUNSET HILLS ROAD, 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: $333,702,907

Exercised Options: $115,874,391

Current Obligation: $115,874,391

Subaward Activity

Number of Subawards: 155

Total Subaward Amount: $413,405,693

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU329

IDV Type: IDC

Timeline