DoD Awards $16.7M for Value Engineering Technical Assistance, with 2 Orders Issued

Contract Overview

Contract Amount: $16,748,124 ($16.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2019-09-25

End Date: 2025-11-09

Contract Duration: 2,237 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TECHNICAL ASSISTANCE IN VALUE ENGINEERING (VE)/LIFE CYCLE COST REDUCTION (LCCR) VISIUALIZATION DESIGN LAB (VIZ LAB)TASKS FOR AMCOM AVIATION AND MISSILE SYSTEMS AND COMPONENTS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TECHNICAL ASSISTANCE IN VALUE ENGINEERING (VE)/LIFE CYCLE COST REDUCTION (LCCR) VISIUALIZATION DESIGN LAB (VIZ LAB)TASKS FOR AMCOM AVIATION AND MISSILE SYSTEMS AND COMPONENTS Key points: 1. Contract awarded to Science Applications International Corporation for VE/LCCR visualization design. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial, spanning over 2200 days. 4. This award falls under Administrative Management and General Management Consulting Services.

Value Assessment

Rating: fair

The contract is Time and Materials, which can lead to cost overruns if not managed closely. The total award value is $16.7M, but the specific value per unit is not provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. However, the Time and Materials pricing structure introduces risk for cost control.

Taxpayer Impact: Taxpayers are exposed to potential cost increases due to the Time and Materials contract type, despite the initial competitive award.

Public Impact

Enhances visualization capabilities for aviation and missile systems. Aims to reduce life cycle costs through value engineering. Supports critical Department of the Army and AMCOM operations. Long contract duration suggests ongoing need for these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

  • Time and Materials pricing structure
  • Long contract duration

Positive Signals

  • Full and open competition
  • Focus on cost reduction (VE/LCCR)

Sector Analysis

This contract falls within the professional services sector, specifically management consulting. Benchmarks for similar visualization and value engineering services can vary widely based on scope and duration.

Small Business Impact

The contract data indicates that small business participation was not a factor in this award (sb: false).

Oversight & Accountability

The contract was awarded via a delivery order, implying it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight will be crucial to manage the Time and Materials aspect.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Time and Materials pricing structure
  • Long contract duration
  • Lack of specific performance metrics in provided data
  • Potential for scope creep

Tags

administrative-management-and-general-ma, department-of-defense, al, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TECHNICAL ASSISTANCE IN VALUE ENGINEERING (VE)/LIFE CYCLE COST REDUCTION (LCCR) VISIUALIZATION DESIGN LAB (VIZ LAB)TASKS FOR AMCOM AVIATION AND MISSILE SYSTEMS AND COMPONENTS

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 $16.7 million.

What is the period of performance?

Start: 2019-09-25. End: 2025-11-09.

What specific metrics will be used to measure the success of the value engineering and life cycle cost reduction efforts?

Success metrics for value engineering and life cycle cost reduction typically involve quantifiable savings achieved through process improvements, material substitutions, or design modifications. These could include percentage reduction in manufacturing costs, extended product lifespan, reduced maintenance requirements, or improved operational efficiency. The specific metrics should be clearly defined in the contract's statement of work to ensure accountability and measurable outcomes for the visualization design lab tasks.

How will the agency mitigate the risks associated with the Time and Materials contract type to ensure cost control?

Mitigation strategies for Time and Materials contracts often involve robust oversight, detailed tracking of labor hours and material costs, and clearly defined ceilings or CLINs. The agency should implement stringent review processes for all invoices, conduct regular performance reviews with the contractor, and establish performance-based milestones. Setting clear expectations for deliverables and actively managing the scope of work are also critical to prevent cost overruns and ensure value for taxpayer money.

What is the expected return on investment (ROI) from the technical assistance in value engineering and life cycle cost reduction?

The expected ROI from value engineering and life cycle cost reduction is typically significant, aiming to generate savings that far exceed the contract's cost. While specific ROI figures are not provided, the objective is to identify and implement efficiencies that reduce long-term operational and maintenance expenses for aviation and missile systems. The success of this initiative hinges on the contractor's ability to deliver innovative solutions that yield measurable cost benefits over the lifespan of the supported assets.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting 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: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $93,263,756

Exercised Options: $16,748,124

Current Obligation: $16,748,124

Actual Outlays: $1,008,340

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $28,562,921

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F002CA

IDV Type: FSS

Timeline

Start Date: 2019-09-25

Current End Date: 2025-11-09

Potential End Date: 2025-11-09 00:00:00

Last Modified: 2025-09-30

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