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 Services › Management, Scientific, and Technical Consulting Services › Administrative 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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