DoD Awards $742M for HWIL & M&S Development Engineering Services to SAIC
Contract Overview
Contract Amount: $741,935,381 ($741.9M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2021-03-03
End Date: 2028-09-23
Contract Duration: 2,761 days
Daily Burn Rate: $268.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SINGLE AWARD TASK ORDER AGAINST GSA OASIS UR (POOL 4) FOR HWIL AND M&S DEVELOPMENT ENGINEERING SERVICES TO PROVIDE FULL LIFE CYCLE SUPPORT FOR HWILS, FORCE PROTECTION, TRAINERS, AND VIRTUAL, INTERACTIVE AND MULTIMEDIA SYSTEMS IN SUPPORT OF S3I.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $741.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SINGLE AWARD TASK ORDER AGAINST GSA OASIS UR (POOL 4) FOR HWIL AND M&S DEVELOPMENT ENGINEERING SERVICES TO PROVIDE FULL LIFE CYCLE SUPPORT FOR HWILS, FORCE PROTECTION, TRAINERS, AND VIRTUAL, INTERACTIVE AND MULTIMEDIA SYSTEMS IN SUPPORT OF S3I. Key points: 1. Significant investment in full lifecycle support for critical defense systems. 2. Competition method (Full and Open) suggests potential for competitive pricing. 3. Risk of cost overruns exists with Cost Plus Fixed Fee contract type. 4. R&D sector spending is substantial, requiring careful oversight.
Value Assessment
Rating: good
The $742 million award for R&D services appears to be within a reasonable range for complex, long-term engineering support. Benchmarking against similar GSA OASIS contracts for specialized development would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation process. This method generally promotes competitive pricing and allows for a wide range of qualified contractors to bid.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense R&D, with the expectation of receiving value through advanced engineering and support services.
Public Impact
Enhances readiness and capabilities for critical defense systems. Supports advanced simulation and training technologies. Long-term contract ensures continuity of essential engineering support.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Long contract duration increases exposure to changing requirements and economic factors.
Positive Signals
- Awarded under GSA OASIS, a pre-competed contract vehicle.
- Full and open competition promotes market responsiveness.
- Focus on critical defense systems development.
Sector Analysis
This award falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires rigorous oversight to ensure efficiency and effectiveness.
Small Business Impact
The contract was awarded to Science Applications International Corporation (SAIC), a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
The use of a GSA OASIS contract vehicle suggests some level of pre-competition and oversight. However, the Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for cost overruns.
- Lack of explicit small business participation noted.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $741.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SINGLE AWARD TASK ORDER AGAINST GSA OASIS UR (POOL 4) FOR HWIL AND M&S DEVELOPMENT ENGINEERING SERVICES TO PROVIDE FULL LIFE CYCLE SUPPORT FOR HWILS, FORCE PROTECTION, TRAINERS, AND VIRTUAL, INTERACTIVE AND MULTIMEDIA SYSTEMS IN SUPPORT OF S3I.
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 $741.9 million.
What is the period of performance?
Start: 2021-03-03. End: 2028-09-23.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs for these R&D services?
The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a predetermined fixed fee. While it facilitates R&D where costs are uncertain, it can incentivize contractors to incur higher costs to increase the fee base, potentially leading to cost overruns if not rigorously managed through strong oversight and performance metrics.
What are the primary risks associated with a long-duration contract for complex engineering services?
Long-duration contracts for complex engineering services carry risks such as scope creep, evolving technological requirements, and potential for contractor performance degradation over time. Economic fluctuations and changes in government priorities can also impact the contract's relevance and cost-effectiveness, necessitating adaptive management and clear performance standards.
How effectively does the full and open competition method ensure value for money in this specialized R&D domain?
Full and open competition is designed to maximize value by encouraging a wide range of bidders, fostering price competition. In specialized R&D, its effectiveness depends on the clarity of the requirement and the ability of diverse firms to meet it. It generally leads to better value than limited competition, but the technical complexity requires careful evaluation of proposals beyond just price.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $3,291,499,663
Exercised Options: $741,935,381
Current Obligation: $741,935,381
Actual Outlays: $16,289,175
Subaward Activity
Number of Subawards: 255
Total Subaward Amount: $2,013,433,991
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU428
IDV Type: IDC
Timeline
Start Date: 2021-03-03
Current End Date: 2028-09-23
Potential End Date: 2029-03-02 12:03:00
Last Modified: 2026-01-02
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