DHA EICS Support Services Contract Awarded to SAIC for $23.1M, Covering R&D in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $23,059,974 ($23.1M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2019-05-20
End Date: 2024-11-19
Contract Duration: 2,010 days
Daily Burn Rate: $11.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: DHA EICS SUPPORT SERVICES
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: DHA EICS SUPPORT SERVICES Key points: 1. The contract is for EICS Support Services, indicating a need for specialized technical and research capabilities. 2. SAIC, a large established contractor, secured this award, suggesting strong technical qualifications and competitive bidding. 3. The contract spans over five years, highlighting a long-term investment in these R&D services. 4. The NAICS code 541712 points to a focus on physical, engineering, and life sciences R&D, a critical sector for defense. 5. The award value of $23.1M represents a significant investment in this specific area of research and development.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. The benchmark of $11.47M per year suggests a reasonable valuation for specialized R&D support services.
Cost Per Unit: $11.47M/year
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process and a competitive environment. This method generally leads to better pricing outcomes for the government.
Taxpayer Impact: Full and open competition likely resulted in a fair market price, maximizing taxpayer value for the specialized R&D services procured.
Public Impact
Ensures continued support for critical Defense Health Agency (DHA) initiatives. Supports advancements in physical, engineering, and life sciences research relevant to national security. Provides stable employment for skilled personnel in the R&D sector. Contributes to the technological capabilities of the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term R&D contracts.
- Reliance on a single contractor for critical support services.
- Ensuring continued innovation and cost-effectiveness over the contract duration.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost predictability.
- Long-term contract ensures continuity of essential services.
- Experienced contractor selected.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority and addressing complex challenges within the defense health domain.
Small Business Impact
The contract was awarded to Science Applications International Corporation (SAIC), a large business. There is no explicit indication of small business participation in this specific award, which is common for large, complex R&D service contracts.
Oversight & Accountability
The contract is managed by the Defense Health Agency (DHA), a component of the Department of Defense. Oversight would involve monitoring performance, adherence to scope, and financial management to ensure accountability and effective use of funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Contract duration is long (over 5 years).
- Awarded to a single large business.
- R&D projects can have uncertain outcomes.
- Potential for scope creep in complex services.
- No explicit small business subcontracting noted.
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. DHA EICS SUPPORT SERVICES
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 Health Agency).
What is the total obligated amount?
The obligated amount is $23.1 million.
What is the period of performance?
Start: 2019-05-20. End: 2024-11-19.
What specific R&D advancements are expected from this contract?
This contract is expected to support advancements in areas relevant to the Defense Health Agency's mission, potentially including medical research, health IT systems development, and engineering solutions for healthcare delivery. The specific R&D outcomes would be detailed in the contract's statement of work, focusing on improving health outcomes and operational readiness for military personnel.
What are the primary risks associated with this long-term R&D contract?
Key risks include the potential for evolving research needs rendering initial objectives obsolete, contractor performance issues impacting critical R&D timelines, and cost overruns if not managed tightly. Ensuring clear communication, robust performance metrics, and flexibility within the contract's framework are crucial to mitigate these risks.
How does this contract contribute to the overall effectiveness of the DHA?
This contract is vital for ensuring the Defense Health Agency has the necessary research and development support to maintain and improve its healthcare services and systems. By securing specialized expertise, the DHA can drive innovation, enhance medical readiness, and address emerging health challenges faced by service members and their families.
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: 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: FIRM FIXED PRICE (J)
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: $29,449,053
Exercised Options: $26,064,664
Current Obligation: $23,059,974
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $11,025,000
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: 2019-05-20
Current End Date: 2024-11-19
Potential End Date: 2024-11-19 00:00:00
Last Modified: 2025-06-25
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