DoD awards $70.8M R&D contract to Science Applications International Corp. for 966 days

Contract Overview

Contract Amount: $70,792,673 ($70.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2014-09-26

End Date: 2017-05-19

Contract Duration: 966 days

Daily Burn Rate: $73.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BASE PERIOD

Plain-Language Summary

Department of Defense obligated $70.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: BASE PERIOD Key points: 1. Contract awarded to a large, established firm (SAIC). 2. Full and open competition suggests potential for competitive pricing. 3. R&D sector spending is significant, but specific benchmarks are needed. 4. Contract type (Cost Plus Fixed Fee) can incentivize cost overruns.

Value Assessment

Rating: fair

The contract's fixed fee component provides some cost control, but the Cost Plus structure inherently carries risk of cost escalation. Benchmarking against similar R&D contracts is crucial to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of bidders and can lead to better price discovery. However, the effectiveness of this competition in achieving optimal pricing depends on the specific market dynamics for this R&D service.

Taxpayer Impact: Taxpayer funds are utilized for research and development, with the expectation of technological advancement. The ultimate taxpayer impact hinges on the success and applicability of the research outcomes.

Public Impact

Supports technological advancement within the Department of Defense. Funds research in physical, engineering, and life sciences. Contract duration of over 2.5 years indicates a substantial project scope.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can lead to higher costs.
  • Lack of specific performance metrics makes value assessment difficult.
  • Limited information on specific R&D deliverables.

Positive Signals

  • Awarded under full and open competition.
  • Contract awarded to a reputable firm with extensive experience.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is critical for innovation but can be subject to cost overruns and uncertain outcomes. Benchmarks for similar R&D contracts are essential for evaluating cost-effectiveness.

Small Business Impact

The contract was awarded to Science Applications International Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for large, complex R&D contracts.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) within the Department of the Army. The effectiveness of oversight depends on clear performance metrics and regular reporting from the contractor.

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.
  • Lack of specific performance metrics in public data.
  • Potential for cost overruns in R&D.
  • Limited visibility into subcontractor utilization.

Tags

research-and-development-in-the-physical, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. BASE PERIOD

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 $70.8 million.

What is the period of performance?

Start: 2014-09-26. End: 2017-05-19.

What specific research objectives and expected outcomes were defined in the contract to ensure value for money?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. However, without access to the detailed SOW or PWS, the specific research objectives, milestones, and expected deliverables are not publicly available. This lack of transparency makes it difficult to definitively assess the value for money beyond the general category of R&D.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

The CPFF structure carries inherent risks for the government. While the fee is fixed, the contractor is reimbursed for all allowable costs. This can incentivize cost overruns as the contractor may not be as motivated to control expenses if they are fully reimbursed. For R&D, where outcomes can be uncertain, this risk is amplified.

How will the effectiveness of the R&D conducted under this contract be measured and evaluated?

Effectiveness is typically measured by the achievement of specific research objectives, milestones, and the successful development of prototypes, technologies, or scientific findings outlined in the contract's Statement of Work. Regular technical reviews and final reports are standard mechanisms for evaluating the contractor's progress and the overall success of the R&D effort.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD, 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: $70,792,673

Exercised Options: $70,792,673

Current Obligation: $70,792,673

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2014-09-26

Current End Date: 2017-05-19

Potential End Date: 2017-05-19 00:00:00

Last Modified: 2021-09-30

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