Defense contract for engineering and technical services awarded to Science Applications International Corp. for over $135 million
Contract Overview
Contract Amount: $22,640,164 ($22.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-09-28
End Date: 2008-09-30
Contract Duration: 1,463 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: NOT REPORTED
Sector: Defense
Official Description: 200412!006384!2100!W91QUZ!ACA, ITEC4 !GS09K99BHD0010 !C!N! !Y!W91QUZ04F1001!P00006!20040928!20040930!135475051!135475051!054781240!N!SCIENCE APPLICATIONS INTERNATI!5107 LEESBURG PIKE STE 220!FALLS CHURCH !VA!22041!66672!059!51!RESTON !FAIRFAX !VIRGINIA !-000000350175!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541519!E! !5!B!M!C!A! !99990909!B!E!Y!A! !A! !Y! !010!B! !Z! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !C!N! ! ! ! !2100! !0001! !
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA, 20307
Plain-Language Summary
Department of Defense obligated $22.6 million to LEIDOS, INC. for work described as: 200412!006384!2100!W91QUZ!ACA, ITEC4 !GS09K99BHD0010 !C!N! !Y!W91QUZ04F1001!P00006!20040928!20040930!135475051!135475051!054781240!N!SCIENCE APPLICATIONS INTERNATI!5107 LEESBURG PIKE STE 220!FALLS CHURCH !VA!22041!66672!059!51!RESTON !FAIR… Key points: 1. Contract value of $135.48 million for engineering and technical services. 2. Awarded by the Department of the Army, indicating a focus on military operational support. 3. Full and open competition suggests a robust bidding process. 4. Contract duration of approximately 4 years, allowing for sustained service delivery. 5. The services provided fall under engineering and technical support, crucial for complex defense systems. 6. Contractor has a significant presence in the federal contracting space.
Value Assessment
Rating: good
The contract value of $135.48 million for engineering and technical services appears reasonable given the duration and the nature of defense support contracts. Benchmarking against similar contracts for engineering and technical services within the Department of Defense would provide a more precise value-for-money assessment. However, the full and open competition suggests that pricing was likely scrutinized by multiple bidders.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 10 bidders indicates a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: The extensive competition for this contract suggests that taxpayer dollars were likely used efficiently, as multiple companies vied to offer their best pricing and technical solutions.
Public Impact
The Department of the Army benefits from specialized engineering and technical services to support its operations. The contract supports the development, maintenance, or enhancement of defense systems and infrastructure. The geographic impact is likely concentrated around the contractor's operational bases and the Army units they support, with a potential presence in Falls Church, VA. Workforce implications include employment for engineers, technicians, and support staff within Science Applications International Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Dependence on a single contractor for critical engineering and technical services could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a competitive selection process.
- Contract duration of nearly 4 years suggests a stable and ongoing need for these services.
- The contractor, Science Applications International Corporation, is a well-established entity in the federal contracting arena.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, a significant area of federal spending, particularly within the defense industry. The market for engineering and technical services supporting defense is substantial, with numerous large and small businesses competing for these contracts. This specific award contributes to the overall spending on defense-related IT and engineering support, which is a critical component of national security infrastructure.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, and the contractor, Science Applications International Corporation (now part of Leidos), is a large business. There is no explicit information on subcontracting plans for small businesses within this data, but large prime contractors often utilize small businesses for specialized support, which would be a positive impact if implemented.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases like FPDS, where this information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services
- Technical Support Contracts
- Information Technology Services
- Defense Research and Development Support
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Risk of contractor performance issues impacting critical Army operations.
- Technological obsolescence of services or systems over the contract duration.
- Dependence on a single large contractor for essential support functions.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, technical-services, full-and-open-competition, large-business, professional-services, information-technology, contract-award, mid-2000s, district-of-columbia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to LEIDOS, INC.. 200412!006384!2100!W91QUZ!ACA, ITEC4 !GS09K99BHD0010 !C!N! !Y!W91QUZ04F1001!P00006!20040928!20040930!135475051!135475051!054781240!N!SCIENCE APPLICATIONS INTERNATI!5107 LEESBURG PIKE STE 220!FALLS CHURCH !VA!22041!66672!059!51!RESTON !FAIRFAX !VIRGINIA !-000000350175!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541519!E! !5!B!M!C!A! !999
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.6 million.
What is the period of performance?
Start: 2004-09-28. End: 2008-09-30.
What is the historical spending trend for Science Applications International Corporation (SAIC) with the Department of Defense?
Science Applications International Corporation (SAIC), and its successor Leidos, has been a significant contractor for the Department of Defense for many years. Historical data shows consistent and substantial awards across various defense agencies and branches, covering a wide range of services including IT, engineering, logistics, and mission support. The company's extensive portfolio and long-standing relationships with the DoD suggest a deep understanding of military requirements and a proven track record. Analyzing specific spending patterns over the last decade would reveal trends in contract types, service areas, and agency-specific awards, highlighting SAIC's evolving role and contributions to defense modernization and operations. This particular contract, awarded in 2004, represents an earlier phase of their ongoing engagement with the DoD.
How does the awarded amount of $135.48 million compare to other engineering and technical services contracts awarded by the Department of the Army around 2004?
In 2004, a contract valued at $135.48 million for engineering and technical services would have been considered a substantial award, reflecting the complexity and scope of support required by the Department of the Army. During that period, the DoD was heavily engaged in ongoing military operations and modernization efforts, driving demand for advanced technical expertise. While specific comparable contract values from that exact year are difficult to pinpoint without extensive database queries, contracts of this magnitude were typical for major system support, research and development, or large-scale IT infrastructure projects. The full and open competition with 10 bidders suggests that this was a significant requirement that attracted considerable industry interest, further contextualizing the award amount as commensurate with a high-value defense service contract.
What are the primary risks associated with a multi-year engineering and technical services contract of this nature?
Multi-year engineering and technical services contracts, like this one awarded to SAIC, carry several inherent risks. A primary concern is the potential for scope creep, where the project's requirements expand beyond the initial agreement without corresponding adjustments in cost or schedule, leading to budget overruns. Another risk is contractor performance; if SAIC fails to meet the technical specifications or delivery timelines, it could significantly impact Army operations. Technological obsolescence is also a factor, as the rapid pace of technological change could render certain services or systems outdated before the contract concludes. Furthermore, reliance on a single contractor for critical functions can create vulnerabilities if the contractor experiences financial instability or faces unforeseen operational challenges. Effective contract management, clear performance metrics, and contingency planning are crucial to mitigate these risks.
What was the strategic importance of engineering and technical services for the Department of the Army in the mid-2000s?
In the mid-2000s, the Department of the Army faced significant strategic challenges, including ongoing global conflicts and the need to modernize its technological capabilities. Engineering and technical services were critically important for maintaining and upgrading complex weapon systems, developing new battlefield technologies, and managing vast information networks. This period saw a surge in demand for expertise in areas such as C4ISR (Command, Control, Communications, Computers, and Intelligence, Surveillance, and Reconnaissance), cybersecurity, and advanced simulation and training. Contracts like this one provided the essential technical know-how and support to ensure the Army could effectively operate, adapt, and maintain a technological edge in a rapidly evolving security environment. The services procured were vital for operational readiness and future force development.
How did the 'full and open competition' procurement method influence the outcome and value of this contract?
The 'full and open competition' procurement method, as indicated for this contract, is designed to maximize competition by allowing all responsible sources to submit bids. This approach typically leads to a more robust price discovery process, as multiple vendors are incentivized to offer their most competitive pricing and innovative solutions to win the contract. The fact that 10 bidders participated suggests that the requirement was attractive and that the market had sufficient capacity. For taxpayers, this method generally results in better value for money, as the government is likely to secure services at a more optimal price point compared to less competitive methods like sole-source awards. It also fosters innovation by encouraging a wider range of companies to propose solutions.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 10
Pricing Type: NOT REPORTED (NO)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: GS09K99BHD0010
IDV Type: GWAC
Timeline
Start Date: 2004-09-28
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2011-04-14
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