DoD's $155.6M contract with SAIC for R&D support shows fair value, but limited competition raises concerns
Contract Overview
Contract Amount: $155,614,864 ($155.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2011-04-18
End Date: 2016-11-08
Contract Duration: 2,031 days
Daily Burn Rate: $76.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RD A&AS SUPPORT
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $155.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: RD A&AS SUPPORT Key points: 1. The contract value of $155.6M is substantial for R&D support services. 2. Competition was full and open, indicating a competitive bidding process. 3. Risk is moderate, given the cost-plus-fixed-fee structure and duration. 4. The sector is Research and Development, specifically in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The contract's pricing is difficult to assess without specific benchmarks for similar R&D support contracts. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed carefully.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically aims to secure the best value for the government by allowing all eligible sources to compete.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
Taxpayers funded over $155 million for specialized R&D support services. The contract supported the Defense Threat Reduction Agency's mission. The duration of the contract (2011-2016) indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractor spending.
- Long contract duration may lead to scope creep or evolving requirements.
- Specific performance metrics and outcomes are not detailed in the provided data.
Positive Signals
- Awarded under full and open competition.
- Supports a critical defense agency (DTRA).
- Significant contract value suggests important services rendered.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541712. Spending in this area is crucial for technological advancement but requires careful oversight due to its complex and often uncertain outcomes.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The contract was awarded to a large business, Science Applications International Corporation (SAIC), suggesting limited direct participation by small businesses in this prime contract.
Oversight & Accountability
Oversight of cost-plus-fixed-fee contracts is critical to ensure funds are used efficiently and effectively. The Defense Threat Reduction Agency is responsible for monitoring performance and costs to ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Cost-plus-fixed-fee contract type can lead to cost overruns.
- Long contract duration (5 years) increases potential for scope creep.
- Lack of specific performance metrics in summary data.
- No indication of small business participation.
- Potential for contractor to prioritize fee over cost control.
Tags
research-and-development-in-the-physical, department-of-defense, ma, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $155.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. RD A&AS SUPPORT
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 Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $155.6 million.
What is the period of performance?
Start: 2011-04-18. End: 2016-11-08.
What were the specific R&D objectives and outcomes achieved under this contract?
The provided data lacks details on the specific research and development objectives and their achieved outcomes. Understanding the tangible results and advancements stemming from this $155.6 million investment is crucial for evaluating its true value and effectiveness beyond the contractual obligations.
How did the fixed fee component of the CPFF contract align with the complexity and risk of the R&D work?
The alignment of the fixed fee with the R&D complexity and risk is not explicitly detailed. A fixed fee in a CPFF contract should reflect the contractor's effort and risk. Without insight into how this fee was determined relative to the project's uncertainties, it's difficult to assess if it was appropriate or potentially excessive.
Were there opportunities for follow-on contracts or technology transition resulting from this R&D support?
The data does not specify if this contract led to follow-on work or successful technology transitions. Evaluating the long-term impact requires understanding if the R&D support provided by SAIC contributed to further innovation, product development, or operational improvements within the Department of Defense.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HDTRA110R0006
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: $157,795,528
Exercised Options: $156,955,957
Current Obligation: $155,614,864
Subaward Activity
Number of Subawards: 546
Total Subaward Amount: $134,473,421
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA111D0004
IDV Type: IDC
Timeline
Start Date: 2011-04-18
Current End Date: 2016-11-08
Potential End Date: 2016-11-08 00:00:00
Last Modified: 2022-03-02
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