DoD's $390M contract for advanced modeling and simulation services awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $390,589,411 ($390.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2018-06-01
End Date: 2022-09-20
Contract Duration: 1,572 days
Daily Burn Rate: $248.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SYSTEMS ENGINEERING SUPPORT OF ADVANCED EXPERIMENTATION AND FORCE PROTECTION LIFECYCLE MODELING&SIMULATION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $390.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SYSTEMS ENGINEERING SUPPORT OF ADVANCED EXPERIMENTATION AND FORCE PROTECTION LIFECYCLE MODELING&SIMULATION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of the contract (over 4 years) indicates a long-term need for these services. 4. The award was a BPA Call, a type of task order under an existing Blanket Purchase Agreement. 5. The contractor, Science Applications International Corporation, is a large, established defense contractor. 6. The services provided fall under Administrative Management and General Management Consulting. 7. The contract was awarded to a single vendor, despite being full and open competition.
Value Assessment
Rating: fair
Benchmarking the value of this $390 million contract is challenging without specific performance metrics and detailed cost breakdowns. The Time and Materials (T&M) pricing structure, while common for evolving requirements, can lead to higher costs compared to fixed-price contracts if not meticulously managed. Comparing it to similar large-scale modeling and simulation support contracts within the Department of Defense would provide better context on its cost-effectiveness. The absence of a specific dollar amount for the base period and the presence of options make a precise value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a 'full and open competition' designation, indicating that all responsible sources were permitted to submit bids. However, the data shows it was a 'BPA CALL,' meaning it was likely a task order issued under a pre-existing Blanket Purchase Agreement. The number of bids received is not explicitly stated, but the award went to a single contractor, Science Applications International Corporation. The implications for price discovery are mixed; while the initial competition for the BPA itself may have been robust, the specific task order competition might have been more limited.
Taxpayer Impact: A full and open competition, even if resulting in a single award for this specific task order, generally aims to ensure competitive pricing. However, the nature of a BPA call can sometimes limit the direct price comparison opportunities for taxpayers compared to a standalone, newly competed contract.
Public Impact
The Department of the Army benefits from advanced modeling and simulation capabilities to support experimentation and force protection. This contract enables the development and refinement of lifecycle modeling and simulation tools. The services contribute to enhancing the effectiveness and readiness of military forces. The geographic impact is primarily within the United States, supporting Department of Defense operations. The contract supports a workforce skilled in systems engineering, modeling, and simulation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- Award to a single contractor under full and open competition raises questions about the extent of actual competition for this specific task order.
- Lack of detailed performance metrics makes it difficult to assess the true value for money.
- The contract duration spans over four years, increasing the potential for cost escalation over time.
Positive Signals
- Awarded through a full and open competition process, suggesting an effort to maximize potential bidders.
- The contractor, Science Applications International Corporation, is a well-established entity with significant experience in defense contracting.
- The services provided are critical for advanced experimentation and force protection, indicating strategic importance.
- The contract supports the development of sophisticated modeling and simulation capabilities, which can lead to long-term efficiencies.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on management consulting and systems engineering for modeling and simulation. The federal market for these services is substantial, driven by the Department of Defense's continuous need for advanced technological solutions and strategic planning. Comparable spending often involves large, multi-year contracts for complex system development, analysis, and support. The market is characterized by a mix of large prime contractors and specialized subcontractors.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor, Science Applications International Corporation, is a large business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract award is likely minimal, unless SAIC actively engages small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are inherent in the contract's performance requirements and reporting obligations. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Defense Systems Engineering Support
- Modeling and Simulation Services
- Force Protection Technologies
- Advanced Experimentation Programs
- Department of Defense IT Services
- Management and Consulting Services
Risk Flags
- Cost Control Risk (Time and Materials)
- Limited Competition for Task Order
- Lack of Detailed Performance Metrics
- Potential for Cost Escalation Over Time
Tags
department-of-defense, department-of-the-army, systems-engineering, modeling-and-simulation, administrative-management, general-management-consulting, full-and-open-competition, bpa-call, time-and-materials, large-business, alabama, science-applications-international-corporation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $390.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SYSTEMS ENGINEERING SUPPORT OF ADVANCED EXPERIMENTATION AND FORCE PROTECTION LIFECYCLE MODELING&SIMULATION
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 $390.6 million.
What is the period of performance?
Start: 2018-06-01. End: 2022-09-20.
What is the historical spending trend for similar modeling and simulation support contracts within the Department of the Army?
Historical spending on modeling and simulation (M&S) support contracts within the Department of the Army has been substantial and generally increasing, reflecting the growing reliance on digital tools for training, analysis, and acquisition. These contracts often span multiple years and can range from tens to hundreds of millions of dollars. They typically cover areas such as developing simulation environments, providing subject matter expertise, performing complex analyses, and supporting the lifecycle management of M&S systems. Spending patterns are influenced by evolving threats, technological advancements, and budget allocations for research, development, testing, and evaluation (RDT&E). Analyzing past awards reveals a consistent demand for contractors capable of delivering high-fidelity simulations and robust analytical support.
How does the Time and Materials (T&M) pricing structure of this contract compare to fixed-price alternatives for similar services?
Time and Materials (T&M) contracts, like the one awarded to Science Applications International Corporation, offer flexibility by reimbursing the contractor for direct labor hours at specified rates and for the cost of materials. This structure is often used when the scope of work is not clearly defined or is expected to evolve. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. Fixed-price contracts provide greater cost certainty but are less adaptable to changing requirements. For modeling and simulation services, if requirements are well-defined and stable, a fixed-price contract might offer better value. The T&M approach here suggests the Army anticipated evolving needs or uncertainties in the project's trajectory, necessitating flexibility at the potential expense of upfront cost predictability.
What is Science Applications International Corporation's track record with similar Department of Defense contracts?
Science Applications International Corporation (SAIC) has an extensive track record with the Department of Defense (DoD), having secured numerous large and complex contracts across various domains, including systems engineering, IT services, simulation, and training. SAIC is a major defense contractor known for its capabilities in supporting advanced technological programs. Their history with the DoD includes significant work in areas directly related to modeling and simulation, lifecycle support, and force modernization. While specific performance details for every contract are not publicly available, SAIC's consistent success in winning competitive bids for substantial DoD programs indicates a generally positive standing and demonstrated capability to meet the government's requirements. However, like any large contractor, they may have faced performance reviews or contract disputes on specific projects over their long history.
What are the potential risks associated with a $390 million contract awarded under a Blanket Purchase Agreement (BPA) Call?
Awarding a significant contract like this $390 million task order under a Blanket Purchase Agreement (BPA) Call introduces specific risks. While BPAs streamline the procurement process for recurring needs, a large task order issued under one can sometimes bypass the full scrutiny of a standalone competitive procurement. The initial competition for the BPA itself might have been robust, but the competition for individual task orders, especially if awarded to a single vendor, may be less intense. This can potentially lead to less favorable pricing than if the requirement were competed anew. Furthermore, the T&M (Time and Materials) nature of this contract adds inherent cost uncertainty. Effective oversight and robust management are crucial to mitigate risks related to cost control and ensure the government receives optimal value.
How does the 'full and open competition' designation align with a single-vendor award for this BPA Call?
The designation of 'full and open competition' for this contract indicates that the initial solicitation for the underlying Blanket Purchase Agreement (BPA) was intended to allow all responsible sources to submit offers. However, the award of a specific task order (BPA Call) under that BPA to a single vendor, Science Applications International Corporation, is not necessarily contradictory. It implies that SAIC was the chosen vendor for this particular task order, potentially based on factors like best value, specific capabilities, or pre-negotiated terms within the BPA. It raises questions about whether other BPA holders were solicited for this specific task or if the competition was limited to a subset of vendors. True price discovery is maximized when multiple vendors actively compete for each task order, which may not have been the case here despite the initial 'full and open' classification.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
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: TIME AND MATERIALS (Y)
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: $786,693,287
Exercised Options: $390,589,411
Current Obligation: $390,589,411
Subaward Activity
Number of Subawards: 44
Total Subaward Amount: $308,031,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: W31P4Q18A0011
IDV Type: BPA
Timeline
Start Date: 2018-06-01
Current End Date: 2022-09-20
Potential End Date: 2023-11-30 12:11:00
Last Modified: 2025-09-25
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