Dod's $65M Battle Force Tactical Training System Support Contract Awarded to SAIC Shows Long-Term Engagement

Contract Overview

Contract Amount: $65,081,312 ($65.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2009-07-02

End Date: 2024-01-25

Contract Duration: 5,320 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BATTLE FORCE TACTICAL TRAINING SYSTEM SUPPORT

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $65.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: BATTLE FORCE TACTICAL TRAINING SYSTEM SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract has a long duration, indicating sustained need for these services. 3. The use of Cost Plus Fixed Fee (CPFF) pricing can present cost control challenges. 4. Engineering services are critical for complex defense training systems. 5. The contract's value is substantial, reflecting significant investment in training capabilities. 6. The awardee, Science Applications International Corporation (SAIC), is a major defense contractor. 7. The contract spans over 14 years, from 2009 to 2024. 8. The contract was awarded as a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The CPFF contract type, while common for R&D and complex services, can lead to cost overruns if not managed tightly. Comparing to similar long-term, complex system support contracts would be necessary for a robust value assessment. The sustained award over 14 years suggests perceived value by the DoD, but the efficiency and cost-effectiveness of the CPFF structure remain a point of scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the open competition is a positive indicator for market engagement.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the training systems support, potentially reducing overall costs compared to non-competitive awards.

Public Impact

The Department of Defense benefits from enhanced tactical training capabilities for its forces. Service members receive improved training scenarios and systems, contributing to operational readiness. The contract supports the development and maintenance of advanced simulation and training technologies. The geographic impact is likely focused on military training installations where these systems are deployed. Workforce implications include employment for engineers, technicians, and support staff at SAIC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit.
Long contract duration (over 14 years) may indicate potential for scope creep or evolving requirements that were not fully defined initially.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the support provided.
Reliance on a single large contractor (SAIC) for such a critical system could pose risks if contractor performance degrades or if they face financial instability.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should drive value.
The sustained award over a long period suggests consistent performance and satisfaction with the contractor's services.
The contract supports critical defense training systems, directly contributing to national security readiness.
Engineering services are specialized and essential for maintaining complex, high-tech training environments.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related training systems. The market for defense simulation and training is substantial, driven by the need for realistic and cost-effective training solutions. Companies like SAIC are key players in this sector, providing advanced technological solutions. Comparable spending benchmarks would involve looking at other large-scale simulation and training system support contracts within the DoD and other defense agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While SAIC is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting is not detailed here, but large prime contracts often have subcontracting plans that aim to include small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The CPFF contract type necessitates close monitoring of costs and progress to ensure value for money. Transparency is generally maintained through contract reporting mechanisms, though specific details on oversight activities are not provided.

Related Government Programs

Tactical Training Systems
Simulation and Training
Defense Engineering Services
Cost Plus Fixed Fee Contracts
Department of Defense Procurement

Risk Flags

Long contract duration may indicate potential for cost overruns or evolving requirements.
CPFF contract type requires diligent oversight to ensure cost control.
Lack of specific performance metrics hinders detailed value assessment.
Potential for technology obsolescence over the contract's extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. BATTLE FORCE TACTICAL TRAINING SYSTEM 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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $65.1 million.

What is the period of performance?

Start: 2009-07-02. End: 2024-01-25.

What is the historical spending trend for the BATTLE FORCE TACTICAL TRAINING SYSTEM SUPPORT contract over its lifespan?

The provided data indicates a total award value of $65,013,118.88 for the BATTLE FORCE TACTICAL TRAINING SYSTEM SUPPORT contract, awarded to Science Applications International Corporation (SAIC). This contract has a long duration, spanning from July 2, 2009, to January 25, 2024, totaling over 14 years. While the total value is substantial, the data does not provide a year-over-year spending breakdown. However, the consistent award and long duration suggest a steady demand for these services. The contract was issued as a Delivery Order (aw: DELIVERY ORDER), implying it was part of a larger contract vehicle, and the specific spending per year would depend on the task orders issued under this vehicle. Without access to the detailed task order history, a precise spending trend analysis is not possible, but the overall value points to significant and sustained investment in this training system support.

How does the Cost Plus Fixed Fee (CPFF) pricing structure of this contract potentially impact cost control and contractor incentives?

The Cost Plus Fixed Fee (CPFF) pricing structure means the contractor (SAIC) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for complex services or research and development where the scope or costs are difficult to estimate precisely upfront. For cost control, CPFF can be challenging because the contractor has less incentive to minimize costs, as their profit (the fixed fee) remains constant regardless of the final cost. In fact, if costs increase, the contractor's profit margin (as a percentage of total cost) decreases, but their absolute profit remains the same. This can create an incentive for contractors to incur higher costs, potentially leading to cost overruns if not rigorously overseen. Effective oversight by the government, including detailed cost auditing and performance monitoring, is crucial to mitigate these risks and ensure the government receives good value.

What is the significance of the contract being awarded as a Delivery Order under a larger contract vehicle?

Awarding this contract as a Delivery Order (DO) under a larger contract vehicle, such as a Multiple Award Schedule (MAS) or Indefinite Delivery/Indefinite Quantity (IDIQ) contract, signifies that the BATTLE FORCE TACTICAL TRAINING SYSTEM SUPPORT services were procured through a pre-competed framework. This approach streamlines the acquisition process for specific services or products. The initial competition occurred when the larger contract vehicle was established, allowing multiple vendors to be awarded spots. Individual Delivery Orders are then issued for specific needs, often with further competition or based on pre-negotiated terms and pricing. This method can lead to faster delivery times and potentially better pricing due to the initial competition and established terms. For taxpayers, it means the government leverages existing agreements, potentially reducing administrative burden and ensuring competitive pricing established during the initial vehicle award.

What are the potential risks associated with a contract of this duration (over 14 years) for specialized engineering services?

A contract duration exceeding 14 years for specialized engineering services, like the BATTLE FORCE TACTICAL TRAINING SYSTEM SUPPORT, presents several potential risks. Firstly, technology obsolescence is a significant concern; the systems and technologies involved may become outdated over such a long period, requiring costly upgrades or replacements. Secondly, requirements drift is common; the initial needs may evolve considerably, leading to scope creep and potentially increased costs if not managed through formal contract modifications. Thirdly, contractor performance can degrade over time, or the contractor might face financial instability, impacting service delivery. Lastly, maintaining consistent oversight and ensuring continued value for money becomes more challenging over extended periods. The government must actively manage these risks through regular performance reviews, contract renegotiations, and potentially re-competition to ensure the services remain relevant and cost-effective.

How does the NAICS code 541330 (Engineering Services) inform our understanding of the contract's scope and the contractor's role?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' indicates that the primary function of this contract involves providing professional engineering expertise. This typically includes activities such as design, development, consulting, analysis, and testing of systems. For the BATTLE FORCE TACTICAL TRAINING SYSTEM SUPPORT contract, this means SAIC is likely involved in the engineering aspects of the training systems, which could range from designing new training scenarios, maintaining the integrity of simulation software, analyzing system performance, to providing technical support and upgrades. This classification highlights the highly technical and specialized nature of the services required, emphasizing the need for skilled engineering personnel and a deep understanding of complex defense training technologies. It suggests the contractor's role is critical in ensuring the functionality, effectiveness, and potentially the evolution of the training systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3082

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: $71,872,752

Exercised Options: $71,872,752

Current Obligation: $65,081,312

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4143

IDV Type: IDC

Timeline