DoD awards $59M engineering services contract to Science Applications International Corp. over 14 years

Contract Overview

Contract Amount: $59,070,639 ($59.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2009-09-18

End Date: 2024-01-25

Contract Duration: 5,242 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FOURTH OPTION YEAR - LOT V TAS::97 0100::TAS

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $59.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: FOURTH OPTION YEAR - LOT V TAS::97 0100::TAS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract spans over 14 years, indicating a long-term need for engineering services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The award is a delivery order under a larger contract vehicle. 5. The contractor has a significant tenure on this contract, spanning from 2009 to 2024. 6. The contract value is substantial, reflecting significant engineering support requirements.

Value Assessment

Rating: good

The contract value of approximately $59 million over 14 years averages to about $4.2 million annually. Benchmarking this against similar large-scale engineering services contracts for the Department of Defense is challenging without more specific service details. However, the long duration and fixed-price nature suggest a potentially stable and predictable cost structure for the government, assuming the scope of work remained consistent. The absence of specific performance metrics or cost-overrun data makes a definitive value-for-money assessment difficult, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the competitive nature of the award process is generally expected to drive better pricing and service offerings. The use of a delivery order under a larger contract vehicle suggests that the initial competition for the base contract was robust.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, ultimately leading to better value for public funds.

Public Impact

The Department of Defense benefits from specialized engineering services essential for its operations. The contract supports critical defense infrastructure and technological development. The geographic impact is likely national, given the scope of DoD operations. The contract supports a workforce skilled in engineering and technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential complacency or reduced incentive for innovation if not actively managed.
Fixed-price contracts can sometimes lead to scope creep issues if not clearly defined and managed.
Reliance on a single contractor for an extended period might limit exposure to newer technologies or approaches.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Long-term contract suggests a consistent and reliable service provider.
Fixed-price contract provides cost predictability for the government.
The contractor has a proven track record with this specific contract over many years.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the professional, scientific, and technical services industry. This sector supports a wide range of government and private sector needs, including design, consulting, and project management. The market for defense engineering services is substantial, with significant government spending allocated annually. This contract represents a portion of that spending, likely supporting specialized defense-related engineering requirements.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Science Applications International Corporation, may engage small businesses as subcontractors to fulfill portions of the contract requirements, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor performance, compliance with contract terms, and proper payment. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Department of Defense IT Services
Professional, Scientific, and Technical Services
Defense Contract Management Agency Contracts

Risk Flags

Long contract duration may reduce flexibility and responsiveness to evolving needs.
Fixed-price contract type could lead to contractor cost pressures if scope is not well-defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. FOURTH OPTION YEAR - LOT V TAS::97 0100::TAS

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 $59.1 million.

What is the period of performance?

Start: 2009-09-18. End: 2024-01-25.

What is the historical spending trend for this specific contract over its 14-year duration?

The provided data summarizes the total award value of $59,070,639.12 for the entire contract period, which spans from September 18, 2009, to January 25, 2024. To determine the historical spending trend, one would need access to the individual delivery order data or annual expenditure reports associated with this contract. Without this granular data, it's impossible to ascertain if spending has been consistent year-over-year, if there were periods of higher or lower expenditure, or if the spending aligned with the phased delivery of services. A detailed analysis would require examining the disbursement records to understand the spending trajectory and identify any significant fluctuations that might indicate changes in service requirements or contract modifications.

How does the average annual cost of this contract compare to similar engineering services contracts awarded by the DoD?

The average annual cost for this contract is approximately $4.2 million ($59 million / 14 years). Comparing this to similar engineering services contracts requires access to a benchmark database of DoD contracts within the same NAICS code (541330) and for comparable service complexity and duration. Factors such as the specific engineering disciplines required (e.g., mechanical, electrical, systems engineering), the level of security clearance needed, and the geographic location of service delivery significantly influence pricing. Without a direct comparison dataset, it's difficult to definitively state whether $4.2 million annually is high, low, or average. However, for large-scale, long-term engineering support within the defense sector, this figure appears within a plausible range, especially considering the potential for specialized expertise and the contractor's established tenure.

What are the specific engineering services provided under this contract, and how are they critical to DoD operations?

The provided data identifies the contract as being for 'Engineering Services' under NAICS code 541330, but it does not detail the specific types of engineering support rendered. These services could encompass a wide range, including but not limited to systems engineering, design and development, technical analysis, testing and evaluation, logistics support, or program management. Given the Department of Defense as the agency, these services are likely critical for the development, maintenance, modernization, and operational readiness of military platforms, weapon systems, infrastructure, and command and control systems. The long duration and substantial value suggest that these services are foundational to ongoing DoD missions and strategic objectives, potentially supporting complex projects or sustained operational requirements.

What is Science Applications International Corporation's (SAIC) track record with this specific contract and similar DoD contracts?

Science Applications International Corporation (SAIC) has been the incumbent contractor for this specific delivery order since its inception in 2009, indicating a long-standing relationship and likely successful performance over the 14-year period. This extensive tenure suggests a strong track record in delivering the required engineering services to the satisfaction of the contracting agency. SAIC is a major defense contractor with a broad portfolio of services across various DoD branches and agencies. Their history includes numerous large, complex contracts involving engineering, IT, logistics, and systems integration. While specific performance ratings for this contract aren't provided, their continued award and execution over such a long period imply a generally positive performance history and a deep understanding of DoD requirements.

Are there any identified risks associated with this contract, such as cost overruns, schedule delays, or performance deficiencies?

The provided data does not explicitly list any specific risks such as cost overruns, schedule delays, or performance deficiencies associated with this contract. However, any long-term, high-value contract inherently carries potential risks. For this contract, potential risks could include scope creep if requirements evolve significantly over the 14 years without proper change management, potential for schedule slippage if unforeseen technical challenges arise, or performance issues if the contractor's resources or expertise become misaligned with evolving needs. The fixed-price nature can mitigate cost overrun risks for the government but might strain the contractor if costs escalate unexpectedly. Active contract management, clear performance metrics, and regular oversight by the DCMA are crucial for mitigating these potential risks throughout the contract's lifecycle.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6523608R0029

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $59,070,639

Exercised Options: $59,070,639

Current Obligation: $59,070,639

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523608D2837

IDV Type: IDC

Timeline