DoD's $370M+ R&D contract with SAIC shows long-term engagement for technical services
Contract Overview
Contract Amount: $370,558,428 ($370.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2008-01-09
End Date: 2020-01-30
Contract Duration: 4,404 days
Daily Burn Rate: $84.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: TECHNICAL SERVICE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $370.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TECHNICAL SERVICE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long contract duration (over 12 years) indicates a sustained need for these services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The contract falls under Research and Development, a critical area for technological advancement. 5. SAIC has a significant presence in the federal contracting space, particularly for technical services. 6. The contract value suggests a substantial investment in specialized technical expertise.
Value Assessment
Rating: good
The total value of over $370 million across more than 12 years indicates a significant, long-term investment. Benchmarking this against similar large-scale R&D contracts for technical services is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to control costs. The average annual spend is approximately $30 million, which appears reasonable for complex R&D technical support over an extended period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, implying that all responsible sources were permitted to submit bids. The presence of 3 delivery orders suggests multiple taskings under this contract. While the number of bidders isn't specified, full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of contractors to vie for government work, potentially driving down costs.
Public Impact
The Department of Defense benefits from sustained access to specialized technical services crucial for research and development initiatives. This contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies and capabilities. The services likely impact national security by enhancing the technological edge of the armed forces. Workforce implications include employment opportunities for scientists, engineers, and technical specialists within SAIC and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term nature of the contract could lead to contractor lock-in, potentially reducing future competition.
- The broad scope of 'technical services' might obscure specific performance metrics and value for money.
- Reliance on a single large contract for critical R&D support could pose a risk if contractor performance falters.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the government.
- Full and open competition suggests a robust initial selection process.
- The extended duration indicates a consistent and valued service delivery by the contractor.
- SAIC's established presence in federal contracting suggests experience and capability in delivering complex technical services.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The federal R&D market is substantial, with significant investments made annually across various agencies to foster innovation and maintain technological superiority. Contracts like this are essential for outsourcing specialized expertise that may not be readily available in-house, enabling agencies to pursue cutting-edge projects. Comparable spending benchmarks would depend heavily on the specific nature of the technical services provided.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false) and does not specify subcontracting goals. Given the large contract value and the nature of advanced technical services, it's possible that larger prime contractors like SAIC may engage small businesses for specialized support, but this is not explicitly detailed. Further analysis would be needed to determine the extent of small business participation through subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. The firm fixed-price nature provides some cost control. Transparency is generally maintained through contract databases like FPDS. Specific Inspector General (IG) involvement would depend on performance issues, fraud allegations, or specific audit triggers. Accountability is tied to meeting the terms and conditions of the delivery orders under the contract.
Related Government Programs
- Department of Defense Research and Development Contracts
- Science and Technology Support Services
- Engineering and Technical Consulting Services
- Federal IT and Engineering Services
Risk Flags
- Long contract duration may limit future competition.
- Broad 'technical services' scope could obscure specific performance metrics.
- Potential for contractor lock-in due to sustained engagement.
Tags
defense, department-of-defense, department-of-the-army, research-and-development, technical-services, firm-fixed-price, full-and-open-competition, science-applications-international-corporation, virginia, large-contract, multi-year
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $370.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TECHNICAL SERVICE
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 $370.6 million.
What is the period of performance?
Start: 2008-01-09. End: 2020-01-30.
What specific technical services are encompassed by this contract, and how do they align with current DoD R&D priorities?
The contract, NAICS code 541710, covers 'Research and Development in the Physical, Engineering, and Life Sciences.' While the data doesn't detail the specific services, this broad category suggests support for a wide range of scientific and engineering endeavors. This could include areas like materials science, advanced manufacturing, cybersecurity research, biotechnology, aerospace engineering, and more. To assess alignment with current DoD R&D priorities, one would need to examine the specific delivery orders issued under this contract and compare them against the latest DoD Science and Technology Strategy documents and budget justifications. For instance, if recent delivery orders focus on AI/ML in engineering or advanced materials for defense applications, they would align with high-priority areas.
How does the total contract value of $370M+ compare to other large R&D contracts awarded by the DoD in similar categories?
A total value exceeding $370 million over approximately 12 years places this contract among significant long-term R&D investments. To benchmark effectively, we would need to compare it against other contracts under NAICS code 541710 or similar R&D codes awarded by the DoD or other agencies. For example, comparing the average annual spend of roughly $30 million to the average annual spend of other large, multi-year R&D contracts would provide context. Contracts supporting major defense programs or foundational research initiatives often reach similar or higher values. Without specific comparable contract data, it's difficult to definitively state if $370M+ is high or low, but it signifies a substantial commitment to the contractor's capabilities over an extended period.
What is Science Applications International Corporation's (SAIC) track record with similar large-scale R&D contracts for the Department of Defense?
SAIC has a well-established track record as a major federal contractor, particularly within the DoD, providing a wide array of technical, engineering, and IT services. They frequently win large, complex contracts, including those in the R&D space. Their history includes numerous contracts supporting scientific research, systems engineering, and advanced technology development for various military branches. Analyzing SAIC's past performance ratings, any past performance issues or awards on similar contracts, and their overall financial stability would provide a clearer picture of their capabilities and reliability for this specific R&D contract. Their extensive experience suggests a high likelihood of possessing the necessary expertise and infrastructure.
Given the firm fixed-price (FFP) contract type, what are the potential risks and benefits for the government regarding cost control and scope management?
The Firm Fixed Price (FFP) contract type offers significant benefits for cost control, as the contractor assumes most of the risk for cost overruns. The government knows the total cost upfront, simplifying budgeting and financial planning. This is advantageous for well-defined R&D efforts where the scope is clear. However, a key risk with FFP, especially in R&D, is that if the scope is not perfectly defined or if unforeseen technical challenges arise, the contractor might be incentivized to cut corners on quality or scope to maintain profitability. Conversely, if the contractor is highly efficient, the government benefits from the fixed price without paying for contractor efficiencies. Effective management and clear statement of work are crucial to mitigate risks.
How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) sector evolved over the life of this contract (2008-2020)?
Federal spending within NAICS 541710, encompassing R&D across physical, engineering, and life sciences, has generally seen fluctuations but maintained a significant overall level, particularly driven by defense and health agencies. During the contract's lifespan (2008-2020), this period included the aftermath of the 2008 financial crisis, sequestration, and subsequent budget adjustments. Defense R&D spending, a major component, often aligns with national security priorities and technological advancements. Life sciences R&D, boosted by health initiatives, also saw growth. Analyzing specific annual federal outlays for 541710 would reveal trends, potentially showing increased investment during periods of heightened geopolitical tension or technological focus, and possible constraints during fiscal austerity measures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $370,558,428
Exercised Options: $370,558,428
Current Obligation: $370,558,428
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q05A0031
IDV Type: IDC
Timeline
Start Date: 2008-01-09
Current End Date: 2020-01-30
Potential End Date: 2020-01-30 12:01:00
Last Modified: 2024-09-17
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