DoD's $188.7M R&D contract with SAIC shows mixed value, with potential for better pricing
Contract Overview
Contract Amount: $188,667,166 ($188.7M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2010-07-21
End Date: 2013-12-31
Contract Duration: 1,259 days
Daily Burn Rate: $149.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: BASE AWARD
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $188.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: BASE AWARD Key points: 1. Value for money appears fair, with a significant award amount but limited data on performance outcomes. 2. Competition dynamics were strong initially, but the specific delivery order's competitive landscape is unclear. 3. Risk indicators are moderate, with a long contract duration and a large prime contractor. 4. Performance context is limited to R&D in physical, engineering, and life sciences. 5. Sector positioning is within the broad R&D category, with specific application in defense research. 6. The contract's fixed-price nature offers some cost certainty, but the overall value proposition requires deeper analysis.
Value Assessment
Rating: fair
The $188.7 million award to Science Applications International Corporation (SAIC) for R&D services represents a substantial investment. Benchmarking this against similar large-scale R&D contracts is challenging without more granular performance data. However, the firm-fixed-price structure suggests a degree of cost control. Further analysis would be needed to determine if the outcomes achieved justify the expenditure compared to alternative R&D investments or contractors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation to qualified offerors. While the initial award was competitive, the specifics of competition for this particular delivery order are not detailed. A robust competitive process generally leads to better price discovery and potentially lower costs for the government. The extent of competition for subsequent task orders or modifications would be a key factor in assessing ongoing value.
Taxpayer Impact: Full and open competition at the outset suggests taxpayers benefited from a potentially wider range of innovative solutions and competitive pricing. However, the long-term value depends on sustained competition throughout the contract's life.
Public Impact
The primary beneficiaries are the Department of Defense and its research initiatives, advancing scientific and technological capabilities. Services delivered fall under research and development in physical, engineering, and life sciences, supporting national security objectives. The geographic impact is primarily within the United States, supporting defense research infrastructure and potentially leading to advancements with national reach. Workforce implications include employment for scientists, engineers, and support staff within SAIC and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term R&D projects, impacting final costs.
- Dependence on a single large prime contractor could limit flexibility and innovation.
- Measuring the tangible return on investment for pure R&D can be inherently difficult.
Positive Signals
- Awarded through full and open competition, suggesting a competitive initial pricing environment.
- Firm-fixed-price contract type provides cost certainty for the base award.
- SAIC is a large, established contractor with significant experience in government R&D.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization and technological superiority. The market for R&D services is highly competitive, with numerous large and small businesses vying for government contracts. Comparable spending benchmarks would involve looking at other large-scale, multi-year R&D efforts within the Department of Defense and other federal agencies.
Small Business Impact
While this contract was awarded to a large prime contractor (SAIC) and there is no indication of a small business set-aside, large prime contracts often have subcontracting requirements. SAIC's adherence to small business subcontracting goals would be a key factor in assessing the impact on the small business ecosystem. Without specific subcontracting plans or performance data, it's difficult to quantify the direct benefit to small businesses from this particular award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting agency (Department of the Army) through contract officers and technical representatives. Accountability measures would be tied to the delivery of R&D milestones and deliverables outlined in the contract. Transparency is generally facilitated through contract databases like FPDS, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Research and Development Programs
- Science and Technology Reinvention Laboratory (STRL) Programs
- Advanced Technology Development Contracts
- Federal R&D Spending
Risk Flags
- Long contract duration may increase risk of cost overruns or obsolescence.
- Limited public data on specific performance outcomes makes value assessment challenging.
- Potential for contractor lock-in if competition diminishes in subsequent phases.
Tags
department-of-defense, department-of-the-army, research-and-development, science-applications-international-corporation, firm-fixed-price, full-and-open-competition, delivery-order, virginia, large-contract, naics-541710
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $188.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. BASE AWARD
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 $188.7 million.
What is the period of performance?
Start: 2010-07-21. End: 2013-12-31.
What is SAIC's track record with similar large-scale R&D contracts for the Department of Defense?
Science Applications International Corporation (SAIC) has a long history of performing large-scale research and development contracts for the Department of Defense and other federal agencies. They are a major government contractor with extensive experience across various scientific and engineering disciplines. Analyzing SAIC's past performance on similar contracts would involve reviewing contract awards, performance evaluations (if available), and any documented issues or successes. This specific contract, valued at approximately $188.7 million, indicates a significant level of trust and capability demonstrated by the Army. However, a deeper dive into their specific R&D portfolio, including project success rates, adherence to timelines, and budget management on comparable projects, would provide a more comprehensive understanding of their track record.
How does the value of this contract compare to other R&D investments made by the Department of the Army in the physical, engineering, and life sciences during the award period?
The $188.7 million award to SAIC represents a substantial R&D investment. To benchmark its value, one would need to compare it against the Army's total R&D spending during the contract's performance period (2010-2013). This would involve analyzing the Army's budget allocations for R&D across different scientific domains. If this contract constituted a significant portion of the Army's R&D budget for these specific fields, it suggests a strategic focus. Conversely, if it was one of many similar-sized awards, it might indicate a more distributed approach to R&D procurement. Without access to the Army's detailed R&D expenditure reports for that period, a precise comparison is difficult, but the award size itself points to a significant commitment to the contracted R&D areas.
What are the key performance indicators (KPIs) or milestones associated with this R&D contract, and how was SAIC's performance against them?
Detailed performance indicators and milestones for this specific R&D contract are not publicly available in the provided data. Typically, R&D contracts outline specific research objectives, experimental phases, prototype development targets, and reporting requirements. Performance would be assessed against the successful completion of these defined stages and the quality of the research outcomes. For a contract of this magnitude and duration, KPIs might include achieving specific technological advancements, successful testing of prototypes, or the development of new scientific knowledge. Without access to contract performance reports or milestone completion records, it's impossible to definitively assess SAIC's performance against these unstated KPIs.
What is the potential for innovation and technological advancement stemming from this contract, and how is it being measured?
The potential for innovation and technological advancement from this contract is inherent in its R&D nature, focusing on physical, engineering, and life sciences for the Department of Defense. The specific innovations are likely classified or proprietary, tied to defense applications. Measurement of such advancements is complex and often occurs over the long term, through subsequent technology adoption, fielding of new systems, or scientific publications. The contract itself would likely have provisions for intellectual property rights and reporting on discoveries. However, the direct, quantifiable impact on innovation and its measurement are not detailed in the summary data.
How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) category trended over the past decade, and where does this contract fit?
Federal spending in NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) has generally seen fluctuations but has remained a significant portion of the federal R&D budget, particularly driven by defense and health agencies. Over the past decade, there has been a consistent demand for innovation in these fields to maintain technological superiority and address national challenges. This $188.7 million contract awarded in 2010 fits within this trend as a substantial, but not unprecedented, investment in defense-related R&D. It represents one component of the broader federal commitment to advancing scientific knowledge and its application within these critical domains.
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
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: $188,678,028
Exercised Options: $188,667,166
Current Obligation: $188,667,166
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q05A0031
IDV Type: IDC
Timeline
Start Date: 2010-07-21
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 12:12:00
Last Modified: 2024-02-27
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