DoD's $80M CSCS Analytical Services Contract with SAIC Faces Scrutiny for Potential Overpricing
Contract Overview
Contract Amount: $80,272,113 ($80.3M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2010-05-06
End Date: 2031-05-31
Contract Duration: 7,695 days
Daily Burn Rate: $10.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ANALYTICAL SERVICES TOSUPPORT CENTER FOR SURFACE COMBAT SYSTEMS (CSCS)
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $80.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ANALYTICAL SERVICES TOSUPPORT CENTER FOR SURFACE COMBAT SYSTEMS (CSCS) Key points: 1. The contract awarded to Science Applications International Corporation (SAIC) for analytical services to the Center for Surface Combat Systems (CSCS) is substantial at over $80 million. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract duration extends to 2031, indicating a long-term need for these services. 4. The use of Cost Plus Fixed Fee (CPFF) pricing can sometimes lead to cost overruns if not carefully managed. 5. The absence of small business participation is noted.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a long duration and significant value, raises concerns about potential cost inefficiencies. Benchmarking against similar analytical service contracts is difficult without more granular data on the specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the CPFF structure allows for costs to be passed through, potentially mitigating some of the price discovery benefits of competition.
Taxpayer Impact: While competition was present, the CPFF contract type and long duration warrant close monitoring to ensure taxpayer funds are used efficiently and effectively.
Public Impact
Naval combat system development and modernization efforts may be impacted by the effectiveness of these analytical services. Long-term reliance on a single contractor for critical analytical support raises questions about agility and potential vendor lock-in. The significant investment in these services highlights the importance of robust oversight to ensure value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing structure
- Long contract duration extending to 2031
- No small business participation
- Potential for cost overruns
Positive Signals
- Awarded under full and open competition
- Supports critical naval combat systems
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting naval combat systems. Spending benchmarks in this area can vary widely based on the complexity and duration of the systems supported.
Small Business Impact
The contract explicitly states no small business participation. This indicates that the prime contractor, SAIC, is handling the entirety of the work, potentially missing opportunities to leverage specialized small business expertise and support economic diversity.
Oversight & Accountability
Given the long duration and CPFF structure, robust oversight by the Department of the Navy is crucial. This includes regular performance reviews, cost audits, and ensuring adherence to contract terms to prevent cost creep and ensure mission effectiveness.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing
- Long contract duration (until 2031)
- No small business participation
- Potential for cost overruns
- Lack of detailed service description
Tags
engineering-services, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ANALYTICAL SERVICES TOSUPPORT CENTER FOR SURFACE COMBAT SYSTEMS (CSCS)
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 Navy).
What is the total obligated amount?
The obligated amount is $80.3 million.
What is the period of performance?
Start: 2010-05-06. End: 2031-05-31.
How does the actual cost performance of this CPFF contract compare to initial estimates and similar contracts awarded under different pricing structures?
Assessing the actual cost performance requires detailed financial data beyond the contract award value. CPFF contracts inherently allow for cost reimbursement plus a fixed fee, meaning actual costs can fluctuate. A comparison to similar contracts would ideally look at the total contract value, fee percentages, and performance metrics achieved relative to the initial estimated cost.
What specific analytical services are being provided, and how critical are they to the successful development and sustainment of surface combat systems?
The contract supports the Center for Surface Combat Systems (CSCS), implying services related to the analysis of requirements, design, testing, and operational effectiveness of naval surface combat platforms. These services are likely critical for ensuring the Navy's fleet is technologically advanced, mission-capable, and cost-effectively maintained throughout its lifecycle.
Are there mechanisms in place to ensure competitive pricing and value for money throughout the contract's extended duration, despite the CPFF structure?
While the initial award was full and open, the CPFF structure necessitates strong government oversight. Mechanisms should include regular performance reviews, audits of costs incurred, and potentially incentive structures tied to cost savings or performance improvements. The government should also periodically reassess the market to ensure continued value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002410R3036
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: $84,472,975
Exercised Options: $84,472,975
Current Obligation: $80,272,113
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2010-05-06
Current End Date: 2031-05-31
Potential End Date: 2031-05-31 00:00:00
Last Modified: 2025-09-22
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