DoD's $198.7M R&D contract with SAIC shows strong competition and positive contractor performance
Contract Overview
Contract Amount: $198,739,846 ($198.7M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2013-08-29
End Date: 2017-01-31
Contract Duration: 1,251 days
Daily Burn Rate: $158.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: LABOR HOURS
Sector: R&D
Official Description: IGF::CT::IGF EXERCISE OPTION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $198.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CT::IGF EXERCISE OPTION Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. SAIC has a strong track record, suggesting reliable performance. 3. The contract duration of 1251 days points to a significant, long-term requirement. 4. Spending is concentrated in Alabama, potentially boosting the local economy. 5. The contract type (delivery order) suggests flexibility in tasking and execution. 6. Research and Development focus aligns with strategic defense objectives.
Value Assessment
Rating: good
While specific value-for-money metrics are not provided, the contract's award through full and open competition suggests competitive pricing was achieved. Benchmarking against similar R&D contracts would provide further insight into the pricing's reasonableness. The significant dollar value indicates a substantial investment in research and development capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The number of bidders is not specified, but the open competition itself is a positive indicator for price discovery.
Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it increases the likelihood of securing services at the best possible price and quality.
Public Impact
The primary beneficiary is the Department of Defense, which gains access to advanced R&D services. Services delivered likely include scientific research, engineering analysis, and technology development. Geographic impact is concentrated in Alabama, where the contract work is performed. Workforce implications may include employment opportunities for scientists, engineers, and technical staff in Alabama.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded via full and open competition, suggesting a fair and competitive process.
- Contractor, Science Applications International Corporation (SAIC), is a well-established entity in the defense sector.
- The contract is a delivery order, indicating a structured approach to fulfilling specific requirements.
- The contract duration suggests a sustained need for the services provided.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is critical for maintaining technological superiority and advancing national security capabilities. Comparable spending in this area often involves significant investments by government agencies to foster innovation and develop next-generation technologies. The market for R&D services is competitive, with many firms vying for government contracts.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, SAIC, may engage small businesses as subcontractors depending on their own procurement strategies and the specific needs of the R&D tasks.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army, under the broader Department of Defense. Accountability measures are inherent in the contract's delivery order structure, requiring SAIC to meet specific performance standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.
Related Government Programs
- Department of Defense Research and Development Contracts
- Science and Technology Support Services
- Engineering and Technical Services
Risk Flags
- Potential for cost overruns in long-term R&D projects.
- Risk of technological obsolescence during the contract period.
- Dependency on contractor's specialized expertise and innovation.
Tags
defense, department-of-defense, science-applications-international-corporation, research-and-development, delivery-order, full-and-open-competition, alabama, labor-hours, large-contract, multi-year
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $198.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CT::IGF EXERCISE OPTION
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 $198.7 million.
What is the period of performance?
Start: 2013-08-29. End: 2017-01-31.
What is the track record of Science Applications International Corporation (SAIC) with the Department of Defense?
Science Applications International Corporation (SAIC) is a major government contractor with a long history of serving the Department of Defense (DoD) and other federal agencies. They specialize in a wide range of services, including IT, engineering, cybersecurity, and research and development. SAIC has consistently secured significant contracts across various military branches and defense agencies. Their performance history with the DoD is generally robust, marked by experience in complex, large-scale projects. However, like any large contractor, they may have faced scrutiny or performance issues on specific contracts, which would be detailed in contract performance reports and agency evaluations. A comprehensive review would involve examining past performance reviews, any contract disputes, and their overall financial health as reported in public filings.
How does the value of this contract compare to similar R&D contracts awarded by the DoD?
The $198.7 million value of this contract is substantial, placing it in the upper tier of R&D awards. To benchmark its value, one would compare it to other R&D contracts awarded by the Department of the Army or the DoD for similar scientific and engineering services, particularly those focused on physical, engineering, and life sciences. Factors such as contract duration, scope of work, and the specific technologies or research areas involved are crucial for a meaningful comparison. Contracts of this magnitude often support long-term strategic research initiatives. A detailed comparison would require analyzing contract databases for awards with similar North American Industry Classification System (NAICS) codes (e.g., 541710) and similar service descriptions, looking at average award values and the range of spending for comparable projects.
What are the primary risks associated with a contract of this nature and duration?
Contracts for Research and Development (R&D) over a multi-year period, like this 1251-day award, carry inherent risks. Key risks include technological obsolescence, where the research outcomes may become outdated before completion or application. There's also the risk of cost overruns if research proves more complex or expensive than initially estimated. Performance risk is another factor; the contractor may not achieve the desired research breakthroughs or meet technical specifications. Furthermore, changes in government priorities or funding can impact the contract's continuation or scope. For a contract of this size, ensuring effective project management, clear communication channels, and robust oversight are critical to mitigating these risks.
What does the 'Research and Development in the Physical, Engineering, and Life Sciences' category entail for the DoD?
This category encompasses a broad spectrum of scientific and technical activities aimed at advancing the DoD's capabilities. 'Physical sciences' might include research in areas like materials science, physics, and chemistry relevant to defense applications. 'Engineering sciences' would cover areas such as aerospace, mechanical, electrical, and systems engineering for developing new defense technologies, platforms, and infrastructure. 'Life sciences' research could involve areas like biomedical advancements for soldier health and performance, or biological defense research. The overarching goal is to foster innovation, solve complex technical challenges, and develop cutting-edge technologies that provide a strategic advantage to the U.S. military.
How has federal spending in the R&D sector, particularly for the Department of Defense, trended in recent years?
Federal spending in the Research and Development (R&D) sector, especially within the Department of Defense (DoD), has historically been a significant portion of the federal budget, driven by national security imperatives. In recent years, there has been a continued emphasis on R&D to counter evolving threats and maintain technological superiority. Key focus areas often include artificial intelligence, cybersecurity, hypersonics, quantum computing, and advanced materials. While overall R&D spending can fluctuate based on geopolitical events and budget priorities, the DoD consistently advocates for robust R&D investment. Analyzing historical spending patterns would reveal trends in specific R&D sub-categories and the allocation of funds across different research institutions and contractors.
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: LABOR HOURS (Z)
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: $199,521,160
Exercised Options: $199,519,401
Current Obligation: $198,739,846
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q05A0031
IDV Type: IDC
Timeline
Start Date: 2013-08-29
Current End Date: 2017-01-31
Potential End Date: 2017-01-31 12:01:00
Last Modified: 2023-04-25
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