DoD's $340M R&D Contract with SAIC Extended, Exercising Options for New Task Order
Contract Overview
Contract Amount: $340,712,643 ($340.7M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2015-07-10
End Date: 2018-08-20
Contract Duration: 1,137 days
Daily Burn Rate: $299.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: IGF::CT::IGF EXERCISE OPTIONS, NEW TASK ORDER NUMBER REQUIRED FOR ADMINISTRATIVE PURPOSES AS 0037 RAN OUT OF ACRNS.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $340.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CT::IGF EXERCISE OPTIONS, NEW TASK ORDER NUMBER REQUIRED FOR ADMINISTRATIVE PURPOSES AS 0037 RAN OUT OF ACRNS. Key points: 1. Contract value exceeds $340 million, primarily for R&D services. 2. SAIC is a major defense contractor, indicating significant market presence. 3. Potential risks include scope creep and vendor lock-in for extended periods. 4. Spending is concentrated in the Research and Development sector.
Value Assessment
Rating: fair
The contract value is substantial, but specific pricing details for the exercised options are not provided. Benchmarking against similar R&D contracts with SAIC or other large firms would be necessary for a full assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the extension through option exercises may limit future price discovery if not re-competed.
Taxpayer Impact: Taxpayer funds are being utilized for R&D services. The value suggests significant investment, and ensuring cost-effectiveness is crucial for maximizing taxpayer benefit.
Public Impact
Supports critical research and development initiatives for the Department of Defense. Ensures continuity of essential services by extending the contract with a known provider. Potential for technological advancements and innovation stemming from the R&D work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on cost increases with option exercises.
- Long-term reliance on a single contractor for R&D.
Positive Signals
- Awarded through full and open competition.
- Contract supports vital R&D efforts.
Sector Analysis
This contract falls within the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences. Spending in this area is critical for national security and technological advancement, often involving significant investment.
Small Business Impact
The contract was awarded to Science Applications International Corporation (SAIC), a large business. There is no indication of small business participation in this specific contract award or option exercise.
Oversight & Accountability
Oversight is managed by the Department of the Army. The need for a new task order number due to administrative limits suggests active contract management, but detailed oversight of the R&D execution is not specified.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns in extended R&D projects.
- Risk of vendor lock-in limiting future competition.
- Dependence on a single contractor for critical R&D functions.
- Lack of transparency on specific cost increases for option exercises.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $340.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CT::IGF EXERCISE OPTIONS, NEW TASK ORDER NUMBER REQUIRED FOR ADMINISTRATIVE PURPOSES AS 0037 RAN OUT OF ACRNS.
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 $340.7 million.
What is the period of performance?
Start: 2015-07-10. End: 2018-08-20.
What is the specific cost breakdown for the exercised options and how does it compare to the original contract pricing?
The provided data does not detail the cost breakdown for the exercised options. A thorough review would require access to the contract modifications and task order details. Comparing these costs to the original contract's pricing structure and industry benchmarks for similar R&D services is essential to assess value for money.
What are the key performance indicators (KPIs) for the R&D work under this contract, and how is SAIC's performance being measured?
Key performance indicators and specific performance measurement metrics for the R&D work are not detailed in the provided summary. Effective oversight requires clearly defined KPIs tied to research milestones, deliverables, and innovation outcomes. Regular performance reviews against these metrics are crucial to ensure the contractor is meeting objectives and delivering value.
How does the continuation of this contract impact the agency's ability to explore alternative R&D solutions or contractors in the future?
Extending the contract with SAIC, even through option exercises, may limit the agency's agility in exploring alternative R&D solutions or engaging new contractors. While continuity is beneficial, agencies should periodically assess the market and consider re-competition strategies to ensure they are leveraging the best available capabilities and competitive pricing.
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: $341,848,320
Exercised Options: $340,712,643
Current Obligation: $340,712,643
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q05A0031
IDV Type: IDC
Timeline
Start Date: 2015-07-10
Current End Date: 2018-08-20
Potential End Date: 2018-08-20 12:08:00
Last Modified: 2025-09-25
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