GSA awards $390M engineering services contract to Science Applications International Corp. for battlefield systems

Contract Overview

Contract Amount: $389,951,492 ($390.0M)

Contractor: Science Applications International Corporation

Awarding Agency: General Services Administration

Start Date: 2017-10-06

End Date: 2022-11-30

Contract Duration: 1,881 days

Daily Burn Rate: $207.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BATTLEFIELD SYSTEMS ENGINEERING SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

General Services Administration obligated $390.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: BATTLEFIELD SYSTEMS ENGINEERING SERVICES Key points: 1. Contract value of $390M over 5 years suggests significant investment in specialized engineering. 2. Full and open competition indicates a broad market search for qualified bidders. 3. Cost Plus Fixed Fee pricing structure may incentivize cost overruns if not closely monitored. 4. Engineering services are critical for defense modernization and operational readiness. 5. The contract's duration of 1881 days points to a long-term need for these services. 6. Awarded by GSA's Federal Acquisition Service, suggesting a centralized procurement approach.

Value Assessment

Rating: good

The contract value of approximately $390 million over nearly five years for engineering services is substantial. Benchmarking against similar large-scale engineering support contracts is difficult without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex R&D or services where costs are uncertain, carries inherent risks of cost escalation. The fixed fee component provides some incentive for the contractor to manage costs, but rigorous oversight is crucial to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the General Services Administration sought proposals from all responsible sources. The presence of two bids indicates a competitive environment, though the exact number of proposals received is not detailed. A limited number of bidders, even under full and open competition, can sometimes suggest a specialized market or high barriers to entry.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential contractors to bid, which can lead to more competitive pricing and innovative solutions.

Public Impact

The primary beneficiaries are likely the Department of Defense or other agencies requiring advanced battlefield systems engineering. Services delivered include critical engineering support for the development, integration, and sustainment of complex battlefield technologies. Geographic impact is likely national, supporting defense initiatives across various operational theaters. Workforce implications include employment for highly skilled engineers, scientists, and technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed effectively.
Limited competition (2 bidders) may not represent the full market potential and could impact price discovery.
Long contract duration (1881 days) requires sustained oversight to ensure continued value and relevance.

Positive Signals

Awarded through full and open competition, maximizing potential contractor pool.
Science Applications International Corporation is a large, established defense contractor with significant experience.
Engineering services are crucial for national security and technological advancement.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense and technology industry. The market for specialized battlefield systems engineering is highly concentrated, with a few large prime contractors dominating. Spending in this area is driven by the need for continuous technological advancement in defense capabilities. Comparable spending benchmarks would typically be found within large defense procurement programs requiring similar levels of technical expertise and system integration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to Science Applications International Corporation, a major defense contractor, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or prioritized unless specifically included in the contract terms. This could limit the direct impact on the small business defense ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA) and the contracting agency utilizing the services. The Federal Acquisition Service (FAS) within GSA is responsible for managing many of its contracts. Accountability measures are typically embedded within the contract's performance work statement and payment terms. Transparency is generally maintained through contract award databases, though detailed performance metrics may be less public.

Related Government Programs

Defense Engineering Services
Battlefield Technology Development
Systems Integration Contracts
General Services Administration Procurement
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns.
Limited number of bidders (2) may indicate a concentrated market or barriers to entry.
Contract duration is long, requiring sustained vigilance for performance and value.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $390.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. BATTLEFIELD SYSTEMS ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $390.0 million.

What is the period of performance?

Start: 2017-10-06. End: 2022-11-30.

What is the historical spending pattern for Science Applications International Corporation (SAIC) with the General Services Administration (GSA) for engineering services?

Analyzing SAIC's historical spending with GSA for engineering services requires access to detailed federal procurement databases. However, SAIC is a major federal contractor, particularly within the defense and civilian agency sectors, and consistently ranks among the top awardees. Their portfolio typically includes a wide range of services, from IT and cybersecurity to complex engineering and mission support. GSA, as a major contracting vehicle provider, facilitates numerous awards to large contractors like SAIC across various service categories. Without specific data on this contract's predecessors or similar awards to SAIC from GSA, a precise historical spending pattern cannot be established, but it is reasonable to assume SAIC has a significant and ongoing relationship with GSA for engineering and technical services.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are uncertain, such as in research, development, or complex engineering projects. It reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change, but it shifts more cost risk to the government. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF provides a predictable profit margin for the contractor but lacks direct financial incentives for cost savings or exceptional performance. For engineering services, FFP is preferred when requirements are stable and well-understood to ensure the best price, while CPFF is chosen for its flexibility in evolving or uncertain technical environments, albeit with a higher potential cost.

What are the key performance indicators (KPIs) typically associated with battlefield systems engineering services contracts?

Key Performance Indicators (KPIs) for battlefield systems engineering services contracts are designed to measure the contractor's ability to deliver reliable, effective, and timely technical solutions. Common KPIs include system performance metrics (e.g., accuracy, speed, reliability, uptime), adherence to technical specifications and design requirements, successful integration of subsystems, timely delivery of milestones and deliverables, and effectiveness of testing and validation processes. Additionally, KPIs may track the efficiency of engineering processes, the quality of technical documentation, and the contractor's responsiveness to technical issues or changes. For CPFF contracts, KPIs also indirectly monitor cost control by assessing the efficiency with which resources are utilized to achieve performance objectives.

What is the typical duration for large-scale engineering services contracts within the defense sector?

The typical duration for large-scale engineering services contracts within the defense sector can vary significantly based on the project's complexity, scope, and the nature of the technology being developed or supported. Contracts can range from one to five years, with options for extensions that can push the total period of performance to ten years or more for major defense programs. Contracts like this one, with a duration of 1881 days (approximately 5.15 years), are common for programs requiring sustained engineering support, system upgrades, or long-term research and development efforts. Longer durations often reflect the lifecycle of defense systems, which require continuous evolution and maintenance to remain effective against evolving threats.

How does the 'Federal Acquisition Service' designation impact the oversight and management of this contract?

The designation of the 'Federal Acquisition Service' (FAS) within the General Services Administration (GSA) indicates that this contract is managed through GSA's established procurement vehicles and processes. FAS aims to provide efficient and cost-effective acquisition solutions for government agencies. This means the contract likely adheres to GSA's specific regulations, policies, and oversight mechanisms, which are designed to ensure fair and transparent procurement. Oversight typically involves contract administration, performance monitoring, and compliance checks managed by GSA contracting officers. The use of FAS can streamline the procurement process for agencies but also means that oversight is centralized within GSA's framework, potentially differing from direct agency-level contract management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID04160056

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12010, SUNSET HILLS ROAD, 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: $395,372,741

Exercised Options: $395,372,741

Current Obligation: $389,951,492

Actual Outlays: $-12,138

Subaward Activity

Number of Subawards: 140

Total Subaward Amount: $808,875,006

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU329

IDV Type: IDC

Timeline