DoD's $39.6M NAWCAD contract with SAIC for ALRE/EAF support shows potential value concerns
Contract Overview
Contract Amount: $39,647,879 ($39.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2013-10-22
End Date: 2024-01-25
Contract Duration: 3,747 days
Daily Burn Rate: $10.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF PROGRAMMATIC, ENGINEERING, AND LOGISTICS SUPPORT SERVICES TO THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) IN THE SUBJECT MATTER AREAS OF AIRCRAFT LAUNCH AND RECOVERY EQUIPMENT (ALRE) AND EXPEDITIONARY AIRFIELDS (EAF).
Place of Performance
Location: COLCHESTER, CHITTENDEN County, VERMONT, 05446
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $39.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF PROGRAMMATIC, ENGINEERING, AND LOGISTICS SUPPORT SERVICES TO THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) IN THE SUBJECT MATTER AREAS OF AIRCRAFT LAUNCH AND RECOVERY EQUIPMENT (ALRE) AND EXPEDITIONARY AIRFIELDS (EAF). Key points: 1. SAIC secured a significant contract for specialized engineering and logistics support. 2. The contract spans a decade, indicating a long-term need for these services. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The 'Cost Plus Fixed Fee' structure warrants scrutiny for cost control and efficiency.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. While the fixed fee provides some predictability, the government bears the risk of increased costs. Benchmarking against similar CPFF contracts for engineering and logistics support is crucial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the CPFF structure means the government absorbs cost increases, potentially negating some competitive advantages if costs escalate significantly.
Taxpayer Impact: Taxpayer funds are utilized for this contract. While competition is a positive sign, the CPFF structure necessitates careful oversight to ensure costs remain reasonable and efficient.
Public Impact
Supports critical Naval Air Warfare Center Aircraft Division (NAWCAD) functions. Ensures readiness and modernization of aircraft launch/recovery and expeditionary airfields. Long-term contract (10 years) indicates sustained demand for these specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- Potential for cost escalation
Positive Signals
- Full and open competition
- Supports critical defense infrastructure
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related aviation and expeditionary operations. Spending benchmarks for similar long-term, specialized engineering support contracts can vary widely based on scope and complexity.
Small Business Impact
The data indicates the prime contractor is Science Applications International Corporation (SAIC), a large business. There is no information provided on small business subcontracting participation in this award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration and oversight. The CPFF structure requires diligent oversight to ensure cost control and prevent inefficiencies.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost escalation risk due to CPFF structure
- Potential for scope creep over the contract's long duration
- Dependence on a single large contractor for critical support
- Lack of transparency on small business subcontracting
Tags
engineering-services, department-of-defense, vt, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF PROGRAMMATIC, ENGINEERING, AND LOGISTICS SUPPORT SERVICES TO THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) IN THE SUBJECT MATTER AREAS OF AIRCRAFT LAUNCH AND RECOVERY EQUIPMENT (ALRE) AND EXPEDITIONARY AIRFIELDS (EAF).
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $39.6 million.
What is the period of performance?
Start: 2013-10-22. End: 2024-01-25.
What is the typical profit margin for CPFF contracts in the defense engineering sector, and how does SAIC's fee compare?
Profit margins for CPFF contracts in defense engineering typically range from 7-15%, depending on the complexity, risk, and strategic importance of the work. A detailed review of SAIC's fixed fee against industry benchmarks and the specific scope of services is necessary to assess if it represents fair value and adequate compensation for the services rendered.
How effectively has DCMA monitored cost growth and contractor performance under this CPFF contract?
Effective oversight by DCMA is crucial for CPFF contracts to mitigate cost overruns. Regular audits, performance reviews, and adherence to reporting requirements are key indicators. Assessing DCMA's historical performance on this specific contract, including any identified cost variances or performance issues, would reveal the level of accountability.
What is the long-term strategic value of this sustained engineering and logistics support to NAWCAD's mission?
The sustained support is vital for maintaining and modernizing critical aircraft launch/recovery equipment (ALRE) and expeditionary airfields (EAF). This directly impacts naval aviation readiness and operational flexibility. The long duration suggests a strategic alignment with NAWCAD's ongoing modernization and operational requirements.
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: N0002413R3120
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: $40,915,634
Exercised Options: $40,609,196
Current Obligation: $39,647,879
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4143
IDV Type: IDC
Timeline
Start Date: 2013-10-22
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-03-04
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