DOT's FAA awards $74.6M contract for surveillance and broadcast services to Science Applications International Corporation

Contract Overview

Contract Amount: $74,582,222 ($74.6M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Transportation

Start Date: 2024-01-18

End Date: 2026-05-15

Contract Duration: 848 days

Daily Burn Rate: $88.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SURVEILLANCE AND BROADCAST SERVICES (SBS) SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $74.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SURVEILLANCE AND BROADCAST SERVICES (SBS) SUPPORT Key points: 1. Contract value of $74.6 million over its period of performance. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Contract type is Time and Materials, which can pose cost control challenges. 4. Performance period spans over two years, from January 2024 to May 2026. 5. The contract is for Engineering Services, with NAICS code 541330. 6. The contractor, Science Applications International Corporation, is a large, established entity in the federal contracting space.

Value Assessment

Rating: fair

The contract value of $74.6 million for approximately 2.6 years of service appears to be within a reasonable range for complex engineering support. However, the Time and Materials pricing structure warrants close monitoring to ensure cost efficiency. Benchmarking against similar surveillance and broadcast support contracts would provide a clearer picture of value for money, but without specific deliverables and scope, a definitive assessment is challenging. The base award amount of $8.8 million suggests an initial phase, with the total value representing the ceiling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to yield fair market prices and innovative solutions. The specific number of bidders is not provided, but the 'full and open' designation implies a significant level of competition, which is a positive sign for price discovery and contractor performance.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through a broad solicitation process.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential surveillance and broadcast services. These services are critical for air traffic management and safety within the National Airspace System. The contract supports operations primarily in the Washington D.C. metropolitan area. It likely sustains jobs within Science Applications International Corporation and its potential subcontractors in the engineering and technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it reimburses actual labor and material costs plus a fee.
Lack of specific performance metrics or detailed scope of work in the provided data makes it difficult to assess the true value and potential risks.
The large contract value could indicate a significant reliance on a single contractor for critical services, posing a potential risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment that should drive value.
Science Applications International Corporation is a well-established contractor with a significant presence in the federal market, implying experience and capability.
The contract duration allows for sustained support of critical FAA operations.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the aerospace and defense industry's need for advanced surveillance and communication technologies. The Federal Aviation Administration is a major procurer of such services to maintain and modernize the National Airspace System. Comparable spending benchmarks for similar support contracts within the FAA or Department of Defense can range widely based on scope, but a multi-year contract of this magnitude is substantial.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside provisions. It is also noted that the contractor is not a small business. Therefore, the direct impact on small business set-asides is likely minimal, though subcontracting opportunities may exist depending on SAIC's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Federal Aviation Administration. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FAA Air Traffic Control Systems
Department of Transportation IT Services
Defense Intelligence Agency Surveillance Systems
National Oceanic and Atmospheric Administration (NOAA) Broadcast Services
Federal Communications Commission (FCC) Spectrum Management

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of performance issues impacting critical aviation safety systems.
Dependency on contractor's ability to keep pace with technological advancements.
Cybersecurity vulnerabilities associated with surveillance and broadcast data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $74.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SURVEILLANCE AND BROADCAST SERVICES (SBS) SUPPORT

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $74.6 million.

What is the period of performance?

Start: 2024-01-18. End: 2026-05-15.

What is the historical spending pattern for surveillance and broadcast services by the FAA?

Analyzing historical spending for surveillance and broadcast services by the FAA is crucial for context. While specific data for this contract's category is not provided, the FAA consistently invests significant funds in maintaining and upgrading its air traffic management systems, which include surveillance and communication technologies. Past contracts for similar services, whether sole-source or competitively awarded, would reveal trends in pricing, contractor performance, and the evolution of technological requirements. Understanding these patterns helps in assessing whether the current $74.6 million award represents an increase, decrease, or stable investment compared to previous periods, and whether it aligns with the agency's long-term modernization goals.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts reimburse the contractor for the cost of labor (at specified hourly rates) and materials, plus a fixed fee or percentage for profit. For services like surveillance and broadcast support, T&M can offer flexibility when the scope of work is not clearly defined or is expected to evolve. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government pays for actual effort expended. Fixed-price contracts provide greater cost certainty but require a well-defined scope. Hybrid approaches, like Cost-Plus-Fixed-Fee, also exist. The FAA's choice of T&M suggests a need for adaptability, but necessitates stringent oversight to manage costs effectively.

What is Science Applications International Corporation's track record with the FAA and similar contracts?

Science Applications International Corporation (SAIC) is a large, established federal contractor with a substantial history of performance across various agencies, including the Department of Transportation and its sub-agency, the FAA. SAIC has experience in complex engineering, IT, and logistics support. Their track record with the FAA likely includes numerous contracts related to aviation systems, infrastructure, and operations. A review of their past performance ratings, any past performance issues or awards, and their experience with surveillance and broadcast technologies would be necessary to fully assess their capability and reliability for this specific $74.6 million contract. Their size and experience generally suggest a lower performance risk.

What are the key performance indicators (KPIs) for this surveillance and broadcast services contract?

Key Performance Indicators (KPIs) for this surveillance and broadcast services contract would likely focus on the reliability, availability, and accuracy of the surveillance and broadcast systems supported. Specific metrics could include system uptime percentages, response times for technical issues, data integrity rates for surveillance feeds, and successful transmission rates for broadcast signals. Adherence to service level agreements (SLAs) would also be critical. For a Time and Materials contract, KPIs might also track the efficiency of labor hours utilized against tasks completed. The FAA would establish these KPIs to ensure the contractor meets the operational requirements for air traffic management and safety.

What is the potential impact of this contract on the broader aerospace engineering services market?

This $74.6 million contract awarded to Science Applications International Corporation (SAIC) signifies a substantial investment by the FAA in critical aviation infrastructure support. It reinforces SAIC's position as a key player in the aerospace engineering services sector, particularly within government contracting. The award, made under full and open competition, suggests a healthy market where multiple firms could compete, although the ultimate award to a large incumbent like SAIC is common. This contract could influence market dynamics by setting benchmarks for service delivery, pricing (despite the T&M structure), and technological integration in aviation support. It also highlights the ongoing demand for specialized engineering expertise within the federal government's aviation domain.

Are there any specific risks associated with supporting surveillance and broadcast systems for the FAA?

Supporting surveillance and broadcast systems for the FAA involves several inherent risks. Foremost is the criticality of these systems to national airspace safety; any failure or degradation can have severe consequences. Technological obsolescence is another risk, as surveillance and broadcast technologies evolve rapidly, requiring continuous updates and integration. Cybersecurity threats are paramount, given the sensitive nature of air traffic data. Furthermore, the complexity of integrating new systems with legacy infrastructure presents technical challenges. The Time and Materials contract type introduces financial risk if costs escalate beyond projections. Finally, reliance on a single contractor, even a large one, carries operational risk if performance issues arise.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

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: $75,136,961

Exercised Options: $74,582,222

Current Obligation: $74,582,222

Actual Outlays: $62,731,647

Subaward Activity

Number of Subawards: 164

Total Subaward Amount: $64,869,656

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693KA918D00010

IDV Type: IDC

Timeline