DOT awards $23.6M to SAIC for Terminal Automation Modernization, focusing on engineering services
Contract Overview
Contract Amount: $23,629,462 ($23.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Transportation
Start Date: 2024-01-12
End Date: 2026-05-15
Contract Duration: 854 days
Daily Burn Rate: $27.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TERMINAL AUTOMATION MODERNIZATION REPLACEMENT (TAMR) PROGRAM SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $23.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TERMINAL AUTOMATION MODERNIZATION REPLACEMENT (TAMR) PROGRAM SUPPORT Key points: 1. Contract value of $23.6M over its period of performance suggests a significant investment in critical infrastructure. 2. The use of Time and Materials pricing may introduce cost uncertainty if not closely managed. 3. Engineering services are essential for complex modernization efforts, indicating a focus on technical expertise. 4. The contract's duration of 854 days allows for substantial project development and implementation. 5. This award represents a key component of the FAA's broader efforts to upgrade air traffic systems.
Value Assessment
Rating: good
The contract value of $23.6 million for engineering services over approximately two years appears reasonable for a program of this scope. Benchmarking against similar large-scale federal engineering support contracts would provide further context. The Time and Materials (T&M) pricing structure, while flexible, necessitates robust oversight to ensure cost efficiency and prevent scope creep. Without specific per-unit cost data or comparable contract details, a definitive value-for-money assessment is challenging, but the award size aligns with the complexity of modernizing critical aviation infrastructure.
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 expected to yield a fair market price and ensure the selection of a capable contractor. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust bidding environment, which generally benefits the government by fostering price discovery and innovation.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to the best available technical solutions, ensuring federal funds are used efficiently for critical modernization projects.
Public Impact
The Federal Aviation Administration (FAA) and the Department of Transportation are the primary beneficiaries, receiving essential support for a critical modernization program. The services delivered will contribute to the modernization of terminal automation systems, aiming to improve air traffic control efficiency and safety. The geographic impact is primarily within the District of Columbia, where the contract is managed, but the ultimate benefits extend to national airspace safety. The contract supports specialized engineering roles, potentially impacting the workforce in the aerospace and defense engineering sectors.
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 allows for costs to accrue based on actual labor hours and material expenses.
- The lack of specific performance metrics or detailed deliverables in the provided data makes it difficult to assess the contractor's performance trajectory.
- The contract's duration and value, while substantial, require ongoing monitoring to ensure alignment with program objectives and budget constraints.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process that likely resulted in a fair price.
- Science Applications International Corporation (SAIC) is a large, established government contractor with a significant track record in engineering and IT services, indicating a high likelihood of technical capability.
- The focus on engineering services for terminal automation modernization addresses a critical need within the FAA, aligning with strategic modernization goals.
Sector Analysis
The Federal Aviation Administration (FAA) operates within the broader aerospace and defense sector, which is characterized by complex technological requirements and significant government investment. This contract for Terminal Automation Modernization Replacement (TAMR) Program Support falls under engineering services, a crucial sub-sector supporting the development and maintenance of sophisticated air traffic control systems. The market for such specialized engineering support is competitive, with a few large prime contractors often dominating, alongside numerous specialized subcontractors. The total federal spending on engineering services is substantial, and this contract represents a focused investment within a critical area of aviation infrastructure.
Small Business Impact
This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses through set-aside awards is likely minimal. However, as a large prime contractor, Science Applications International Corporation (SAIC) may engage small businesses as subcontractors to fulfill specific requirements, contributing indirectly to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.
Oversight & Accountability
Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. The Time and Materials (T&M) pricing structure necessitates rigorous oversight of labor hours, material costs, and adherence to the Statement of Work to ensure cost control and prevent scope creep. Transparency is expected through regular reporting requirements and contract performance reviews. The Inspector General for the Department of Transportation may also have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.
Related Government Programs
- FAA Air Traffic Control Modernization Programs
- NextGen Air Transportation System Initiatives
- Federal Aviation Systems Engineering Support
- Department of Transportation IT Modernization Efforts
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Need for robust oversight to manage scope and ensure value for money.
- Complexity of integrating new automation systems with existing infrastructure.
Tags
engineering-services, department-of-transportation, federal-aviation-administration, time-and-materials, full-and-open-competition, large-contract, it-modernization, air-traffic-control, science-applications-international-corporation, district-of-columbia, program-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $23.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TERMINAL AUTOMATION MODERNIZATION REPLACEMENT (TAMR) PROGRAM 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 $23.6 million.
What is the period of performance?
Start: 2024-01-12. End: 2026-05-15.
What is Science Applications International Corporation's (SAIC) track record with the Federal Aviation Administration (FAA) and similar modernization programs?
Science Applications International Corporation (SAIC) has a substantial history of contracting with the U.S. federal government, including the FAA. They have been involved in various IT, engineering, and systems integration projects for defense and civilian agencies. For the FAA, SAIC has previously supported air traffic management systems, data analytics, and cybersecurity initiatives. Their experience in large-scale system modernization, particularly in complex environments like air traffic control, suggests a strong capability to handle the TAMR program. A detailed review of their past performance ratings and specific contract history with the FAA would provide a more granular understanding of their reliability and success in delivering similar services.
How does the $23.6 million award compare to other federal contracts for similar engineering services supporting air traffic automation?
The $23.6 million award for the Terminal Automation Modernization Replacement (TAMR) Program Support is a significant but not unprecedented figure for large-scale engineering services supporting critical federal infrastructure modernization. Comparable contracts for air traffic control system upgrades, IT modernization, and complex engineering support within agencies like the FAA, Department of Defense, or NASA often range from tens to hundreds of millions of dollars over several years. The specific value is influenced by the scope of work, duration, and the specialized expertise required. Given the critical nature of air traffic automation and the complexity of replacing legacy systems, this award appears to be within the expected range for such a vital program.
What are the primary risks associated with a Time and Materials (T&M) contract for a program of this magnitude?
The primary risk with a Time and Materials (T&M) contract, especially for a program valued at $23.6 million, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for actual labor hours and material costs incurred. If not managed diligently through strict oversight, detailed tracking of hours, and robust change control processes, the total cost can exceed initial estimates. This can lead to budget challenges for the agency and potentially higher costs for taxpayers. Scope creep, where the project expands beyond its original objectives without a corresponding increase in budget or time, is also a significant risk under T&M. Effective management requires clear communication, defined milestones, and proactive monitoring of resource utilization.
How effective are the current oversight mechanisms likely to be for this specific contract?
The effectiveness of oversight for this contract will largely depend on the Federal Aviation Administration's (FAA) commitment to rigorous contract management practices. Given the T&M pricing structure, proactive monitoring of labor hours, material costs, and progress against defined objectives is crucial. The FAA's contracting officers and program managers will need to ensure that SAIC is providing efficient and necessary services. Regular performance reviews, audits of billing records, and clear communication channels are essential. The presence of an Inspector General's office within the Department of Transportation provides an additional layer of accountability, capable of conducting audits and investigations to ensure compliance and prevent waste, fraud, or abuse. The success hinges on the diligence and resources allocated to contract administration.
What are the historical spending patterns for engineering services related to air traffic control modernization within the FAA?
Historical spending patterns for engineering services related to air traffic control modernization within the FAA have been substantial and ongoing, reflecting the continuous need to upgrade complex systems. The FAA has consistently invested billions of dollars over decades in initiatives like the Next Generation Air Transportation System (NextGen). This includes significant outlays for system design, integration, software development, hardware procurement, and ongoing support services. Spending often fluctuates based on the phase of major modernization programs, with peaks during development and deployment. Contracts for engineering support, system integration, and program management are recurring elements of this spending, often awarded through competitive processes to large, experienced contractors like SAIC.
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: $25,380,301
Exercised Options: $23,629,462
Current Obligation: $23,629,462
Actual Outlays: $20,086,416
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $15,160,140
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
Start Date: 2024-01-12
Current End Date: 2026-05-15
Potential End Date: 2026-05-15 00:00:00
Last Modified: 2026-03-12
More Contracts from Science Applications International Corporation
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Department of State)
- Software Life Cycle Development — $1.4B (General Services Administration)
- Unified Nasa Information Technology Services (unites) — $1.4B (National Aeronautics and Space Administration)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (General Services Administration)
- This Effort IS for a Follow on Procurement Requirement. the Name of This Procurement IS the Omnibus Multidiscipline Engineering Services (omes) II. the Principal Purpose of This Contract IS to Provide Multidiscipline Engineering Support Services and Related Work to EED, Istd, SED, MSD, Mesa, Jpss, Ssco, and Related Organizations, AS Required, for the Study, Design, Systems Engineering, Development, Fabrication, Integration, Testing, Verification, and Operations of Space Flight, Airborne, and Ground System Hardware and Software, Including Development and Validation of NEW Technologies to Enable Future Space and Science Missions. to This END, the Contractor Shall Provide On/Off-Site Multidiscipline Engineering Services, Pursuant to Task Orders Issued by the Contracting Officer. These Services Shall Include the Personnel, Facilities, and Materials (unless Otherwise Provided by the Government) to Accomplish the Tasks. Travel MAY BE Required by the Contractor to Support Certain Task Orders, These Travel Requirements Will BE Identified on a Task by Task Basis — $1.0B (National Aeronautics and Space Administration)
View all Science Applications International Corporation federal contracts →
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)