Air Force awards $43.4M for C2 Facility support, with SAIC as prime contractor
Contract Overview
Contract Amount: $43,355,775 ($43.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2016-08-24
End Date: 2024-02-27
Contract Duration: 2,743 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF U.S. AIR FORCE (USAF) NEW COMMAND AND CONTROL (C2) FACILITY (C2F) PRE-INSTALLATION AND CHECKOUT (PITCO) AND INSTALLATION SUPPORT
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $43.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF U.S. AIR FORCE (USAF) NEW COMMAND AND CONTROL (C2) FACILITY (C2F) PRE-INSTALLATION AND CHECKOUT (PITCO) AND INSTALLATION SUPPORT Key points: 1. Contract value represents a significant investment in critical command and control infrastructure. 2. The use of Cost Plus Fixed Fee (CPFF) pricing indicates potential for cost overruns if not closely managed. 3. A long performance period suggests a complex, multi-year project requiring sustained oversight. 4. The contract was awarded via full and open competition, implying a competitive bidding process. 5. The prime contractor, SAIC, has a substantial presence in defense IT and engineering services. 6. This contract supports the Air Force's modernization efforts for its command and control capabilities.
Value Assessment
Rating: fair
The total award of $43.4 million over approximately 7.5 years (2743 days) for pre-installation, checkout, and installation support of a C2 facility appears to be within a reasonable range for complex engineering and installation projects of this nature. However, the CPFF contract type introduces inherent risk. Without detailed breakdowns of labor categories, material costs, and fixed fees, a precise value-for-money assessment is challenging. Benchmarking against similar C2 facility construction or upgrade projects would be necessary for a more definitive evaluation of pricing and value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 4 delivery orders suggests that the contract has been actively utilized. The level of competition is generally positive for price discovery, but the specific number of bidders for the initial award or subsequent orders is not provided, which would offer a clearer picture of the competitive intensity.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, reducing the risk of inflated costs.
Public Impact
The U.S. Air Force benefits from enhanced command and control capabilities, crucial for operational effectiveness. Services delivered include pre-installation, checkout, and installation support for a new C2 facility. The geographic impact is primarily at the specific Air Force installation where the C2 facility is located (Vermont, based on SN field). The contract supports a workforce of engineers, technicians, and project managers involved in the installation and support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not meticulously managed and monitored.
- The long duration of the contract (over 7 years) increases the potential for scope creep and requires sustained oversight.
- Lack of specific bidder numbers for the competition limits the assessment of competitive pressure on pricing.
- The 'Engineering Services' NAICS code is broad; specific technical complexities and associated risks are not detailed.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- The prime contractor, Science Applications International Corporation (SAIC), is a well-established entity with significant experience in defense contracting.
- The contract supports critical Air Force command and control infrastructure, aligning with national security objectives.
- Multiple delivery orders (4) indicate ongoing need and utilization of the contract's services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense infrastructure. The market for defense engineering and installation services is substantial, driven by ongoing military modernization and facility upgrades. Comparable spending benchmarks would typically involve large-scale construction, IT integration, and specialized facility support for government entities. SAIC operates in a competitive landscape with other major defense contractors vying for similar projects.
Small Business Impact
The data indicates that small business participation (SB field is false) was not a specific set-aside requirement for this prime contract. There is no explicit information on subcontracting plans or performance. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors often engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded in the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is generally facilitated through contract award databases, but detailed project-specific oversight reports are often internal or classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Air Force Command and Control Systems
- Defense Infrastructure Modernization
- Engineering and Technical Services Contracts
- Large-Scale Facility Construction Support
- IT and Communications Infrastructure
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns.
- Long contract duration increases potential for scope creep and requires sustained oversight.
- Lack of specific bidder count limits assessment of competitive pressure.
- Potential for integration challenges with existing or future C2 systems.
- Cybersecurity risks associated with critical command and control infrastructure.
Tags
defense, air-force, engineering-services, command-and-control, facility-support, cost-plus-fixed-fee, full-and-open-competition, science-applications-international-corporation, vermont, large-contract, it-infrastructure, modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF U.S. AIR FORCE (USAF) NEW COMMAND AND CONTROL (C2) FACILITY (C2F) PRE-INSTALLATION AND CHECKOUT (PITCO) AND INSTALLATION 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 Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $43.4 million.
What is the period of performance?
Start: 2016-08-24. End: 2024-02-27.
What is the historical spending pattern for similar Air Force Command and Control Facility (C2F) projects over the last five years?
Analyzing historical spending for similar Air Force C2F projects requires access to detailed contract databases and budget allocations. Generally, investments in C2 infrastructure are substantial and ongoing, reflecting the need for secure, resilient, and technologically advanced communication and operational platforms. Spending fluctuates based on modernization cycles, geopolitical threats, and specific platform upgrades. Projects can range from tens of millions to hundreds of millions of dollars, depending on scale, complexity, and technological integration. Factors like new facility construction versus upgrades, integration of new communication systems, and cybersecurity enhancements significantly influence costs. Without specific project identifiers, a precise historical comparison is difficult, but the trend is towards increased investment in resilient and modernized C2 capabilities.
How does the Cost Plus Fixed Fee (CPFF) pricing structure for this contract compare to industry standards for similar engineering services?
The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex projects where the scope is not fully defined at the outset or involves significant research and development. For engineering services like C2 facility support, CPFF allows for flexibility as costs are reimbursed, plus a fixed fee representing profit. Industry standards suggest that while CPFF provides flexibility, it carries a higher risk of cost overruns compared to fixed-price contracts. The 'fixed fee' component aims to incentivize the contractor to control costs, as their profit is capped. Benchmarking would involve comparing the fixed fee percentage and the total cost reimbursement against similar projects. A typical fixed fee might range from 5-15% of the estimated cost, depending on the project's risk and complexity. Close monitoring by the government is crucial to ensure costs remain reasonable and the fixed fee is justified.
What is Science Applications International Corporation's (SAIC) track record with similar large-scale defense infrastructure projects?
Science Applications International Corporation (SAIC) has a well-established track record in providing a wide range of services to the Department of Defense, including large-scale infrastructure, IT, and engineering support. They have been involved in numerous complex projects supporting command, control, communications, computers, and intelligence (C4I) systems, as well as facility modernization and sustainment. SAIC's experience often includes system integration, cybersecurity, and lifecycle support for critical defense assets. Their performance on past contracts, including any awards, penalties, or significant challenges, would be detailed in government performance assessment databases (e.g., Contractor Performance Assessment Reporting System - CPARS). Generally, SAIC is considered a major player capable of handling substantial defense contracts, but specific project outcomes vary.
What are the key performance indicators (KPIs) used to measure the success of this contract's installation and support services?
Key Performance Indicators (KPIs) for a contract like this, involving pre-installation, checkout, and installation support for a C2 facility, would typically focus on schedule adherence, quality of work, cost control, and technical performance. Specific KPIs might include: on-time completion of milestones, adherence to design specifications, successful system integration and testing (checkout), minimal defects or rework required, compliance with safety regulations, and effective management of resources. For a CPFF contract, tracking actual costs against the estimated cost baseline is also a critical KPI. The government's quality assurance personnel and contracting officer's representatives (CORs) would monitor these KPIs throughout the contract performance period, often documented in regular progress reports and performance assessments.
Are there any known risks associated with the specific Command and Control (C2) systems or facility type being supported by this contract?
The specific risks associated with the C2 systems and facility type are not detailed in the provided data. However, general risks for C2 facilities include cybersecurity vulnerabilities, integration challenges with legacy systems, ensuring operational resilience against physical or electronic attacks, and the rapid obsolescence of technology. Modern C2 systems often involve complex networks, data fusion, and advanced communication technologies, which can be prone to integration issues and require specialized expertise. Facility-specific risks might include environmental compliance, site security, and ensuring the physical infrastructure can support the demanding requirements of sensitive C2 operations. The CPFF contract type suggests that some level of uncertainty or evolving requirements is anticipated, which inherently carries risk.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002416R3230
Offers Received: 4
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: $47,207,075
Exercised Options: $47,207,075
Current Obligation: $43,355,775
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $20,047,778
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2016-08-24
Current End Date: 2024-02-27
Potential End Date: 2024-02-27 00:00:00
Last Modified: 2024-04-02
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