Air Force awards $41.5M for weather systems engineering and sustainment to Science Applications International Corp

Contract Overview

Contract Amount: $41,459,724 ($41.5M)

Contractor: Science Applications International Corp

Awarding Agency: Department of Defense

Start Date: 2021-01-08

End Date: 2024-01-10

Contract Duration: 1,097 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS TASK ORDER IS FOR SUPPORT TO AIR FORCE WEATHER SYSTEMS ENGINEERING, SYSTEMS INTEGRATION, AND SYSTEMS SUSTAINMENT ACTIVITIES.

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $41.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: THIS TASK ORDER IS FOR SUPPORT TO AIR FORCE WEATHER SYSTEMS ENGINEERING, SYSTEMS INTEGRATION, AND SYSTEMS SUSTAINMENT ACTIVITIES. Key points: 1. Contract focuses on critical weather systems engineering, integration, and sustainment for the Air Force. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately three years provides a stable period for service delivery. 4. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize efficiency. 5. The task order is for Computer Systems Design Services, a common category for IT support. 6. The contractor, Science Applications International Corp (SAIC), is a large, established defense contractor.

Value Assessment

Rating: good

The contract value of $41.5 million over three years for complex systems engineering and sustainment appears reasonable, especially given the specialized nature of Air Force weather systems. Benchmarking against similar large-scale IT support contracts for defense agencies suggests this pricing is within expected ranges. The CPFF structure, while potentially leading to cost overruns if not managed tightly, is appropriate for services where the full scope of work may evolve. Further analysis would require detailed cost breakdowns and comparison to specific, comparable task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiary is the U.S. Air Force, which will receive enhanced weather systems engineering, integration, and sustainment. This contract supports the operational readiness and effectiveness of Air Force weather forecasting and data dissemination capabilities. The services delivered are crucial for military operations, intelligence gathering, and strategic planning that rely on accurate weather data. The contract is likely to impact a workforce skilled in systems engineering, IT, and specialized weather technology, potentially within Nebraska where the award is noted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain controlled and the fixed fee remains appropriate.
The duration of the contract (1097 days) is substantial, necessitating ongoing performance monitoring to ensure sustained quality.
Lack of specific details on the number of bidders in the 'full and open' competition makes it difficult to fully assess the intensity of price discovery.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
The contractor, SAIC, is a large, experienced company with a significant track record in government contracting, implying a lower risk of performance failure.
The contract addresses critical infrastructure for the Air Force, indicating a high level of importance and likely robust internal oversight.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting government operations. The total IT services market for the federal government is in the tens of billions annually. This specific award contributes to the broader defense IT spending, which prioritizes modernization, sustainment, and integration of complex systems like those supporting weather operations. Comparable spending benchmarks would typically involve other large task orders for systems engineering and sustainment within the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor. The focus is on large-scale systems integration and sustainment, which typically requires the resources and expertise of larger firms.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated costs and ensure the fixed fee remains justified. Transparency is generally maintained through contract reporting mechanisms, though specific details on public access to performance metrics or cost breakdowns may vary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Weather Systems
DoD IT Modernization Programs
Defense Meteorological Satellite Program (DMSP)
National Oceanic and Atmospheric Administration (NOAA) Support Contracts
Joint Polar Satellite System (JPSS)

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Performance Monitoring Intensity Required
Contract Type Suitability for Evolving Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. THIS TASK ORDER IS FOR SUPPORT TO AIR FORCE WEATHER SYSTEMS ENGINEERING, SYSTEMS INTEGRATION, AND SYSTEMS SUSTAINMENT ACTIVITIES.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $41.5 million.

What is the period of performance?

Start: 2021-01-08. End: 2024-01-10.

What is Science Applications International Corp's (SAIC) track record with similar Air Force or DoD weather systems contracts?

SAIC has a substantial history of supporting the Department of Defense and various branches, including the Air Force, with complex IT, systems engineering, and sustainment services. While specific details on their past performance on Air Force weather systems are not provided in this data snippet, SAIC is known to be involved in large-scale programs related to command and control, intelligence, surveillance, reconnaissance (ISR), and enterprise IT infrastructure. Their extensive experience suggests a capacity to handle the technical demands of weather systems engineering and sustainment. A deeper dive into SAIC's contract history with the Air Force, particularly for weather-related or similar complex systems, would be necessary to fully assess their specific track record for this type of work.

How does the $41.5 million value compare to other Air Force weather system sustainment contracts?

The $41.5 million value for approximately three years of support for weather systems engineering, integration, and sustainment appears to be within a reasonable range for a task order of this nature. Large-scale IT sustainment and engineering contracts for military branches can range from tens to hundreds of millions of dollars over their lifecycles. Without specific comparable contract data points (e.g., similar task orders awarded to other contractors for comparable services and durations), a precise benchmark is difficult. However, considering the complexity of military weather systems, the need for continuous updates, and the specialized expertise required, this figure suggests a significant but not necessarily exorbitant investment for the services rendered.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While the fixed fee provides a profit ceiling, there's a potential for scope creep or inefficiencies that could drive up the total cost to the government. For complex systems engineering and sustainment, where requirements can evolve, CPFF can be appropriate, but it necessitates robust government oversight to monitor expenditures, validate costs, and ensure the work remains within the intended scope and budget. The government bears the risk of cost overruns if not managed effectively, while the contractor is assured a profit margin.

How effective are 'full and open competition' strategies in ensuring value for taxpayers on large IT contracts?

Full and open competition is generally considered the most effective strategy for ensuring value for taxpayers on large IT contracts. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, fostering a competitive environment that drives down prices and encourages innovation. This process allows the government to solicit the best technical solutions and pricing from the market. While it requires more upfront effort in terms of solicitation and evaluation, the potential for cost savings and superior performance typically outweighs these costs. The success of this strategy hinges on clear requirements, a fair evaluation process, and sufficient competition among qualified bidders.

What is the historical spending trend for Air Force weather systems IT support?

Historical spending trends for Air Force weather systems IT support are not directly available from the provided data. However, federal spending on IT services, particularly within the Department of Defense, has been consistently high and growing, driven by modernization efforts, cybersecurity needs, and the increasing reliance on data-driven operations. Weather systems, being critical for all military operations, likely represent a stable or increasing portion of this spending. Analyzing historical contract awards for similar services (e.g., systems engineering, sustainment, IT support) to the Air Force over the past 5-10 years would provide a clearer picture of spending patterns and potential growth or fluctuations in this specific category.

What are the implications of the 'NEBRASKA' location noted for this contract?

The notation 'NEBRASKA' likely refers to the state where the contract was awarded or where a significant portion of the work will be performed, possibly indicating a base or facility associated with the Air Force's weather operations or IT support infrastructure. This could imply a localized economic impact, such as job creation or support for local businesses in Nebraska. It might also suggest that the contractor has a physical presence or operational center in that state relevant to fulfilling the contract requirements. Without further context, it's difficult to ascertain the precise implications beyond a potential geographic focus for the contract's execution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 11720 PLAZA AMERICA DR, 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: $41,808,978

Exercised Options: $41,808,978

Current Obligation: $41,459,724

Subaward Activity

Number of Subawards: 55

Total Subaward Amount: $57,206,636

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA460020D0002

IDV Type: IDC

Timeline