Air Force awards $81.4M contract for strategic plans and policy support to Science Applications International Corporation

Contract Overview

Contract Amount: $81,447,527 ($81.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2021-08-24

End Date: 2026-08-25

Contract Duration: 1,827 days

Daily Burn Rate: $44.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PKH-SANTOS-ROE AIR FORCE A10 STRATEGIC PLANS AND POLICY SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $81.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: PKH-SANTOS-ROE AIR FORCE A10 STRATEGIC PLANS AND POLICY SUPPORT SERVICES Key points: 1. Contract provides essential strategic planning and policy development services for the Air Force. 2. Science Applications International Corporation (SAIC) is a large, established government contractor with a significant presence in defense IT and engineering. 3. The contract's duration of over 5 years suggests a need for sustained support in complex policy areas. 4. The award was made under full and open competition, indicating a broad market search. 5. The contract type (Cost Plus Fixed Fee) can incentivize cost control while allowing for flexibility in scope. 6. The geographic location of performance is Washington D.C., a hub for federal policy and decision-making.

Value Assessment

Rating: good

Benchmarking the value of this contract requires detailed comparison to similar strategic planning and policy support services. Given the specialized nature of Air Force strategic planning, the $81.4 million over five years appears within a reasonable range for a large, complex federal agency. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be efficient for services where scope may evolve, but requires careful oversight to ensure costs remain controlled. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the award to a major contractor suggests a competitive process likely yielded a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Air Force solicited proposals from all responsible sources. This approach typically leads to a wider pool of potential bidders and fosters a more competitive environment. The specific number of bidders is not provided, but the 'full and open' designation implies that multiple companies likely vied for this significant contract, which is generally beneficial for price discovery and innovation.

Taxpayer Impact: Taxpayers benefit from full and open competition as it is designed to drive down costs through market forces and ensure the government receives the best value by considering a broad range of qualified contractors.

Public Impact

The primary beneficiary is the Department of the Air Force, which receives critical support for its strategic planning and policy development functions. Services delivered include analysis, research, and recommendations to inform high-level Air Force decisions. The geographic impact is primarily centered in Washington D.C., where policy decisions are formulated and implemented. The contract supports a workforce of skilled analysts and policy experts, contributing to the federal government's intellectual capital in defense strategy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee.
The long duration of the contract (over 5 years) necessitates ongoing performance monitoring to ensure continued alignment with evolving Air Force needs and strategic objectives.
Reliance on a single large contractor for critical strategic functions could pose a risk if contractor performance degrades or if the contractor faces financial instability.

Positive Signals

Award to a large, established contractor like SAIC suggests a high likelihood of successful performance due to their experience and resources.
Full and open competition generally leads to better pricing and a wider selection of qualified vendors.
The contract's focus on strategic plans and policy support indicates a critical function for the Air Force, suggesting a well-defined need and potential for significant positive impact on national security.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related strategic planning and policy. The federal government, particularly the Department of Defense, is a major consumer of such specialized consulting and analytical services. The market for defense strategy and policy support is characterized by a few large, established prime contractors and numerous subcontractors, often requiring deep domain expertise and security clearances. Comparable spending benchmarks for similar strategic support contracts within the DoD can vary widely based on scope, duration, and specific agency needs.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, Science Applications International Corporation (SAIC), is a large business. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal, although SAIC may engage small businesses as subcontractors for specialized support not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring, cost tracking, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like SAM.gov. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

DoD Strategic Planning Support
Air Force Policy Development Services
Defense Management Consulting
Federal Strategic Planning Contracts
Engineering Services for Government

Risk Flags

Contract duration exceeds 5 years.
Cost Plus Fixed Fee contract type requires diligent oversight.
Performance metrics and value realization need ongoing assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. PKH-SANTOS-ROE AIR FORCE A10 STRATEGIC PLANS AND POLICY SUPPORT SERVICES

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $81.4 million.

What is the period of performance?

Start: 2021-08-24. End: 2026-08-25.

What is the track record of Science Applications International Corporation (SAIC) with the Department of Defense, particularly in strategic planning and policy support?

Science Applications International Corporation (SAIC) has a long and extensive track record with the Department of Defense (DoD), serving as a major prime contractor across various domains including IT, engineering, and professional services. Their experience in strategic planning and policy support is substantial, often involving complex analytical tasks, research, and advisory services for military branches and defense agencies. SAIC has consistently secured large, multi-year contracts with the DoD, demonstrating their capability to manage significant programs and deliver on critical requirements. Their performance history generally indicates a capacity to handle the scale and complexity of Air Force strategic initiatives, though specific performance on individual contracts can vary and is subject to ongoing evaluation by the government.

How does the awarded amount of $81.4 million compare to similar strategic planning and policy support contracts within the Air Force or DoD?

The awarded amount of $81.4 million over approximately five years for strategic plans and policy support services for the Air Force is substantial but falls within the expected range for major federal contracts of this nature. Similar contracts supporting strategic initiatives within the DoD can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and complexity of the required services. Factors influencing cost include the level of analysis, research depth, number of subject matter experts required, and the criticality of the policy areas addressed. Given SAIC's status as a large, experienced contractor and the strategic importance of Air Force planning, this figure suggests a competitive award for a significant, long-term requirement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for strategic services, and how are they mitigated?

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 they are reimbursed for allowable expenses plus a predetermined fee. This can potentially lead to cost overruns if not managed diligently. Mitigation strategies employed by the government include robust oversight by the Contracting Officer's Representative (COR), detailed review of incurred costs, establishing clear performance metrics, and ensuring the fixed fee is appropriate for the scope and risk. The CPFF structure is often chosen for services where the scope is not precisely defined at the outset, allowing for flexibility while still providing a defined profit margin for the contractor.

What is the potential impact of this contract on the Air Force's ability to adapt to evolving geopolitical landscapes and technological advancements?

This contract is designed to directly enhance the Air Force's ability to adapt by providing essential strategic planning and policy support. The services rendered will likely involve analyzing current and future geopolitical trends, assessing emerging technological threats and opportunities, and developing policy frameworks to guide the Air Force's modernization and operational strategies. By engaging experienced contractors like SAIC, the Air Force can leverage external expertise to conduct in-depth research, scenario planning, and policy formulation. This support is crucial for ensuring the Air Force remains agile, technologically superior, and strategically aligned with national security objectives in a rapidly changing global environment.

How has federal spending on strategic planning and policy support services for the Department of Defense trended over the past five years?

Federal spending on strategic planning and policy support services for the Department of Defense (DoD) has generally remained robust, reflecting the ongoing need for expert analysis and guidance in national security matters. While specific figures fluctuate annually based on budget allocations and evolving priorities, the overall trend indicates a consistent demand for these specialized services. Factors such as geopolitical instability, rapid technological advancements, and the need for force modernization contribute to sustained investment in strategic foresight and policy development. Large contracts awarded to major defense contractors, like the one to SAIC, are indicative of this ongoing commitment to strategic support functions within the DoD.

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: FA701421R0002

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $375,905,219

Exercised Options: $224,640,988

Current Obligation: $81,447,527

Actual Outlays: $36,244,179

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $121,377,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU329

IDV Type: IDC

Timeline