DoD's $285M Air Operations Center contract to SAIC for 10.1 Weapon System sustainment and Block 20 transformation

Contract Overview

Contract Amount: $285,095,037 ($285.1M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2022-03-24

End Date: 2026-08-08

Contract Duration: 1,598 days

Daily Burn Rate: $178.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE FALCONER SERVICE CONTRACT PROVIDES THE CONTINUED SUSTAINMENT AND SUPPORT OF THE 10.1 WEAPON SYSTEM AND THE APPLICATION TRANSFORMATION TO BLOCK 20 FOR THE AIR OPERATIONS CENTER WEAPON SYSTEM

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $285.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THE FALCONER SERVICE CONTRACT PROVIDES THE CONTINUED SUSTAINMENT AND SUPPORT OF THE 10.1 WEAPON SYSTEM AND THE APPLICATION TRANSFORMATION TO BLOCK 20 FOR THE AIR OPERATIONS CENTER WEAPON SYSTEM Key points: 1. Contract value of $285M over 4 years indicates significant investment in critical Air Operations Center capabilities. 2. Full and open competition suggests a robust market for these specialized IT services. 3. The contract's duration and scope point to a long-term need for system sustainment and modernization. 4. Focus on the 10.1 Weapon System and Block 20 transformation highlights a specific modernization effort. 5. The use of Time and Materials pricing may introduce cost variability, requiring close monitoring. 6. The award to Science Applications International Corporation (SAIC) places a large IT services provider in a key role.

Value Assessment

Rating: good

The contract's total value of approximately $285 million over roughly four years suggests a substantial investment. Benchmarking against similar large-scale IT sustainment and modernization contracts within the Department of Defense is crucial. While specific per-unit costs are not provided, the overall value appears aligned with the complexity of maintaining and transforming a major weapon system's command and control infrastructure. The Time and Materials pricing structure, however, warrants careful oversight to ensure cost efficiency and prevent potential overruns compared to fixed-price arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 10 bids suggests a healthy level of market interest and competition for this type of specialized IT service. This competitive environment is generally favorable for price discovery and potentially achieving better value for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions, ensuring the government receives competitive rates for essential defense IT services.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel who rely on the Air Operations Center for command and control. The contract delivers continued sustainment and modernization for the 10.1 Weapon System and its Application Transformation to Block 20. Geographic impact is likely concentrated around Air Force bases where the Air Operations Center is operated and maintained. Workforce implications include the need for skilled IT professionals, cybersecurity experts, and system engineers, potentially supporting jobs within SAIC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored.
The long duration of the contract (over 4 years) increases the risk of scope creep or evolving technological requirements not being fully captured.
Dependence on a single contractor for critical weapon system sustainment can create vendor lock-in and reduce future negotiating leverage.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The contract addresses a critical need for sustainment and modernization of a key defense system.
The contractor, SAIC, is a large, established company with significant experience in defense IT services.

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on computer systems design and related services for a critical defense application. The market for defense IT sustainment and modernization is substantial, driven by the need to maintain legacy systems while integrating new technologies. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by the DoD to major defense contractors for similar weapon system lifecycle management.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While SAIC is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on SAIC's strategy and the specific technical requirements of the work, but without a set-aside, direct small business participation is not guaranteed.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS), including defined deliverables, service level agreements, and reporting requirements. Transparency is facilitated through contract award databases and public reporting, though detailed operational oversight specifics are generally not public.

Related Government Programs

Air Operations Center (AOC) Sustainment
Weapon System Modernization Programs
Defense IT Infrastructure Support
Command and Control Systems Development
Application Transformation Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of schedule delays in application transformation.
Dependency on a single large contractor for critical system sustainment.
Cybersecurity risks during system transformation and ongoing sustainment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $285.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THE FALCONER SERVICE CONTRACT PROVIDES THE CONTINUED SUSTAINMENT AND SUPPORT OF THE 10.1 WEAPON SYSTEM AND THE APPLICATION TRANSFORMATION TO BLOCK 20 FOR THE AIR OPERATIONS CENTER WEAPON SYSTEM

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 $285.1 million.

What is the period of performance?

Start: 2022-03-24. End: 2026-08-08.

What is the historical spending trend for the 10.1 Weapon System sustainment and Block 20 transformation prior to this award?

Detailed historical spending data specifically for the 10.1 Weapon System sustainment and its Block 20 transformation prior to this contract award is not directly available in the provided data. However, the current award of approximately $285 million over four years suggests a significant and ongoing investment. To understand historical trends, one would need to access historical contract databases (like FPDS or SAM.gov) for previous awards related to this specific weapon system or its predecessors, looking for patterns in contract values, durations, and the nature of services procured. This would help establish a baseline and identify any increases or decreases in spending over time, potentially indicating shifts in program priorities or technological evolution.

How does the per-unit cost of this contract compare to similar IT sustainment contracts within the Air Force or DoD?

A direct per-unit cost comparison is challenging without specific unit definitions (e.g., per server supported, per user, per software license maintained) and detailed cost breakdowns within the contract. The provided data indicates a total contract value of $285 million for Computer Systems Design Services (NAICS 541512) over approximately 1598 days. To benchmark, one would need to identify comparable contracts for IT sustainment and modernization of complex weapon systems within the Air Force or DoD, focusing on contracts with similar scope, complexity, and duration. Analyzing the average cost per contract-year or per functional area (like software development, system integration, or maintenance) across these comparable contracts would provide a basis for assessing whether the pricing for this Falconer Service Contract is within an expected range, considering factors like labor rates, overhead, and profit.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how is performance measured?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for the Falconer Service Contract. Typically, for a contract of this nature involving system sustainment and transformation, KPIs would focus on aspects like system availability, response times for support requests, successful deployment of software updates (Block 20 transformation), cybersecurity compliance, and adherence to project milestones. Performance measurement would likely involve regular reporting by the contractor (SAIC) against these defined metrics, with oversight and validation by the Air Force program office. Contractual clauses would outline remedies or incentives tied to meeting or failing to meet these performance standards.

What is the track record of Science Applications International Corporation (SAIC) in managing large-scale defense IT sustainment and modernization contracts?

Science Applications International Corporation (SAIC) has a substantial track record in managing large-scale defense IT sustainment and modernization contracts. As a major government contractor, SAIC has consistently secured and executed complex programs across various military branches, including the Air Force. Their experience often encompasses areas like enterprise IT, cloud migration, cybersecurity, and the sustainment of critical weapon systems. While specific details of past performance on contracts directly analogous to the Falconer Service Contract would require deeper research into SAIC's contract history, their general profile suggests they possess the organizational capacity, technical expertise, and security clearances necessary to handle such a significant undertaking. Evaluating their past performance on similar programs would involve reviewing contract award data, performance evaluations (if publicly available), and any reported issues or successes.

What are the potential risks associated with the 'Application Transformation to Block 20' aspect of this contract?

The 'Application Transformation to Block 20' aspect of this contract carries several potential risks. Transformation projects, especially in complex defense systems, are prone to scope creep, where requirements expand beyond the initial plan, leading to cost overruns and schedule delays. Technical risks include unforeseen compatibility issues with existing infrastructure, challenges in migrating data or functionality, and the need for extensive testing to ensure the transformed application meets all operational requirements. There's also a risk of resistance to change from end-users or a gap in necessary skills within the workforce to manage the new system. Furthermore, cybersecurity vulnerabilities could be introduced during the transformation process if not rigorously addressed. Effective risk mitigation would involve detailed planning, phased implementation, robust testing, strong change management, and continuous security assessments.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD FL 4, 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: $378,701,764

Exercised Options: $314,153,947

Current Obligation: $285,095,037

Subaward Activity

Number of Subawards: 132

Total Subaward Amount: $460,194,385

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0001

IDV Type: GWAC

Timeline