DoD Awards $305M GPSW SE&I Contract to Science Applications International Corp
Contract Overview
Contract Amount: $305,716,724 ($305.7M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2007-03-09
End Date: 2012-05-07
Contract Duration: 1,886 days
Daily Burn Rate: $162.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: GPSW SYSTEMS ENGINEERING AND INTEGRATION (SE&I)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $305.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: GPSW SYSTEMS ENGINEERING AND INTEGRATION (SE&I) Key points: 1. Significant contract value of $305.7 million for GPSW SE&I. 2. Awarded to Science Applications International Corporation (SAIC). 3. Contract falls under Engineering Services (NAICS 541330). 4. Procured via Full and Open Competition. 5. Contract duration was 1886 days.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. The award fee structure needs rigorous oversight to ensure it aligns with performance and value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure requires careful monitoring to prevent cost overruns and ensure fair pricing.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers by fostering a competitive environment. However, the CPAF structure necessitates strong oversight to ensure taxpayer funds are used efficiently.
Public Impact
Impacts GPS capabilities and related defense systems. Supports critical Department of Defense operations. SAIC's role in a major defense program. Long-term contract duration suggests ongoing need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires diligent oversight.
- Potential for cost creep if performance metrics are not strictly enforced.
- Long contract duration may not reflect current technological needs.
Positive Signals
- Full and open competition promotes market efficiency.
- SAIC is a major defense contractor with relevant expertise.
- Contract supports critical national security functions.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the Department of Defense. Spending in this sector is often driven by complex, long-term national security requirements and technological advancements.
Small Business Impact
The contract was awarded to Science Applications International Corporation, a large business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating a level of oversight. However, the Cost Plus Award Fee structure necessitates continuous monitoring of performance and costs to ensure accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Award Fee (CPAF) structure requires vigilant oversight.
- Potential for cost overruns if performance metrics are not strictly enforced.
- Long contract duration may not align with evolving technological needs.
- Lack of explicit small business participation noted.
Tags
engineering-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $305.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. GPSW SYSTEMS ENGINEERING AND INTEGRATION (SE&I)
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 $305.7 million.
What is the period of performance?
Start: 2007-03-09. End: 2012-05-07.
What was the final awarded amount versus the initial estimate, and how did the award fee structure influence the final cost?
The provided data shows the awarded amount as $305,716,723.68. Without the initial estimate or detailed award fee payouts, it's difficult to assess the efficiency of the final cost. A review of performance metrics and how they translated into award fees would be necessary to determine if the structure effectively incentivized value or simply increased the total cost.
What specific risks were identified during the procurement process, and how were they mitigated by the contract structure?
The Cost Plus Award Fee (CPAF) structure itself introduces risks related to cost control and potential overruns if not managed stringently. Mitigations would typically involve clearly defined performance metrics, robust oversight by DCMA, and a transparent process for determining award fees based on objective achievements rather than subjective assessments.
How effectively did the full and open competition process ensure the government received the best value for the GPSW SE&I services?
Full and open competition generally enhances the likelihood of receiving best value by allowing all qualified sources to compete. However, the effectiveness is also dependent on the clarity of the requirements, the evaluation criteria, and the subsequent contract management. The CPAF structure requires careful monitoring to ensure that the competitive pricing achieved initially is maintained throughout the contract's life.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 21151 S WESTERN AVE, TORRANCE, CA, 90501
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $909,783,244
Exercised Options: $527,946,464
Current Obligation: $305,716,724
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-03-09
Current End Date: 2012-05-07
Potential End Date: 2012-05-07 00:00:00
Last Modified: 2017-10-30
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