DoD's $281.7M GPS Systems Engineering Contract Awarded to Science Applications International Corp

Contract Overview

Contract Amount: $281,749,123 ($281.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2015-05-14

End Date: 2021-11-13

Contract Duration: 2,375 days

Daily Burn Rate: $118.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF GPS SYSTEMS ENGINEERING AND INTEGRATION

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $281.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF GPS SYSTEMS ENGINEERING AND INTEGRATION Key points: 1. The contract value of $281.7 million for GPS Systems Engineering and Integration is substantial. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can pose cost control risks. 4. The sector is R&D in Physical, Engineering, and Life Sciences, aligning with the NAICS code.

Value Assessment

Rating: fair

The CPFF contract type allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes price discovery and competitive pricing, though the CPFF structure introduces its own dynamics.

Taxpayer Impact: Taxpayer funds are utilized for R&D in critical defense systems. While competition aims for efficiency, the CPFF structure warrants careful oversight to ensure value for money.

Public Impact

Ensures continued development and integration of GPS systems vital for national security and military operations. Supports technological advancements in satellite navigation and positioning. Potential for spin-off technologies benefiting civilian applications. Creates and sustains high-skilled jobs in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering and integration of GPS systems. Spending in this area is crucial for maintaining technological superiority in defense and is subject to rigorous oversight.

Small Business Impact

The data indicates the prime contractor is Science Applications International Corporation, a large business. There is no explicit information on small business subcontracting participation in this award notice.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring adherence to contract terms and performance standards, especially given the CPFF structure.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $281.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF GPS SYSTEMS ENGINEERING AND INTEGRATION

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 $281.7 million.

What is the period of performance?

Start: 2015-05-14. End: 2021-11-13.

What specific performance metrics are in place to ensure the effectiveness and value of the GPS systems engineering and integration services provided under this CPFF contract?

The provided data does not detail specific performance metrics. For a CPFF contract, effectiveness is typically measured against technical milestones, delivery schedules, and adherence to system requirements. Value is assessed by comparing the final system capabilities against the initial objectives and the total cost incurred, requiring diligent oversight from the contracting agency to ensure the fixed fee is justified by achieved outcomes.

How does the CPFF contract structure mitigate risks associated with potential cost overruns in a complex R&D environment like GPS systems engineering?

The CPFF structure inherently carries risks of cost overruns as the government reimburses allowable costs plus a fixed fee. Mitigation relies heavily on robust government oversight, including detailed cost audits, regular progress reviews, and strict adherence to the defined scope of work. Clear communication channels and proactive risk management by both parties are essential to control expenditures and ensure the project stays within projected financial boundaries.

What is the long-term strategic impact of this $281.7 million investment in GPS systems engineering and integration on national security capabilities?

This significant investment is crucial for maintaining and advancing the U.S. military's reliance on precise and secure GPS capabilities. It ensures the continued development of next-generation GPS technologies, enhancing navigation, timing, and targeting accuracy. This directly supports operational effectiveness across all military branches and strengthens national security by maintaining a technological edge in a critical domain against potential adversaries.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $405,986,307

Exercised Options: $302,249,976

Current Obligation: $281,749,123

Actual Outlays: $18,009,833

Subaward Activity

Number of Subawards: 77

Total Subaward Amount: $179,382,281

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2015-05-14

Current End Date: 2021-11-13

Potential End Date: 2021-11-13 00:00:00

Last Modified: 2025-09-05

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