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
- CPFF contract type can incentivize cost escalation.
- Long contract duration (over 6 years) increases risk exposure.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded under full and open competition.
- Science Applications International Corporation is a reputable defense contractor.
- Contract supports critical GPS technology.
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
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration.
- Potential for scope creep in R&D.
- Lack of detailed performance metrics in award notice.
- Reliance on contractor's internal controls for cost management.
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 Services › Scientific Research and Development Services › Research 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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