GSA Awards $287M Engineering Services Contract to SAIC Under Full and Open Competition
Contract Overview
Contract Amount: $287,462,342 ($287.5M)
Contractor: Science Applications International Corporation
Awarding Agency: General Services Administration
Start Date: 2017-02-10
End Date: 2022-12-14
Contract Duration: 2,133 days
Daily Burn Rate: $134.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: VIRTUAL, INTERACTIVE, AND MULTIMEDIA SYSTEMS ENGINEERING SERVICES IGF::OT::IGF
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
General Services Administration obligated $287.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: VIRTUAL, INTERACTIVE, AND MULTIMEDIA SYSTEMS ENGINEERING SERVICES IGF::OT::IGF Key points: 1. Significant contract value of $287.46M awarded to a major defense contractor. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of 2133 days (approx. 5.8 years) indicates long-term need. 4. Cost Plus Fixed Fee (CPFF) pricing structure can incentivize cost overruns. 5. Engineering Services sector is critical for government operations and modernization.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure, while common, can lead to higher costs if not managed tightly. Benchmarking against similar CPFF contracts for engineering services is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing, though the CPFF structure requires careful oversight.
Taxpayer Impact: Taxpayer funds are utilized for engineering services, with the ultimate impact depending on the efficiency and effectiveness of the services rendered and the final cost compared to benchmarks.
Public Impact
Supports critical government engineering and technical requirements. Potential for technology development and innovation within the engineering services sector. Ensures continuity of essential engineering support for federal agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing risk
- Long contract duration requires sustained oversight
Positive Signals
- Full and open competition
- Award to established contractor
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for government infrastructure, defense, and technology initiatives. Spending in this sector is often substantial due to the complexity and criticality of projects.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The award to Science Applications International Corporation (SAIC), a large prime contractor, suggests limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The General Services Administration (GSA) is responsible for overseeing this contract. The Cost Plus Fixed Fee (CPFF) nature necessitates robust oversight to manage costs and ensure performance aligns with contract objectives.
Related Government Programs
- Engineering Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns.
- Long contract duration requires sustained vigilance and oversight.
- Potential for scope creep given the nature of engineering services.
- Lack of small business participation noted in prime contract award.
Tags
engineering-services, general-services-administration, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $287.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. VIRTUAL, INTERACTIVE, AND MULTIMEDIA SYSTEMS ENGINEERING SERVICES IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $287.5 million.
What is the period of performance?
Start: 2017-02-10. End: 2022-12-14.
What specific engineering services are being procured, and how do they align with agency strategic goals?
The contract is for 'VIRTUAL, INTERACTIVE, AND MULTIMEDIA SYSTEMS ENGINEERING SERVICES'. Understanding the precise nature of these services and their contribution to agency missions is crucial. This includes assessing if they support modernization efforts, operational efficiency, or new capability development, thereby justifying the significant investment.
What are the key performance indicators (KPIs) and how is SAIC's performance being measured against them?
Effective oversight of a CPFF contract requires clearly defined KPIs tied to deliverables and outcomes. The government must rigorously track SAIC's performance against these metrics to ensure value for money and identify any deviations or potential cost escalations early on. This includes monitoring technical execution and adherence to project timelines.
What is the projected total cost, including potential fee, and how does it compare to independent government cost estimates?
While the award amount is $287.46M, the Cost Plus Fixed Fee structure means the final cost could vary. A thorough comparison against the government's independent cost estimate is essential to determine if the contract represents good value. Any significant variance warrants detailed justification and potential renegotiation.
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: ID04160058
Offers Received: 2
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: $472,265,658
Exercised Options: $472,265,658
Current Obligation: $287,462,342
Actual Outlays: $-12,605
Subaward Activity
Number of Subawards: 95
Total Subaward Amount: $665,156,079
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
Start Date: 2017-02-10
Current End Date: 2022-12-14
Potential End Date: 2022-12-14 00:00:00
Last Modified: 2024-08-08
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