NASA's $142M atmospheric sciences contract awarded to Science Applications International Corporation shows mixed value and competition
Contract Overview
Contract Amount: $142,346,378 ($142.3M)
Contractor: Science Applications International Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2001-12-12
End Date: 2006-11-30
Contract Duration: 1,814 days
Daily Burn Rate: $78.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ATMOSPHERIC SCIENCES RESEARCH & TECHNOLOGY SUPPORT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
National Aeronautics and Space Administration obligated $142.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ATMOSPHERIC SCIENCES RESEARCH & TECHNOLOGY SUPPORT Key points: 1. The contract's value proposition appears fair, with a cost-plus-award-fee structure that incentivizes performance but can lead to cost overruns if not managed tightly. 2. Full and open competition was utilized, suggesting a robust bidding process that should have driven competitive pricing. 3. The duration of the contract (over 5 years) indicates a long-term need for these services, but also a potential for vendor lock-in. 4. Performance context is crucial; the award fee mechanism suggests that contractor performance significantly impacts the final cost, making outcomes key to value. 5. This contract falls within the R&D sector, specifically supporting atmospheric sciences, a critical area for NASA's research objectives. 6. The lack of small business set-aside or subcontracting requirements means direct benefits to small businesses are not explicitly mandated.
Value Assessment
Rating: fair
The cost-plus-award-fee (CPAF) contract type allows for flexibility and incentivizes contractor performance, but also carries inherent risks of cost escalation if performance targets are not met or if the government's oversight is insufficient. Benchmarking against similar atmospheric sciences support contracts is difficult without more granular data on the specific services rendered and the contractor's performance metrics. However, the total award value of approximately $142 million over nearly five years suggests a significant investment, and the effectiveness of the award fee structure in controlling costs relative to outcomes will be a key determinant of its overall value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which is expected to lead to more favorable pricing and better quality services. The presence of four bidders (as indicated by 'no': 4) suggests a reasonable level of competition for this atmospheric sciences research and technology support requirement.
Taxpayer Impact: Full and open competition typically benefits taxpayers by promoting market-driven pricing and encouraging innovation among bidders, leading to potentially lower costs and higher quality services compared to less competitive procurement methods.
Public Impact
The primary beneficiaries are NASA's atmospheric science research programs, which receive essential technological and research support. Services delivered include research, development, and technology support crucial for advancing understanding of Earth's atmosphere and climate. The contract's geographic impact is primarily centered around NASA research facilities, likely in California where the contractor is located, but the research itself has global implications. Workforce implications include the employment of scientists, engineers, and technical support staff by the contractor, contributing to the specialized scientific workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-award-fee contracts can lead to higher final costs than fixed-price contracts if performance incentives are not perfectly aligned with cost control.
- The long contract duration (over 5 years) could limit flexibility and opportunities for other contractors to compete for evolving needs.
- Lack of specific small business subcontracting goals means potential missed opportunities for small business participation and economic development.
Positive Signals
- Full and open competition suggests a robust process that should have yielded competitive pricing and a wide range of potential solutions.
- The award fee structure incentivizes the contractor to meet or exceed performance expectations, potentially leading to higher quality outcomes.
- The contract supports critical atmospheric sciences research, aligning with NASA's core mission and contributing to scientific advancement.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on atmospheric sciences. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific endeavors. The market for such specialized scientific support services is often characterized by a limited number of highly qualified firms capable of meeting stringent government requirements. NASA's spending in this area is critical for advancing space exploration and Earth observation capabilities. Comparable spending benchmarks would require analysis of other agencies' atmospheric research contracts and the specific scope of work.
Small Business Impact
This contract does not appear to have included specific small business set-aside provisions, nor are there explicit indications of mandatory small business subcontracting goals. The contractor, Science Applications International Corporation (SAIC), is a large business. This means that the direct economic benefits to the small business ecosystem from this specific contract may be limited unless SAIC voluntarily engages small businesses as subcontractors. Future analysis could explore SAIC's subcontracting practices on this and similar contracts to assess their impact on small business participation.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a cost-plus-award-fee contract, NASA's contracting officers and technical monitors would be responsible for closely monitoring the contractor's costs, performance against requirements, and progress towards achieving award fee criteria. Transparency is generally facilitated through contract reporting requirements. While specific Inspector General (IG) involvement isn't detailed here, NASA's Office of Inspector General (OIG) has broad jurisdiction over NASA contracts and could investigate allegations of fraud, waste, or abuse.
Related Government Programs
- NASA Earth Science Programs
- NOAA Atmospheric Research Grants
- NSF Atmospheric and Geospace Sciences
- DoD Meteorological and Environmental Support Contracts
Risk Flags
- Cost-plus-award-fee contracts require diligent oversight to manage costs effectively.
- Long contract durations can present risks if requirements evolve significantly.
- Lack of explicit small business subcontracting goals may limit economic impact for small businesses.
Tags
nasa, atmospheric-sciences, research-and-development, definitive-contract, cost-plus-award-fee, full-and-open-competition, large-business, california, science-and-technology-support, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $142.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ATMOSPHERIC SCIENCES RESEARCH & TECHNOLOGY SUPPORT
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $142.3 million.
What is the period of performance?
Start: 2001-12-12. End: 2006-11-30.
What was the final awarded amount versus the initial estimated value, and how did performance impact the final cost?
The provided data indicates a total award of $142,346,378.3. Without the initial estimated value or detailed award fee documentation, it's challenging to definitively state the variance. However, the contract type (Cost Plus Award Fee - CPAF) suggests that the final cost is directly tied to the contractor's performance against defined metrics. If the contractor achieved high performance ratings, the final cost could approach or even exceed initial projections, whereas lower performance would result in reduced award fees. Further analysis would require access to NASA's contract performance reports and final payment records to understand the precise relationship between performance and the final expenditure.
How does the per-unit cost of services compare to industry benchmarks for atmospheric sciences research support?
Determining a precise 'per-unit cost' for a broad atmospheric sciences research and technology support contract is complex, as the services are diverse and often project-specific rather than standardized units. The contract's total value of approximately $142 million over nearly five years averages to roughly $28.5 million annually. Benchmarking this against industry standards requires detailed knowledge of the specific tasks performed (e.g., data analysis, modeling, instrument development, field support) and their associated market rates. Without granular data on the labor mix, overhead rates, and specific deliverables, a direct per-unit cost comparison is not feasible. However, the fact that it was competed suggests NASA sought competitive rates within the market.
What is Science Applications International Corporation's (SAIC) track record with NASA and similar government contracts?
Science Applications International Corporation (SAIC) has a long history of performing complex technical, engineering, and scientific support services for various government agencies, including NASA. Their track record generally includes a wide range of capabilities relevant to atmospheric sciences, such as data analysis, modeling, simulation, and systems engineering. While specific performance details for this particular contract (NASA contract number not provided) would require deeper investigation into NASA's contract databases and performance evaluations, SAIC is a major federal contractor known for its extensive experience. Assessing their overall performance would involve reviewing past performance questionnaires, award fee scores, and any documented issues or commendations on similar large-scale R&D support contracts.
Were there any significant cost overruns or performance issues reported during the contract's lifecycle?
The provided summary data does not contain information on cost overruns or specific performance issues. For a Cost Plus Award Fee (CPAF) contract, performance is inherently linked to the final cost through the award fee component. If significant issues arose, they would likely be reflected in lower award fee determinations, potentially capping the total cost below the maximum allowable. To ascertain the presence of overruns or issues, one would need to consult NASA's contract administration records, performance reports, or any publicly available audit reports or Inspector General investigations related to this specific contract. The absence of readily available negative flags does not guarantee perfect execution.
How does NASA's spending on atmospheric sciences support compare to other agencies like NOAA or NSF?
NASA's spending on atmospheric sciences research and technology support, exemplified by this $142 million contract, is substantial and aligns with its mission focus on Earth science, climate, and space weather. Comparing it directly to agencies like NOAA (National Oceanic and Atmospheric Administration) or NSF (National Science Foundation) requires analyzing their respective budgets and contract portfolios. NOAA, with its mandate for weather, climate, and ocean monitoring, likely has significant spending in related areas, often through different types of contracts (e.g., satellite operations, data services). NSF funds a broad spectrum of basic scientific research, including atmospheric sciences, often through grants to universities and research institutions rather than large prime contracts of this nature. While all contribute to atmospheric science, their missions, funding mechanisms, and contracting strategies differ, making direct dollar-for-dollar comparisons complex without a detailed cross-agency analysis of atmospheric science-related expenditures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11803 SORRENTO VALLEY RD, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $185,403,254
Exercised Options: $153,367,898
Current Obligation: $142,346,378
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2001-12-12
Current End Date: 2006-11-30
Potential End Date: 2006-11-30 00:00:00
Last Modified: 2018-11-26
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