DoD awards $170.8M in engineering services, with SAIC leading technical support for over a decade

Contract Overview

Contract Amount: $170,780,645 ($170.8M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2010-01-04

End Date: 2024-01-25

Contract Duration: 5,134 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SYSTEMS ENGINEERING AND TECHNICAL SUPPORT

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $170.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SYSTEMS ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Contract provides critical systems engineering and technical support, indicating a long-term need for specialized expertise. 2. The extensive duration suggests a stable, ongoing requirement for these services within the Department of Defense. 3. The cost-plus-fixed-fee structure allows for flexibility but requires careful monitoring of costs to ensure value. 4. Competition was full and open, suggesting a robust market for these specialized engineering services. 5. The contract's value places it in the mid-to-large range for engineering services within the federal government. 6. Performance is managed by the Defense Contract Management Agency, indicating a focus on oversight and compliance.

Value Assessment

Rating: good

The contract's total value of $170.8 million over its lifespan suggests a significant investment in engineering services. Benchmarking against similar large-scale systems engineering contracts is challenging without more granular data on specific deliverables. However, the fixed-fee component aims to control costs, and the long duration implies consistent performance and value delivery to the agency. The per-unit cost is not readily available due to the nature of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of two delivery orders suggests that the initial award was likely a base contract with subsequent taskings. Full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices and ensures the government receives the best possible value for its investment in engineering services.

Public Impact

The Department of Defense benefits from advanced systems engineering and technical support, crucial for maintaining and developing complex defense systems. This contract supports the development and sustainment of critical defense technologies, indirectly contributing to national security. The services are likely delivered by highly skilled engineers and technical experts, potentially impacting the defense technology workforce. Geographic impact is likely concentrated around defense installations or contractor facilities involved in the program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs if not managed diligently, potentially exceeding initial budget expectations.
The long duration of the contract (over 13 years) raises questions about the continued relevance and efficiency of the services provided without periodic re-evaluation.

Positive Signals

The contract was awarded through full and open competition, suggesting a competitive pricing environment and a wide selection of qualified vendors.
The consistent award over a long period indicates a stable and reliable performance from the contractor, meeting the agency's ongoing needs.
The involvement of the Defense Contract Management Agency suggests robust oversight and accountability mechanisms are in place.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by high demand for specialized expertise, particularly within government contracting. The federal government is a significant consumer of engineering services, with spending often concentrated in defense, infrastructure, and research and development. Comparable spending benchmarks would typically involve analyzing other large-scale, long-term engineering support contracts awarded by the Department of Defense or other federal agencies.

Small Business Impact

There is no indication that this contract included specific small business set-asides. The prime contractor, Science Applications International Corporation (SAIC), is a large business. While subcontracting opportunities for small businesses may exist, they are not explicitly detailed in the provided data. The absence of set-asides suggests the primary focus was on securing the most capable large-scale provider for these specialized engineering services.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. The cost-plus-fixed-fee (CPFF) pricing structure necessitates rigorous financial oversight to monitor costs and ensure the fixed fee remains appropriate. Transparency is generally facilitated through contract reporting mechanisms, though specific details on public accessibility of performance metrics are not provided.

Related Government Programs

Department of Defense Systems Engineering Support
Defense Technical Services Contracts
Federal Engineering Services
Professional, Scientific, and Technical Services

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Risk (Long Duration)
Technological Obsolescence Risk (Long Duration)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $170.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SYSTEMS ENGINEERING AND TECHNICAL SUPPORT

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 $170.8 million.

What is the period of performance?

Start: 2010-01-04. End: 2024-01-25.

What is the historical spending trend for this specific contract over its lifespan?

The provided data indicates a total award value of $170,780,645 for this contract, with an estimated duration of 5134 days (approximately 14 years). However, the data does not detail the year-over-year spending or the specific amounts obligated in each fiscal year. To understand the spending trend, one would need access to historical contract obligation data, which would show how funds were allocated and spent across the contract's performance period. This would reveal if spending has been consistent, increasing, or decreasing over time, and whether it aligns with the contract's objectives and the agency's budget cycles.

How does the cost-plus-fixed-fee (CPFF) structure impact the value for money in this contract?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee. This structure is often used when the scope of work is not precisely defined or is expected to evolve. For value for money, the key is the government's ability to effectively monitor and control the 'cost' portion. If costs are well-managed and justified, and the fixed fee represents a reasonable profit margin for the services rendered, then CPFF can provide good value by allowing flexibility. However, it carries a risk of cost overruns if oversight is weak, as the contractor has less incentive to control costs compared to a fixed-price contract. The 'fixed fee' component does provide some predictability on the profit element.

What are the specific systems engineering and technical support services being provided under this contract?

The provided data categorizes the contract under 'SYSTEMS ENGINEERING AND TECHNICAL SUPPORT' (NAICS 541330 - Engineering Services) but does not specify the exact nature of these services. Typically, such support within the Department of Defense can encompass a wide range of activities, including requirements analysis, system design, integration, testing, verification and validation, lifecycle management, technical consulting, and program management support. The specific services would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included in this summary. These services are crucial for ensuring the effective development, deployment, and sustainment of complex defense systems.

What is the track record of Science Applications International Corporation (SAIC) in delivering similar engineering services to the DoD?

Science Applications International Corporation (SAIC) is a major government contractor with a long history of providing a wide array of technical, engineering, and IT services to the Department of Defense and other federal agencies. They have consistently secured large contracts for systems engineering, simulation, training, logistics, and C4ISR support. Their track record generally includes successful execution of complex programs, though like any large contractor, they may have faced scrutiny or challenges on specific projects. For this particular contract, its long duration (over 13 years) suggests a sustained level of performance that has met the DoD's requirements over an extended period, indicating a generally positive track record in this domain.

Are there any performance risks associated with this contract, given its long duration and CPFF structure?

Yes, there are potential performance risks. The long duration (over 13 years) can lead to 'contract creep' or a misalignment with evolving technological needs if not actively managed. The Cost-Plus-Fixed-Fee (CPFF) structure, while offering flexibility, carries inherent risks. If the government's oversight of allowable costs is insufficient, the contractor may not have a strong incentive to control expenses, potentially leading to cost overruns beyond the anticipated value. Additionally, maintaining consistent quality and innovation over such an extended period can be challenging. The government must ensure robust performance metrics, regular reviews, and effective cost monitoring to mitigate these risks.

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: N0002409R3284

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD, 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: $174,364,183

Exercised Options: $174,364,183

Current Obligation: $170,780,645

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4143

IDV Type: IDC

Timeline