Navy awards $41.3M in engineering services to Science Applications International Corporation for ATC/Landing Systems
Contract Overview
Contract Amount: $41,282,532 ($41.3M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2012-07-13
End Date: 2016-05-31
Contract Duration: 1,418 days
Daily Burn Rate: $29.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF PROGRAM MANAGEMENT AND ENGINEERING SERVICES FOR AIR TRAFFIC CONTROL AND LANDING SYSTEMS DIVISION
Place of Performance
Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $41.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF PROGRAM MANAGEMENT AND ENGINEERING SERVICES FOR AIR TRAFFIC CONTROL AND LANDING SYSTEMS DIVISION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Engineering services are critical for maintaining and upgrading complex air traffic control systems. 3. The contract duration of approximately 3.9 years provides a stable period for service delivery. 4. The Cost Plus Fixed Fee (CPFF) contract type may allow for flexibility but requires careful oversight of costs. 5. The award to a single contractor, Science Applications International Corporation, indicates their specialized capabilities in this niche. 6. The contract's focus on air traffic control and landing systems highlights its importance for aviation safety and efficiency.
Value Assessment
Rating: good
The total award amount of $41.3 million over nearly four years for specialized engineering services related to air traffic control and landing systems appears reasonable. Benchmarking against similar complex engineering contracts for defense systems suggests that the pricing is within an expected range, especially considering the critical nature of the services. The CPFF contract type, while common for R&D and complex services, necessitates diligent cost tracking to ensure value for money. Without specific per-unit cost data, a direct comparison is difficult, but the overall value seems aligned with the scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive environment was intended. This approach generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The selection of a single contractor implies that Science Applications International Corporation offered the best value proposition among the competitors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider pool of contractors to participate, potentially leading to more cost-effective solutions.
Public Impact
The Department of the Navy benefits from specialized engineering expertise to maintain and improve critical air traffic control and landing systems. Aviation safety and operational efficiency within Navy aviation operations are directly supported by these services. The services likely impact naval air stations and facilities where these systems are deployed. The contract supports a workforce skilled in engineering, particularly in aerospace and defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed meticulously.
- Lack of specific bidder numbers makes it difficult to fully assess the intensity of competition.
- The contract's duration might not fully account for rapidly evolving ATC technology.
- Potential for contractor lock-in if follow-on work is heavily reliant on initial system design.
Positive Signals
- Awarded through full and open competition, indicating a fair and transparent process.
- Contractor has a significant presence in defense engineering services.
- Services are critical for maintaining essential aviation infrastructure.
- Stable funding over a defined period allows for consistent service delivery.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related aerospace and infrastructure. The market for specialized engineering services for air traffic control and landing systems is driven by government procurement, particularly within defense agencies. Companies like Science Applications International Corporation are key players in this niche, providing essential technical expertise for complex systems. Comparable spending benchmarks would involve other large-scale engineering support contracts for critical infrastructure within the Department of Defense or Federal Aviation Administration.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. This suggests the primary focus was on securing specialized engineering capabilities, likely requiring large-scale resources and expertise. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for engaging the small business ecosystem in supporting critical defense infrastructure.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure cost reasonableness. Transparency is typically managed through contract reporting mechanisms and performance reviews. While specific Inspector General (IG) jurisdiction isn't detailed, the DoD IG generally has oversight over defense contracts.
Related Government Programs
- Air Traffic Control Systems Modernization
- Naval Aviation Infrastructure Support
- Defense Engineering Services Contracts
- Federal Aviation Administration (FAA) ATC Programs
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent cost oversight.
- Potential for cost escalation without strict management.
- Limited transparency on the number of bidders in the competition.
- No explicit small business subcontracting requirements mentioned.
Tags
engineering-services, department-of-defense, department-of-the-navy, air-traffic-control, landing-systems, full-and-open-competition, cost-plus-fixed-fee, science-applications-international-corporation, maryland, defense-contracting, aviation-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF PROGRAM MANAGEMENT AND ENGINEERING SERVICES FOR AIR TRAFFIC CONTROL AND LANDING SYSTEMS DIVISION
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 Navy).
What is the total obligated amount?
The obligated amount is $41.3 million.
What is the period of performance?
Start: 2012-07-13. End: 2016-05-31.
What is the track record of Science Applications International Corporation (SAIC) in providing similar engineering services to the Department of Defense or other federal agencies?
Science Applications International Corporation (SAIC) has a substantial track record in providing a wide array of engineering, IT, and technical services to the Department of Defense (DoD) and other federal agencies. They are a major defense contractor with extensive experience in areas such as command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR), simulation and training, and systems engineering. SAIC has been involved in numerous large-scale contracts supporting naval aviation, air traffic control systems, and other complex defense platforms. Their history includes managing significant budgets and delivering technical solutions across various military branches. This specific contract for air traffic control and landing systems aligns well with their established capabilities and past performance in complex engineering and systems integration for critical defense infrastructure.
How does the total contract value of $41.3 million compare to other engineering services contracts for air traffic control systems awarded by the Navy or DoD?
The total contract value of $41.3 million for engineering services related to air traffic control and landing systems, awarded over approximately 3.9 years, positions it as a significant but not exceptionally large contract within the broader DoD procurement landscape. Larger, multi-year programs for major system overhauls or new system development can easily reach hundreds of millions or even billions of dollars. However, for specialized engineering support focused on maintenance, upgrades, and sustainment of existing ATC/landing systems, $41.3 million represents a substantial investment. It suggests a focused effort on a specific set of systems or facilities rather than a comprehensive modernization program. Comparisons would need to account for the specific scope, duration, and technological complexity of the services rendered.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how might they be mitigated?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a predetermined fixed fee. If costs escalate beyond initial projections, the government bears the burden, while the contractor's profit (the fixed fee) remains constant. This can disincentivize cost control by the contractor. Mitigation strategies include robust government oversight of all incurred costs, detailed audits, clear definition of allowable costs in the contract, and strong performance management to ensure the contractor is delivering efficiently. Regular reviews and milestone tracking are essential to identify potential cost creep early. The fixed fee itself should be negotiated to reflect the level of risk and effort involved.
What is the expected impact of these engineering services on the operational effectiveness and safety of Navy aviation?
These engineering services are critical for ensuring the operational effectiveness and safety of Navy aviation by maintaining, upgrading, and supporting the complex air traffic control (ATC) and landing systems. Reliable ATC and landing systems are fundamental to safe aircraft operations, especially at naval air stations which often handle high volumes of traffic in dynamic conditions. Effective engineering support ensures that these systems are functioning optimally, meet current regulatory standards, and are resilient to failures. Upgrades facilitated by these services can enhance system capabilities, improve situational awareness for controllers, and potentially reduce landing errors or delays. Ultimately, the services contribute directly to the Navy's ability to conduct flight operations safely and efficiently.
How has federal spending on engineering services for air traffic control and landing systems evolved over the past five years, and does this contract represent a trend?
Federal spending on engineering services for air traffic control (ATC) and landing systems has generally seen consistent investment, driven by the need to modernize aging infrastructure and adapt to evolving aviation technologies. The Federal Aviation Administration (FAA) is a major spender in this area for civilian airspace, while the Department of Defense (DoD), including the Navy, invests in systems supporting military operations. While this specific $41.3 million Navy contract is a single data point, overall trends indicate sustained demand for these specialized services. Factors like increased air traffic, cybersecurity threats, and the integration of new technologies (e.g., GPS, satellite-based navigation) necessitate ongoing engineering support. This contract likely reflects the ongoing sustainment and incremental upgrade needs within the Navy's aviation infrastructure rather than a significant departure or new trend.
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: N0002411R3148
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,304,599
Exercised Options: $46,864,071
Current Obligation: $41,282,532
Subaward Activity
Number of Subawards: 84
Total Subaward Amount: $6,741,411
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2012-07-13
Current End Date: 2016-05-31
Potential End Date: 2016-05-31 00:00:00
Last Modified: 2017-03-28
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