DoD's $61.4M Engineering Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $61,392,241 ($61.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2012-07-01
End Date: 2016-07-31
Contract Duration: 1,491 days
Daily Burn Rate: $41.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TO N00178-04-D-4143-N404
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $61.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TO N00178-04-D-4143-N404 Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 1491 days indicates a long-term engagement for engineering services. 4. The contract was awarded by the Department of the Navy, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract value of $61.4 million represents a significant investment in engineering support. 7. The contract was awarded as a Delivery Order under a larger IDIQ contract (TO N00178-04-D-4143-N404).
Value Assessment
Rating: good
The contract value of $61.4 million for engineering services over approximately four years appears reasonable given the scope and duration. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. However, the use of Cost Plus Fixed Fee (CPFF) pricing suggests that the government aims to control costs while ensuring the contractor is adequately compensated for their efforts. Benchmarking against similar large-scale engineering support contracts within the Department of Defense would provide a more precise valuation.
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 a bid. The presence of multiple bidders, as suggested by the 'no' field indicating 3 bids received, generally leads to more competitive pricing and a wider range of technical solutions. The government's ability to select from multiple proposals implies a robust price discovery mechanism.
Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to yield a fair price for the engineering services rendered, reducing the risk of overpayment compared to non-competitive awards.
Public Impact
The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring specialized engineering expertise. The services delivered are engineering services, likely encompassing design, analysis, testing, and technical support for naval systems or infrastructure. The geographic impact is likely concentrated around naval facilities or project sites where the engineering support is required. The contract supports a workforce of engineers and technical professionals employed by Science Applications International Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain within reasonable bounds and that the fixed fee is justified by the work performed.
- The long duration of the contract (1491 days) necessitates ongoing performance monitoring to ensure continued value and alignment with evolving requirements.
- Reliance on a single large contractor for critical engineering services could pose a risk if the contractor's performance degrades or if their capacity is overstretched.
Positive Signals
- Awarded under full and open competition, indicating a robust and fair bidding process.
- Science Applications International Corporation is a well-established defense contractor with a significant track record, suggesting a degree of reliability.
- The contract is a delivery order under an existing IDIQ, implying a pre-vetted contractor and potentially streamlined procurement.
Sector Analysis
The engineering services sector is a critical component of the defense industrial base, providing essential technical expertise for the development, maintenance, and modernization of military systems. This contract falls within the broader professional, scientific, and technical services market, which is characterized by a mix of large prime contractors and specialized small businesses. Spending in this category within the Department of Defense is substantial, reflecting the complexity and technological demands of modern warfare. Comparable spending benchmarks would typically involve analyzing the average cost per hour or per project for similar engineering disciplines within the DoD.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Science Applications International Corporation is a large prime contractor. While this specific award may not directly benefit small businesses through a set-aside, large prime contractors are often required to subcontract portions of their work to small businesses. The extent of subcontracting to small businesses would depend on the specific terms of the contract and the prime contractor's subcontracting plan, which is not detailed here.
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 and ensure the fixed fee remains appropriate for the work performed. Accountability measures would include performance reviews, milestone tracking, and adherence to contract terms. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.
Related Government Programs
- Department of Defense Engineering Services
- Naval Sea Systems Command (NAVSEA) Contracts
- Professional, Scientific, and Technical Services
- Cost Plus Fixed Fee Contracts
- Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long contract duration necessitates ongoing performance monitoring.
- Potential for cost overruns inherent in CPFF structure if not managed.
- Reliance on a single prime contractor for critical services.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, professional-scientific-and-technical-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, large-contract, science-applications-international-corporation, massachusetts
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TO N00178-04-D-4143-N404
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 $61.4 million.
What is the period of performance?
Start: 2012-07-01. End: 2016-07-31.
What is the historical spending pattern for Science Applications International Corporation (SAIC) with the Department of the Navy for engineering services?
Analyzing SAIC's historical spending with the Department of the Navy for engineering services requires access to comprehensive federal procurement data. Based on publicly available information, SAIC has been a significant contractor for the DoD, including the Navy, across various service categories. Their portfolio often includes complex engineering, IT, and logistics support. To provide a precise historical spending pattern, one would need to query databases like USAspending.gov or FPDS for all contracts awarded to SAIC by the Department of the Navy under NAICS codes related to engineering services (e.g., 541330) over a defined period (e.g., the last 5-10 fiscal years). This would reveal trends in contract values, types, and durations, allowing for comparison with the current $61.4 million award.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types used for similar engineering services by the DoD?
The Cost Plus Fixed Fee (CPFF) structure is common for research and development or complex services where the scope is not fully defined at the outset, or where innovation is a key component. In CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements evolve but carries a higher risk of cost overruns if not managed diligently. Cost-Plus-Incentive-Fee (CPIF) contracts, another alternative, share costs and profits based on meeting specific performance targets, incentivizing both cost control and performance. For well-defined engineering services, FFP contracts are often preferred by the government as they provide the most cost certainty. The choice of CPFF here suggests the Navy anticipated some level of uncertainty or complexity in the engineering tasks.
What are the key performance indicators (KPIs) typically associated with engineering services contracts of this magnitude within the Department of Defense?
Key Performance Indicators (KPIs) for large DoD engineering services contracts often revolve around technical performance, schedule adherence, cost control, and quality. For a CPFF contract, specific KPIs might include meeting defined technical milestones, delivering accurate and timely engineering reports and analyses, achieving specified performance parameters for systems or designs, and managing project costs within projected budgets. Quality assurance metrics, such as the number of design revisions required due to errors or the successful completion of testing phases, are also critical. Schedule KPIs would focus on meeting critical path deadlines for project phases. The government would typically establish a Performance Work Statement (PWS) outlining these requirements and the metrics for evaluating the contractor's success.
What is the potential impact of this contract on the competitive landscape for engineering services within the defense sector?
This contract, awarded to Science Applications International Corporation (SAIC), reinforces SAIC's position as a major player in the defense engineering services market. As a full and open competition award, it signifies that SAIC was deemed the best value among multiple bidders. The existence of this contract, valued at $61.4 million over approximately four years, indicates a significant demand for the specific engineering capabilities SAIC provides. For other large defense contractors, it highlights the ongoing need for sophisticated engineering support and the competitive nature of securing such awards. For smaller, specialized firms, it underscores the importance of strategic partnerships or focusing on niche capabilities that may be subcontracted or pursued in different competitive arenas. The overall impact is the continued consolidation of significant engineering work with established prime contractors.
Are there any specific risks associated with the 'Cost Plus Fixed Fee' contract type for the Department of the Navy in this context?
The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for the Department of the Navy is the potential for cost overruns if the contractor's actual costs exceed initial estimates significantly. While the fee is fixed, the government bears the risk of increased direct and indirect costs. This necessitates robust oversight by the Navy to ensure that all costs claimed by SAIC are allowable, allocable, and reasonable according to the contract terms and Federal Acquisition Regulation (FAR). Inadequate oversight could lead to the government paying more than necessary for the services. Additionally, the CPFF structure might offer less incentive for the contractor to aggressively control costs compared to fixed-price contracts, although the fixed fee itself provides some level of profit certainty for the contractor.
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: N0002411R3044
Offers Received: 3
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: $69,357,753
Exercised Options: $69,022,009
Current Obligation: $61,392,241
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
Start Date: 2012-07-01
Current End Date: 2016-07-31
Potential End Date: 2016-07-31 00:00:00
Last Modified: 2024-12-04
More Contracts from Science Applications International Corporation
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Department of State)
- Software Life Cycle Development — $1.4B (General Services Administration)
- Unified Nasa Information Technology Services (unites) — $1.4B (National Aeronautics and Space Administration)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (General Services Administration)
- This Effort IS for a Follow on Procurement Requirement. the Name of This Procurement IS the Omnibus Multidiscipline Engineering Services (omes) II. the Principal Purpose of This Contract IS to Provide Multidiscipline Engineering Support Services and Related Work to EED, Istd, SED, MSD, Mesa, Jpss, Ssco, and Related Organizations, AS Required, for the Study, Design, Systems Engineering, Development, Fabrication, Integration, Testing, Verification, and Operations of Space Flight, Airborne, and Ground System Hardware and Software, Including Development and Validation of NEW Technologies to Enable Future Space and Science Missions. to This END, the Contractor Shall Provide On/Off-Site Multidiscipline Engineering Services, Pursuant to Task Orders Issued by the Contracting Officer. These Services Shall Include the Personnel, Facilities, and Materials (unless Otherwise Provided by the Government) to Accomplish the Tasks. Travel MAY BE Required by the Contractor to Support Certain Task Orders, These Travel Requirements Will BE Identified on a Task by Task Basis — $1.0B (National Aeronautics and Space Administration)
View all Science Applications International Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)