DoD's $15.8M Engineering Services Contract Awarded to Science Applications International Corp
Contract Overview
Contract Amount: $15,816,145 ($15.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2007-01-12
End Date: 2011-09-30
Contract Duration: 1,722 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: N00178-04-D-4119-N421
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $15.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: N00178-04-D-4119-N421 Key points: 1. Contract awarded for engineering services, a critical component of defense operations. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 1722 days indicates a significant, long-term need. 4. The award was made to Science Applications International Corporation, a major defense contractor.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. However, the specific pricing mechanisms within the cost-plus-fixed-fee structure warrant scrutiny to ensure value for money.
Taxpayer Impact: Taxpayer funds are being utilized for essential engineering services. The effectiveness of the competition and contract management will determine the ultimate taxpayer impact.
Public Impact
Supports critical Department of the Navy engineering and technical services. Engaged a large, established defense contractor, potentially impacting smaller business participation. Long-term nature of the contract suggests ongoing defense infrastructure or program needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize higher spending.
- Lack of specific performance metrics makes value assessment challenging.
- Limited insight into the competitive landscape beyond the initial award.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential defense engineering services.
- Managed by a reputable agency (Department of the Navy).
Sector Analysis
Engineering services are vital for defense, encompassing design, development, and maintenance of complex systems. Spending in this sector is substantial, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
While awarded under full and open competition, the contract went to a large prime contractor. Analysis is needed to determine the extent of small business subcontracting opportunities within this award.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The effectiveness of their contract management and performance monitoring will be crucial for ensuring accountability and value.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus-fixed-fee contract type.
- Long contract duration.
- Limited performance data available.
- Potential for cost overruns.
- Prime contractor is a large business.
Tags
engineering-services, department-of-defense, ri, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. N00178-04-D-4119-N421
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 $15.8 million.
What is the period of performance?
Start: 2007-01-12. End: 2011-09-30.
What specific engineering services were procured, and how do they align with current defense priorities?
The contract, NA 541330, covers engineering services. While the specific details are not provided, these typically include technical analysis, system design, integration, and testing. Alignment with defense priorities would depend on the specific projects undertaken by the Department of the Navy under this contract, such as naval platform modernization or new technology development.
How effectively did the full and open competition process ensure competitive pricing for this cost-plus-fixed-fee contract?
Full and open competition is designed to maximize the pool of potential bidders, theoretically driving down prices. However, the cost-plus-fixed-fee structure inherently involves risk for the government, as costs can escalate. The true effectiveness of the competition in securing competitive pricing hinges on the government's ability to negotiate favorable fixed fees and rigorously audit costs.
What is the projected taxpayer impact given the contract's duration and cost-plus-fixed-fee structure?
The projected taxpayer impact is uncertain due to the cost-plus-fixed-fee structure, which allows for cost increases. The total expenditure of $15.8 million over 1722 days (approximately 4.7 years) represents a significant commitment. Without clear performance metrics and cost controls, there is a risk of exceeding initial estimates, thus increasing the burden on taxpayers.
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: N0002406R3685
Offers Received: 2
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: $17,722,522
Exercised Options: $17,136,696
Current Obligation: $15,816,145
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: 2007-01-12
Current End Date: 2011-09-30
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2016-11-01
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