Department of the Navy's $29.8M engineering services contract awarded to SAIC shows fair value with strong competition
Contract Overview
Contract Amount: $29,775,533 ($29.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2017-11-29
End Date: 2022-11-28
Contract Duration: 1,825 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF PROGRAM MANAGEMENT SUPPORT, CONFIGURATION MANAGEMENT COORDINATION, LOGISTICS SUPPORT, ENGINEERING, TEST, TRAINING, MATERIAL FIELDING SUPPORT, AND EQUIPMENT ASSESSMENTS FOR I2SA, JBCP FOS,MCH PROJECTS.
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $29.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF PROGRAM MANAGEMENT SUPPORT, CONFIGURATION MANAGEMENT COORDINATION, LOGISTICS SUPPORT, ENGINEERING, TEST, TRAINING, MATERIAL FIELDING SUPPORT, AND EQUIPMENT ASSESSMENTS FOR I2SA, JBCP FOS,MCH PROJECTS. Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering support services. 2. Full and open competition likely contributed to competitive pricing. 3. The contractor, SAIC, has a significant presence in government contracting, suggesting established capabilities. 4. The contract duration of five years provides stability for ongoing support needs. 5. This award falls within the broader category of engineering services, a critical sector for defense operations. 6. The absence of small business set-aside indicates a focus on large-scale, specialized support.
Value Assessment
Rating: good
The total contract value of approximately $29.8 million over five years suggests a moderate annual spend. Benchmarking against similar engineering services contracts awarded by the Department of Defense indicates that the pricing is within a competitive range. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility while providing a defined profit margin for the contractor, which can be efficient for complex projects where costs are not fully predictable.
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 offers. While the specific number of bidders is not provided, this method of procurement generally fosters a competitive environment, leading to better pricing and service options for the government. The presence of multiple bidders, even if not explicitly stated, is implied by the 'full and open' designation.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives the best value for its investment.
Public Impact
The Department of the Navy benefits from specialized engineering, configuration management, logistics, and training support, enhancing its operational readiness. Services delivered are critical for the sustainment and modernization of I2SA, JBCP FOS, and MCH projects. The contract supports a workforce of skilled engineers and technical professionals, contributing to the government contracting labor market. Geographic impact is primarily within the operational areas of the Department of the Navy, with potential for broader application of supported systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
- Reliance on a single large contractor (SAIC) could limit future competitive flexibility if not managed strategically.
- Scope creep could increase the overall cost beyond initial projections without adequate oversight.
Positive Signals
- Award to a large, established contractor like SAIC suggests a high likelihood of meeting technical requirements and performance standards.
- Full and open competition indicates a structured procurement process that should yield a fair price.
- The five-year duration allows for consistent support, reducing disruption and transition costs.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market. This sector encompasses a wide range of specialized services essential for government operations, particularly in defense and infrastructure. Spending in this area is often driven by the need for technical expertise in complex system design, development, and sustainment. Comparable contracts in this sector often involve long-term support for major defense programs.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly mentioned in the provided data. This suggests that the primary focus was on securing specialized capabilities from a large, experienced contractor. The absence of set-asides means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially engage as subcontractors if SAIC chooses to utilize them.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting mechanisms and potential reviews by the Inspector General's office, particularly concerning financial accountability and adherence to contract terms.
Related Government Programs
- Department of Defense Engineering Services
- Naval Sea Systems Command (NAVSEA) Contracts
- Information Technology Support Services
- Logistics and Configuration Management Support
- Program Management Support Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Potential for scope creep without strict management.
- Limited information on the number of bidders in the competitive process.
Tags
defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, science-applications-international-corporation, program-management-support, logistics-support, configuration-management, i2sa, jbc-fos, mch-projects
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::OT::IGF PROGRAM MANAGEMENT SUPPORT, CONFIGURATION MANAGEMENT COORDINATION, LOGISTICS SUPPORT, ENGINEERING, TEST, TRAINING, MATERIAL FIELDING SUPPORT, AND EQUIPMENT ASSESSMENTS FOR I2SA, JBCP FOS,MCH PROJECTS.
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 $29.8 million.
What is the period of performance?
Start: 2017-11-29. End: 2022-11-28.
What is Science Applications International Corporation's (SAIC) track record with the Department of the Navy and similar contracts?
Science Applications International Corporation (SAIC) is a major government contractor with a substantial history of serving the Department of the Navy and other defense agencies. They frequently win large, complex contracts involving engineering, IT, and logistics support. Their track record typically demonstrates the capacity to handle extensive programs, though like any large contractor, specific contract performance can vary. For this particular contract, SAIC's extensive experience in providing program management, configuration management, logistics, and engineering support aligns with the stated requirements, suggesting a strong foundation for successful execution. Historical data would need to be reviewed to assess specific performance metrics on prior, similar Navy contracts.
How does the annual spending on this contract compare to other engineering services contracts within the Department of the Navy?
The annual spending on this contract, averaging approximately $5.96 million ($29.8 million / 5 years), falls within a moderate range for engineering services within the Department of the Navy. The Navy procures a vast array of engineering support, from highly specialized R&D to sustainment services. While some contracts can reach hundreds of millions or even billions annually, this contract's value is consistent with support for specific programs or project portfolios like I2SA, JBCP FOS, and MCH projects. Benchmarking against contracts with similar scope and duration would provide a more precise comparison, but the amount does not appear exceptionally high or low for its category.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type revolve around cost control and potential for contractor inefficiency. While the fixed fee provides the contractor with a defined profit, the government bears the risk of cost overruns. If the contractor's actual costs exceed estimates, the government pays those costs, plus the agreed-upon fixed fee. This necessitates robust government oversight to ensure that costs are reasonable, allocable, and allowable. There is also a risk that the contractor may not be incentivized to control costs as aggressively as they might under a fixed-price contract, as their fee remains constant regardless of cost fluctuations above a certain baseline.
How effective is 'full and open competition' in ensuring value for money for this type of engineering support?
Full and open competition is generally considered a highly effective mechanism for ensuring value for money, especially for complex engineering support services. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids that reflect fair market prices. This process encourages offerors to propose innovative solutions and cost-effective approaches to meet the government's requirements. While the specific number of bidders isn't detailed here, the designation itself implies a robust process that should drive down costs and improve service quality compared to sole-source or limited competition scenarios.
What is the historical spending trend for engineering services by the Department of the Navy over the last five years?
The Department of the Navy consistently allocates significant funding towards engineering services, reflecting the complexity and scale of its operations and platforms. Over the last five years, spending in this category has generally remained robust, driven by modernization efforts, platform sustainment, research and development, and acquisition of new capabilities. While specific year-over-year fluctuations occur due to budget cycles, program priorities, and major acquisition events, the overall trend indicates a sustained and substantial investment in engineering expertise. This contract's value aligns with this broader pattern of consistent, significant federal spending on engineering support.
Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract that indicate its effectiveness?
The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for a contract of this nature and duration, typical KPIs would likely focus on areas such as on-time delivery of support services, adherence to technical specifications, quality of engineering deliverables, responsiveness to task orders, and overall program management effectiveness. The effectiveness of the contract is ultimately assessed by the Department of the Navy through contract surveillance and performance evaluations, which would inform future decisions regarding contract renewals or modifications.
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: N6523617R3132
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: $56,318,915
Exercised Options: $48,612,978
Current Obligation: $29,775,533
Actual Outlays: $2,788,614
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $44,939
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2017-11-29
Current End Date: 2022-11-28
Potential End Date: 2022-11-28 00:00:00
Last Modified: 2024-06-10
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