DoD's $47.8M Contract with SAIC for Technical Services: A Long-Term Engagement
Contract Overview
Contract Amount: $47,812,212 ($47.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2003-07-18
End Date: 2009-12-05
Contract Duration: 2,332 days
Daily Burn Rate: $20.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152
Plain-Language Summary
Department of Defense obligated $47.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: Key points: 1. Significant contract value of $47.8 million over 6 years. 2. Sole-source award suggests limited competition. 3. Potential for cost overruns with Time and Materials pricing. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, without a ceiling, raises concerns about cost control and potential overruns. Benchmarking against similar long-term technical service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method may not have resulted in the best possible price discovery for the government.
Taxpayer Impact: The absence of competitive bidding and the Time and Materials pricing could lead to higher costs for taxpayers than a competitively awarded fixed-price contract.
Public Impact
Long-term engagement ($47.8M over 6 years) indicates critical, ongoing support needs. Sole-source award may limit innovation and cost-saving opportunities. Time and Materials pricing requires robust oversight to manage costs effectively. Services provided are broad, encompassing 'All Other Professional, Scientific, and Technical Services'.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials pricing
- Long contract duration
Positive Signals
- Established contractor (SAIC)
- Long-term support provided
Sector Analysis
This contract falls under the broad 'All Other Professional, Scientific, and Technical Services' category. Spending in this sector can vary widely, but long-term, sole-source engagements like this warrant scrutiny for efficiency and value.
Small Business Impact
The data indicates this was not a small business set-aside. There is no information provided on whether small businesses were subcontracted, which is a missed opportunity for their participation.
Oversight & Accountability
The long duration and sole-source nature of this contract necessitate strong oversight from the Defense Contract Management Agency to ensure cost control, performance, and adherence to contract terms.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Time and Materials pricing poses cost overrun risk.
- Lack of defined contract ceiling.
- Broad service category makes specific performance assessment difficult.
- Long contract duration increases exposure to changing needs and market conditions.
Tags
all-other-professional-scientific-and-te, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. See the official description on USAspending.
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 $47.8 million.
What is the period of performance?
Start: 2003-07-18. End: 2009-12-05.
What specific technical services were provided under this contract, and how critical were they to the Department of Defense's mission?
The contract covers 'All Other Professional, Scientific, and Technical Services,' a broad category. Without specific details, it's hard to assess criticality. However, a $47.8 million, 6-year engagement suggests essential, ongoing support that likely aligns with core defense operations or complex research and development initiatives.
Given the sole-source award and Time and Materials pricing, what mechanisms were in place to mitigate cost overruns and ensure fair pricing?
The provided data does not detail specific cost mitigation mechanisms. Typically, agencies would implement robust Earned Value Management (EVM), regular performance reviews, and potentially negotiation of labor rates. However, the Time and Materials structure inherently carries higher risk for the government without strong oversight and defined ceilings.
How does the performance of SCIENCE APPLICATIONS INTERNATIONAL CORPORATION on this contract compare to industry benchmarks for similar services, and what was the overall value delivered?
Assessing performance and value is challenging without specific metrics or deliverables outlined in the contract. Benchmarking against industry standards for 'All Other Professional, Scientific, and Technical Services' is difficult due to the category's breadth. The long duration and significant value suggest a perceived capability, but actual value delivered requires further investigation into performance reports and outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Community and Regional Development R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 12010, SUNSET HILLS ROAD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $53,349,550
Exercised Options: $51,852,790
Current Obligation: $47,812,212
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-07-18
Current End Date: 2009-12-05
Potential End Date: 2009-12-05 00:00:00
Last Modified: 2022-08-03
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