Department of the Navy awards $31.2M software development contract to Science Applications International Corporation
Contract Overview
Contract Amount: $31,233,258 ($31.2M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-07
End Date: 2023-07-07
Contract Duration: 730 days
Daily Burn Rate: $42.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: NAVAIR AVIATION LOGISTICS ENVIRONMENT (ALE) PRODUCT LINE SOFTWARE DEVELOPMENT AND ENGINEERING SUPPORT SERVICES FOLLOW-ON (CAMEO). SEE GENERAL INFORMATION FOR UPDATES.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152
Plain-Language Summary
Department of Defense obligated $31.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NAVAIR AVIATION LOGISTICS ENVIRONMENT (ALE) PRODUCT LINE SOFTWARE DEVELOPMENT AND ENGINEERING SUPPORT SERVICES FOLLOW-ON (CAMEO). SEE GENERAL INFORMATION FOR UPDATES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 730 days indicates a medium-term engagement for software development. 3. The cost-plus-fixed-fee pricing structure may incentivize cost control by the contractor. 4. This contract supports aviation logistics software, a critical component for naval operations. 5. The award value of over $31 million signifies a substantial investment in this capability. 6. The contractor, Science Applications International Corporation, has a significant presence in government contracting.
Value Assessment
Rating: good
The contract value of $31.2 million over two years for software development and engineering support appears reasonable given the scope. Benchmarking against similar large-scale software development contracts for defense logistics systems suggests this is within expected parameters. The cost-plus-fixed-fee structure, while carrying some risk, is common for complex development efforts where final costs can be uncertain. Further analysis would require detailed breakdown of labor categories and hours.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders participated, the depth of competition and the specific evaluation criteria would determine the extent to which price discovery was optimized.
Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, potentially leading to a more cost-effective outcome compared to sole-source or limited competition scenarios.
Public Impact
Naval personnel will benefit from improved aviation logistics software, enhancing operational efficiency. The contract delivers essential software development and engineering support services. The primary geographic impact is likely within Department of the Navy facilities and operations. This contract supports a workforce of software developers, engineers, and technical specialists.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
- Dependence on a single contractor for critical aviation logistics software could pose a risk if performance falters.
- The limited number of bidders (2) might indicate potential barriers to entry or a niche market.
Positive Signals
- Awarded through full and open competition, promoting a fair marketplace.
- The contractor, SAIC, is a large, established entity with a track record in defense IT.
- The contract duration suggests a stable, long-term need for these services.
Sector Analysis
This contract falls within the broader Information Technology and Engineering Services sector, specifically supporting defense logistics. The market for defense software development is substantial, with significant government spending allocated to maintaining and upgrading complex systems. Comparable spending benchmarks would involve analyzing other large-scale software development and sustainment contracts within the Department of Defense, particularly those focused on aviation and logistics.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Given the prime contractor is Science Applications International Corporation, a large business, the potential for small business subcontracting exists. Analysis of the subcontracting plan, if available, would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Naval Aviation Logistics Command Management Information System (NALCOMIS)
- Defense Logistics Agency (DLA) IT Support Contracts
- Fleet Readiness Centers (FRC) Software Development
Risk Flags
- Cost-Plus-Fixed-Fee contract type may lead to cost overruns.
- Limited number of bidders (2) could indicate potential market concentration or high barriers to entry.
- Follow-on nature of the contract requires scrutiny to ensure continued value and prevent complacency.
Tags
it, defense, department-of-the-navy, software-development, engineering-services, aviation-logistics, cost-plus-fixed-fee, full-and-open-competition, california, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NAVAIR AVIATION LOGISTICS ENVIRONMENT (ALE) PRODUCT LINE SOFTWARE DEVELOPMENT AND ENGINEERING SUPPORT SERVICES FOLLOW-ON (CAMEO). SEE GENERAL INFORMATION FOR UPDATES.
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 $31.2 million.
What is the period of performance?
Start: 2021-07-07. End: 2023-07-07.
What is the track record of Science Applications International Corporation (SAIC) with the Department of the Navy for similar software development services?
Science Applications International Corporation (SAIC) has a long-standing and extensive track record of providing IT and engineering services to the Department of the Navy and other Department of Defense agencies. They are a major defense contractor with significant experience in software development, systems integration, and logistics support. Historically, SAIC has been awarded numerous contracts for complex defense systems, including those related to naval aviation and logistics. Their performance on previous contracts would be a key factor in the Navy's decision-making process for this follow-on award. A review of their past performance ratings and any documented issues on similar projects would provide further insight into their reliability and capability for this specific requirement.
How does the $31.2 million contract value compare to previous spending on the NAVAIR Aviation Logistics Environment (ALE) Product Line Software Development and Engineering Support Services?
The provided data indicates this is a follow-on contract with a value of $31,233,258.01 over a 730-day period (2 years). To compare this to previous spending, one would need access to historical contract data for the ALE Product Line Software Development and Engineering Support Services prior to this award. This would involve searching contract databases for prior awards to the same or different contractors for the same or similar services. If previous contracts were for similar durations and scopes, a direct comparison of annual or total award values could be made. Without that historical data, it's difficult to definitively state if this award represents an increase, decrease, or stable level of spending for this specific product line.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for software development?
Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to SAIC for the NAVAIR ALE, carry specific risks for the government. The primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as they are reimbursed for allowable costs plus a fixed fee. If the contractor's costs exceed initial estimates, the government still pays those costs, potentially leading to a higher final price than anticipated. This can be exacerbated if the contractor's cost accounting or management practices are inefficient. To mitigate this, the government must exercise strong oversight, carefully review all incurred costs, and ensure the fixed fee adequately compensates the contractor for their effort and risk without being excessive. The 'fixed fee' component aims to provide some cost certainty, but the underlying cost reimbursement remains a key risk area.
What is the expected impact of this contract on the efficiency and effectiveness of naval aviation logistics operations?
This contract is intended to provide crucial software development and engineering support for the NAVAIR Aviation Logistics Environment (ALE) Product Line. The ALE is a critical system for managing and optimizing aviation logistics, encompassing aspects like maintenance, supply chain, and readiness reporting. By ensuring the continued development, enhancement, and support of the ALE software, this contract aims to improve the efficiency and effectiveness of naval aviation operations. This could translate into better aircraft readiness rates, more streamlined maintenance processes, improved inventory management, and enhanced data visibility for decision-makers. Ultimately, the goal is to ensure that naval aviation assets are maintained and deployed effectively, contributing to overall mission success.
Given the 'full and open competition' and two bidders, what does this suggest about the market for specialized aviation logistics software development?
The fact that this contract was awarded under 'full and open competition' with two bidders suggests a moderately competitive market for specialized aviation logistics software development. 'Full and open competition' implies that the government sought bids from all responsible sources, indicating a desire for broad market engagement. However, having only two bidders might point to several factors: the niche nature of the requirement, high barriers to entry (e.g., security clearances, specialized expertise, existing infrastructure), or perhaps that only two companies possessed the specific capabilities and past performance necessary for this particular contract. It suggests that while the market isn't a monopoly, it may be concentrated among a few key players with the requisite experience and resources to compete for such defense-related software development contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6600121R3503
Offers Received: 2
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: $37,355,411
Exercised Options: $37,355,411
Current Obligation: $31,233,258
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $30,778,652
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8470
IDV Type: IDC
Timeline
Start Date: 2021-07-07
Current End Date: 2023-07-07
Potential End Date: 2023-07-07 00:00:00
Last Modified: 2026-02-12
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