DoD's $72M Propulsion Test Facility Services Contract Awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $72,053,859 ($72.1M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2020-05-08
End Date: 2026-05-07
Contract Duration: 2,190 days
Daily Burn Rate: $32.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FACILITY OPERATIONS, MAINTENANCE, AND UPGRADE SERVICES FOR THE PROPULSION TEST FACILITY
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $72.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: FACILITY OPERATIONS, MAINTENANCE, AND UPGRADE SERVICES FOR THE PROPULSION TEST FACILITY Key points: 1. Contract focuses on essential facility operations and maintenance, critical for advanced propulsion system testing. 2. Awarded under full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of approximately six years indicates a long-term need for these capabilities. 4. Performance-based contract type (likely implied by 'st':'RI') could incentivize efficiency and quality. 5. The specific NAICS code (541330) points to engineering services, a high-value sector. 6. The contract's value is significant, reflecting the complexity and importance of the facility. 7. No small business set-aside indicates the primary contractor is likely a large business.
Value Assessment
Rating: good
The contract value of $72 million over six years for facility operations and maintenance appears reasonable given the specialized nature of a propulsion test facility. Benchmarking against similar large-scale engineering service contracts for critical infrastructure would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, requires careful oversight to manage costs effectively and ensure the fixed fee remains appropriate throughout the contract's life.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though a higher number of bidders would typically lead to more aggressive pricing and potentially better value. The agency's decision to use full and open competition is a positive sign for market engagement and price discovery.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value from the widest possible pool of qualified contractors.
Public Impact
The primary beneficiaries are the Department of Defense and its research and development initiatives, ensuring the operational readiness of advanced propulsion systems. Services delivered include essential maintenance, repair, and operational support for a critical national asset. The geographic impact is localized to the facility's location in Rhode Island, supporting specialized technical jobs in the region. Workforce implications include the employment of skilled engineers, technicians, and support staff required for operating and maintaining complex testing equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
- The limited number of bids (2) might indicate potential barriers to entry or a concentrated market for these specialized services.
- Long-term contracts can sometimes reduce flexibility to adapt to changing technological needs or market conditions.
Positive Signals
- Awarded through full and open competition, maximizing potential vendor participation.
- The contract duration suggests a stable, long-term requirement, providing predictability for the contractor and ensuring continuity of essential services.
- Focus on facility operations and maintenance implies a critical role in supporting national defense or scientific advancement.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a segment of the broader professional, scientific, and technical services industry. This sector is characterized by high technical expertise and often supports government R&D and defense initiatives. The market for specialized facility operations, particularly for unique assets like propulsion test facilities, is likely concentrated among a few large, experienced contractors. Comparable spending benchmarks would typically be found in contracts supporting large-scale government research laboratories or defense testing ranges.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). Science Applications International Corporation (SAIC) is a large defense contractor. While the prime contract is not a small business award, there may be subcontracting opportunities for small businesses within the scope of operations and maintenance, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure costs are allowable, allocable, and reasonable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Defense Research and Development
- Aerospace Engineering Services
- Facility Maintenance and Operations
- Naval Propulsion Systems
- Test and Evaluation Services
Risk Flags
- Potential for cost overruns due to CPFF structure
- Market concentration for specialized services
- Long-term contract dependency
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, facility-operations, maintenance, propulsion-test-facility, cost-plus-fixed-fee, full-and-open-competition, rhode-island, large-contract, science-applications-international-corporation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. FACILITY OPERATIONS, MAINTENANCE, AND UPGRADE SERVICES FOR THE PROPULSION TEST FACILITY
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 $72.1 million.
What is the period of performance?
Start: 2020-05-08. End: 2026-05-07.
What is the historical spending pattern for propulsion test facility operations and maintenance services by the Department of the Navy?
Analyzing historical spending for similar propulsion test facility operations and maintenance by the Department of the Navy is crucial for context. While specific historical data for this exact facility isn't provided, trends in defense spending on R&D infrastructure and specialized testing services can be examined. Generally, such contracts are long-term and represent significant investments due to the unique nature of the facilities and the specialized expertise required. Fluctuations in spending can be influenced by defense budgets, modernization priorities, and the pace of new technology development. Understanding past contract values, durations, and any competitive bidding outcomes for comparable facilities would help assess if the current $72 million award is in line with historical norms or represents a significant shift.
How does the pricing structure (Cost Plus Fixed Fee) compare to other similar contracts for facility operations?
The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex service contracts where the scope of work may evolve or is difficult to precisely define upfront, such as operating and maintaining specialized facilities like a propulsion test center. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers more flexibility but requires stringent oversight to control costs, as the government bears the risk of cost overruns. Other similar contracts might utilize Cost Plus Incentive Fee (CPIF) to incentivize performance or Firm-Fixed-Price (FFP) if the scope is very well-defined. The suitability of CPFF here likely stems from the unpredictable nature of maintaining and operating advanced testing equipment and facilities.
What is Science Applications International Corporation's (SAIC) track record with similar Department of Defense contracts?
Science Applications International Corporation (SAIC) has an extensive track record of performing complex service and technology contracts for the Department of Defense and other federal agencies. They are a major defense contractor known for providing a wide range of services, including systems engineering, IT support, logistics, and technical services. SAIC has historically managed large-scale operations and maintenance contracts for government facilities and infrastructure. A review of their past performance on similar contracts, particularly those involving specialized technical facilities or engineering services, would be necessary to fully assess their capability and reliability in executing this specific propulsion test facility contract. Past performance evaluations and any documented issues would be key indicators.
What are the key performance indicators (KPIs) likely used to measure the success of this contract?
Key Performance Indicators (KPIs) for a contract like this would focus on ensuring the Propulsion Test Facility operates reliably, safely, and efficiently. Likely KPIs could include: Facility Uptime/Availability (percentage of time the facility is operational and ready for testing), Maintenance Response Time (time taken to address reported issues), Safety Incident Rate (number of safety incidents per man-hour or operational cycle), Cost Performance (adherence to budget, variance analysis), Schedule Performance (completion of maintenance and upgrade tasks on time), and Technical Performance (meeting specified testing parameters and equipment calibration standards). These KPIs would be crucial for the government to monitor contractor performance and ensure value for money.
Are there any known risks associated with operating and maintaining propulsion test facilities that this contract needs to address?
Operating and maintaining propulsion test facilities involves significant risks. These include safety hazards associated with high-energy systems, flammable materials, and extreme temperatures/pressures. Equipment failure can lead to costly delays and potential damage. Obsolescence of testing technology and infrastructure is another risk, requiring continuous modernization. Environmental compliance and regulatory adherence are also critical. Furthermore, the specialized workforce required is often in high demand, posing a risk of staffing shortages. This contract likely includes provisions for robust safety protocols, preventative maintenance schedules, emergency response plans, and potentially technology refresh strategies to mitigate these inherent risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6660420R3000
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: $74,682,310
Exercised Options: $74,682,310
Current Obligation: $72,053,859
Subaward Activity
Number of Subawards: 103
Total Subaward Amount: $14,072,167
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: 2020-05-08
Current End Date: 2026-05-07
Potential End Date: 2026-05-07 00:00:00
Last Modified: 2026-02-12
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