NASA's $52M IV&V Software Services contract awarded to SAIC under full and open competition

Contract Overview

Contract Amount: $52,097,214 ($52.1M)

Contractor: Science Applications International Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2005-05-11

End Date: 2011-11-10

Contract Duration: 2,374 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: INDEPENDENT VERIFICATION AND VALIDATION (IV&V) SOFTWARE SERVICES. SOFTWARE IV&V IS A SYSTEMS ENGINEERING PROCESS EMPLOYING RIGOROUS METHODOLOGIES FOR EVALUATING THE CORRECTNESS AND QUALITY OF THE SOFTWARE PRODUCT THROUGHOUT THE SOFTWARE LIFE CYCLE. VERIFICATION PROCESSES DETERMINE WHETHER OR NOT THE PRODUCTS OF A GIVEN SOFTWARE DEVELOPMENT ACTIVITY CONFORM TO THE REQUIREMENTS ESTABLISHED FOR THE ACTIVITY. VALIDATION PROCESSES EVALUATE THE SOFTWARE THROUGHOUT THE LIFECYCLE TO DETERMINE WHETHER THE SOFTWARE SATISFIES ITS INTENDED USE AND USER NEEDS. IV&V IS PERFORMED BY AN ORGANIZATION THAT IS TECHNICALLY, MANAGERIALLY, AND FINANCIALLY INDEPENDENT FROM THE DEVELOPING ORGANIZATION. THIS CONTRACT IS FOR THE PERFORMANCE OF SOFTWARE IV&V ON SELECTED SOFTWARE BEING DEVELOPED BY OR FOR NASA AND OTHER FEDERAL, STATE, AND LOCAL GOVERNMENT AGENCIES. THE CONTRACTOR SHALL MANAGE THE ASSOCIATED ACTIVITIES NECESSARY TO SUPPORT THE REQUIREMENTS OF THIS CONTRACT. THE CONTRACTOR SHALL PERFORM BOTH CONTRACT-LEVEL AND PROJECT-LEVEL MANAGEMENT. THE CONTRACTOR SHALL INSTITUTE POLICIES, PROCEDURES, PROCESSES, AND METRICS THAT WILL ENSURE IV&V PRODUCTS MEET CONTRACT REQUIREMENTS AND WILL PROMOTE CONTINUOUS IMPROVEMENT OF THE PRODUCTS AND PROCESSES. THE CONTRACTOR SHALL ESTABLISH AND MAINTAIN A METRICS PROGRAM THAT CAN BE USED BY BOTH THE CONTRACTOR AND NASA TO IMPROVE THE EFFECTIVENESS AND EFFICIENCY OF THE IV&V SERVICES BEING PERFORMED BY THE CONTRACTOR. THE CONTRACTOR SHALL MAINTAIN AND OPERATE A LIBRARY OF EACH PROJECT S RELATED DOCUMENTATION FOR USE BY THE CONTRACTOR AND NASA IV&V PERSONNEL AT A CONTRACTOR SUPPLIED LOCATION. THE CONTRACTOR SHALL PRODUCE AND DELIVER, AS A PART OF EACH TASK ORDER, AN INITIAL INTEGRATED COST-PERFORMANCE REPORT (ICPR). THE CONTRACTOR SHALL ALSO PRODUCE AND DELIVER MONTHLY ICPRS FOR EACH PROJECT. THE CONTRACTOR SHALL PRODUCE AND DELIVER A MONTHLY SOFTWARE STATUS REPORT (MSSR) FOR EACH PROJECT.

Place of Performance

Location: FAIRMONT, MARION County, WEST VIRGINIA, 26554

State: West Virginia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $52.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: INDEPENDENT VERIFICATION AND VALIDATION (IV&V) SOFTWARE SERVICES. SOFTWARE IV&V IS A SYSTEMS ENGINEERING PROCESS EMPLOYING RIGOROUS METHODOLOGIES FOR EVALUATING THE CORRECTNESS AND QUALITY OF THE SOFTWARE PRODUCT THROUGHOUT THE SOFTWARE LIFE CYCLE. VERIFICATION PROCESSES DETERMIN… Key points: 1. The contract focuses on independent verification and validation (IV&V) of software, a critical process for ensuring software quality and adherence to requirements. 2. Performed by an independent organization, IV&V mitigates risks associated with software development by NASA and its partners. 3. The contract's duration of over 6 years suggests a long-term need for these specialized software assurance services. 4. The Cost Plus Award Fee (CPAF) contract type allows for performance-based incentives, potentially driving higher quality outcomes. 5. The services provided are essential for the integrity and success of complex NASA missions and projects. 6. The geographic location of the IV&V facility in West Virginia may have implications for regional economic development and specialized workforce.

Value Assessment

Rating: good

The contract value of approximately $52 million over six years for specialized software IV&V services appears reasonable given the critical nature of the work for NASA. While direct comparisons are difficult without more specific service details, IV&V is a niche and highly skilled area. The CPAF structure suggests a focus on achieving specific performance targets, which can be a good indicator of value if managed effectively. Benchmarking against similar large-scale, long-term software assurance contracts for federal agencies would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders suggests a competitive environment, which is generally favorable for price discovery and innovation. The specific details of the competition, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the procurement process in securing the best value for the government.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards. It also ensures that the government has access to a wider pool of qualified contractors.

Public Impact

The primary beneficiaries are NASA and its mission-critical projects, which rely on robust and validated software for successful operations. The services delivered ensure the correctness and quality of software throughout its lifecycle, reducing the risk of mission failure due to software defects. The contract supports the development and maintenance of advanced software systems used in space exploration, scientific research, and aeronautics. The IV&V facility in West Virginia likely creates and sustains a specialized technical workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Independent Verification and Validation (IV&V) services procured under this contract fall within the broader IT and professional services sector, specifically focusing on software engineering and quality assurance. This niche market requires specialized expertise and rigorous methodologies. The market for IV&V services is driven by the need for high-assurance systems in critical sectors like aerospace, defense, and healthcare, where software failure can have catastrophic consequences. Spending benchmarks for similar IV&V services can vary significantly based on the complexity of the software, the criticality of the system, and the duration of the engagement.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, the direct impact on small businesses through this prime contract is likely minimal. However, the prime contractor, Science Applications International Corporation (SAIC), may engage small businesses as subcontractors for specialized support or services, contributing to the broader small business ecosystem. The extent of subcontracting to small businesses would be a key factor in assessing the overall impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee (CPAF) contract, NASA contracting officers and technical monitors would be responsible for evaluating the contractor's performance against established criteria to determine award fees. Transparency is facilitated through contract awards databases and reporting requirements. NASA's Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Risk Flags

Tags

it, nasa, software-services, independent-verification-and-validation, large-contract, full-and-open-competition, cost-plus-award-fee, science-applications-international-corporation, west-virginia, systems-engineering

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $52.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. INDEPENDENT VERIFICATION AND VALIDATION (IV&V) SOFTWARE SERVICES. SOFTWARE IV&V IS A SYSTEMS ENGINEERING PROCESS EMPLOYING RIGOROUS METHODOLOGIES FOR EVALUATING THE CORRECTNESS AND QUALITY OF THE SOFTWARE PRODUCT THROUGHOUT THE SOFTWARE LIFE CYCLE. VERIFICATION PROCESSES DETERMINE WHETHER OR NOT THE PRODUCTS OF A GIVEN SOFTWARE DEVELOPMENT ACTIVITY CONFORM TO THE REQUIREMENTS ESTABLISHED FOR THE ACTIVITY. VALIDATION PROCESSES EVALUATE THE SOFTWARE THROUGHOUT THE LIFECYCLE TO DETERMINE WHETHER TH

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $52.1 million.

What is the period of performance?

Start: 2005-05-11. End: 2011-11-10.

What is the track record of Science Applications International Corporation (SAIC) in performing similar IV&V services for NASA or other federal agencies?

Science Applications International Corporation (SAIC) has a significant history of providing IT and engineering services to the federal government, including NASA. Their experience often encompasses complex systems engineering, software development, and mission support. For IV&V services specifically, SAIC has been involved in various high-stakes projects, leveraging their technical expertise to ensure software integrity. While this specific contract highlights their role with NASA's IV&V Program, their broader portfolio demonstrates a capacity for handling large-scale, critical software assurance tasks. A detailed review of past performance evaluations and contract histories would provide a more granular understanding of their specific successes and challenges in delivering IV&V services, including adherence to schedules, budget management, and the quality of their technical assessments.

How does the cost structure (Cost Plus Award Fee) compare to other IV&V contracts, and what are the implications for value for money?

The Cost Plus Award Fee (CPAF) structure allows the contractor to recover allowable costs plus a fee that is composed of a fixed base amount and a variable award amount. The award amount is determined by the government based on the contractor's performance against pre-defined metrics. This structure is often used for services where performance quality is paramount and difficult to define precisely upfront, such as IV&V. Compared to fixed-price contracts, CPAF can potentially lead to higher overall costs if award fees are consistently high, but it incentivizes the contractor to meet or exceed performance expectations, which can be crucial for critical services like IV&V. The value for money hinges on the clarity and attainability of the performance metrics and the rigor of the government's evaluation process. If well-managed, CPAF can yield superior technical outcomes compared to less incentive-driven contract types.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this IV&V software services contract include potential cost overruns due to the CPAF structure if performance metrics are not tightly managed, the risk of vendor lock-in over the long contract duration, and the possibility of the contractor's independence being compromised if not rigorously maintained. Mitigation strategies likely involve strong government oversight of costs and performance, clear and objective award fee criteria, regular performance reviews, and potentially incorporating mechanisms for periodic re-competition or review of the IV&V approach. Ensuring the contractor maintains strict organizational and technical independence from the software developers is also a critical ongoing mitigation effort.

How effective has the IV&V program been in improving the quality and reliability of NASA's software systems over the life of this contract?

Assessing the precise effectiveness of the IV&V program requires detailed analysis of NASA's software defect rates, mission success metrics, and the specific contributions attributed to the IV&V services provided by SAIC. Generally, IV&V is intended to significantly reduce the number of software defects that reach later stages of development or deployment, thereby lowering the risk of mission failure and costly rework. NASA's IV&V Program, supported by contracts like this one, aims to provide objective assessments that enhance confidence in software reliability. Quantifiable improvements would be reflected in reduced critical software failures, successful mission outcomes attributed to robust software, and potentially lower lifecycle costs due to early defect detection. Specific data on defect reduction trends and mission success rates directly linked to the IV&V efforts would be needed for a definitive effectiveness evaluation.

What has been the historical spending trend for IV&V software services at NASA, and how does this contract fit within that trend?

Historical spending on IV&V software services at NASA reflects the agency's continuous need for high-assurance software across its diverse missions. NASA has consistently invested in independent verification and validation to mitigate risks associated with complex, cutting-edge software development. This $52 million contract, spanning over six years, represents a significant but not necessarily anomalous investment for a large-scale, long-term IV&V requirement. It aligns with NASA's established practice of dedicating substantial resources to software quality and reliability. Trends in NASA's IT and systems engineering budgets, as well as the specific needs of ongoing or upcoming major projects (e.g., Artemis program), would provide further context on how this contract fits within the agency's overall spending patterns for critical software assurance.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

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: $200,000,000

Exercised Options: $200,000,000

Current Obligation: $52,097,214

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2005-05-11

Current End Date: 2011-11-10

Potential End Date: 2011-11-10 00:00:00

Last Modified: 2021-03-19

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