NASA's $135.7M IV&V contract with SAIC aimed to mitigate software development risks

Contract Overview

Contract Amount: $135,732,394 ($135.7M)

Contractor: Science Applications International Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-02-01

End Date: 2017-05-10

Contract Duration: 1,925 days

Daily Burn Rate: $70.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: INDEPENDANT VERIFICATION AND VALIDATION (IV&V) SERVICES. THE MISSION OF THE IV&V PROGRAM IS TO REDUCE THE INHERENT RISK IN THE AGENCY S ABILITY TO PROCURE, DEVELOP, DEPLOY AND OPERATE SOFTWARE WITHIN DESIRED COST, SCHEDULE AND PERFORMANCE GOALS. THIS CONTRACT IS FOR THE PERFORMANCE OF A CORE SET OF FUNCTIONS THAT ARE PART OF THE OVERALL IV&V PROGRAM. THESE FUNCTIONS ARE: 1. INDEPENDENT VERIFICATION AND VALIDATION (IV&V) 2. RESEARCH AND DEVELOPMENT (R&D) 3. TECHNICAL QUALITY AND EXCELLENCE (TQ&E) 4. SOFTWARE ASSURANCE TOOLS (SWAT) SUPPORT 5. SAFETY AND MISSION ASSURANCE (SMA) SUPPORT 6. MANAGEMENT

Place of Performance

Location: FAIRMONT, MARION County, WEST VIRGINIA, 26554

State: West Virginia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $135.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: INDEPENDANT VERIFICATION AND VALIDATION (IV&V) SERVICES. THE MISSION OF THE IV&V PROGRAM IS TO REDUCE THE INHERENT RISK IN THE AGENCY S ABILITY TO PROCURE, DEVELOP, DEPLOY AND OPERATE SOFTWARE WITHIN DESIRED COST, SCHEDULE AND PERFORMANCE GOALS. THIS CONTRACT IS FOR THE PERFORMAN… Key points: 1. The contract focused on Independent Verification and Validation (IV&V) to ensure software projects met cost, schedule, and performance goals. 2. Services included R&D, technical quality assurance, software tools support, and safety/mission assurance. 3. The contract was awarded to Science Applications International Corporation (SAIC) through full and open competition. 4. It was a Cost Plus Award Fee (CPAF) type contract, indicating performance-based incentives. 5. The duration of the contract was approximately 5 years, from February 2012 to May 2017. 6. The contract aimed to provide essential functions for NASA's overall IV&V program.

Value Assessment

Rating: good

The contract's value of $135.7 million over five years for comprehensive IV&V services appears reasonable given the critical nature of ensuring NASA's software development success. While direct comparisons are difficult without specific service breakdowns, the scope covers essential risk mitigation functions. The CPAF structure suggests a mechanism for incentivizing performance, which can lead to better value if managed effectively. Benchmarking against similar large-scale IV&V efforts would provide further insight into cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of four bidders indicates a competitive environment. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The specific details of the bidding process and the number of proposals received would offer a clearer picture of the actual competitive intensity.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces, ensuring the government receives the best possible value for its investment.

Public Impact

NASA's software development projects and mission-critical systems benefit from enhanced reliability and reduced risk. The contract supports the development and operation of software within desired cost, schedule, and performance goals. The IV&V program's success contributes to the overall safety and effectiveness of NASA's missions. Workforce implications include specialized roles in verification, validation, and quality assurance within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Engineering Services sector (NAICS 541330) encompasses a wide range of professional services. This contract falls within the specialized niche of Independent Verification and Validation (IV&V), which is critical for complex, high-stakes projects like those undertaken by NASA. The market for IV&V services is driven by the need for assurance in software development and system integration, particularly in government and aerospace industries where failures can have severe consequences. Spending in this area is often project-specific and tied to major system procurements.

Small Business Impact

This contract was not set aside for small businesses and was awarded to a large prime contractor. There is no explicit information regarding small business subcontracting plans or performance within the provided data. The scale of this contract suggests that significant subcontracting opportunities might exist, but their allocation to small businesses would depend on the prime contractor's strategy and the specific requirements of the IV&V services.

Oversight & Accountability

Oversight for this contract would typically be managed by NASA contracting officers and program managers responsible for the IV&V program. Performance would be monitored against the contract's objectives and award fee criteria. Transparency is generally maintained through contract reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed, NASA's OIG would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Risk Flags

Tags

nasa, independent-verification-validation, engineering-services, cost-plus-award-fee, definitive-contract, full-and-open-competition, science-applications-international-corporation, software-assurance, risk-management, federal-contract, it-services, aerospace

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $135.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. INDEPENDANT VERIFICATION AND VALIDATION (IV&V) SERVICES. THE MISSION OF THE IV&V PROGRAM IS TO REDUCE THE INHERENT RISK IN THE AGENCY S ABILITY TO PROCURE, DEVELOP, DEPLOY AND OPERATE SOFTWARE WITHIN DESIRED COST, SCHEDULE AND PERFORMANCE GOALS. THIS CONTRACT IS FOR THE PERFORMANCE OF A CORE SET OF FUNCTIONS THAT ARE PART OF THE OVERALL IV&V PROGRAM. THESE FUNCTIONS ARE: 1. INDEPENDENT VERIFICATION AND VALIDATION (IV&V) 2. RESEARCH AND DEVELOPMENT (R&D) 3. TECHNICAL QUALITY AND EXCELLENCE (TQ&E)

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 $135.7 million.

What is the period of performance?

Start: 2012-02-01. End: 2017-05-10.

What was the track record of Science Applications International Corporation (SAIC) with NASA on similar IV&V contracts prior to or during this period?

Prior to and during the period of this contract (2012-2017), Science Applications International Corporation (SAIC) had a significant history of supporting NASA and other government agencies with complex engineering, IT, and mission support services. SAIC has been a long-standing prime contractor on numerous NASA programs, often involved in systems engineering, integration, and technical support. While specific details on their IV&V performance on prior NASA contracts would require deeper database access, SAIC's general profile suggests they were a well-established entity capable of handling large-scale, critical support functions. Their extensive experience likely contributed to their selection for this significant IV&V contract, implying a baseline level of trust and demonstrated capability in delivering complex technical services to NASA.

How did the pricing structure (Cost Plus Award Fee) compare to industry benchmarks for similar IV&V services during the contract period?

The Cost Plus Award Fee (CPAF) structure used for this NASA IV&V contract was common for complex services where performance outcomes are critical but difficult to define precisely upfront. Benchmarking CPAF against industry standards is challenging as it depends heavily on the base cost, the award fee criteria, and the contractor's ability to achieve those criteria. Generally, CPAF aims to provide a balance: the government pays incurred costs plus a fee that can be adjusted based on performance. This structure can incentivize higher quality and efficiency compared to a simple cost-plus contract. However, it also carries a risk of higher overall costs if the award fee is consistently maximized without commensurate performance gains. Without specific details on the base fee percentage and the actual award fees paid, a precise comparison to market rates for IV&V is difficult, but the structure itself indicates a focus on performance-driven value.

What were the primary risks identified by NASA for this IV&V program, and how did this contract aim to mitigate them?

The primary risks inherent in NASA's software procurement, development, deployment, and operation processes, as stated in the contract's mission, revolve around the potential for software to fail to meet desired cost, schedule, and performance goals. These risks can jeopardize mission success, lead to significant cost overruns, and impact safety. This contract aimed to mitigate these risks by providing Independent Verification and Validation (IV&V) services. IV&V acts as an objective, third-party assessment of software throughout its lifecycle. By performing rigorous testing, analysis, and validation, the contractor identified defects, assessed compliance with requirements, and provided assurance that the software would perform as intended. This proactive approach helps catch issues early, reducing the likelihood of costly rework or mission failure later in the development or operational phases.

Can we assess the program effectiveness based on the contract's performance metrics or outcomes?

Assessing the program effectiveness solely based on the provided contract data is limited, as specific performance metrics and outcomes are not detailed. The contract's objective was to reduce inherent risks in software procurement, development, deployment, and operation. The effectiveness would be measured by the extent to which NASA's software projects met their cost, schedule, and performance goals during the contract period, and whether the IV&V services provided by SAIC contributed demonstrably to this success. The Cost Plus Award Fee (CPAF) structure implies that performance was evaluated against defined criteria, and a portion of the fee was contingent on meeting these standards. Without access to NASA's internal evaluations, award fee determinations, or post-project analyses of software success rates during 2012-2017, a definitive assessment of the program's effectiveness remains qualitative, based on the intended benefits of IV&V.

What was the total historical spending by NASA on IV&V services in the years leading up to this contract?

The provided data focuses on a single contract awarded in 2012. To understand historical spending patterns for NASA's IV&V services leading up to this contract, a broader analysis of NASA's budget allocations and contract awards for similar services between, for example, 2007 and 2011 would be necessary. IV&V is a critical function, especially for complex aerospace projects, suggesting consistent investment. However, the scale and specific focus of IV&V spending can fluctuate based on the number and size of major software development initiatives underway. Without access to NASA's historical procurement databases or budget reports specifically detailing IV&V expenditures, it is not possible to provide a quantitative answer regarding past spending trends.

Were there any significant performance issues or contract disputes reported for this specific contract with SAIC?

The provided data does not contain information regarding performance issues or contract disputes related to this specific NASA IV&V contract awarded to Science Applications International Corporation (SAIC). Contract performance is typically monitored by the contracting officer's representative (COR) and documented in performance reports and contract files. Significant disputes might be reflected in contract modification histories, litigation records, or Inspector General reports. In the absence of such information within the dataset, it is assumed that the contract proceeded without major reported controversies or that such details are not publicly accessible through this data source. Further investigation through contract databases like FPDS or agency-specific reporting might reveal more granular performance details.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNG11310421R

Offers Received: 4

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: $141,008,904

Exercised Options: $141,008,904

Current Obligation: $135,732,394

Subaward Activity

Number of Subawards: 97

Total Subaward Amount: $41,451,417

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-02-01

Current End Date: 2017-05-10

Potential End Date: 2017-05-10 00:00:00

Last Modified: 2021-03-19

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