DoD's $147M Modeling & Simulation Contract Awarded to Science Applications International Corp
Contract Overview
Contract Amount: $147,419,471 ($147.4M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2010-12-16
End Date: 2013-11-30
Contract Duration: 1,080 days
Daily Burn Rate: $136.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: SPAWAR 5.1.1 MODELING AND SIMULATION AND ANALYTICALLY BASED WARFARE ANALYSES
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $147.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: SPAWAR 5.1.1 MODELING AND SIMULATION AND ANALYTICALLY BASED WARFARE ANALYSES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 1080 days indicates a significant, long-term need for these services. 3. Focus on modeling, simulation, and analytically based warfare analyses points to critical defense capabilities. 4. The award to a large, established contractor like SAIC suggests a focus on proven capabilities. 5. The contract type (Cost No Fee) implies that the contractor is reimbursed for allowable costs without a guaranteed profit margin, shifting risk. 6. The absence of small business set-aside indicates the primary contractor is not a small business, and subcontracting opportunities are not explicitly mandated by this award.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and performance metrics. The Cost No Fee (CNF) contract type is less common for large-value awards and typically used when the contractor's ability to control costs is limited or when the government has significant insight into the costs. This can sometimes lead to less favorable pricing for the government if not managed carefully. Comparing it to similar modeling and simulation contracts would require access to more granular data on scope and deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing. The number of bidders is not specified, but the process itself implies that multiple companies had the opportunity to compete for this significant contract.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple vendors.
Public Impact
The Department of Defense benefits from advanced modeling and simulation capabilities to support warfare analysis and strategic planning. Services delivered are crucial for wargaming, threat assessment, and the development of future military strategies. The geographic impact is likely national, supporting defense initiatives across various branches and commands. Workforce implications include highly skilled analysts, modelers, and simulation experts within the contractor's organization and potentially within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee (CNF) contract type can sometimes lead to less cost control if not rigorously overseen, as the contractor is reimbursed for costs regardless of profit.
- Lack of specific performance metrics in the provided data makes it difficult to assess the true value for money and effectiveness.
- The large dollar value and long duration necessitate strong government oversight to ensure objectives are met and costs remain justified.
Positive Signals
- Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
- The contract addresses critical defense needs in modeling and simulation, suggesting strategic importance.
- Science Applications International Corporation (SAIC) is a large, established defense contractor with significant experience in this domain.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on advanced modeling, simulation, and analytical services for defense applications. The market for defense-related simulation and analysis is substantial, driven by the need for sophisticated tools to test strategies, train personnel, and develop new technologies in a cost-effective manner compared to live exercises. This contract represents a significant investment in maintaining and enhancing these critical capabilities for the Department of Defense.
Small Business Impact
The provided data indicates this contract was not set aside for small businesses, and the primary awardee, Science Applications International Corporation, is a large business. While this specific award may not directly benefit small businesses through a set-aside, large prime contractors often engage small businesses as subcontractors to fulfill specialized needs or meet subcontracting goals on larger contracts. Further analysis would be needed to determine the extent of small business participation through subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. They are responsible for ensuring contractor performance, compliance with contract terms, and proper cost accounting. The Cost No Fee structure requires diligent monitoring of incurred costs to ensure they are allowable and reasonable. Transparency is generally maintained through regular reporting requirements and contract performance reviews.
Related Government Programs
- Defense Modeling and Simulation
- Warfare Analysis Services
- Engineering Services
- Department of Defense IT and Technical Services
- Simulation and Training Contracts
Risk Flags
- Cost Control Risk (CNF Contract)
- Technical Complexity and Accuracy
- Schedule Adherence
- Cybersecurity Vulnerabilities
- Requirement Creep
Tags
defense, department-of-defense, modeling-and-simulation, engineering-services, science-applications-international-corporation, full-and-open-competition, cost-no-fee, large-contract, analytical-services, maryland, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $147.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. SPAWAR 5.1.1 MODELING AND SIMULATION AND ANALYTICALLY BASED WARFARE ANALYSES
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 $147.4 million.
What is the period of performance?
Start: 2010-12-16. End: 2013-11-30.
What is the historical spending pattern for modeling and simulation services by the Department of Defense?
The Department of Defense has consistently allocated significant funding towards modeling and simulation (M&S) capabilities over the years. This spending is driven by the need to test complex systems, train personnel in realistic virtual environments, and analyze potential battlefield scenarios without the high costs and risks associated with live exercises. Historical data shows a trend of increasing investment in advanced M&S technologies, including high-fidelity simulations, artificial intelligence-driven analysis, and virtual/augmented reality training platforms. Specific figures vary annually based on budgetary priorities and evolving threats, but M&S remains a core component of defense acquisition and readiness planning, often comprising billions of dollars annually across various agencies and programs.
How does the Cost No Fee (CNF) contract type impact contractor incentives and government oversight?
The Cost No Fee (CNF) contract type is unusual for large, competitive awards and shifts risk significantly. In a CNF contract, the contractor is reimbursed for all allowable costs incurred in performing the work, but receives no fee or profit. This structure is typically used when the contractor has little or no control over costs, or when the government desires maximum flexibility and assumes most of the cost risk. For the government, this means intense oversight is required to scrutinize all costs to ensure they are reasonable, allocable, and allowable. Contractor incentives are primarily focused on successful performance and meeting contract requirements, rather than profit maximization, which could potentially lead to cost overruns if not managed diligently. This type of contract necessitates a strong partnership and transparent communication between the government and the contractor.
What is Science Applications International Corporation's (SAIC) track record with similar Department of Defense contracts?
Science Applications International Corporation (SAIC) is a major defense contractor with an extensive history of performing complex technical and engineering services for the Department of Defense (DoD). They have a well-established track record in areas such as systems engineering, simulation and modeling, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and information technology. SAIC has been awarded numerous large-scale contracts across various DoD branches, often involving advanced analytical capabilities and mission support. Their experience typically includes managing large teams, complex projects, and adhering to stringent security and performance requirements. While specific performance details for every contract are not publicly available, SAIC's sustained presence and significant contract awards within the DoD indicate a generally positive and capable performance history in delivering mission-critical services.
What are the potential risks associated with a $147 million contract for modeling and simulation services?
Potential risks associated with a $147 million contract for modeling and simulation services are multifaceted. Technical risks include the complexity of developing and maintaining accurate simulations, the potential for outdated models, and the integration challenges with existing DoD systems. Schedule risks can arise from unforeseen technical hurdles, changes in requirements, or resource constraints, leading to delays. Cost risks, particularly with a CNF contract, involve the potential for cost overruns if not rigorously managed, as the government bears the financial burden. Performance risks include the possibility that the simulations and analyses may not accurately reflect real-world scenarios or provide actionable insights, thus failing to meet the DoD's strategic objectives. Furthermore, cybersecurity risks are paramount, given the sensitive nature of defense data processed and generated by these systems.
How does this contract compare to other federal spending in the Engineering Services category?
This $147 million contract for modeling and simulation services represents a significant, but not extraordinary, portion of federal spending within the broader Engineering Services category (NAICS 541330). The federal government spends tens of billions of dollars annually on engineering services across various sectors, including defense, infrastructure, and research. Contracts of this magnitude for specialized analytical and simulation capabilities are common within the Department of Defense, reflecting the critical role these services play in national security. Compared to massive construction or large-scale IT infrastructure projects, this contract is focused on high-value intellectual services. Its value is substantial enough to be a key component of a contractor's portfolio but falls within the range of major service contracts awarded by large federal agencies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002409R3145
Offers Received: 1
Pricing Type: COST NO FEE (S)
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: $249,566,486
Exercised Options: $249,566,486
Current Obligation: $147,419,471
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2010-12-16
Current End Date: 2013-11-30
Potential End Date: 2016-06-18 00:00:00
Last Modified: 2021-12-06
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