DoD's $33.8M TAC C2 Data Link Engineering contract awarded to Science Applications International Corporation
Contract Overview
Contract Amount: $33,824,904 ($33.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2010-10-01
End Date: 2015-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $18.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TAC C2 DATA LINK ENGINEERING
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $33.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TAC C2 DATA LINK ENGINEERING Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1825 days indicates a long-term need for these engineering services. 3. Awarded to Science Applications International Corporation, a major defense contractor. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract was awarded by the Department of the Navy, a branch of the Department of Defense. 7. The contract was awarded in California, potentially impacting the local economy and workforce.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and comparisons to similar data link engineering projects. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex R&D, carries inherent risks of cost escalation if the fixed fee is not adequately justified against the estimated costs. Further analysis would require comparing the total awarded amount against the scope of work and the contractor's performance on similar projects to determine if the pricing was competitive and represented good value for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters price discovery and allows the government to select the best value offering. The open competition suggests a healthy market for these specialized engineering services, potentially leading to more competitive pricing for the government.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at a competitive price and encourages a wider range of innovative solutions.
Public Impact
The Department of the Navy benefits from enhanced Command and Control (C2) data link engineering capabilities. This contract supports the development and maintenance of critical communication systems for naval operations. The geographic impact is centered in California, where the contractor is based. Potential workforce implications include employment for engineers and technical specialists in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize profit.
- Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the engineering services provided.
- The long duration of the contract (5 years) could lead to technological obsolescence if not actively managed.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
- The contract is for essential engineering services supporting critical defense capabilities.
- The contractor, Science Applications International Corporation, is a well-established entity in the defense sector.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense systems and data link technologies. The market for defense engineering services is substantial, driven by continuous modernization and maintenance needs of military branches. Comparable spending benchmarks would involve analyzing other contracts for similar C2 systems engineering, communication network development, and data link integration within the Department of Defense and other federal agencies.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not directly involved as prime contractors. However, depending on the subcontracting plans of Science Applications International Corporation, there may have been opportunities for small businesses to participate indirectly by providing specialized services or components.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officers and program managers within the Department of the Navy. Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including performance milestones and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed cost and performance data may be restricted due to national security or proprietary concerns. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Communications Systems
- Naval Command and Control Systems
- Data Link Technology Development
- Engineering Services for Military Applications
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Long contract duration may lead to technological obsolescence if not managed proactively.
- Limited public information on specific performance metrics and deliverables.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, command-and-control, data-link, full-and-open-competition, cost-plus-fixed-fee, science-applications-international-corporation, california, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TAC C2 DATA LINK ENGINEERING
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 $33.8 million.
What is the period of performance?
Start: 2010-10-01. End: 2015-09-30.
What is the track record of Science Applications International Corporation (SAIC) in delivering similar data link engineering services to the Department of Defense?
Science Applications International Corporation (SAIC) has a long and extensive track record in providing a wide array of engineering, IT, and technical services to the Department of Defense (DoD) and other federal agencies. Their experience spans various domains, including command and control systems, communications, intelligence, surveillance, and reconnaissance (ISR), and cybersecurity. For data link engineering specifically, SAIC has been involved in developing, integrating, and maintaining complex communication systems that enable seamless data flow between different military platforms and assets. Their past performance on similar contracts would likely be evaluated by the Navy during the source selection process, considering factors such as on-time delivery, adherence to budget, technical proficiency, and overall customer satisfaction. A review of their contract history with the DoD would reveal numerous awards related to communication systems engineering, network infrastructure, and software development for military applications, indicating a strong capability in this area.
How does the awarded amount of $33.8 million compare to the typical cost of similar TAC C2 Data Link Engineering contracts?
Comparing the $33.8 million award for TAC C2 Data Link Engineering to similar contracts requires access to a broader dataset of historical contract awards with comparable scope, duration, and complexity. Without specific details on the exact deliverables, technological sophistication, and the number of platforms involved, a direct comparison is difficult. However, for a five-year contract (2010-2015) involving specialized engineering services for critical defense communication systems, $33.8 million is within a plausible range. Factors influencing cost include the level of research and development, integration with existing systems, cybersecurity requirements, and the specific data link protocols and standards being engineered. Contracts for less complex or shorter-duration engineering tasks would naturally be lower, while those involving extensive R&D or integration across numerous platforms could significantly exceed this amount. Benchmarking against other DoD contracts for C2 systems engineering or communication network development would provide a more precise context.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to SAIC for TAC C2 Data Link Engineering, revolve around cost control and potential for contractor profit maximization at the expense of government savings. In a CPFF structure, the government agrees to pay the contractor's actual costs incurred, plus a predetermined fixed fee representing profit. The main risk for the government is that the contractor may have less incentive to control costs rigorously, as higher costs do not reduce their profit (the fee is fixed). This can lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen issues arise during performance. Contractors might also be incentivized to incur costs that are not strictly necessary to complete the work, as these costs are reimbursed. Effective oversight, detailed cost accounting, and clear performance metrics are crucial for mitigating these risks and ensuring the government receives good value.
What is the significance of the contract being awarded under 'Full and Open Competition' for the Department of Defense?
Awarding a contract under 'Full and Open Competition' is a cornerstone of federal procurement policy and holds significant importance for the Department of Defense (DoD). It signifies that the solicitation was made available to all responsible prospective contractors, allowing any interested and qualified company to submit a bid. This process is designed to maximize competition, which in turn is expected to drive down prices, encourage innovation, and ensure the government obtains the best possible value for its investment. For the DoD, which procures vast quantities of goods and services, full and open competition helps ensure that taxpayer dollars are used efficiently and effectively. It also provides a level playing field for businesses, preventing favoritism and promoting a broader industrial base. The success of this approach relies on clear requirements, fair evaluation criteria, and robust oversight to prevent collusion or other anti-competitive practices.
How does the engineering services sector (NAICS 541330) contribute to the overall defense budget and technological advancement?
The engineering services sector, particularly under NAICS code 541330 (Engineering Services), plays a critical and multifaceted role in the overall defense budget and technological advancement. Defense contractors in this sector provide the essential expertise required for the design, development, testing, and integration of complex military systems, from aircraft and naval vessels to communication networks and weapon systems. Their contributions are vital for maintaining the technological superiority of the armed forces. Spending in this sector directly fuels innovation, as engineers work on cutting-edge technologies, materials, and methodologies. This investment not only enhances current military capabilities but also shapes future defense strategies and operational concepts. The engineering services sector acts as a crucial bridge between scientific discovery and practical military application, ensuring that the DoD can adapt to evolving threats and operational demands.
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: N0002410R3294
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $42,918,762
Exercised Options: $42,918,762
Current Obligation: $33,824,904
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $82,447
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2010-10-01
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2016-02-16
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