DoD's $88M Rapid Capability Insertion Contract with SAIC Faces Scrutiny Over Cost and Competition
Contract Overview
Contract Amount: $88,173,220 ($88.2M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2010-05-10
End Date: 2024-01-25
Contract Duration: 5,008 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: RAPID CAPABILITY INSERTION (RCI)
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $88.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: RAPID CAPABILITY INSERTION (RCI) Key points: 1. The contract awarded to Science Applications International Corporation (SAIC) for Rapid Capability Insertion (RCI) totals $88.17 million. 2. Awarded under full and open competition, the contract's pricing and effectiveness warrant further examination. 3. The long duration and cost-plus-fixed-fee structure raise potential concerns about cost control and value for money. 4. This spending falls within the broader Defense sector, specifically engineering services.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if not managed tightly. Benchmarking against similar engineering services contracts is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and CPFF structure may have limited the effectiveness of price discovery throughout the contract's life.
Taxpayer Impact: Taxpayer funds are being utilized for engineering services. The long-term nature and CPFF structure necessitate careful oversight to ensure efficient use of these funds and prevent cost overruns.
Public Impact
Taxpayers are funding advanced engineering services for defense capabilities. The long contract duration (over 14 years) suggests ongoing needs or potential for scope creep. The specific capabilities being inserted are not detailed, making public assessment of impact challenging. The use of CPFF contracts can sometimes lead to less price transparency for the public.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Overruns Risk (CPFF)
- Lack of Price Transparency
- Long Contract Duration
- Potential for Scope Creep
Positive Signals
- Full and Open Competition
- Addresses Rapid Capability Needs
- Experienced Contractor
Sector Analysis
This contract falls under engineering services within the Defense sector. Spending benchmarks for similar rapid capability insertion programs can vary widely based on technological complexity and program scope. The $88 million total over a long period suggests a significant, ongoing investment.
Small Business Impact
The data indicates the prime contractor is Science Applications International Corporation, a large business. There is no explicit information provided regarding subcontracting to small businesses on this specific contract.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The long duration and CPFF nature of the contract necessitate robust oversight to ensure cost control, performance, and adherence to contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Risk of reduced price competition over contract duration.
- Lack of transparency on specific capabilities and their impact.
- Extended contract duration may indicate potential scope creep.
- Limited insight into small business participation.
Tags
engineering-services, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $88.2 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. RAPID CAPABILITY INSERTION (RCI)
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 $88.2 million.
What is the period of performance?
Start: 2010-05-10. End: 2024-01-25.
What specific capabilities were inserted under this contract, and what was the measurable impact on defense readiness or effectiveness?
The provided data does not detail the specific capabilities inserted. To assess value, a review of program documentation, technical reports, and performance metrics would be required. Understanding the 'insertion' process and its outcomes is crucial for determining if the $88 million investment yielded significant, quantifiable improvements in defense capabilities.
How effectively did the full and open competition process ensure competitive pricing over the contract's extended lifespan, especially with a CPFF structure?
While the initial award was competitive, the Cost Plus Fixed Fee structure combined with a long duration (over 14 years) can diminish ongoing price competition. Subsequent delivery orders might not have undergone the same level of rigorous price scrutiny as the initial bid, potentially leading to less favorable pricing for the government over time.
What mechanisms are in place to mitigate the inherent risks of cost overruns and scope creep in a long-term CPFF contract for rapid capability insertion?
Effective mitigation relies on strong government oversight, including detailed cost analysis, performance monitoring, and strict change control processes. Clearly defined milestones, regular reviews, and robust negotiation strategies for each delivery order are essential to manage the CPFF structure's risks and ensure taxpayer funds are used efficiently.
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: N0002409R3465
Offers Received: 1
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: $91,984,013
Exercised Options: $91,984,013
Current Obligation: $88,173,220
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2010-05-10
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-25
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