Army awards $159.5M contract for space and missile defense analysis to Science Applications International Corporation

Contract Overview

Contract Amount: $159,485,885 ($159.5M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2020-09-04

End Date: 2022-09-03

Contract Duration: 729 days

Daily Burn Rate: $218.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS EFFORT PROVIDES SYSTEM UTILITY ANALYSIS AND COMBAT DEVELOPMENT TO THE UNITED STATES ARMY SPACE AND MISSILE DEFENSE COMMAND IN THE AREAS OF SPACE, SPACE CONTROL, HIGH ALTITUDE, AIR AND MISSILE DEFENSE, AND ASSOCIATED CYBERSPACE OPERATIONS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35807

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $159.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: THIS EFFORT PROVIDES SYSTEM UTILITY ANALYSIS AND COMBAT DEVELOPMENT TO THE UNITED STATES ARMY SPACE AND MISSILE DEFENSE COMMAND IN THE AREAS OF SPACE, SPACE CONTROL, HIGH ALTITUDE, AIR AND MISSILE DEFENSE, AND ASSOCIATED CYBERSPACE OPERATIONS. Key points: 1. Contract supports critical analysis in space, missile defense, and cyberspace operations. 2. Value-for-money assessment is pending further benchmarking against similar R&D services. 3. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 4. Risk indicators are moderate, given the specialized nature of the services and contractor's experience. 5. Performance context involves complex system utility analysis for a key defense command. 6. Sector positioning places this contract within the high-demand R&D segment for defense. 7. The contract duration of 729 days suggests a significant, ongoing need for these services.

Value Assessment

Rating: fair

The contract's total value of approximately $159.5 million over two years requires careful benchmarking. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging. Comparing this to other R&D contracts for similar analytical services within the Department of Defense would provide better context. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can sometimes lead to higher overall costs if not managed tightly, but also provides flexibility for research and development efforts.

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 bidders had the opportunity to submit proposals. The number of bidders is not specified, but this competitive approach generally fosters price discovery and encourages contractors to offer their best value. The agency likely sought a range of technical solutions and pricing structures, leading to a potentially more cost-effective outcome for the government.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, maximizing the value of government spending.

Public Impact

The United States Army Space and Missile Defense Command (SMDC) is the primary beneficiary, receiving essential analytical support. Services delivered include system utility analysis, combat development, and expertise in space, missile defense, and cyberspace operations. The contract's geographic impact is primarily within Alabama, where the contractor is located, but the services support national defense objectives. Workforce implications include employment for specialized analysts and researchers within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
The specialized nature of R&D services may limit the pool of truly competitive bidders in the future.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contractor (SAIC) has a significant presence and experience in defense-related R&D.
Services directly support critical national security functions for Army SMDC.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is crucial for maintaining technological superiority in defense. Spending in this area is often characterized by long-term investments, specialized expertise, and significant government oversight. Comparable spending benchmarks would involve looking at other large R&D contracts awarded by the Department of Defense for similar analytical and developmental support.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-asides. However, large contractors like SAIC often engage small businesses as subcontractors for specialized services, which could still provide opportunities within the broader ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are inherent in the CPFF structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Space and Missile Defense Command Operations
Department of Defense Research and Development Programs
Missile Defense Agency Contracts
Space Force Support Contracts
Cyberspace Operations Support

Risk Flags

Cost Overrun Risk (CPFF)
Technical Complexity
Limited Competition Pool (potential)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $159.5 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. THIS EFFORT PROVIDES SYSTEM UTILITY ANALYSIS AND COMBAT DEVELOPMENT TO THE UNITED STATES ARMY SPACE AND MISSILE DEFENSE COMMAND IN THE AREAS OF SPACE, SPACE CONTROL, HIGH ALTITUDE, AIR AND MISSILE DEFENSE, AND ASSOCIATED CYBERSPACE OPERATIONS.

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 Army).

What is the total obligated amount?

The obligated amount is $159.5 million.

What is the period of performance?

Start: 2020-09-04. End: 2022-09-03.

What is Science Applications International Corporation's (SAIC) track record with similar Department of Defense R&D contracts?

SAIC has a substantial history of performing complex R&D and technical services for the Department of Defense across various domains, including space, missile defense, and C4ISR systems. They frequently secure large, sole-source or competitively awarded contracts for analytical, engineering, and integration support. Their experience often involves supporting major defense commands and programs, demonstrating a capacity to handle large-scale, technically demanding efforts. A review of their contract history would likely reveal numerous awards for similar system utility analysis and combat development, indicating a strong capability and established relationship with the DoD.

How does the $159.5 million value compare to similar system utility analysis contracts within the DoD?

The $159.5 million value for a two-year contract focused on system utility analysis and combat development for Army SMDC appears substantial, aligning with the complexity and critical nature of space and missile defense. To benchmark effectively, one would compare this contract's value against other R&D service contracts awarded by DoD entities (like MDA, Space Force, or other Army commands) for similar analytical, developmental, or engineering support. Factors such as contract duration, scope of work (e.g., specific systems analyzed, level of simulation required), and the number of bidders in comparable procurements would influence the 'fairness' of the price. Without direct comparisons, it's difficult to definitively state if it represents optimal value, but the amount suggests a significant scope of work.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risk with CPFF contracts, especially in R&D, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If the scope of work expands or unforeseen technical challenges arise, costs can escalate beyond initial estimates. This necessitates robust government oversight to ensure costs remain reasonable and allocable to the contract. Another risk is that the contractor might not be sufficiently incentivized to control costs aggressively, as their fee is fixed regardless of the final cost. However, CPFF contracts also offer flexibility crucial for R&D where the exact path to a solution may be uncertain.

How effective is full and open competition in ensuring value for taxpayer money in specialized R&D procurements?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, even in specialized R&D procurements. It allows a wider range of potential offerors to compete, fostering innovation and driving down prices through market forces. For specialized R&D, this means the government can solicit diverse technical approaches and potentially find more cost-effective solutions. However, the effectiveness hinges on the government's ability to clearly define requirements and evaluate complex technical proposals accurately. In highly niche areas, the pool of qualified bidders might be small, potentially limiting the competitive pressure, but the principle remains that broader competition is preferable.

What are the historical spending patterns for system utility analysis and combat development within the Army Space and Missile Defense Command?

Historical spending patterns for system utility analysis and combat development within Army SMDC likely show consistent investment in these areas due to the evolving nature of space and missile threats. Such contracts are typically awarded to support the development, testing, and sustainment of complex weapon systems and operational concepts. Spending often fluctuates based on modernization priorities, threat assessments, and budget allocations. Analyzing past awards to SAIC and other defense contractors for similar services would reveal trends in contract values, durations, and the specific technologies or systems being analyzed, indicating a sustained need for this type of support.

What are the potential performance implications of awarding this contract to SAIC based on their known capabilities?

Awarding this contract to SAIC, given their extensive experience in defense R&D and systems engineering, suggests a high likelihood of successful performance. SAIC possesses the technical expertise, cleared personnel, and infrastructure required for complex analytical tasks in space and missile defense. Their track record indicates an ability to manage large programs and deliver technical solutions. Potential performance implications include the timely delivery of critical analyses that inform combat development and system upgrades, contributing directly to the warfighter's capabilities. However, as with any large contract, effective program management and oversight by the government remain crucial to ensure optimal outcomes and adherence to requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9113M13R0010

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $184,798,048

Exercised Options: $184,798,048

Current Obligation: $159,485,885

Actual Outlays: $27,064,016

Subaward Activity

Number of Subawards: 160

Total Subaward Amount: $153,187,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M17D0007

IDV Type: IDC

Timeline