GSA awards $451M R&D contract to CACI for commercial tech analysis, spanning over 5 years

Contract Overview

Contract Amount: $451,474,522 ($451.5M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2019-07-22

End Date: 2025-01-21

Contract Duration: 2,010 days

Daily Burn Rate: $224.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: EXECUTE TASK ORDER FOR COMMERCIAL BASED TECHNOLOGY ANALYSIS (CBTA.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $451.5 million to CACI, INC. - FEDERAL for work described as: EXECUTE TASK ORDER FOR COMMERCIAL BASED TECHNOLOGY ANALYSIS (CBTA. Key points: 1. Contract value represents significant investment in understanding commercial technology's application. 2. Full and open competition suggests a robust market for these specialized R&D services. 3. The Cost Plus Fixed Fee structure requires careful monitoring of contractor expenses. 4. Performance period extends over five years, indicating a long-term strategic need. 5. Focus on R&D in physical, engineering, and life sciences (excluding biotech) highlights a specific technical domain. 6. The contract is managed by the General Services Administration, a key civilian agency.

Value Assessment

Rating: good

The contract's value of $451 million over five years for R&D services is substantial. Benchmarking this against similar contracts for commercial technology analysis is challenging due to the specialized nature of the work. However, the Cost Plus Fixed Fee (CPFF) pricing structure necessitates close oversight to ensure costs remain reasonable and aligned with the fixed fee. Without specific per-unit cost data, a direct value-for-money assessment is difficult, but the duration and scope suggest a significant, potentially valuable, undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of two bidders suggests a competitive environment, which generally benefits the government by driving down prices and encouraging innovation. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition typically leads to better price discovery and ensures that taxpayer funds are used efficiently by selecting the most capable and cost-effective solution.

Public Impact

The primary beneficiaries are government agencies seeking to leverage commercial technologies for their operations. Services delivered include in-depth analysis of commercial-based technologies for R&D applications. The geographic impact is primarily within Maryland, where the contractor is located, but the insights gained can be national. Workforce implications include specialized R&D roles and analytical positions within CACI.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed diligently.
The broad R&D scope may present challenges in defining clear deliverables and performance metrics.
Reliance on commercial technology analysis requires continuous adaptation to rapidly evolving tech landscapes.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially good value.
Long contract duration (over 5 years) indicates a sustained and strategic need for these services.
CACI, Inc. - Federal is a known entity in government contracting, implying a level of established capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The market for R&D services supporting technology analysis is dynamic, driven by the rapid pace of innovation in commercial sectors. Government spending in this area aims to bridge the gap between cutting-edge commercial advancements and their potential application within federal agencies. Comparable spending benchmarks are difficult to establish without more specific service details, but the overall R&D spending by the government is in the billions annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, CACI, Inc. - Federal, may engage small businesses as subcontractors if it aligns with their project needs and overall subcontracting goals, but this is not mandated by the contract structure itself.

Oversight & Accountability

The General Services Administration (GSA) is responsible for the oversight of this contract. As a Delivery Order under a larger contract vehicle, it is subject to GSA's established procurement regulations and oversight mechanisms. Accountability measures would be tied to the Cost Plus Fixed Fee structure and the defined performance period. Transparency is generally maintained through contract award databases and reporting requirements, though specific internal oversight processes are not detailed here.

Related Government Programs

Commercial-Off-The-Shelf (COTS) Technology Analysis
Defense Research and Engineering
Technology Modernization Initiatives
Federal IT R&D Spending
Science and Technology Support Services

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Potential (R&D)
Rapid Technological Obsolescence
Defining Measurable R&D Outcomes

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $451.5 million to CACI, INC. - FEDERAL. EXECUTE TASK ORDER FOR COMMERCIAL BASED TECHNOLOGY ANALYSIS (CBTA.

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $451.5 million.

What is the period of performance?

Start: 2019-07-22. End: 2025-01-21.

What is CACI, Inc. - Federal's track record with similar R&D contracts for the government?

CACI, Inc. - Federal has a substantial track record in providing a wide range of services to the U.S. government, including IT, intelligence, and engineering solutions. While specific details on their performance for this exact type of commercial technology analysis R&D contract would require deeper analysis of past performance evaluations and contract histories, CACI is a large, established federal contractor. They have historically secured numerous large-value contracts across various agencies. Their experience likely encompasses complex research and development efforts, requiring them to stay abreast of technological advancements and apply them to government needs. Past performance reviews, often available through government contract databases or agency reports, would offer more granular insights into their success rates, adherence to schedules, and quality of deliverables on similar projects.

How does the $451 million contract value compare to typical government spending on commercial technology analysis R&D?

The $451 million contract value over approximately five years for commercial technology analysis R&D is significant, placing it among substantial government investments in this domain. Government spending on R&D, particularly in areas that leverage commercial innovation, can vary widely. However, contracts of this magnitude often support long-term strategic initiatives or broad research programs. To provide a precise comparison, one would need to benchmark against similar contracts awarded by agencies like GSA, DoD, or others focused on technology foresight and integration. Factors such as the specific technologies analyzed, the depth of research required, and the number of bidders influence pricing. While substantial, this figure is not unprecedented within the broader context of federal R&D expenditures, which can reach tens of billions annually across all agencies and scientific disciplines.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) revolve around cost control and scope definition. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs incurred. While the fixed fee provides some incentive for efficiency, it's primarily tied to completing the work rather than minimizing costs. For R&D, defining the scope can be inherently challenging due to the exploratory nature of the work. This can lead to scope creep, where the project expands beyond its original intent, increasing costs. The contractor's risk lies in accurately estimating the costs to achieve the fixed fee and potentially absorbing unforeseen expenses if their cost estimates are too low or if allowable costs exceed projections. Effective oversight and clear performance metrics are crucial to mitigate these risks.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' classification impact the contract's focus?

The classification 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS code 541712) precisely defines the technical domain for this contract. It indicates that the R&D efforts will concentrate on scientific and technical investigations within fields like physics, chemistry, materials science, various engineering disciplines (e.g., electrical, mechanical, civil), and biological sciences, with a specific exclusion of biotechnology. This means the analysis of commercial technologies will be geared towards their potential application or implications within these physical, engineering, or life science contexts. For example, it could involve analyzing advancements in AI for engineering simulations, new materials developed commercially for infrastructure projects, or novel sensor technologies for environmental monitoring. The exclusion of biotechnology suggests that areas like genetic engineering, pharmaceuticals derived from biological processes, or advanced medical diagnostics might be outside the primary scope.

What does the duration of over 5 years imply about the nature of the R&D being conducted?

A contract duration exceeding five years for R&D in commercial technology analysis suggests a long-term strategic objective rather than a short-term project. This extended timeframe implies that the research is likely complex, requiring sustained effort to track evolving technologies, conduct in-depth investigations, and potentially develop or adapt methodologies over time. It could indicate a need to monitor emerging trends in areas like advanced computing, artificial intelligence, cybersecurity, or novel materials science, where commercial development cycles are lengthy and impactful. Such a duration also allows for iterative research, refinement of findings, and the potential for follow-on activities or deeper dives into specific technological areas as they mature. It signals a commitment by the government to maintain a continuous understanding of the commercial technology landscape relevant to its mission.

What is the significance of the contract being managed by the General Services Administration (GSA)?

The General Services Administration (GSA) managing this contract signifies its role as a central procurement and management agency for the federal government, particularly for services and technology. GSA often acts as a service provider, using its expertise and established contract vehicles to procure goods and services on behalf of other federal agencies. In this case, GSA's Federal Acquisition Service (FAS) is likely leveraging its broad expertise in technology acquisition and R&D support. Managing this contract means GSA is responsible for ensuring compliance with federal acquisition regulations, overseeing contractor performance, managing payments, and ensuring the government receives the intended value. Their involvement suggests a standardized and potentially efficient procurement process, drawing on GSA's experience in navigating complex technology markets for the benefit of various government users.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14370 NEWBROOK DRIVE, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $895,464,849

Exercised Options: $576,899,786

Current Obligation: $451,474,522

Actual Outlays: $-122,688

Subaward Activity

Number of Subawards: 209

Total Subaward Amount: $89,102,239

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU407

IDV Type: IDC

Timeline