GSA awards $824M IT services contract to CACI, Inc. - Federal for computer systems design

Contract Overview

Contract Amount: $824,303,222 ($824.3M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2019-11-05

End Date: 2024-09-29

Contract Duration: 1,790 days

Daily Burn Rate: $460.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: BEAGLE TASK ORDER AWARD

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $824.3 million to CACI, INC. - FEDERAL for work described as: BEAGLE TASK ORDER AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight. 3. Duration of 1790 days indicates a long-term need for these IT services. 4. The award value of over $824 million signifies a substantial investment in IT modernization or support. 5. CACI, Inc. - Federal is a significant player in the federal IT contracting space. 6. The North American Industry Classification System (NAICS) code 541512 points to specialized computer systems design services.

Value Assessment

Rating: good

The contract's value of over $824 million for computer systems design services over approximately five years is substantial. Benchmarking this against similar large-scale IT service contracts awarded by GSA or other agencies would provide a clearer picture of value for money. The Cost Plus Award Fee (CPAF) structure allows for performance incentives, but requires diligent monitoring to ensure costs remain reasonable and that award fees are justified by exceptional performance. Without specific comparable contract data, a definitive value assessment is challenging, but the competitive award suggests a market-driven price.

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 a bid. The presence of 6 bids suggests a healthy level of competition for this significant IT services requirement. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely drove down costs and encouraged multiple companies to offer their best pricing and technical solutions.

Public Impact

Federal agencies requiring advanced computer systems design and integration services are the primary beneficiaries. The contract supports the delivery of complex IT solutions, potentially impacting various government operations. Services are likely delivered across the United States, supporting federal IT infrastructure. The contract supports a significant number of IT professionals employed by CACI, Inc. - Federal and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to cost overruns if not managed meticulously.
The long duration of the contract may reduce flexibility for the agency to adapt to rapidly changing technology.
Reliance on a single large contractor for critical IT systems could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The Cost Plus Award Fee structure incentivizes high performance and successful outcomes.
CACI, Inc. - Federal has a significant presence and experience in the federal IT market.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for complex system design, integration, and maintenance. Spending in this area is driven by the need for modernization, cybersecurity, and efficient digital services. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by agencies like GSA, DoD, and civilian departments for similar NAICS codes.

Small Business Impact

The data indicates 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. However, the prime contractor, CACI, Inc. - Federal, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would include contract performance reviews, financial audits, and monitoring of award fee criteria. Accountability is managed through the CPAF structure, where performance directly impacts contractor compensation. Transparency is generally maintained through contract databases like FPDS, though specific performance details may be proprietary.

Related Government Programs

IT Professional Services
Computer Systems Design
Information Technology Services
Cloud Computing Services
Software Development

Risk Flags

Cost Plus Award Fee contract requires diligent oversight.
Long contract duration may pose risk of technological obsolescence.
Potential for vendor lock-in.
Cybersecurity risks associated with contractor access to government systems.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $824.3 million to CACI, INC. - FEDERAL. BEAGLE TASK ORDER AWARD

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 $824.3 million.

What is the period of performance?

Start: 2019-11-05. End: 2024-09-29.

What is CACI, Inc. - Federal's track record with GSA and similar IT service contracts?

CACI, Inc. - Federal is a well-established federal contractor with a substantial history of performance across various agencies, including GSA. They frequently win large IT services contracts, often in areas like IT modernization, cybersecurity, and systems integration. Their track record typically includes a mix of competitive awards and sole-source procurements, with performance ratings varying by contract. Analyzing their past performance on similar Cost Plus Award Fee contracts with GSA would reveal their ability to meet performance targets and manage costs effectively. Historical data suggests they are a capable provider, but like any large contractor, specific contract performance should be reviewed individually.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for IT services?

The Cost Plus Award Fee (CPAF) contract type is often used when the scope of work is not precisely defined or when performance incentives are critical. It allows the contractor to recover allowable costs plus a fee that is composed of a fixed base fee and an award amount, which is earned based on meeting or exceeding specific performance objectives. This differs from Firm-Fixed-Price (FFP) contracts, where the price is set regardless of costs incurred, offering more cost certainty to the government but less flexibility. Cost-Plus-Fixed-Fee (CPFF) contracts cover costs plus a fixed fee, without performance incentives. CPAF aims to balance cost reimbursement with performance motivation, but requires robust government oversight to ensure fair pricing and justified award fees.

What are the primary risks associated with a $824 million IT services contract of this duration?

A contract of this magnitude and duration (nearly five years) carries several inherent risks. Firstly, technological obsolescence is a significant concern; the IT landscape evolves rapidly, and a five-year contract might lock the government into outdated solutions if not managed proactively. Secondly, contractor performance risk exists; even experienced contractors can face challenges, leading to delays, cost overruns, or failure to meet requirements. The CPAF structure, while incentivizing, can also lead to disputes over award fee determinations. Thirdly, vendor lock-in is a risk, making it difficult and costly to switch providers if performance issues arise or needs change. Finally, cybersecurity risks are paramount, as the contractor will have access to sensitive government systems and data.

What is the typical market size for federal computer systems design services?

The federal market for computer systems design services is substantial, representing a significant portion of the overall federal IT spending. Agencies across the government rely heavily on these services for everything from developing new mission-critical applications to integrating complex legacy systems and modernizing infrastructure. While exact figures fluctuate annually based on budget allocations and agency priorities, this segment consistently represents billions of dollars in federal contracts. The demand is driven by the continuous need for digital transformation, enhanced cybersecurity, data analytics capabilities, and efficient operational support across all government functions.

How does the number of bidders (6) influence the potential value for taxpayers on this contract?

Having six bidders for this contract is a positive indicator for taxpayer value. A higher number of bidders generally signifies robust competition, which tends to drive down prices as companies vie to win the award. It also increases the likelihood that the government will receive a wider range of technical solutions and innovative approaches. With six competitors, the General Services Administration (GSA) had a strong basis for negotiating favorable terms and ensuring that the selected contractor's pricing was competitive within the market. This level of competition reduces the risk of overpaying and enhances the government's ability to secure high-quality services at a reasonable cost.

What are the implications of this contract being awarded by the General Services Administration (GSA)?

Awards made by the General Services Administration (GSA) often serve as benchmarks for other federal agencies. GSA leverages its procurement expertise and economies of scale to offer a wide range of IT services and solutions through various contract vehicles. When GSA awards a large contract like this, it suggests that the services procured are broadly applicable or represent a significant government-wide need. Furthermore, GSA's procurement processes are typically well-defined and subject to rigorous oversight, implying that the contract terms and conditions are likely standardized and compliant with federal acquisition regulations, providing a degree of assurance regarding its structure and fairness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

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: $2,289,684,446

Exercised Options: $1,931,497,745

Current Obligation: $824,303,222

Actual Outlays: $-3,259,153

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $258,888,137

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0009

IDV Type: GWAC

Timeline