GSA awards $283.7M IT services contract to CACI for USDA/USAID WBSCM system

Contract Overview

Contract Amount: $283,699,517 ($283.7M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2021-02-01

End Date: 2027-01-31

Contract Duration: 2,190 days

Daily Burn Rate: $129.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TASK ORDER AWARD OF WBSCM 3. THE PURPOSE OF THIS TO IS TO ACQUIRE INFORMATION TECHNOLOGY (IT) SERVICES TO OPERATE, MAINTAIN, AND PROVIDE CONTINUOUS IMPROVEMENTS FOR THE USDA AND USAID WBSCM SYSTEM AND ITS RELATED SUBSYSTEMS.

Place of Performance

Location: FORT ANN, WASHINGTON County, NEW YORK, 12827

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $283.7 million to CACI, INC. - FEDERAL for work described as: TASK ORDER AWARD OF WBSCM 3. THE PURPOSE OF THIS TO IS TO ACQUIRE INFORMATION TECHNOLOGY (IT) SERVICES TO OPERATE, MAINTAIN, AND PROVIDE CONTINUOUS IMPROVEMENTS FOR THE USDA AND USAID WBSCM SYSTEM AND ITS RELATED SUBSYSTEMS. Key points: 1. Contract focuses on IT services for critical USDA and USAID systems, indicating a significant investment in government operational efficiency. 2. The award was made under full and open competition, suggesting a robust market for these specialized IT services. 3. The contract duration of nearly six years points to a long-term need for system operation and improvement. 4. CACI, Inc. - Federal, a known entity in federal IT contracting, secured this significant award. 5. The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight of costs. 6. This award represents a substantial portion of federal spending within the Computer Systems Design Services category.

Value Assessment

Rating: good

The contract value of $283.7 million over approximately six years for IT services to operate and maintain complex government systems appears reasonable. Benchmarking against similar large-scale IT operations and maintenance contracts for federal agencies suggests this pricing is within expected ranges. The Cost Plus Fixed Fee structure, while common for evolving IT needs, necessitates diligent cost tracking to ensure value for money. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the scale and duration align with typical large federal IT procurements.

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 had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition generally promotes price discovery and encourages vendors to offer competitive terms and pricing to secure such significant awards.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures the government receives the best possible value for its investment in critical IT infrastructure.

Public Impact

The primary beneficiaries are the U.S. Department of Agriculture (USDA) and the U.S. Agency for International Development (USAID), who will receive continuous IT support for their Warehouse, Supply Chain, and Management (WBSCM) systems. This contract ensures the ongoing operation, maintenance, and improvement of essential IT systems that support critical government functions related to agriculture and international development. The services delivered will impact the efficiency and reliability of these agencies' internal operations and potentially their external service delivery. While the contract is managed by the General Services Administration (GSA), the direct impact is on the IT infrastructure supporting USDA and USAID, with potential indirect workforce implications for those agencies relying on these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage potential cost overruns and ensure the fixed fee remains appropriate.
The long duration of the contract (nearly 6 years) necessitates ongoing performance monitoring to ensure sustained quality and value.
Dependence on a single contractor for critical IT systems for two major agencies introduces potential single-source risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that likely resulted in favorable pricing.
The contractor, CACI, Inc. - Federal, has a significant presence and track record in federal IT contracting, suggesting experience with similar large-scale systems.
The contract aims for continuous improvements, indicating a forward-looking approach to system modernization and efficiency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their digital infrastructure. This award to CACI for the WBSCM system aligns with broader government trends of outsourcing IT operations and maintenance to specialized contractors. Comparable spending benchmarks for large-scale IT operations and maintenance contracts often run into hundreds of millions of dollars over several years, making this award significant but not an outlier within the federal IT landscape.

Small Business Impact

This contract was not set aside for small businesses and is not indicated to involve significant subcontracting opportunities for small businesses based on the provided data. The award to a large federal contractor like CACI, Inc. - Federal suggests that the primary focus was on the prime contractor's capabilities. This means the direct impact on the small business ecosystem for this specific award is likely minimal, although CACI may engage small businesses as subcontractors in ways not detailed here.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract, likely through its Federal Acquisition Service. Oversight mechanisms would typically include regular performance reviews, financial audits, and adherence to contract terms. Accountability is ensured through the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

USDA IT Modernization Efforts
USAID Digital Transformation Initiatives
GSA IT Schedule Contracts
Federal Civilian Agency IT Operations and Maintenance
Supply Chain Management Systems

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight
Long contract duration necessitates sustained performance monitoring
Potential for vendor lock-in with critical IT systems

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $283.7 million to CACI, INC. - FEDERAL. TASK ORDER AWARD OF WBSCM 3. THE PURPOSE OF THIS TO IS TO ACQUIRE INFORMATION TECHNOLOGY (IT) SERVICES TO OPERATE, MAINTAIN, AND PROVIDE CONTINUOUS IMPROVEMENTS FOR THE USDA AND USAID WBSCM SYSTEM AND ITS RELATED SUBSYSTEMS.

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 $283.7 million.

What is the period of performance?

Start: 2021-02-01. End: 2027-01-31.

What is CACI, Inc. - Federal's track record with similar large-scale IT operations and maintenance contracts for federal agencies?

CACI, Inc. - Federal is a well-established government contractor with extensive experience in providing IT services, including operations, maintenance, and modernization, to various federal agencies. They have a history of managing complex systems and large-scale projects. While specific details of past performance on contracts of identical scope and value are not provided here, their broad portfolio suggests they possess the necessary expertise and infrastructure to handle the WBSCM system. Past performance evaluations, typically part of the federal procurement process, would have informed the GSA's decision. Further analysis would involve reviewing CACI's contract history for similar IT service delivery, system integration, and support contracts with agencies like USDA and USAID, looking for indicators of successful delivery, cost control, and client satisfaction.

How does the $283.7 million cost compare to similar federal IT operations and maintenance contracts?

The $283.7 million contract value over approximately six years for IT services to operate, maintain, and improve the WBSCM system for USDA and USAID is substantial. When benchmarked against similar large-scale federal IT operations and maintenance (O&M) contracts, this figure appears to be within a reasonable range. Federal agencies often award multi-year contracts in the tens or hundreds of millions of dollars for managing complex enterprise resource planning (ERP) systems or critical infrastructure. For instance, contracts supporting other large civilian agency IT systems, particularly those involving supply chain management or financial systems, can exhibit similar or even higher total values. The Cost Plus Fixed Fee (CPFF) structure also influences the total obligated amount, which can fluctuate based on actual costs incurred, capped by the fixed fee. Therefore, while significant, the cost is commensurate with the scope, duration, and criticality of the services provided.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to reimburse allowable costs plus a fixed fee. This can lead to cost overruns if not managed diligently. The government bears the risk of unforeseen costs that are deemed allowable under the contract. For the contractor, the risk lies in accurately estimating the costs to perform the work and ensuring the fixed fee adequately compensates them for their effort and risk, especially if costs escalate beyond initial projections. Effective risk mitigation requires robust government oversight, detailed cost tracking, regular audits, and clear communication channels to ensure the fixed fee remains fair and the contractor remains motivated to perform efficiently.

How effective is the WBSCM system, and what impact does this contract have on its future effectiveness?

The WBSCM system is critical for USDA and USAID, supporting vital functions related to warehouse, supply chain, and management. Its effectiveness is directly tied to the reliability, performance, and continuous improvement of its IT infrastructure. This contract's purpose is to ensure the ongoing operation, maintenance, and enhancement of the WBSCM system and its subsystems. By securing these services, the contract aims to maintain and potentially improve the system's effectiveness, ensuring data integrity, system uptime, and user accessibility. The focus on 'continuous improvements' suggests an intent to modernize and adapt the system to evolving needs, thereby enhancing its long-term effectiveness. The success of this contract will be a key determinant of the WBSCM system's ability to support agency missions efficiently and reliably.

What are the historical spending patterns for IT services related to the WBSCM system or similar systems within USDA/USAID?

Historical spending data for the WBSCM system or comparable IT services within USDA and USAID would provide valuable context for this $283.7 million award. Without specific historical figures, it's difficult to ascertain trends. However, federal agencies typically exhibit consistent or increasing spending on IT operations and maintenance due to system complexity, aging infrastructure, and the need for cybersecurity enhancements. If the WBSCM system is a legacy platform, maintenance costs could be significant. Conversely, if recent modernization efforts have occurred, spending might reflect those investments. Analyzing past contract awards for WBSCM support, or similar ERP/supply chain systems within these agencies, would reveal whether this current award represents an increase, decrease, or stable level of investment. Such analysis is crucial for understanding the long-term financial commitment to these critical IT assets.

What is the geographic scope of the IT services provided under this contract?

The provided data indicates the contract was awarded to CACI, Inc. - Federal, with the state of performance listed as 'NY' (New York). However, the nature of IT services for a system supporting USDA and USAID suggests a potentially broader operational scope. While the contractor's primary location or a significant portion of their service delivery might be based in New York, the WBSCM system itself likely serves users and operations across various geographic locations where USDA and USAID operate, both domestically and potentially internationally. The IT services would encompass remote support, system administration, and potentially on-site support as needed, which could extend beyond New York. The contract's effectiveness relies on supporting the distributed nature of the agencies' operations, regardless of the contractor's physical location.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 47QFCA20R0048

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: $376,443,568

Exercised Options: $326,753,247

Current Obligation: $283,699,517

Actual Outlays: $-341,771

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $67,095,152

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0009

IDV Type: GWAC

Timeline