GSA awards $43.2M contract for computer systems design services to CACI, Inc. - Federal

Contract Overview

Contract Amount: $43,179,954 ($43.2M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2024-01-12

End Date: 2027-01-11

Contract Duration: 1,095 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE PURPOSE OF THIS ACTION IS TO MAKE THE TO AWARD FOR THE GENMOD ACQUISITION.

Place of Performance

Location: FORT SHAFTER, HONOLULU County, HAWAII, 96858

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $43.2 million to CACI, INC. - FEDERAL for work described as: THE PURPOSE OF THIS ACTION IS TO MAKE THE TO AWARD FOR THE GENMOD ACQUISITION. 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 contractor performance. 3. Services are for computer systems design, a critical area for federal IT infrastructure. 4. The contract duration is 1095 days, indicating a medium-term engagement. 5. The awardee, CACI, Inc. - Federal, is a known entity in the federal contracting space. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $43.2 million over three years for computer systems design services appears reasonable given the scope. Benchmarking against similar GSA IT services contracts suggests this falls within expected ranges. The Cost Plus Award Fee structure allows for performance-based adjustments, which can lead to better value if the contractor meets or exceeds targets. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides a positive signal.

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 offers. The presence of 3 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and can drive down costs for the government compared to sole-source or limited competition awards. The specific number of bids (3) is a moderate level of competition.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely resulted in a more favorable price than a non-competitive procurement. The government secured services through a process designed to identify the best value among multiple offerors.

Public Impact

Federal agencies requiring computer systems design and integration services will benefit from this contract. The services delivered will support the modernization and efficiency of federal IT infrastructure. The contract is managed by the General Services Administration (GSA), facilitating its use by other federal agencies. The geographic impact is likely nationwide, as GSA services often support federal operations across the country, though specific task orders will define precise locations. The contract supports the IT workforce through the prime contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure, while incentivizing, can sometimes lead to higher costs if award fees are consistently maximized without strict cost controls.
The specific details of the award fee criteria are not publicly available, making it difficult to assess the rigor of performance incentives.
As a delivery order under a potential IDIQ, the overall value and competition dynamics of the parent contract are not fully detailed here.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor, CACI, Inc. - Federal, has a significant presence and experience in the federal IT market.
The contract duration of three years allows for stable service delivery and planning.
The Cost Plus Award Fee structure, if managed effectively, can drive high performance and achieve mission objectives.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies consistently seeking solutions for systems design, integration, and modernization. This contract falls within the Computer Systems Design Services NAICS code (541512), a segment that includes custom computer programming, systems integration, and IT consulting. Spending in this sector is driven by the need for agencies to upgrade legacy systems, enhance cybersecurity, and adopt cloud technologies. Comparable spending benchmarks for IT services contracts of this duration and scope typically range from tens to hundreds of millions of dollars, depending on complexity and agency.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The prime contractor, CACI, Inc. - Federal, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract is primarily managed by the General Services Administration (GSA), which awarded the delivery order. As a Cost Plus Award Fee contract, performance monitoring and evaluation are critical components of oversight to determine award fee payments. Transparency is facilitated through contract award databases like FPDS. Accountability rests with CACI, Inc. - Federal to meet performance requirements and manage costs. Specific Inspector General jurisdiction would typically fall under GSA's OIG.

Related Government Programs

GSA IT Schedule 70 (now IT Professional Services)
Defense Information Systems Agency (DISA) IT contracts
NASA SEWP (Solutions for Enterprise-Wide Procurement)
Alliant Government Services IDIQ contracts

Risk Flags

Potential for cost creep in CPAF contracts if not managed tightly.
Reliance on contractor performance metrics for award fee determination.
Limited visibility into specific task order details under the parent contract.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $43.2 million to CACI, INC. - FEDERAL. THE PURPOSE OF THIS ACTION IS TO MAKE THE TO AWARD FOR THE GENMOD ACQUISITION.

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 $43.2 million.

What is the period of performance?

Start: 2024-01-12. End: 2027-01-11.

What is CACI, Inc. - Federal's track record with the General Services Administration?

CACI, Inc. - Federal is a significant contractor with the General Services Administration (GSA), frequently awarded contracts across various IT and professional services categories. Their history with GSA includes numerous task orders and delivery orders, often under large IDIQ vehicles like the GSA IT Schedule. While specific performance metrics for past GSA contracts are not detailed here, CACI's sustained presence and continued awards suggest a generally positive working relationship and a demonstrated capability to meet GSA's requirements. Their extensive experience indicates familiarity with GSA's procurement processes, reporting requirements, and performance expectations.

How does the $43.2 million value compare to similar computer systems design contracts?

The $43.2 million value for a three-year computer systems design contract is within a common range for federal IT services. GSA, in particular, manages numerous contracts of similar or larger magnitudes for IT support, system integration, and modernization. For instance, contracts under GSA's IT Professional Services (formerly Schedule 70) or other large IDIQ vehicles can easily reach these figures for multi-year engagements. The specific nature of 'computer systems design' can vary widely in complexity, but this value suggests a substantial project, likely involving significant integration, development, or architectural work, rather than simple maintenance or basic support.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract?

The primary risk with a Cost Plus Award Fee (CPAF) contract is the potential for cost overruns if the award fee criteria are not sufficiently stringent or if the government's oversight is inadequate. While CPAF aims to incentivize performance by offering additional profit (the award fee) for meeting or exceeding defined metrics, there's a risk that contractors may focus heavily on achieving the award fee rather than strict cost control. This can lead to costs exceeding initial estimates, as the government pays allowable costs plus a base fee and a potential award fee. Effective government oversight and clearly defined, measurable performance standards are crucial to mitigate this risk and ensure value for money.

How effective is full and open competition in ensuring value for money for IT services?

Full and open competition is generally considered the most effective method for ensuring value for money in IT services procurements. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions. This process drives down costs as contractors vie for the award. Furthermore, it allows the government to select the offer that represents the best overall value, considering factors beyond just price, such as technical approach, past performance, and management. The presence of multiple bidders, as seen with 3 offers in this case, strengthens the competitive dynamic and enhances the probability of a cost-effective outcome.

What is the typical duration for federal computer systems design contracts?

The typical duration for federal computer systems design contracts can vary significantly based on the project's scope, complexity, and the specific contracting vehicle used. However, multi-year contracts, often with option periods, are common. Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, under which delivery orders are issued, can have base periods of up to five years, with potential for extensions. Standalone contracts or delivery orders, like this one with a 1095-day (3-year) duration, are also frequent. Shorter durations might be used for specific, well-defined tasks, while longer periods are typical for comprehensive system design, development, and integration projects requiring sustained effort and evolving requirements.

What does the 'Computer Systems Design Services' NAICS code entail?

The 'Computer Systems Design Services' NAICS code (541512) encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. This includes activities such as custom computer programming, systems integration, and IT consulting. Establishments in this industry analyze users' needs and design information processing systems solutions. They may also provide training in the use of the designed systems. This code covers a broad range of IT services critical to federal agencies for modernizing infrastructure, developing new applications, and ensuring seamless operation of complex IT environments.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA23R0034

Offers Received: 3

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: $526,173,881

Exercised Options: $276,427,404

Current Obligation: $43,179,954

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $105,456,291

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0009

IDV Type: GWAC

Timeline