GSA's $675M IT Services Contract with CACI Faces Scrutiny Over Cost and Competition

Contract Overview

Contract Amount: $674,944,917 ($674.9M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2019-06-01

End Date: 2024-05-31

Contract Duration: 1,826 days

Daily Burn Rate: $369.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: COMMUNICATION AND INFORMATION TECHNOLOGY SERVICES III

Plain-Language Summary

General Services Administration obligated $674.9 million to CACI, INC. - FEDERAL for work described as: COMMUNICATION AND INFORMATION TECHNOLOGY SERVICES III Key points: 1. The contract value of $674.9M for IT services is substantial, indicating significant agency reliance. 2. Competition was full and open, but the specific contract type (Cost Plus Fixed Fee) warrants attention. 3. Risk factors include potential cost overruns inherent in CPFF contracts and the lack of small business participation. 4. The IT sector, particularly computer systems design, is a high-demand area with evolving technologies.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. Benchmarking against similar CPFF contracts for Computer Systems Design Services is difficult without detailed cost breakdowns, but the fixed fee component aims to control profit margins.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad search for qualified vendors. However, the specific delivery order award mechanism means the competition occurred at the task order level, not for the entire IDIQ.

Taxpayer Impact: Taxpayer funds are being utilized for essential IT services. While competition was broad, the CPFF structure and lack of small business set-aside could impact overall value for money.

Public Impact

Federal agencies rely on IT services for critical operations, impacting service delivery to citizens. The use of CPFF contracts can lead to increased costs if not rigorously monitored by the government. Lack of small business participation may limit opportunities for smaller, innovative firms in the federal IT market. The duration and value of the contract suggest a long-term commitment to these specific IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
No small business participation
Potential for cost overruns
Long contract duration

Positive Signals

Full and open competition awarded
Services provided by a known entity (CACI)
Essential IT services for agency operations

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is consistently high across federal agencies as they modernize systems and enhance cybersecurity. Benchmarks for similar large-scale IT service contracts vary widely based on scope and complexity.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, CACI, did not utilize small businesses for subcontracting on this particular award, potentially missing opportunities to leverage specialized capabilities and meet socio-economic goals.

Oversight & Accountability

The General Services Administration (GSA) manages numerous IT contracts. Oversight is crucial for CPFF contracts to ensure costs are reasonable and fixed fees are justified. The number of delivery orders (no: 2) suggests this is an active contract, requiring ongoing monitoring.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Cost Plus Fixed Fee contract type can lead to higher costs.
Lack of small business participation.
Potential for cost overruns if not managed effectively.
Long contract duration (5 years).
Reliance on a single prime contractor for a large scope of work.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $674.9 million to CACI, INC. - FEDERAL. COMMUNICATION AND INFORMATION TECHNOLOGY SERVICES III

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 $674.9 million.

What is the period of performance?

Start: 2019-06-01. End: 2024-05-31.

What is the total cost performance of CACI on this contract, and how does it compare to the fixed fee earned?

Analyzing the total cost performance against the fixed fee is crucial for understanding the true value derived from this CPFF contract. Without detailed financial reports, it's difficult to assess if CACI's actual costs significantly exceeded initial projections, which would indicate potential inefficiencies or scope creep not adequately controlled by the fixed fee mechanism.

What specific IT systems or services are covered under this contract, and how critical are they to the agency's mission?

Understanding the specific IT systems and services procured under this $675M contract is essential for evaluating its necessity and impact. If these services support critical mission functions, the investment is justifiable. However, if they are for non-essential systems or could be procured more cost-effectively through other means, the value proposition weakens.

Were there any specific reasons why small businesses were not included as subcontractors on this contract?

The absence of small business participation warrants investigation. Agencies often have goals for small business subcontracting. Understanding if CACI actively sought small business partners and why none were ultimately engaged is important. It could indicate a lack of suitable small businesses for the specific requirements or a failure in outreach and partnership efforts.

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

Solicitation ID: ID03180060

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: $722,569,952

Exercised Options: $720,454,567

Current Obligation: $674,944,917

Actual Outlays: $-414,919

Subaward Activity

Number of Subawards: 577

Total Subaward Amount: $477,839,789

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