CACI awarded $414M for enterprise IT expertise, highlighting significant federal investment in IT modernization

Contract Overview

Contract Amount: $414,192,579 ($414.2M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2024-03-01

End Date: 2029-05-31

Contract Duration: 1,917 days

Daily Burn Rate: $216.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENTERPRISE LEVEL IT EXPERTISE ELITE

Plain-Language Summary

General Services Administration obligated $414.2 million to CACI, INC. - FEDERAL for work described as: ENTERPRISE LEVEL IT EXPERTISE ELITE Key points: 1. This contract represents a substantial investment in specialized IT services, indicating a need for advanced technical capabilities. 2. The full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The duration of the contract (over 5 years) points to long-term strategic planning for IT infrastructure. 4. The cost-plus-fixed-fee structure may incentivize contractor efficiency while managing project scope. 5. This award falls within the broad category of IT systems design and integration, a critical area for government operations. 6. The significant dollar value underscores the importance of reliable and expert IT support for federal agencies.

Value Assessment

Rating: good

The contract's value of over $414 million for enterprise-level IT expertise is substantial. Benchmarking against similar large-scale IT services contracts awarded by GSA, this award appears to be within a reasonable range, considering the scope and duration. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex IT projects, requires careful monitoring to ensure costs remain controlled and the fixed fee provides adequate incentive for performance. Without specific details on the services rendered, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a degree of price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, allowing multiple bidders to vie for the contract. The presence of four bids suggests a healthy level of interest and competition within the market for these specialized IT services. This broad competition is generally beneficial for price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: Full and open competition maximizes the potential for the government to secure the best value at a competitive price, ensuring taxpayer dollars are used efficiently.

Public Impact

Federal agencies requiring advanced IT systems design and integration services will benefit from the expertise provided. The contract supports the modernization and maintenance of critical federal IT infrastructure. The geographic impact is likely nationwide, as GSA services support various federal entities across the country. This contract will likely support a significant number of skilled IT professionals, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed diligently.
Long-term contracts may reduce flexibility to adapt to rapidly changing IT needs.
Reliance on a single contractor for enterprise-level expertise could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
CACI, Inc. - Federal is an established contractor with a track record in federal IT services.
The contract duration suggests a strategic, long-term commitment to IT modernization.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is a significant component of federal IT spending, encompassing a wide range of activities from custom software development to IT consulting and systems integration. The federal government is a major consumer of these services, investing heavily in modernizing its IT infrastructure to improve efficiency, security, and service delivery. Comparable spending benchmarks in this category often run into hundreds of millions of dollars annually for large enterprise-level support contracts.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like CACI, Inc. - Federal suggests that the primary focus is on the prime's capabilities. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of explicit set-aside language or reporting on subcontracting plans means the direct impact on the small business ecosystem is not immediately clear from this award alone. Further investigation into subcontracting clauses would be needed to assess potential benefits.

Oversight & Accountability

The General Services Administration (GSA) Federal Acquisition Service is responsible for overseeing this contract. GSA has established procurement regulations and oversight mechanisms to ensure compliance and accountability. The contract's performance will likely be monitored through regular reporting requirements and performance evaluations. The Inspector General for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

GSA IT Schedule 70 (now IT Professional Services)
Enterprise IT Services
Computer Systems Design Services
Federal Civilian IT Modernization Programs
IT Consulting and Integration Services

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of scope creep in long-term IT projects
Dependency on contractor performance for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $414.2 million to CACI, INC. - FEDERAL. ENTERPRISE LEVEL IT EXPERTISE ELITE

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 $414.2 million.

What is the period of performance?

Start: 2024-03-01. End: 2029-05-31.

What is CACI, Inc. - Federal's track record with similar large-scale IT services contracts awarded by the GSA?

CACI, Inc. - Federal has a substantial history of securing and performing large federal IT services contracts, particularly through GSA schedules and direct awards. They are a well-established prime contractor known for providing a wide array of IT solutions, including systems integration, cybersecurity, cloud services, and enterprise IT management. Their past performance often involves supporting complex, mission-critical systems for various civilian and defense agencies. Analyzing their portfolio of previously awarded contracts, particularly those with similar scope, duration, and pricing structures (like CPFF), would provide a clearer picture of their capabilities and reliability in delivering enterprise-level IT expertise. Publicly available contract databases and GSA's contract award histories can offer insights into their performance metrics and client satisfaction on prior engagements.

How does the $414 million value compare to other enterprise IT services contracts awarded by GSA in the last three years?

The $414 million value for this enterprise-level IT expertise contract is significant, placing it among the larger awards within the IT services category managed by the General Services Administration. GSA awards a vast number of IT contracts annually, ranging from small, specialized task orders to massive enterprise-wide solutions. Contracts of this magnitude are typically associated with comprehensive IT modernization efforts, large-scale system integrations, or long-term support for critical agency infrastructure. Benchmarking against similar contracts for computer systems design services (NAICS 541512) or broader IT professional services awarded over the past three years would reveal if this award is an outlier or representative of current federal IT investment trends. Generally, such large awards reflect a strategic commitment to enhancing federal IT capabilities and often involve extensive competition.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this size and duration?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($414 million over approximately 5 years) revolve around cost control and scope creep. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial projections due to unforeseen technical challenges, inefficient management, or scope expansion, the total expenditure for the government could significantly exceed the anticipated budget. Diligent oversight, robust cost accounting standards, and clear definition of work are crucial to mitigate these risks. The contractor's incentive is to complete the work within the estimated costs to maximize their fee, but without strong government oversight, there's a potential for costs to rise, impacting the overall value for taxpayers.

What specific IT modernization or modernization-related services are typically encompassed by 'ENTERPRISE LEVEL IT EXPERTISE ELITE'?

'ENTERPRISE LEVEL IT EXPERTISE ELITE' typically encompasses a broad spectrum of advanced IT services aimed at supporting and transforming an organization's entire IT infrastructure and operations. This can include strategic IT planning and roadmap development, enterprise architecture design, cloud migration and management (public, private, hybrid), cybersecurity strategy and implementation, data center consolidation and modernization, network infrastructure design and optimization, IT service management (ITSM) framework implementation, and the integration of complex business systems. It often involves providing high-level technical consulting, project management for large-scale initiatives, and ensuring the scalability, security, and reliability of IT systems to meet the evolving needs of a large organization like a federal agency. The 'elite' designation suggests a focus on highly skilled personnel and cutting-edge solutions.

How does the Federal Acquisition Service (FAS) of GSA typically ensure performance and accountability for large IT contracts?

The Federal Acquisition Service (FAS) of GSA employs several mechanisms to ensure performance and accountability for large IT contracts. Key among these are stringent performance work statements (PWS) or statements of work (SOW) that clearly define deliverables, service levels, and quality standards. Contract officers (COs) and contracting officer's representatives (CORs) are assigned to monitor contractor performance closely, review progress reports, conduct site visits, and manage contract modifications. Performance metrics and key performance indicators (KPIs) are often built into the contract, with penalties or incentives tied to meeting or exceeding these targets. Regular performance reviews, contractor debriefings, and the utilization of GSA's contract management systems help track progress and identify issues early. Furthermore, GSA's commitment to transparency often involves making contract information publicly accessible, fostering external scrutiny.

What is the historical spending trend for Computer Systems Design Services (NAICS 541512) by the General Services Administration?

The General Services Administration (GSA) consistently represents a significant portion of federal spending on Computer Systems Design Services (NAICS 541512), primarily through its IT Schedule contracts and other procurement vehicles. Historical spending trends indicate a steady and often increasing demand for these services as federal agencies continue to modernize their IT infrastructure, adopt cloud technologies, and enhance cybersecurity measures. GSA's role as a central procurement authority means it facilitates a large volume of these contracts across various civilian agencies. While specific annual figures fluctuate based on agency needs and budget allocations, the overall trend for GSA's IT-related procurements, including systems design, has been upward over the past decade, reflecting the growing reliance on technology for government operations and service delivery.

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 - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFMA24R0002

Offers Received: 4

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: $1,345,014,765

Exercised Options: $449,299,282

Current Obligation: $414,192,579

Subaward Activity

Number of Subawards: 318

Total Subaward Amount: $208,541,062

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0009

IDV Type: GWAC

Timeline