CACI awarded $713M task order for IT systems design, with a 729-day duration

Contract Overview

Contract Amount: $713,405,795 ($713.4M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $978.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: CDM DEFEND GROUP A BRIDGE TASK ORDER

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $713.4 million to CACI, INC. - FEDERAL for work described as: CDM DEFEND GROUP A BRIDGE TASK ORDER Key points: 1. The contract value represents a significant investment in computer systems design services. 2. Competition dynamics for this task order are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and contractor performance history. 4. Performance context is provided by comparing this award to similar government IT contracts. 5. The contract positions CACI within the broader federal IT services sector. 6. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's Cost Plus Award Fee (CPAF) structure incentivizes performance but can lead to higher costs if not managed closely. Benchmarking against similar GSA IT services contracts suggests the pricing is within a reasonable range, though the award fee component introduces variability. The total value of $713.4 million over approximately two years indicates a substantial project, and value for money will depend heavily on the successful achievement of performance objectives and award fee criteria.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it is a delivery order under an IDIQ suggests that the initial competition for the IDIQ vehicle itself was broad. The specific competition for this task order is not detailed, but the 'full and open' designation implies a robust bidding process, which generally supports competitive pricing.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the pool of potential bidders, driving down prices through market forces and ensuring the government receives the best value.

Public Impact

The primary beneficiary is the General Services Administration (GSA), which will receive computer systems design services. The services delivered are expected to enhance or maintain critical IT systems supporting federal operations. The geographic impact is likely nationwide, given the nature of federal IT infrastructure, though specific locations are not detailed. Workforce implications may include the creation or sustainment of jobs for IT professionals within CACI and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can sometimes lead to cost overruns if award criteria are not strictly managed.
The large contract value necessitates robust oversight to ensure performance objectives are met and costs are controlled.
Dependence on a single contractor for a large task order can create vendor lock-in risks if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
CACI, Inc. - Federal is an established government contractor with a significant presence in the federal IT market.
The task order is a delivery order under an existing IDIQ, implying a pre-competed framework.

Sector Analysis

This contract falls within the federal IT services sector, specifically computer systems design. This sector is a significant portion of federal IT spending, encompassing a wide range of services from software development to systems integration and IT consulting. The market is characterized by a mix of large prime contractors and specialized small businesses. Federal spending in this area is driven by the need to modernize legacy systems, enhance cybersecurity, and implement new digital services. Comparable spending benchmarks for large IT services contracts with agencies like GSA often run into hundreds of millions of dollars annually.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to CACI, Inc. - Federal, there is potential for subcontracting opportunities for small businesses. However, the extent to which small businesses will participate depends on CACI's subcontracting plan and the specific requirements of the task order. Without a small business set-aside, the primary focus is on the overall best value to the government, which may or may not prioritize small business participation.

Oversight & Accountability

Oversight for this contract will primarily be managed by the General Services Administration (GSA) through its Federal Acquisition Service. As a delivery order under an IDIQ, the foundational contract likely has established oversight mechanisms. The Cost Plus Award Fee (CPAF) structure necessitates close monitoring of performance metrics and cost incurrence to ensure the award fee is justified. Transparency is generally maintained through contract award databases, but detailed performance reporting may be less public. Inspector General jurisdiction would apply if fraud, waste, or abuse is suspected.

Related Government Programs

GSA IT Schedule 70 (now IT Professional Services)
Federal Civilian IT Modernization Programs
Computer Systems Design Services Contracts
IT Services for Federal Agencies

Risk Flags

Potential for cost growth due to CPAF structure.
Need for robust performance monitoring to ensure value.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $713.4 million to CACI, INC. - FEDERAL. CDM DEFEND GROUP A BRIDGE TASK ORDER

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 $713.4 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What is CACI's track record with similar government IT contracts, particularly with GSA?

CACI, Inc. - Federal is a major incumbent contractor across numerous federal agencies, including significant work with GSA. They have a long history of performing IT services, systems integration, and support functions. Their track record includes managing large-scale, complex IT projects. While specific performance details for individual contracts are often proprietary or summarized in past performance evaluations during recompetes, CACI's sustained presence and numerous awards indicate a generally accepted capability to deliver on government IT requirements. Analyzing their past performance on similar CPAF contracts would provide further insight into their ability to manage costs and meet performance targets effectively.

How does the $713.4 million value compare to typical federal IT systems design contracts?

The $713.4 million value for this 729-day (approx. 2-year) task order is substantial, placing it among the larger federal IT services awards. Federal agencies, particularly those with extensive IT infrastructure like GSA, frequently award multi-year contracts in the hundreds of millions of dollars for systems design, integration, and modernization. This value is consistent with the scale of projects required to support large government operations. For context, major IT modernization efforts or enterprise-wide system implementations can easily exceed this amount over their lifecycle. The value reflects the complexity and scope of the computer systems design services being procured.

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

The primary risks with a CPAF contract of this magnitude ($713.4M) revolve around cost control and the definition of performance objectives. CPAF incentivizes contractor performance by allowing for additional profit (the 'award fee') if specific, measurable criteria are met. The risk is that these criteria might be poorly defined, overly generous, or difficult to objectively measure, leading to higher-than-expected costs without a commensurate increase in value. Conversely, overly stringent criteria could disincentivize performance. Effective oversight is crucial to ensure the award fee is earned based on genuine value and superior performance, rather than just meeting minimum requirements or through scope creep.

How does the 'full and open competition' for this task order impact taxpayer value?

Full and open competition is generally beneficial for taxpayers. It ensures that the government solicits bids from the widest possible range of qualified contractors, fostering a competitive environment. This competition drives down prices as contractors vie for the award. It also increases the likelihood that the government will receive innovative solutions and the best overall value, as multiple approaches and pricing structures are considered. For this $713.4M task order, full and open competition suggests that the GSA sought to leverage market forces to secure optimal terms and performance for the computer systems design services, thereby maximizing the efficient use of taxpayer funds.

What is the historical spending trend for computer systems design services by the GSA?

The General Services Administration (GSA) is a significant procurer of IT services, including computer systems design. Historical spending data indicates a consistent and substantial investment in this category, driven by the agency's role in providing IT infrastructure and services to other federal agencies. Spending on IT services, including design and integration, has generally trended upwards over the past decade as agencies modernize systems and adopt new technologies. GSA's own IT modernization efforts and its role as a shared service provider contribute to this spending. The $713.4M award to CACI is indicative of the scale of GSA's ongoing IT requirements in this domain.

Are there specific performance metrics or award fee criteria publicly available for this contract?

Typically, the specific performance metrics and award fee criteria for individual task orders, especially those under IDIQ contracts, are not publicly disclosed in detail. These are usually defined in the contract's Performance Work Statement (PWS) and the associated award fee plan. While the contract award itself is announced, the granular details of how performance is measured and how the award fee is calculated are considered sensitive or proprietary information related to the contractor's performance management. Agencies focus on ensuring these criteria are objective, measurable, and aligned with mission needs, but the specifics are generally reserved for the contracting parties.

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: 47QFRA24R0001

Offers Received: 1

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: $1,230,385,147

Exercised Options: $905,948,704

Current Obligation: $713,405,795

Subaward Activity

Number of Subawards: 407

Total Subaward Amount: $770,402,195

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QTCK18D0009

IDV Type: GWAC

Timeline