CACI awarded $469M contract for DHS IT systems, impacting border enforcement applications

Contract Overview

Contract Amount: $468,969,759 ($469.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $643.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BORDER ENFORCEMENT APPLICATIONS FOR GOVERNMENT LEADING-EDGE INFORMATION TECHNOLOGY

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $469.0 million to CACI, INC. - FEDERAL for work described as: BORDER ENFORCEMENT APPLICATIONS FOR GOVERNMENT LEADING-EDGE INFORMATION TECHNOLOGY Key points: 1. Contract value of $469M over two years suggests significant investment in critical IT infrastructure. 2. Full and open competition indicates a broad market engagement, potentially leading to competitive pricing. 3. The contract's focus on leading-edge IT for border enforcement highlights a strategic area of government spending. 4. Performance period of 729 days allows for substantial development and implementation of IT solutions. 5. The award to CACI, a major federal IT contractor, places it in a key role for DHS operations. 6. This contract represents a substantial portion of spending within the Computer Systems Design Services category for DHS.

Value Assessment

Rating: good

The contract value of $469M over two years for IT systems design services is substantial. Benchmarking against similar large-scale IT contracts for federal agencies, this award appears to be within a reasonable range given the scope and duration. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex IT projects, requires careful monitoring to ensure cost efficiencies and prevent scope creep. Without specific per-unit cost data, a direct value-for-money assessment is challenging, but the competitive nature of the award suggests an effort to secure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovative solutions for the government. The agency's decision to use full and open competition indicates confidence in the market's ability to meet its complex IT needs.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that government funds are used efficiently.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), which will receive enhanced IT capabilities. The contract will deliver leading-edge information technology solutions to support critical border enforcement applications. The geographic impact is national, as CBP operates across all U.S. borders and ports of entry. Workforce implications may include the need for specialized IT personnel within CACI and potentially increased demand for related IT services in the federal contracting ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not managed diligently.
The long performance period (729 days) requires sustained oversight to ensure project milestones are met and performance remains high.
Reliance on a single large contractor for critical IT infrastructure could pose a risk if the contractor faces significant operational challenges.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely secured favorable terms.
The contract is for 'leading-edge information technology,' suggesting an investment in modern, potentially more efficient systems.
The focus on border enforcement applications aligns with national security priorities, indicating strategic importance and likely robust agency support.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is vast, with significant annual spending dedicated to maintaining and upgrading systems across various agencies. This contract for border enforcement applications is a key component of DHS's operational technology strategy. Comparable spending benchmarks for large-scale IT modernization projects within federal agencies often run into hundreds of millions of dollars, making this award significant but not unprecedented.

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 suggests that the primary focus is on the prime's capabilities. This may limit direct opportunities for small businesses to participate in this specific contract, although they might be involved as subcontractors if CACI chooses to engage them.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection (CBP) contracting officers and program managers within DHS. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial and performance oversight to ensure adherence to the fixed fee and manage costs effectively. Transparency will depend on the agency's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DHS IT Modernization Programs
Border Security Technology Modernization
Customs and Border Protection Systems
Federal Civilian IT Services
Large-Scale IT System Development

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight.
Long contract duration necessitates sustained performance monitoring.
Reliance on a single prime contractor for critical systems.
Potential for scope creep in leading-edge technology development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $469.0 million to CACI, INC. - FEDERAL. BORDER ENFORCEMENT APPLICATIONS FOR GOVERNMENT LEADING-EDGE INFORMATION TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $469.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is CACI, Inc. - Federal's track record with Department of Homeland Security contracts, particularly in IT systems design?

CACI, Inc. - Federal is a significant federal IT contractor with a substantial history of working with the Department of Homeland Security (DHS) and its components, including U.S. Customs and Border Protection (CBP). They have been awarded numerous contracts over the years for a wide range of IT services, including systems design, integration, cybersecurity, and operational support. Their experience with DHS likely includes projects related to border security, immigration, and law enforcement IT infrastructure. This extensive track record suggests familiarity with DHS's operational requirements and procurement processes, positioning them as a capable provider for this type of leading-edge IT contract. However, a detailed review of past performance metrics and any past performance issues would be necessary for a comprehensive assessment.

How does the $469M contract value compare to similar IT systems design contracts awarded by DHS or other agencies for border enforcement applications?

The $469 million contract value for two years of IT systems design services for border enforcement applications is substantial, reflecting the complexity and critical nature of such systems. When compared to similar large-scale IT modernization contracts awarded by agencies like DHS, the Department of Defense, or the General Services Administration, this figure appears to be within the expected range for projects of this scope and duration. For instance, major IT infrastructure upgrades or the development of new command and control systems for federal agencies often involve contract values in the hundreds of millions of dollars. The 'leading-edge' nature of the technology specified may also contribute to a higher contract value due to the specialized expertise and innovation required. Without specific details on the exact deliverables and technological sophistication, a precise comparison is difficult, but the award size is consistent with significant federal IT investments.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for leading-edge IT development?

Cost Plus Fixed Fee (CPFF) contracts, while common for complex and evolving projects like leading-edge IT development, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost incurred. This can lead to potential cost overruns if the contractor's actual expenses significantly exceed initial estimates, although the government still pays the actual costs. Another risk is scope creep, where the project's requirements expand beyond the initial agreement, potentially increasing costs and delaying timelines. For the contractor, the risk lies in underestimating the costs, which could lead to a reduced profit margin or even a loss if actual expenses far exceed projections. Effective oversight, clear definition of scope, and robust change management processes are crucial to mitigate these risks.

What is the expected impact of this contract on the effectiveness of border enforcement applications?

This contract is expected to significantly enhance the effectiveness of border enforcement applications by providing 'leading-edge information technology.' This implies an upgrade or development of advanced systems designed to improve data processing, situational awareness, communication, and decision-making capabilities for U.S. Customs and Border Protection (CBP). By leveraging modern IT, CBP can potentially achieve faster threat identification, more efficient resource allocation, improved tracking of individuals and goods, and better overall operational intelligence. The success of these improvements will depend on the successful implementation of the new technologies and their seamless integration into existing workflows. Ultimately, the goal is to strengthen border security and facilitate lawful trade and travel.

How has federal spending in the 'Computer Systems Design Services' category for DHS evolved over the past five years?

Federal spending in the 'Computer Systems Design Services' (NAICS code 541512) category for the Department of Homeland Security (DHS) has generally seen a consistent and significant level of investment over the past five years, reflecting the agency's ongoing need for advanced IT solutions. While specific year-over-year figures fluctuate based on agency priorities and major procurement cycles, the overall trend indicates a sustained commitment to modernizing and maintaining critical IT infrastructure. DHS, being responsible for national security and border management, relies heavily on these services for everything from data analytics and surveillance systems to communication networks and cybersecurity. Major events or shifts in policy, such as increased focus on border security or evolving threat landscapes, can lead to surges in spending within this category. This $469M award to CACI for leading-edge IT for border enforcement applications aligns with this historical pattern of substantial investment in IT services by DHS.

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: 70B04C24R00000198

Offers Received: 1

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: $536,571,362

Exercised Options: $469,158,063

Current Obligation: $468,969,759

Actual Outlays: $197,332,551

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $68,379,902

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