DoD's $68.7M contract for Army sensor R&D awarded to CACI, Inc. - Federal

Contract Overview

Contract Amount: $68,670,913 ($68.7M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2020-05-15

End Date: 2025-05-17

Contract Duration: 1,828 days

Daily Burn Rate: $37.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND ANALYSIS OF TECHNICAL, LOGISTICS, BUSINESS OPERATIONS, AND CONTINGENCY OPERATIONS FOR ARMY PRODUCT MANAGER GROUND SENSORS (PM GS)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $68.7 million to CACI, INC. - FEDERAL for work described as: RESEARCH AND ANALYSIS OF TECHNICAL, LOGISTICS, BUSINESS OPERATIONS, AND CONTINGENCY OPERATIONS FOR ARMY PRODUCT MANAGER GROUND SENSORS (PM GS) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. Performance period spans over 4 years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541715 points to R&D in physical, engineering, and life sciences. 5. This contract is part of a larger framework, as indicated by 'DELIVERY ORDER'. 6. The contractor, CACI, Inc. - Federal, has a significant presence in government contracting. 7. The contract is managed by the Department of the Air Force, despite its focus on Army Product Manager Ground Sensors. 8. The contract value is substantial, reflecting significant investment in ground sensor technology.

Value Assessment

Rating: good

The contract value of $68.7 million over approximately 4 years for R&D services appears reasonable given the scope. Benchmarking against similar R&D contracts in defense requires detailed analysis of specific deliverables and technical complexity. However, the Cost Plus Fixed Fee (CPFF) structure necessitates careful oversight to ensure value for money, as it allows for cost reimbursement plus a fixed fee. Without specific per-unit cost data, a direct price comparison is difficult, but the overall award amount aligns with the nature of advanced research and development in the defense sector.

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 two bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and innovation, the limited number of bidders could warrant further investigation into potential barriers to entry or market concentration within this specialized R&D area.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through a wider pool of potential offerors. Even with two bidders, the process ensures a baseline level of market engagement and prevents sole-source awards that could lead to inflated costs.

Public Impact

The primary beneficiaries are the U.S. Army's ground forces, who will receive enhanced sensor capabilities. Services delivered include research and analysis related to technical, logistics, business operations, and contingency operations for ground sensors. The geographic impact is primarily within the Department of Defense's operational theaters, with potential for wider application. Workforce implications include specialized R&D roles within CACI, Inc. - Federal and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, potentially increasing the final cost to taxpayers.
Limited competition (2 bidders) for a contract of this size could indicate potential market consolidation or barriers to entry for other qualified firms.
The contract is managed by the Department of the Air Force for Army programs, which could introduce coordination challenges or delays.
The specific deliverables and performance metrics are not detailed in the provided data, making it difficult to assess the true value and effectiveness of the R&D.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The contractor, CACI, Inc. - Federal, is an established entity with a track record in government contracting, suggesting experience and capability.
The contract supports critical R&D for Army ground sensors, directly contributing to national defense capabilities.
The long performance period (over 4 years) allows for sustained development and integration of advanced technologies.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, driven by continuous technological advancements and evolving security threats. Comparable spending benchmarks would involve analyzing other DoD contracts for sensor technology, advanced materials, and related engineering services. The size of this contract, approximately $68.7 million, is significant for a single R&D effort but represents a fraction of the overall defense R&D budget.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no small business set-aside (ss) for this contract. This suggests that the contract was not specifically targeted towards small businesses. Consequently, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without explicit subcontracting plans or goals, it's difficult to assess the extent to which small businesses will benefit from this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program executive office within the Department of the Air Force, responsible for the Army's Product Manager Ground Sensors. Accountability measures are embedded in the Cost Plus Fixed Fee contract structure, requiring detailed reporting and justification of costs. Transparency is generally facilitated through contract award databases, though specific performance details and cost breakdowns may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Ground Sensor Modernization Programs
Department of Defense Research and Development Budget
C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) Systems
Tactical Sensor Development Contracts
Defense Logistics and Business Operations Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Limited number of bidders (2) in a full and open competition may warrant further market analysis.
Inter-service management (Air Force for Army) could introduce coordination complexities.
Lack of specific performance metrics in summary data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.7 million to CACI, INC. - FEDERAL. RESEARCH AND ANALYSIS OF TECHNICAL, LOGISTICS, BUSINESS OPERATIONS, AND CONTINGENCY OPERATIONS FOR ARMY PRODUCT MANAGER GROUND SENSORS (PM GS)

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $68.7 million.

What is the period of performance?

Start: 2020-05-15. End: 2025-05-17.

What is CACI, Inc. - Federal's track record with similar R&D contracts for the Department of Defense?

CACI, Inc. - Federal has a substantial history of performing R&D and support services for the Department of Defense across various branches. Their portfolio includes work on intelligence analysis, IT modernization, and command and control systems. For R&D specifically, they have been involved in developing and integrating advanced technologies, often in complex and sensitive areas. Their experience with large-scale, multi-year contracts suggests a capacity to manage the technical and logistical demands of projects like the Army Product Manager Ground Sensors (PM GS) contract. However, a detailed review of past performance evaluations and any past performance issues would be necessary for a comprehensive assessment.

How does the $68.7 million value compare to similar R&D contracts for ground sensor technology?

The $68.7 million value for this 4-year R&D contract for Army ground sensors is within a typical range for specialized defense technology development. Contracts for advanced sensor systems, particularly those involving research, analysis, and integration, can vary significantly based on technological complexity, scope of work, and duration. For instance, contracts for developing next-generation surveillance or targeting sensors, or integrating AI into sensor platforms, can easily reach tens to hundreds of millions of dollars over several years. This specific award appears to be a significant investment, reflecting the critical nature of ground sensor capabilities for modern military operations.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses allowable costs incurred by the contractor. If the R&D effort encounters unforeseen technical challenges or scope creep, costs can escalate significantly beyond initial estimates. This necessitates robust government oversight to ensure that all claimed costs are reasonable, allocable, and allowable. There's also a risk that the contractor might not be sufficiently incentivized to control costs once the fee is fixed, potentially leading to less efficient resource utilization compared to fixed-price contracts.

How effective is the 'full and open competition' approach for specialized R&D contracts like this?

Full and open competition is generally considered the most effective approach for specialized R&D contracts as it maximizes the pool of potential innovators and service providers. This broad competition can lead to better technical solutions, more competitive pricing, and increased innovation by bringing diverse perspectives to bear. However, for highly specialized R&D, the number of truly capable bidders might be limited, potentially reducing the competitive intensity despite the open nature of the solicitation. In such cases, the government must ensure that evaluation criteria are robust enough to identify the best technical approach and value, even with fewer than expected bids.

What are historical spending patterns for Army Product Manager Ground Sensors (PM GS) R&D?

Analyzing historical spending patterns for Army PM GS R&D would require access to detailed contract databases and budget allocations over several fiscal years. Generally, spending in this area tends to be consistent, reflecting the ongoing need for technological advancement in sensor capabilities. Fluctuations might occur based on strategic priorities, emerging threats, and budget cycles. Contracts for PM GS often involve research into areas like unattended ground sensors, acoustic sensors, seismic sensors, and integrated sensor networks. The total spending can range from tens to hundreds of millions annually, depending on the number and scale of active R&D projects.

What are the implications of the Department of the Air Force managing an Army-focused contract?

When one military branch manages a contract for another, it typically stems from established inter-service agreements, shared capabilities, or specific acquisition authorities. In this case, the Department of the Air Force (DAF) managing an Army R&D contract for ground sensors might indicate that the DAF possesses specialized acquisition expertise, contracting vehicles, or program management capabilities relevant to this type of R&D. While potentially efficient, it could also introduce coordination challenges between the services, requiring clear communication channels and defined roles to ensure the Army's specific requirements are fully met and that the R&D aligns with Army operational needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $77,902,241

Exercised Options: $77,902,241

Current Obligation: $68,670,913

Actual Outlays: $4,520,557

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $9,884,836

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0006

IDV Type: IDC

Timeline