CACI awarded $14.2M for Navy Reserve Forces Command enterprise application innovation, with 2 years remaining

Contract Overview

Contract Amount: $14,198,537 ($14.2M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2024-03-04

End Date: 2027-03-03

Contract Duration: 1,094 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENTERPRISE APPLICATION INNOVATION FOR COMMANDER, NAVY RESERVE FORCES COMMAND N6

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23551

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to CACI, INC. - FEDERAL for work described as: ENTERPRISE APPLICATION INNOVATION FOR COMMANDER, NAVY RESERVE FORCES COMMAND N6 Key points: 1. Contract value of $14.2 million indicates a significant investment in IT modernization. 2. Full and open competition suggests a robust market response and potential for competitive pricing. 3. Delivery order contract type implies a phased approach to service delivery. 4. The contract duration of approximately 3 years allows for sustained development and implementation. 5. Focus on enterprise application innovation points to strategic IT upgrades for operational efficiency. 6. The contractor, CACI, Inc. - Federal, has a substantial presence in the federal IT services market.

Value Assessment

Rating: good

The contract value of $14.2 million for enterprise application innovation appears reasonable given the scope of supporting a major command like Navy Reserve Forces Command. Benchmarking against similar large-scale IT modernization contracts within the Department of Defense suggests this is within a typical range. The Cost Plus Fixed Fee (CPFF) pricing structure, while allowing for flexibility, requires careful monitoring to ensure costs remain controlled and represent good value. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive award process provides a positive signal.

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 competitive environment, though the exact number of bidders can influence price discovery. A higher number of bidders typically leads to more aggressive pricing and better value for the government. The fact that it was competed openly is a positive indicator for taxpayer value.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

Naval Reserve Forces Command personnel will benefit from modernized enterprise applications, potentially improving operational readiness and administrative efficiency. Services delivered include research and development in physical, engineering, and life sciences, tailored for command support. The primary geographic impact is likely within the United States, supporting the Navy Reserve's national operations. Workforce implications may include the need for specialized IT and R&D personnel to fulfill the contract's objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Ensuring the delivered applications meet the evolving technological needs of the Navy Reserve.
Dependency on a single contractor for critical enterprise application development and support.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor has a significant track record in providing IT and engineering services to the federal government.
Clear objective of modernizing enterprise applications for improved command efficiency.

Sector Analysis

This contract falls within the IT and Research & Development sectors, specifically focusing on enterprise application innovation. The market for federal IT services is vast and highly competitive, with significant spending allocated to modernizing legacy systems and developing new capabilities. Comparable spending benchmarks for large-scale IT development and support contracts within the Department of Defense often run into tens or hundreds of millions of dollars, making this $14.2 million award a mid-tier investment for a specific command's needs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if CACI, Inc. - Federal chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often create downstream opportunities for specialized small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program management personnel within the Department of Defense. Accountability measures are typically embedded within the Cost Plus Fixed Fee contract terms, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Navy Reserve IT Modernization Programs
Department of Defense Enterprise Resource Planning (ERP) Systems
Naval Command and Control Systems
Federal Civilian IT Modernization Initiatives

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Risk (Innovation Projects)
Technology Obsolescence Risk
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to CACI, INC. - FEDERAL. ENTERPRISE APPLICATION INNOVATION FOR COMMANDER, NAVY RESERVE FORCES COMMAND N6

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 $14.2 million.

What is the period of performance?

Start: 2024-03-04. End: 2027-03-03.

What is CACI, Inc. - Federal's track record with similar enterprise application development contracts within the Department of Defense?

CACI, Inc. - Federal has a substantial and long-standing track record of providing IT and engineering services to the Department of Defense and other federal agencies. They are a major contractor involved in various aspects of IT modernization, including software development, system integration, cybersecurity, and enterprise resource planning (ERP) solutions. Their experience spans numerous large-scale programs across different military branches. For instance, they have been involved in significant contracts related to C4ISR systems, logistics modernization, and personnel management systems. This extensive background suggests they possess the technical expertise and program management capabilities necessary to execute complex enterprise application innovation projects like the one for the Navy Reserve Forces Command. Their history indicates a capacity to handle contracts of this magnitude and complexity, often involving research and development components.

How does the $14.2 million contract value compare to other enterprise application innovation contracts awarded by the Navy or DoD in the past three years?

The $14.2 million contract value for enterprise application innovation for the Commander, Navy Reserve Forces Command positions this award as a mid-tier investment within the broader context of Department of Defense IT spending. While specific comparable contracts for 'enterprise application innovation' can vary widely in scope and definition, larger enterprise-wide system overhauls or major platform migrations within the DoD often reach hundreds of millions or even billions of dollars over their lifecycle. However, for a specific command's focused innovation efforts, $14.2 million over approximately three years is a substantial allocation. It suggests a significant project scope, likely involving advanced development, integration, and potentially R&D elements, rather than routine maintenance or minor upgrades. Compared to smaller, task-order-level IT support contracts, this award represents a considerable commitment to advancing the technological capabilities of the Navy Reserve.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for enterprise application innovation?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for enterprise application innovation revolve around cost control and scope creep. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. The main risk for the government is that costs could escalate beyond initial projections if the contractor is not diligent in managing expenses or if unforeseen technical challenges arise. This can lead to the total contract value exceeding the initially estimated amount, even though the fee remains fixed. For innovation projects, where the scope can be inherently uncertain and R&D is involved, there's a heightened risk of 'scope creep' – where requirements expand beyond the original agreement. Effective oversight, clear definition of milestones, and robust cost tracking mechanisms are crucial to mitigate these risks and ensure the government receives good value.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' classification imply for the services delivered under this contract?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that a significant portion of the work under this contract involves scientific inquiry and experimentation to discover or refine knowledge and understanding. For an enterprise application innovation contract, this suggests that the development will go beyond standard software engineering practices. It implies that the project may involve exploring novel technological approaches, developing new algorithms, testing advanced system integrations, or creating solutions based on emerging scientific principles within the physical and engineering domains. The exclusion of nanotechnology and biotechnology means the R&D focus is likely on areas such as advanced computing, materials science applications in systems, complex simulations, or other engineering-related research that underpins the functionality and performance of the enterprise applications being developed for the Navy Reserve.

Given the contract is for the Navy Reserve Forces Command, what are the potential implications for operational readiness and efficiency?

Modernizing enterprise applications for the Navy Reserve Forces Command has direct implications for operational readiness and efficiency. These applications likely support critical functions such as personnel management, training coordination, deployment planning, resource allocation, and communication. By innovating these systems, the Navy Reserve can expect improvements in data accuracy, faster access to information, streamlined workflows, and enhanced collaboration capabilities. This translates to more efficient administrative processes, better-informed decision-making by leadership, and potentially quicker response times during mobilization or training exercises. Ultimately, improved enterprise applications contribute to a more agile and effective reserve force, better equipped to fulfill its mission requirements and support active duty components when called upon.

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 › C – National Defense R&D Services

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: $34,423,599

Exercised Options: $20,505,513

Current Obligation: $14,198,537

Actual Outlays: $1,763,501

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $857,149

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