CACI awarded $10M+ for custom computer programming, raising questions about competition and value

Contract Overview

Contract Amount: $10,076,817 ($10.1M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2022-07-20

End Date: 2026-07-20

Contract Duration: 1,461 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BIG SAFARI

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to CACI, INC. - FEDERAL for work described as: BIG SAFARI Key points: 1. Contract awarded via sole-source justification, limiting price discovery and potentially increasing costs. 2. Duration of over 3 years suggests a long-term need for these services. 3. Firm Fixed Price contract type offers cost certainty but may not incentivize efficiency. 4. Services fall under custom computer programming, a sector with significant private sector innovation. 5. Awarded by the Department of the Air Force, indicating a defense-related need. 6. Contract value exceeds $10 million, placing it in the mid-to-large contract category.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The firm fixed price structure provides cost certainty for the government, but without comparison to other offers, it's difficult to ascertain if the pricing reflects fair market value. The duration of the contract suggests a significant investment, and the absence of competition means potential savings from a more robust bidding process may have been forgone.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, CACI, Inc. - Federal, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities or urgent needs), they inherently limit price discovery and can lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the lack of competition. Without a competitive environment, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The Department of the Air Force benefits from custom computer programming services essential for its operations. The specific services delivered are not detailed but are categorized under custom computer programming. The geographic impact is likely concentrated within areas supporting Air Force operations, primarily in Virginia where the contractor is located. Workforce implications may include the utilization of CACI's skilled IT professionals, potentially impacting the broader IT services market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and reduced value for taxpayer dollars.
Sole-source awards can stifle innovation by not encouraging a wider range of solutions from the market.
The long contract duration without competitive re-evaluation could lead to complacency or escalating costs over time.

Positive Signals

Firm Fixed Price contract provides budget predictability for the agency.
CACI, Inc. - Federal is an established contractor, suggesting a degree of reliability and experience.
The contract is for custom computer programming, indicating a potentially critical and specialized need.

Sector Analysis

The Information Technology sector, specifically custom computer programming services, is a significant area of federal spending. This contract falls within the broader IT services market, which is characterized by rapid technological advancements and a mix of large and small providers. Federal agencies rely heavily on IT services for mission-critical functions, including data management, software development, and cybersecurity. Benchmarks for custom programming services vary widely based on complexity, skill sets required, and project duration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, CACI, Inc. - Federal, will likely perform the majority of the work, potentially limiting opportunities for small businesses to participate in this specific contract's value chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are inherent in the firm fixed price structure, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award, making it difficult for the public to scrutinize the procurement process and pricing. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Custom Computer Programming Services
IT Services
Department of Defense IT Contracts
Air Force IT Modernization

Risk Flags

Sole-source award
Lack of competition
Long contract duration
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to CACI, INC. - FEDERAL. BIG SAFARI

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 $10.1 million.

What is the period of performance?

Start: 2022-07-20. End: 2026-07-20.

What is CACI, Inc. - Federal's track record with the Department of Defense, particularly for custom computer programming services?

CACI, Inc. - Federal has a substantial track record with the Department of Defense (DoD), having secured numerous contracts across various IT and professional services categories. For custom computer programming, their history likely includes a range of software development, system integration, and IT support services. Analyzing their past performance on similar DoD contracts would involve reviewing contract awards, performance evaluations (if publicly available), and any reported issues or successes. Given their size and established presence, CACI is a frequent recipient of large federal contracts, indicating a capacity to handle complex requirements. However, the specific performance metrics and quality of service on prior custom programming contracts would be crucial for a comprehensive assessment of their reliability for this particular award.

How does the $10M+ contract value compare to similar custom computer programming services procured by the Air Force or other DoD branches?

Comparing the $10,076,816.51 contract value to similar custom computer programming services procured by the Air Force or other DoD branches requires access to a broader dataset of federal contract awards. Generally, custom computer programming services can range significantly in price depending on the complexity, duration, required expertise, and the number of bidders. A contract of this magnitude is considered mid-to-large for this service category. Without competitive bidding, it's difficult to establish a precise benchmark. However, if similar, competitively awarded contracts for comparable services were significantly lower, it would suggest this sole-source award might be at a higher price point. Conversely, if other sole-source or limited-competition awards for similar scope are in this range, it might indicate market rates for specialized, non-competed services.

What are the specific risks associated with awarding a sole-source contract of this value and duration?

The primary risks associated with awarding a sole-source contract of this value ($10M+) and duration (over 3 years) are related to cost and performance. Firstly, the lack of competition means the government may not be receiving the best possible price, potentially leading to overspending taxpayer funds. There's less incentive for the contractor to be highly efficient or innovative when they are the only option. Secondly, without the pressure of competing for future work or facing alternative providers, the contractor might experience reduced motivation to maintain high performance standards throughout the contract's life. Finally, there's a risk that the government becomes overly reliant on a single vendor, making it difficult and costly to switch providers if performance issues arise or if market conditions change significantly.

What is the typical duration for custom computer programming contracts of this nature within the federal government?

The typical duration for custom computer programming contracts within the federal government can vary widely, but contracts exceeding three years (like this 1461-day contract, approximately 4 years) are common, especially for complex, long-term projects. Federal Acquisition Regulation (FAR) regulations often allow for base periods and multiple option periods, which can extend the total contract duration significantly. For custom programming, agencies often seek longer-term relationships to ensure continuity, leverage institutional knowledge, and manage evolving technological needs. However, longer durations, particularly when combined with sole-source awards, increase the potential for cost overruns and vendor lock-in if not carefully managed and periodically reviewed for performance and value.

How does the 'Custom Computer Programming Services' NAICS code (541511) typically perform in terms of competition and pricing within the federal market?

The NAICS code 541511, 'Custom Computer Programming Services,' is a highly active category within federal contracting. Historically, this sector sees a mix of competitive and non-competitive awards. While many opportunities are competed, leading to robust price discovery and potentially lower costs for the government, sole-source or limited-competition awards are also prevalent, especially when specific expertise, proprietary technology, or urgent needs are involved. Pricing within this NAICS code is highly variable, influenced by the specific skills required (e.g., AI, cybersecurity, legacy systems), the level of clearance needed, and the geographic location of the work. Without competitive bids, it's challenging to benchmark pricing accurately, but the general market trend suggests that competition is the most effective driver of favorable pricing for the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $10,563,053

Exercised Options: $10,563,053

Current Obligation: $10,076,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline