CACI awarded $31M for Air Force IT support, highlighting need for specialized engineering expertise

Contract Overview

Contract Amount: $31,026,248 ($31.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2016-07-19

End Date: 2021-07-31

Contract Duration: 1,838 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF SUBJECT MATTER EXPERTS&ENGINEERING SUPPORT FOR ESTABLISHMENT, INTEGRATION, CERTIFICATION&ACCREDITATION

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to CACI, INC. - FEDERAL for work described as: IGF::CT::IGF SUBJECT MATTER EXPERTS&ENGINEERING SUPPORT FOR ESTABLISHMENT, INTEGRATION, CERTIFICATION&ACCREDITATION Key points: 1. Contract value represents significant investment in critical IT infrastructure and cybersecurity. 2. Competition dynamics suggest a robust market for advanced IT services within the defense sector. 3. Performance period indicates a long-term need for sustained technical support. 4. Contract type (Firm Fixed Price) aims to control costs and manage contractor risk. 5. Geographic concentration in Virginia points to a key hub for defense IT operations. 6. The award underscores the importance of subject matter expertise in complex system integration.

Value Assessment

Rating: good

The $31 million award for IT subject matter experts and engineering support appears reasonable given the duration and scope of services required by the Department of the Air Force. Benchmarking against similar contracts for complex system integration and accreditation services within the Department of Defense suggests that the pricing is competitive. The firm fixed-price structure further supports value for money by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of six bidders suggests a healthy level of competition for this type of specialized IT support. This broad competition is generally favorable for price discovery and ensures the government can select the most capable and cost-effective solution.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer their best value.

Public Impact

The Department of the Air Force benefits from enhanced IT system security and operational efficiency. Services delivered include critical support for establishing, integrating, and certifying IT systems. Geographic impact is primarily centered in Virginia, a major hub for defense operations. Workforce implications include the employment of skilled IT professionals and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if CACI's expertise becomes indispensable.
Reliance on a single contractor for critical accreditation processes could pose a risk.
Scope creep could increase costs if not managed tightly.

Positive Signals

Strong track record of CACI in providing IT and engineering support to federal agencies.
Firm Fixed Price contract structure provides cost certainty.
Full and open competition ensures a competitive selection process.

Sector Analysis

The IT services sector, particularly within defense, is characterized by high demand for specialized expertise in areas like cybersecurity, system integration, and accreditation. The market size for such services is substantial, with significant government spending allocated annually. This contract fits within the broader category of IT consulting and systems integration, where companies like CACI compete based on technical capability, past performance, and price. Comparable spending benchmarks for similar IT support contracts within the DoD often range in the tens to hundreds of millions of dollars.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. While CACI, Inc. - Federal is a large business, there is no explicit information provided regarding subcontracting plans for small businesses. The absence of set-aside requirements means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially be involved as subcontractors to CACI.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance monitoring, quality assurance surveillance plans, and regular reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
Cybersecurity Support Services
Defense Information Systems Agency (DISA) Contracts
Air Force Command and Control Systems

Risk Flags

Potential for scope creep
Reliance on specialized contractor expertise
Cybersecurity vulnerabilities in supported systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to CACI, INC. - FEDERAL. IGF::CT::IGF SUBJECT MATTER EXPERTS&ENGINEERING SUPPORT FOR ESTABLISHMENT, INTEGRATION, CERTIFICATION&ACCREDITATION

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 $31.0 million.

What is the period of performance?

Start: 2016-07-19. End: 2021-07-31.

What is CACI's historical performance on similar federal IT support contracts?

CACI, Inc. - Federal has a long history of providing IT and engineering support services to various U.S. federal agencies, including the Department of Defense. Their contract portfolio often includes areas such as IT modernization, cybersecurity, intelligence analysis, and enterprise resource planning. Performance on these contracts is typically evaluated based on factors like on-time delivery, quality of service, and adherence to budget. While specific performance metrics for past contracts are not detailed here, CACI's continued success in winning large federal contracts suggests a generally positive track record and strong past performance evaluations from agencies.

How does the $31 million value compare to other IT support contracts awarded by the Air Force?

The $31 million value for this contract is moderate within the context of large-scale IT support and engineering services for the Department of the Air Force. The Air Force frequently awards contracts in the hundreds of millions, and sometimes billions, of dollars for major IT system development, integration, and sustainment. However, contracts focused on specialized expertise, such as subject matter experts for accreditation and integration, can vary significantly. This $31 million award is substantial enough to indicate a critical need and a significant investment in specialized support, but it is not among the largest IT procurements. It falls within a common range for multi-year, specialized technical support services.

What are the primary risks associated with this type of IT engineering support contract?

Key risks for this contract include technical complexity and evolving requirements, where the rapid pace of technological change could make initial system designs or accreditation standards obsolete. There's also a risk of scope creep, where the services requested expand beyond the original agreement, potentially leading to cost overruns if not managed carefully. Contractor performance risk is another factor; ensuring CACI consistently delivers high-quality expertise and meets stringent certification requirements is crucial. Finally, cybersecurity risks are inherent, as the systems being supported are likely critical infrastructure, making them targets for cyber threats. Effective risk mitigation would involve robust project management, clear communication, and strong cybersecurity protocols.

How effective are firm fixed-price contracts in managing costs for complex IT services?

Firm Fixed-Price (FFP) contracts are generally effective in managing costs for IT services when the scope of work is well-defined and understood from the outset. In this case, the contract is for specific services like establishment, integration, and certification/accreditation, which suggests a defined objective. FFP shifts the majority of cost risk to the contractor, incentivizing them to control expenses and deliver efficiently to maximize profit. However, for highly complex or R&D-intensive IT projects where requirements may evolve significantly, FFP can sometimes lead to contractors being less willing to incorporate necessary changes or potentially cutting corners. For established processes like accreditation, FFP is often a suitable choice for cost control.

What is the historical spending trend for IT subject matter expert and engineering support within the Department of Defense?

Spending on IT subject matter expert (SME) and engineering support within the Department of Defense (DoD) has shown a consistent upward trend over the past decade, driven by the increasing complexity of military systems, the imperative for cybersecurity, and the ongoing need for digital modernization. The DoD relies heavily on external expertise for specialized areas like systems integration, cloud migration, artificial intelligence implementation, and cybersecurity accreditation. While specific figures for 'SME and engineering support' as a distinct category can be difficult to isolate from broader IT services spending, overall IT budgets within the DoD are in the hundreds of billions annually. Contracts like this one, focused on critical support functions, represent a significant portion of that spending, reflecting the continuous demand for specialized technical talent.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14151 PARK MEADOW DR, 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: $39,809,828

Exercised Options: $31,050,248

Current Obligation: $31,026,248

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $379,953

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0020

IDV Type: GWAC

Timeline