DoD's $29.4M Cyber Capability Development contract awarded to CACI, Inc. for R&D services

Contract Overview

Contract Amount: $29,387,012 ($29.4M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2017-07-09

End Date: 2019-01-08

Contract Duration: 548 days

Daily Burn Rate: $53.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF CYBER CAPABILITY DEVELOPMENT AND TRANSITION (CCDT)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF CYBER CAPABILITY DEVELOPMENT AND TRANSITION (CCDT) Key points: 1. Contract awarded for research and development in cybersecurity capabilities. 2. Focus on advancing cyber defense and offensive technologies. 3. Contract duration of 548 days indicates a project-based engagement. 4. Awarded under full and open competition, suggesting a competitive process. 5. CACI, Inc. - Federal is the prime contractor. 6. The contract falls under the Research and Development sector. 7. The contract type is Cost Plus Fixed Fee, common for R&D. 8. The contract was a delivery order, implying it's part of a larger IDIQ.

Value Assessment

Rating: fair

Benchmarking the value of this specific $29.4 million contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed tightly. Comparing it to similar R&D contracts in cybersecurity would require access to a broader dataset of comparable projects, including their scope, duration, and final costs. However, the fixed fee component provides some level of cost certainty for the government.

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 bids. The presence of 8 bidders suggests a healthy level of competition for this R&D requirement. A competitive process like this generally helps in achieving fair market prices and encourages contractors to offer their best technical solutions and pricing.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source award. It also ensures that the government explored a wider range of innovative solutions available in the market.

Public Impact

The Department of Defense benefits from advancements in cyber capabilities. Services delivered include research and development for cybersecurity. The geographic impact is primarily within the Department of Defense's operational sphere. Workforce implications include specialized R&D roles in cybersecurity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts require diligent oversight to manage costs effectively.
The specific deliverables and transition plan for cyber capabilities need clear definition to ensure value.
Assessing the long-term impact and transition of developed cyber capabilities is crucial.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor, CACI, Inc. - Federal, has experience in federal contracting.
The contract aims to develop critical cyber capabilities for national security.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on cybersecurity. The R&D market for cybersecurity is substantial, driven by the ever-evolving threat landscape and the need for advanced defense mechanisms. Comparable spending benchmarks would typically involve other government contracts for advanced technology research, particularly in defense-related fields. The NAICS code 541712 confirms the focus on physical, engineering, and life sciences R&D, excluding biotechnology.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, as it was awarded under full and open competition. However, the prime contractor, CACI, Inc. - Federal, may engage small businesses as subcontractors to fulfill specific aspects of the R&D work. The impact on the small business ecosystem would depend on the subcontracting opportunities offered and the specific capabilities required for this project.

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. Accountability measures are inherent in the CPFF contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific R&D details might be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Cybersecurity Research and Development Programs
Department of Defense Advanced Technology Initiatives
Information Technology Research Contracts
National Security Technology Development

Risk Flags

Cost Overrun Risk (CPFF)
Transition of Technology Risk
Performance Measurement Difficulty (R&D)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to CACI, INC. - FEDERAL. IGF::OT::IGF CYBER CAPABILITY DEVELOPMENT AND TRANSITION (CCDT)

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 $29.4 million.

What is the period of performance?

Start: 2017-07-09. End: 2019-01-08.

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

CACI, Inc. - Federal has a significant history of performing R&D and IT services for the Department of Defense and other federal agencies. They have been awarded numerous contracts, including those involving cybersecurity, intelligence analysis, and systems engineering. Their experience often includes developing and transitioning new technologies. A review of their contract history would reveal specific projects related to cyber capability development, their performance ratings on those contracts, and the value and duration of such awards. This provides a basis for assessing their capability to execute the current contract effectively, though specific performance metrics for past R&D endeavors are often not publicly detailed.

How does the $29.4 million value compare to other R&D contracts in cybersecurity for the DoD?

The $29.4 million value for this specific R&D contract is moderate within the broader landscape of Department of Defense technology development. Large-scale R&D programs, especially those involving advanced weapon systems or foundational research, can easily reach hundreds of millions or even billions of dollars. However, for a focused effort on developing specific cyber capabilities over a period of approximately 1.5 years (548 days), $29.4 million represents a substantial investment. It suggests a significant scope of work, potentially involving multiple research areas or advanced prototype development. Comparing it directly requires analyzing contracts with similar NAICS codes (like 541712), contract types (CPFF), and durations within the defense sector.

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 contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If the contractor's costs exceed initial estimates, the government bears that burden, potentially leading to higher-than-anticipated total spending. This necessitates robust government oversight to ensure costs are reasonable, allocable, and allowable. Furthermore, the contractor's incentive might lean towards maximizing costs to ensure all allowable expenses are covered, rather than aggressively seeking efficiencies, although the fixed fee does provide a ceiling on profit. Effective risk mitigation involves detailed cost monitoring, clear performance metrics, and strong program management.

How effective are R&D contracts like this in transitioning new cyber capabilities to operational use?

The effectiveness of R&D contracts in transitioning new cyber capabilities to operational use varies significantly and depends heavily on contract structure, contractor performance, and government program management. Contracts that clearly define transition milestones, involve end-users early in the development process, and include provisions for testing and integration are generally more successful. The 'transition' aspect mentioned in the contract's full name (CCDT) suggests this was a key objective. However, the success hinges on the quality of the research, the adaptability of the developed capabilities to existing military systems, and the commitment of resources for fielding and training. Without specific performance data on this contract's transition outcomes, its effectiveness remains an open question.

What are historical spending patterns for R&D in cybersecurity within the Department of Defense?

Historical spending patterns for R&D in cybersecurity within the Department of Defense show a consistent and increasing trend over the past decade. Driven by the escalating cyber threat landscape and the critical role of cyber operations in modern warfare, the DoD allocates substantial resources to research, development, and acquisition of cyber capabilities. This includes funding for areas such as threat detection, network defense, offensive cyber tools, and secure software development. Budgets for cyber R&D are often integrated within larger defense research accounts or specific service-level initiatives. Analyzing trends requires examining appropriations for defense research, development, test, and evaluation (RDT&E) specifically tagged for cyber-related activities, which typically run into the billions of dollars annually.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

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: $46,782,576

Exercised Options: $46,782,576

Current Obligation: $29,387,012

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $5,404,190

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA875012D0005

IDV Type: IDC

Timeline