CACI awarded $2.7M R&D contract for physical, engineering, and life sciences research by the Air Force

Contract Overview

Contract Amount: $2,718,969 ($2.7M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2023-09-19

End Date: 2027-11-16

Contract Duration: 1,519 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FARPOINT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.7 million to CACI, INC. - FEDERAL for work described as: FARPOINT 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 lead to cost overruns if not managed carefully. 3. Performance period extends over 3 years, indicating a medium-term research initiative. 4. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services. 5. The contractor, CACI, Inc. - Federal, has a significant presence in the federal contracting space. 6. This award represents a small portion of overall federal R&D spending, but is significant for the specific research area.

Value Assessment

Rating: fair

The contract value of $2.7 million for a 3-year R&D effort appears reasonable for specialized research services. Benchmarking against similar contracts for physical, engineering, and life sciences R&D is challenging without more specific project details. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. This necessitates robust oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, which can lead to better pricing and innovation. The presence of two bids (no: 2) suggests a moderate level of competition for this specific R&D requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a fair marketplace and potentially driving down costs through competitive pressures.

Public Impact

This contract will likely benefit the Department of the Air Force by advancing research in physical, engineering, and life sciences. The services delivered are expected to be in the realm of scientific research and development, potentially leading to new technologies or improved processes. The geographic impact is primarily within Virginia, where the contractor is located, but the research outcomes could have broader national implications. Workforce implications may include the employment of scientists, engineers, and research support staff by CACI, Inc. - Federal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Limited competition (2 bidders) may not have yielded the most competitive pricing.
The specific nature of R&D makes it difficult to pre-define all deliverables and success metrics, posing a risk to scope creep.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
Contractor CACI, Inc. - Federal is an established entity with experience in federal contracting.
The contract duration allows for focused research and development efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for technological advancement and national security. Federal spending in R&D is substantial, with significant investments made across various agencies to foster innovation. Comparable spending benchmarks would depend heavily on the specific sub-discipline of research being undertaken.

Small Business Impact

There is no indication that this contract included a small business set-aside. As CACI, Inc. - Federal is a large business, the primary contract will not directly benefit small businesses through set-aside provisions. However, CACI may engage small businesses as subcontractors, depending on the project's needs and their subcontracting plans.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will focus on tracking allowable costs, progress towards research objectives, and adherence to the fixed fee. Transparency will be maintained through contract reporting requirements and potential audits by the Inspector General, particularly concerning cost allowability.

Related Government Programs

Department of Defense Research and Development
Air Force Science and Technology Programs
Physical Sciences Research Contracts
Engineering Research and Development
Life Sciences Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Limited competition (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.7 million to CACI, INC. - FEDERAL. FARPOINT

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 $2.7 million.

What is the period of performance?

Start: 2023-09-19. End: 2027-11-16.

What is CACI, Inc. - Federal's track record with Cost Plus Fixed Fee contracts, particularly within the Department of Defense?

CACI, Inc. - Federal has a substantial history of performing on Cost Plus Fixed Fee (CPFF) contracts across various federal agencies, including the Department of Defense. CPFF contracts are common for research and development efforts where the scope of work can be uncertain or evolve. While CPFF contracts offer flexibility, they also require diligent oversight to manage costs effectively. CACI's extensive experience suggests they are familiar with the compliance and reporting requirements associated with this contract type. However, a detailed review of their past CPFF performance, including any instances of cost overruns or audit findings, would be necessary for a comprehensive assessment of their risk profile on this specific award.

How does the $2.7 million award compare to typical spending for similar R&D projects in physical, engineering, and life sciences?

The $2.7 million award for a definitive contract spanning approximately 3 years (September 2023 to November 2027) for R&D in physical, engineering, and life sciences is within a common range for specialized research initiatives. However, 'typical spending' can vary dramatically based on the specific scientific domain, the complexity of the research, the required personnel expertise, and the intended outcomes. For instance, fundamental research might be less expensive than applied research with clear technological development goals. Without knowing the precise nature of the R&D under this contract (e.g., materials science, aerospace engineering, biomedical research), a direct comparison is difficult. However, it is not an unusually large or small sum for a focused R&D effort by a large federal agency.

What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D, and how might they be mitigated?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract for R&D include potential cost overruns and scope creep. Since the contractor is reimbursed for allowable costs plus a fixed fee, there can be less incentive to control expenses compared to fixed-price contracts. R&D projects, by nature, can also encounter unforeseen challenges, leading to changes in the scope of work. Mitigation strategies involve robust government oversight, including detailed cost monitoring, regular progress reviews, and strict change control processes. Clearly defining project milestones, deliverables, and performance metrics upfront, even within the flexibility of R&D, is crucial. The fixed fee itself acts as a ceiling on the contractor's profit, but the total cost to the government can still escalate if allowable costs increase significantly.

What does the limited competition (2 bidders) suggest about the market for this specific R&D service?

The fact that only two bids were received for this contract, despite being awarded under full and open competition, could suggest several things about the market for this specific R&D service. It might indicate that the required expertise is highly specialized, and only a few companies possess the necessary capabilities and clearances. Alternatively, the contract's value or duration might not have been sufficiently attractive to a broader range of potential bidders. It could also reflect the specific requirements outlined in the solicitation, which may have inadvertently limited the pool of interested parties. A low number of bidders can sometimes lead to less competitive pricing, although the full and open competition framework aims to prevent this.

How has federal spending in NAICS code 541715 (Research and Development in Physical, Engineering, and Life Sciences) trended in recent years?

Federal spending within NAICS code 541715, encompassing Research and Development in the Physical, Engineering, and Life Sciences (excluding Nanotechnology and Biotechnology), has generally seen consistent investment over recent years, reflecting the government's commitment to scientific advancement and technological innovation. While specific year-over-year fluctuations occur based on budget appropriations and strategic priorities, the overall trend indicates sustained funding. Agencies like the Department of Defense, National Science Foundation, and Department of Health and Human Services are major contributors to this spending category. Analyzing historical data from sources like USAspending.gov would reveal precise trends, but the sector remains a critical area for federal R&D investment.

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: BASIC RESEARCH

Solicitation ID: FA875019S7013

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: $8,077,248

Exercised Options: $8,077,248

Current Obligation: $2,718,969

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline