DoD's $21.3M IT Services Contract with CACI Inc. - Federal Awarded via Full and Open Competition

Contract Overview

Contract Amount: $21,284,179 ($21.3M)

Contractor: CACI Inc - Federal

Awarding Agency: Department of Defense

Start Date: 2008-07-14

End Date: 2014-01-14

Contract Duration: 2,010 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: KDSS INCLUDING CAPRS INTEGRATION

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to CACI INC - FEDERAL for work described as: KDSS INCLUDING CAPRS INTEGRATION Key points: 1. Contract awarded for IT services, indicating a need for specialized computer-related support. 2. The contract duration spans over five years, suggesting a long-term requirement for these services. 3. Awarded by the Department of the Air Force, highlighting its role in supporting military IT infrastructure. 4. The contract type is 'Labor Hours', which allows for flexibility in service delivery based on evolving needs. 5. The presence of two bids suggests a moderate level of competition for this IT services requirement. 6. The contract was awarded in 2008, providing historical context for current IT spending patterns.

Value Assessment

Rating: fair

The contract value of $21.3 million over approximately five years averages to about $4.26 million annually. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. Benchmarking against similar IT services contracts would require more detailed information on the scope of work and service levels. However, the award date (2008) suggests that pricing may not reflect current market rates for IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. With two bids received, the competition level was moderate. This suggests that while the opportunity was broadly advertised, the specialized nature of the services or specific requirements may have limited the number of interested and capable contractors. Moderate competition can lead to reasonably competitive pricing, but may not achieve the lowest possible price compared to a more robust bidding environment.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the full and open solicitation. However, with only two bidders, there is a risk that the price may not be as low as it could have been with more robust competition.

Public Impact

The Department of the Air Force benefits from the provision of essential IT services to support its operations. Personnel within the Air Force likely receive enhanced IT support, potentially improving efficiency and effectiveness. The contract supports IT infrastructure, which is critical for national defense and military readiness. The geographic impact is primarily within the Air Force's operational areas, likely domestic and potentially international. The contract supports the IT workforce, potentially involving skilled labor in computer-related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours exceed initial estimates without clear performance metrics.
Risk of service quality not meeting evolving Air Force IT needs due to the contract's age.
Limited transparency on specific IT services rendered without detailed performance reports.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible procurement process.
Contract duration suggests a stable and predictable IT support arrangement for the Air Force.
The 'Labor Hours' contract type allows flexibility to adapt to changing IT requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services'. The IT services market is vast and highly competitive, with significant government spending dedicated to maintaining and upgrading technological infrastructure. Contracts for IT services are crucial for agencies like the Department of Defense to ensure operational efficiency, cybersecurity, and data management. Comparable spending benchmarks would typically involve analyzing other IT service contracts awarded to large system integrators by defense agencies, considering factors like contract type, duration, and scope.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, CACI Inc. - Federal, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless CACI Inc. - Federal voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures would be tied to the performance standards outlined in the contract's statement of work and the 'Labor Hours' delivery model. Transparency is generally facilitated through contract award databases like USASpending.gov, which provide basic details of the award. Specific performance details and oversight activities are usually internal to the agency.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design Services
Defense IT Modernization Programs
Air Force IT Infrastructure Support

Risk Flags

Potential for outdated technology due to award date
Moderate competition may limit price optimization
Labor hour contracts require diligent oversight to prevent cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to CACI INC - FEDERAL. KDSS INCLUDING CAPRS INTEGRATION

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 $21.3 million.

What is the period of performance?

Start: 2008-07-14. End: 2014-01-14.

What specific IT services were provided under this contract?

The contract, NAICS code 541519 ('Other Computer Related Services'), suggests a broad range of IT support. While the data indicates 'KDSS INCLUDING CAPRS INTEGRATION', the precise nature of these services is not detailed. Typically, 'Other Computer Related Services' can encompass IT consulting, system integration, network management, software development support, and IT infrastructure maintenance. The 'KDSS' and 'CAPRS' likely refer to specific Department of the Air Force systems or programs requiring integration and ongoing support, potentially related to logistics, personnel, or operational data management. A deeper dive into the contract's statement of work would be necessary to ascertain the exact services rendered.

How does the $21.3 million contract value compare to similar IT services contracts awarded by the Air Force around 2008?

Comparing the $21.3 million contract value requires context regarding the specific IT services and duration. Contracts awarded around 2008 for IT services by the Air Force varied significantly in scope and price. Large-scale system integration or sustainment contracts could easily reach tens or hundreds of millions of dollars. Smaller, more specialized support contracts might be in the single-digit millions. Given this contract's duration (approximately 5 years) and its classification under 'Other Computer Related Services', $21.3 million represents an average annual spend of roughly $4.26 million. This figure is plausible for a significant IT support function but would need to be benchmarked against contracts with similar service levels and complexity to determine if it represents good or fair value for its time.

What were the primary risks associated with this contract at the time of award?

At the time of award in 2008, primary risks associated with this contract likely included: 1. **Scope Creep:** The 'Labor Hours' contract type, while flexible, carries a risk of scope creep if not managed tightly, leading to costs exceeding initial projections. 2. **Performance Measurement:** Defining and measuring the performance of 'Other Computer Related Services' can be challenging, potentially impacting service quality and user satisfaction. 3. **Technological Obsolescence:** IT environments evolve rapidly. A contract spanning several years risked the technology or services becoming outdated if not continuously adapted. 4. **Contractor Performance:** Ensuring CACI Inc. - Federal possessed the necessary expertise and maintained adequate staffing levels throughout the contract term was a key risk. 5. **Integration Complexity:** Integrating or supporting systems like 'KDSS' and 'CAPRS' could present unforeseen technical challenges and delays.

What is the track record of CACI Inc. - Federal in delivering IT services to the Department of Defense?

CACI Inc. - Federal has a long-standing and extensive track record of delivering a wide array of IT and professional services to the Department of Defense (DoD) and other federal agencies. They are a major government contractor known for expertise in areas such as IT modernization, cybersecurity, enterprise resource planning, data analytics, and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance). Historically, CACI has secured numerous large, complex contracts with the DoD across various branches, including the Air Force. While specific performance on every contract varies, their sustained presence and significant contract awards suggest a generally reliable capability to meet DoD requirements. However, like any large contractor, they may have faced performance challenges or disputes on specific engagements over their history.

How has federal spending on IT services evolved since this contract was awarded in 2008?

Federal spending on IT services has seen substantial growth and evolution since 2008. Initially, spending was heavily focused on maintaining legacy systems and infrastructure. Over the years, there has been a significant shift towards cloud computing, cybersecurity, data analytics, artificial intelligence, and digital transformation initiatives. Agencies are increasingly seeking agile development methodologies and modern IT solutions to improve efficiency and mission effectiveness. While the total dollar amount spent on IT services has generally increased, the nature of the services procured has changed dramatically. Contracts awarded today often emphasize cloud migration, cybersecurity resilience, and data-driven decision-making, reflecting advancements in technology and evolving national security priorities, unlike the more traditional IT support focus of contracts like the one awarded in 2008.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 1100 N GLEBE RD STE 200, ARLINGTON, VA, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,337,326

Exercised Options: $23,760,782

Current Obligation: $21,284,179

Contract Characteristics

Cost or Pricing Data: NO

Timeline