CACI awarded $28.6M for Computer Systems Design Services by the Air Force, with a significant portion allocated to Virginia

Contract Overview

Contract Amount: $28,579,403 ($28.6M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2017-08-13

End Date: 2019-03-12

Contract Duration: 576 days

Daily Burn Rate: $49.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF::NEXGEN IT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.6 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF::NEXGEN IT Key points: 1. The contract value represents a substantial investment in IT infrastructure and support. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance period. 4. Performance context is provided by comparing this award to similar IT service contracts. 5. The contract positions CACI as a key provider within the Air Force's IT sector. 6. The fixed-price nature of the contract aims to control costs and manage financial risk.

Value Assessment

Rating: good

The contract's value of $28.6 million for computer systems design services appears reasonable when benchmarked against similar large-scale IT support contracts awarded by the Department of Defense. The firm-fixed-price structure suggests an effort to establish clear cost expectations. However, a detailed comparison with the specific scope of services and the number of competing bids would provide a more precise value-for-money assessment. The awarded amount is within the expected range for complex IT system design and integration projects.

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 specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions for the government. This approach is designed to ensure the government receives the best value by considering a wide range of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a broader pool of contractors to vie for government work, leading to potentially better deals.

Public Impact

The primary beneficiaries are the Department of the Air Force, which receives essential IT systems design and support services. The services delivered are critical for maintaining and enhancing the Air Force's operational capabilities and technological infrastructure. The contract has a significant geographic impact, with services likely supporting operations and personnel in Virginia. Workforce implications include potential job creation or retention for IT professionals employed by CACI and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT systems design could pose a risk if performance falters.
Ensuring adequate technical expertise within the government to oversee complex system design services.

Positive Signals

Award to an established contractor like CACI suggests a degree of confidence in their capabilities.
The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition indicates a robust market assessment and potential for competitive pricing.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with agencies continually investing in modernizing their systems, cybersecurity, and data management capabilities. Comparable spending benchmarks for IT services contracts of this magnitude often range from tens to hundreds of millions of dollars, depending on the complexity and duration. This award to CACI reflects the ongoing demand for specialized IT expertise within the defense sector.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, CACI, as a large prime contractor, may still engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, requiring CACI to deliver specified services within the agreed-upon budget. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) contracts
Air Force Network Integration Center (AFNIC) support
General Services Administration (GSA) IT Schedule contracts
Department of Defense Enterprise IT Services

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical IT infrastructure design
Ensuring adequate government technical oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.6 million to CACI, INC. - FEDERAL. IGF::OT::IGF::NEXGEN IT

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 $28.6 million.

What is the period of performance?

Start: 2017-08-13. End: 2019-03-12.

What is CACI's track record with the Department of Defense for similar IT services?

CACI, Inc. - Federal has a long-standing and extensive track record of providing IT services to the Department of Defense (DoD) across various branches, including the Air Force. Their portfolio includes a wide range of services such as systems integration, cybersecurity, enterprise IT operations, and software development. Historically, CACI has secured numerous large-scale contracts with the DoD, often valued in the tens or hundreds of millions of dollars. This includes support for complex command and control systems, intelligence analysis platforms, and network infrastructure modernization. Their consistent awards suggest a strong performance history and a deep understanding of DoD requirements and procurement processes. However, specific performance metrics for individual contracts, such as on-time delivery, budget adherence, and technical success, would require a deeper dive into contract performance reports and past performance evaluations.

How does the awarded amount compare to the average cost for similar computer systems design services?

The awarded amount of approximately $28.6 million for computer systems design services by the Air Force is substantial and aligns with the typical scale of IT modernization and support contracts within the federal government, particularly for defense agencies. Benchmarking this against similar contracts requires careful consideration of the specific scope of work, duration, and complexity. For instance, contracts involving enterprise-wide system design, integration of advanced technologies, or support for mission-critical operations often fall within this range or higher. The average cost can vary significantly based on factors like the number of users supported, the criticality of the systems, and the level of customization required. Given that this is a firm-fixed-price contract, the government has established a ceiling cost, and the value appears competitive within the context of large-scale IT system design projects.

What are the primary risks associated with this contract for the government?

The primary risks for the government associated with this contract include potential vendor lock-in, where reliance on CACI for specific system designs could make future transitions or modifications costly and complex. There's also a risk of performance issues if CACI fails to deliver the required system design services to the specified standards or within the timeline, potentially impacting Air Force operations. Cost overruns, although mitigated by the firm-fixed-price structure, could still occur if unforeseen technical challenges arise and require contract modifications. Furthermore, ensuring the security and integrity of the designed systems against cyber threats is a continuous risk that requires robust oversight and adherence to stringent security protocols throughout the design and implementation phases.

What is the historical spending trend for computer systems design services by the Air Force?

Historical spending trends for computer systems design services by the Air Force indicate a consistent and significant investment in IT infrastructure and modernization. Over the past decade, the Air Force has increasingly relied on external contractors like CACI to design, develop, and integrate complex IT systems that support its diverse operational and administrative needs. Spending in this category has generally remained robust, driven by the need to maintain technological superiority, enhance cybersecurity, and adapt to evolving threats and mission requirements. While specific annual figures fluctuate based on budgetary allocations and strategic priorities, the overall trend shows a sustained demand for these specialized services. This particular award of $28.6 million is reflective of the ongoing commitment to upgrading and maintaining sophisticated IT systems within the Air Force.

How does the contract type (Firm Fixed Price) influence cost control and contractor performance?

The Firm Fixed Price (FFP) contract type is a key mechanism for cost control and incentivizing contractor performance. Under an FFP agreement, CACI is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This shifts the cost risk from the government to the contractor. For the government, this provides budget certainty and protects against cost overruns, making financial planning more predictable. For the contractor, it creates a strong incentive to manage their own costs efficiently and to perform the work effectively to maximize profit. If CACI incurs higher-than-expected costs, their profit margin shrinks; conversely, if they can complete the work under budget through efficiency, their profit increases. This structure encourages CACI to deliver the specified computer systems design services within the agreed-upon price, promoting timely completion and quality.

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: 1

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: $57,306,276

Exercised Options: $32,841,555

Current Obligation: $28,579,403

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,914,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: GS00Q09BGD0020

IDV Type: GWAC

Timeline