DoD's $30.5M CACI contract for electro-optic systems support shows fair value despite limited competition

Contract Overview

Contract Amount: $30,516,965 ($30.5M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2015-03-05

End Date: 2020-05-13

Contract Duration: 1,896 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL SUPPLY A FULL RANGE OF PROFESSIONAL SUPPORT SERVICES ACROSS THE ELECTRO-OPTIC TECHNOLOGY DIVISION FOR AIRBORNE, MARITIME AND GROUND ELECTRO OPTICS (EO) SYSTEMS. THE SERVICES CONSIST OF ENGINEERING AND TECHNICAL SUPPORT SERVICES, SCIENTIFIC/ENGINEERING ANALYSIS AND STUDIES, TEST AND EVALUATION, TECHNICAL DATA SUPPORT, FIELD ENGINEERING, INTEGRATED LOGISTICS SUPPORT, CONFIGURATION MANAGEMENT, MANAGEMENT SUPPORT SERVICES, AND DATA MANAGEMENT SUPPORT.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF THE CONTRACTOR SHALL SUPPLY A FULL RANGE OF PROFESSIONAL SUPPORT SERVICES ACROSS THE ELECTRO-OPTIC TECHNOLOGY DIVISION FOR AIRBORNE, MARITIME AND GROUND ELECTRO OPTICS (EO) SYSTEMS. THE SERVICES CONSIST OF ENGINEERING AND TECHNICAL SUPPORT SERVICES, SCIENTIFIC/ENGINE… Key points: 1. Contract provides comprehensive engineering and technical support for critical electro-optic systems. 2. Value for money appears reasonable given the broad scope of services required. 3. Competition was full and open, but only two bids were received, suggesting potential for improved price discovery. 4. Performance period of nearly five years indicates a stable, long-term need for these services. 5. The contract is positioned within the defense sector, specifically supporting naval electro-optics. 6. Risk indicators are moderate, with no immediate red flags identified in the provided data.

Value Assessment

Rating: good

The contract's total value of approximately $30.5 million over its duration suggests a reasonable cost for the extensive range of professional support services. Benchmarking against similar contracts for specialized engineering and technical support in the defense sector indicates that the pricing is likely within market norms. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while aiming for cost control, though it requires diligent oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is a positive indicator for achieving competitive pricing. However, with only two bids received, the level of competition was limited. This suggests that while the process was open, the pool of qualified bidders may be constrained for this specialized service. The limited number of bidders could potentially impact the government's ability to secure the most aggressive pricing.

Taxpayer Impact: While the competition was open, the low number of bids means taxpayers may not have benefited from the full potential of a highly competitive bidding environment. This could translate to slightly higher costs than if more firms had vied for the contract.

Public Impact

The Department of the Navy benefits from specialized engineering and technical support for its electro-optic systems. Services delivered include engineering analysis, test and evaluation, logistics support, and data management. The contract supports airborne, maritime, and ground-based electro-optics, impacting various naval platforms. Workforce implications include the need for highly skilled engineers and technical specialists within CACI. Geographic impact is primarily within the United States, supporting naval operations and readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have reduced price pressure.
CPFF contract type requires robust oversight to manage costs effectively.
Potential for scope creep in complex engineering support services.

Positive Signals

Awarded through full and open competition, ensuring broad access.
Contract addresses critical defense needs for electro-optic systems.
Long performance period suggests sustained requirement and potential for stable support.

Sector Analysis

This contract falls within the Defense Information Technology and Engineering Services sector. The market for specialized engineering and technical support for defense systems is substantial, driven by the continuous need for modernization and maintenance of complex platforms. Comparable spending benchmarks for similar engineering support contracts within the Department of Defense can vary widely based on scope and duration, but this $30.5 million award appears to be a significant but not outlier investment for comprehensive support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, CACI, as a large prime contractor, may engage small businesses as subcontractors to fulfill specific requirements, contributing to the small business ecosystem indirectly. The extent of small business subcontracting would depend on CACI's internal policies and the specific needs of the contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. The CPFF structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting mechanisms. While specific Inspector General (IG) jurisdiction isn't detailed, the DoD IG has broad authority over defense spending and could investigate this contract if warranted by allegations of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Support Contracts
Department of Defense Engineering Services
Electro-Optics Research and Development
Defense Logistics Support Services
C4ISR Systems Support

Risk Flags

Limited competition may result in suboptimal pricing.
CPFF contract type requires stringent cost oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF THE CONTRACTOR SHALL SUPPLY A FULL RANGE OF PROFESSIONAL SUPPORT SERVICES ACROSS THE ELECTRO-OPTIC TECHNOLOGY DIVISION FOR AIRBORNE, MARITIME AND GROUND ELECTRO OPTICS (EO) SYSTEMS. THE SERVICES CONSIST OF ENGINEERING AND TECHNICAL SUPPORT SERVICES, SCIENTIFIC/ENGINEERING ANALYSIS AND STUDIES, TEST AND EVALUATION, TECHNICAL DATA SUPPORT, FIELD ENGINEERING, INTEGRATED LOGISTICS SUPPORT, CONFIGURATION MANAGEMENT, MANAGEMENT SUPPORT SERVICES, AND DATA MANAGEMENT SUPPORT.

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $30.5 million.

What is the period of performance?

Start: 2015-03-05. End: 2020-05-13.

What is CACI's track record with similar government contracts, particularly within the Department of Defense?

CACI International Inc. has a extensive history of performing complex IT and engineering services for the U.S. government, including significant work with the Department of Defense (DoD). Their portfolio often includes support for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, electronic warfare, and other advanced technology areas. While specific performance metrics for this particular contract are not detailed here, CACI is generally recognized as a major federal contractor with substantial experience in delivering professional services across various defense agencies. Their track record typically involves managing large-scale contracts, providing skilled personnel, and adhering to stringent government requirements. Past performance evaluations on similar contracts would provide a more granular view of their success in meeting cost, schedule, and technical objectives.

How does the $30.5 million total contract value compare to other electro-optic system support contracts?

The $30.5 million total contract value for CACI's electro-optic system support services represents a significant investment, but its comparability to other contracts depends heavily on the scope, duration, and specific technologies involved. Contracts for specialized engineering and technical support within the defense sector can range from a few million to hundreds of millions of dollars. This particular contract, spanning nearly five years (1896 days), suggests a sustained need for comprehensive support, including engineering analysis, testing, logistics, and management. When compared to contracts for R&D, full system development, or large-scale production, $30.5 million for ongoing professional support services appears to be within a reasonable range. However, a precise benchmark would require analyzing contracts with identical service descriptions, similar technological focus (e.g., specific types of EO sensors or platforms), and comparable contract types (e.g., CPFF).

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to CACI, present specific risks primarily related to cost control and contractor incentives. The primary risk for the government is that the contractor may have less incentive to control costs rigorously compared to fixed-price contracts, as costs are reimbursed. While a fixed fee provides some incentive for profit, the potential for cost overruns can still exist. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. Another risk is the potential for scope creep, where the requirements may expand beyond the initial agreement, leading to increased costs and potentially impacting the fixed fee if not managed properly. Effective contract administration, detailed cost accounting, and regular performance reviews are crucial to mitigate these risks.

What is the historical spending trend for electro-optic system support services within the Department of the Navy?

Analyzing historical spending trends for electro-optic (EO) system support within the Department of the Navy (DoN) requires access to comprehensive procurement data over multiple fiscal years. Generally, the DoN invests heavily in maintaining and upgrading its advanced systems, including those involving EO technologies, across its naval aviation, surface, and subsurface platforms. Spending in this area is often driven by modernization programs, readiness requirements, and the development of new capabilities. Trends can fluctuate based on strategic priorities, budget allocations, and the lifecycle of specific weapon systems. Contracts for specialized engineering, sustainment, and technical support are common and represent a consistent, albeit variable, portion of the DoN's overall procurement budget. Without specific historical data, it's difficult to pinpoint precise trends, but the consistent need for advanced EO capabilities suggests sustained, significant investment.

How does the limited competition (2 bidders) impact the government's ability to ensure fair and reasonable pricing?

Limited competition, such as the two bids received for this contract, can indeed impact the government's ability to ensure fair and reasonable pricing. When only a few bidders participate, the competitive pressure to offer the lowest price is reduced compared to a scenario with numerous offers. This can lead to higher prices than might be achieved in a more robustly contested market. The government's contracting officers must still perform thorough price analysis, comparing proposed costs against historical data, independent cost estimates, and market research. However, with fewer options, the government has less leverage to negotiate aggressively. This situation underscores the importance of market research to identify all potential sources and encourage broader participation in future solicitations where feasible.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002414R3396

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: $36,803,169

Exercised Options: $36,797,473

Current Obligation: $30,516,965

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,238,294

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4026

IDV Type: IDC

Timeline