DoD's $35.6M IT Support Contract with CACI Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $35,617,071 ($35.6M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2013-02-27

End Date: 2017-02-21

Contract Duration: 1,455 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY (IT) SUPPORT OF NEW AND EXISTING APPLICATIONS AND PROGRAMS; SUPPORT OF THE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) AND BOUNDARY THREE COMMUNITIES OF INTEREST (B3COI) NETWORKS. THE INTENT OF THIS CONTRACT IS TO SATISFY THE ENTERPRISE IT NEEDS OF NSWC CRANE, INCLUDING IT WORK THAT OCCURS UNDER OTHER NON-IT SERVICE CONTRACTS. THIS CONTRACT IS NOT INTENDED TO ADDRESS THE TACTICAL WEAPON SYSTEM EFFORTS THAT ARE PART OF BROADER ENGINEERING EFFORTS.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $35.6 million to CACI, INC. - FEDERAL for work described as: INFORMATION TECHNOLOGY (IT) SUPPORT OF NEW AND EXISTING APPLICATIONS AND PROGRAMS; SUPPORT OF THE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) AND BOUNDARY THREE COMMUNITIES OF INTEREST (B3COI) NETWORKS. THE INTENT OF THIS CONTRACT IS TO SATISFY THE ENTERPRISE IT NEEDS OF … Key points: 1. The contract primarily supports enterprise IT needs for NSWC Crane, including application and program support. 2. CACI, Inc. - Federal was awarded the contract under full and open competition. 3. The contract's scope excludes tactical weapon system efforts, focusing on enterprise IT and RDT&E networks. 4. The contract was awarded as a Cost Plus Incentive Fee type, indicating potential for performance-based adjustments.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure suggests a focus on performance, but the total value of $35.6M over four years for enterprise IT support requires careful monitoring to ensure cost-effectiveness against industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method generally promotes competitive pricing. However, the specific impact on price discovery for specialized IT support services within a defense context needs further analysis.

Taxpayer Impact: Taxpayer funds are utilized for essential enterprise IT infrastructure and support, with the expectation that competitive bidding ensures reasonable costs.

Public Impact

Ensures critical IT infrastructure and application support for naval research and development activities. Supports the Boundary Three Communities of Interest (B3COI) networks, vital for inter-agency communication. Provides IT services that underpin research, development, test, and evaluation efforts at NSWC Crane. The contract's duration and value indicate a significant investment in maintaining operational IT capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Incentive Fee contracts if not managed tightly.
Scope creep could occur if IT needs extend beyond the defined enterprise support.
Reliance on a single contractor for extensive IT services may pose continuity risks.

Positive Signals

Full and open competition should drive competitive pricing.
Clear delineation of IT support versus tactical weapon systems limits scope ambiguity.
Focus on enterprise IT supports core mission functions.

Sector Analysis

This contract falls within the Engineering Services sector, specifically IT support for defense applications and networks. Benchmarks for similar enterprise IT support contracts in the federal sector would be useful for detailed cost comparison.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were pursued or mandated.

Oversight & Accountability

Oversight is crucial for Cost Plus Incentive Fee contracts to ensure the government receives value and that costs are controlled. The Department of the Navy's contracting activity suggests established oversight mechanisms are in place.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Incentive Fee contracts require diligent oversight to prevent cost overruns.
Potential for scope creep if IT needs evolve beyond the contract's defined enterprise support.
Reliance on a single prime contractor for critical IT functions may present continuity risks.
Lack of specific performance metrics makes it difficult to fully assess value for money.
The contract's exclusion of tactical weapon systems requires clear demarcation to avoid confusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 million to CACI, INC. - FEDERAL. INFORMATION TECHNOLOGY (IT) SUPPORT OF NEW AND EXISTING APPLICATIONS AND PROGRAMS; SUPPORT OF THE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) AND BOUNDARY THREE COMMUNITIES OF INTEREST (B3COI) NETWORKS. THE INTENT OF THIS CONTRACT IS TO SATISFY THE ENTERPRISE IT NEEDS OF NSWC CRANE, INCLUDING IT WORK THAT OCCURS UNDER OTHER NON-IT SERVICE CONTRACTS. THIS CONTRACT IS NOT INTENDED TO ADDRESS THE TACTICAL WEAPON SYSTEM EFFORTS THAT ARE PART OF BROADER ENGINEERING EFFORTS.

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 Navy).

What is the total obligated amount?

The obligated amount is $35.6 million.

What is the period of performance?

Start: 2013-02-27. End: 2017-02-21.

What specific metrics are used to evaluate CACI's performance under the incentive fee structure, and how do these align with achieving optimal value for the $35.6M investment?

The effectiveness of the incentive fee structure hinges on clearly defined performance metrics tied to service delivery, system uptime, and project completion within budget. These metrics should be rigorously tracked and evaluated by the Department of the Navy to ensure CACI's performance directly contributes to achieving optimal value. Without specific details on these metrics, it's difficult to definitively assess the value realization from the $35.6M expenditure.

Given the full and open competition, what was the competitive landscape like, and did multiple bids significantly drive down the initial proposed costs for these specialized IT services?

While awarded under full and open competition, the actual competitive landscape and its impact on price discovery are not detailed. A robust competition typically involves multiple qualified bidders submitting proposals, leading to downward pressure on prices. Understanding the number of bids received and the variance in proposed costs would provide insight into whether the competitive process effectively secured the best possible pricing for these specialized IT services.

How effectively does this contract support the RDT&E and B3COI networks, and are there any identified risks to the operational continuity or security of these critical defense networks?

The contract aims to satisfy enterprise IT needs, including support for RDT&E and B3COI networks. The primary risk to operational continuity and security would stem from potential service disruptions, cybersecurity vulnerabilities, or inadequate technical support. Robust oversight and performance monitoring are essential to mitigate these risks and ensure the networks function reliably and securely.

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: N0002412R3350

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $46,782,198

Exercised Options: $46,081,376

Current Obligation: $35,617,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline