CACI awarded $25M+ for Naval engineering services, extending support for ship design and testing

Contract Overview

Contract Amount: $25,064,135 ($25.1M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2015-01-14

End Date: 2021-06-28

Contract Duration: 2,357 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF NEW ENGINEERIG SERVICES CONTRACT AS FOLLOW ON TO N00178-04-D-4030 FD06, FOR ENGINEERING SERVICE SUPPORT FOR THE NAVAL ARCHITECTURE AND ENGINEERING DEPARTMENT CODE 80, ASSOCIATED WITH HYDRO AND AERO DYNAMICS, SHIP DESIGN, SYSTEMS ENGINEERING, AND ACQUISITION ENGINEERING AND THE DEVELOPMENT, OPERATIONS OF FULL SCALE AND MODEL SCALE TESTING AND ANALYSIS SUPPORT.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to CACI, INC. - FEDERAL for work described as: IGF::CT::IGF NEW ENGINEERIG SERVICES CONTRACT AS FOLLOW ON TO N00178-04-D-4030 FD06, FOR ENGINEERING SERVICE SUPPORT FOR THE NAVAL ARCHITECTURE AND ENGINEERING DEPARTMENT CODE 80, ASSOCIATED WITH HYDRO AND AERO DYNAMICS, SHIP DESIGN, SYSTEMS ENGINEERING, AND ACQUISITION ENGINEERI… Key points: 1. Contract provides critical engineering support for naval architecture, ship design, and testing. 2. Follow-on contract indicates continuity and satisfaction with previous service provider. 3. Full and open competition suggests a robust bidding process. 4. Contract duration of nearly 6.5 years points to long-term needs. 5. Cost-plus-fixed-fee structure may incentivize cost control but requires careful oversight. 6. Geographic concentration in Maryland highlights regional specialization in defense contracting.

Value Assessment

Rating: good

The contract value of over $25 million for nearly 6.5 years of engineering services appears reasonable given the scope of work, which includes naval architecture, ship design, and testing. Benchmarking against similar large-scale engineering support contracts for the Navy suggests this award falls within expected ranges for specialized technical services. The cost-plus-fixed-fee pricing structure, while common for complex projects, necessitates diligent monitoring to ensure cost efficiency and prevent overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive environment, though a higher number of bidders would typically lead to more aggressive pricing and potentially better value for the government. The full and open nature of the competition is a positive indicator for price discovery and ensures a broad range of technical solutions were considered.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive environment, which generally drives down costs and encourages innovation, leading to better value for public funds.

Public Impact

Naval engineers and technical staff benefit from continued access to specialized support services. The contract supports the development, operations, and testing of naval systems and platforms. Services are primarily delivered within Maryland, impacting the regional defense industry and workforce. The contract underpins the Navy's capabilities in hydro and aero dynamics, ship design, and acquisition engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
Limited number of bidders (2) may indicate potential barriers to entry or a niche market.
Follow-on nature could reduce competitive pressure compared to a new, open competition.

Positive Signals

Full and open competition ensures a wide pool of potential offerors.
Long-term contract duration provides stability for both the government and contractor.
Follow-on award suggests successful past performance and contractor capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. The market for defense engineering services is substantial, driven by ongoing modernization and maintenance needs of military branches. Comparable spending benchmarks for specialized naval engineering support often range in the tens to hundreds of millions of dollars over multi-year periods, depending on the complexity and duration of services required.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of naval engineering services and the large contract value, it is unlikely that small businesses would be the primary awardees, though they may participate as subcontractors. Further analysis would be needed to determine subcontracting opportunities for small businesses within the CACI, INC. - FEDERAL team.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Sea Systems Command (NAVSEA) or the specific Naval department requiring the services. The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction over any allegations of fraud or mismanagement.

Related Government Programs

Naval Architecture and Marine Engineering Services
Defense Engineering Support Contracts
Ship Design and Development Programs
Naval Systems Engineering Support
Acquisition Engineering Services

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition (2 Bidders)
Follow-on Contract Dynamics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to CACI, INC. - FEDERAL. IGF::CT::IGF NEW ENGINEERIG SERVICES CONTRACT AS FOLLOW ON TO N00178-04-D-4030 FD06, FOR ENGINEERING SERVICE SUPPORT FOR THE NAVAL ARCHITECTURE AND ENGINEERING DEPARTMENT CODE 80, ASSOCIATED WITH HYDRO AND AERO DYNAMICS, SHIP DESIGN, SYSTEMS ENGINEERING, AND ACQUISITION ENGINEERING AND THE DEVELOPMENT, OPERATIONS OF FULL SCALE AND MODEL SCALE TESTING AND ANALYSIS SUPPORT.

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 $25.1 million.

What is the period of performance?

Start: 2015-01-14. End: 2021-06-28.

What is CACI, INC. - FEDERAL's track record with similar naval engineering contracts?

CACI, INC. - FEDERAL has a significant history of providing IT and engineering services to the Department of Defense, including the Navy. Their experience often encompasses complex systems engineering, IT modernization, and technical support for naval platforms. This specific contract is a follow-on to a previous award, suggesting a positive track record and successful performance in delivering engineering services for the Naval Architecture and Engineering Department. Their broader portfolio includes support for acquisition, development, and operational testing, aligning well with the requirements outlined in this contract.

How does the value of this contract compare to similar naval engineering support contracts?

The contract value of approximately $25 million over a period of nearly 6.5 years places it in the mid-to-large range for specialized engineering support contracts within the Department of the Navy. Similar contracts for naval architecture, ship design, systems engineering, and testing support can vary widely, but multi-year awards in the tens of millions are common for complex, long-term requirements. The value appears commensurate with the scope of services, which includes support for full-scale and model-scale testing and analysis, indicating a substantial technical undertaking.

What are the primary risks associated with this cost-plus-fixed-fee contract?

The primary risk with a Cost-Plus-Fixed-Fee (CPFF) contract is the potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the government bears the risk of actual costs exceeding estimates. This necessitates stringent oversight of incurred costs, detailed review of invoices, and robust performance monitoring to ensure the contractor is managing expenses efficiently. Without adequate oversight, the government could end up paying significantly more than initially anticipated, diminishing the overall value for money.

How effective is the full and open competition process in ensuring value for this type of specialized service?

Full and open competition is generally considered the most effective method for ensuring value for specialized services like naval engineering. It allows a broad range of qualified contractors to compete, fostering innovation and driving down prices through market forces. In this case, the presence of two bidders suggests a competitive landscape, though a higher number could potentially yield even better results. The process ensures that the government selects the best technical solution at the most competitive price available in the market.

What are the historical spending patterns for naval engineering services by the Department of the Navy?

The Department of the Navy consistently allocates significant funding towards engineering and technical services to maintain its fleet and develop new platforms. Historical spending patterns show a steady demand for naval architecture, marine engineering, systems integration, and testing support. These contracts often span multiple years and can range from tens to hundreds of millions of dollars annually, reflecting the complexity and scale of naval operations and acquisition programs. This contract aligns with those established spending trends for specialized engineering support.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002414R3192

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Systemware, 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: $31,337,941

Exercised Options: $31,337,941

Current Obligation: $25,064,135

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