DoD's $28M Engineering Services Contract with CACI Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $28,044,719 ($28.0M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2015-05-15
End Date: 2021-05-14
Contract Duration: 2,191 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: IGF::CT::IGF ENGINEERING LOGISTIC, FACILITY OPERANTIONS AND ENGINEERING SERVICES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $28.0 million to CACI, INC. - FEDERAL for work described as: IGF::CT::IGF ENGINEERING LOGISTIC, FACILITY OPERANTIONS AND ENGINEERING SERVICES Key points: 1. Contract awarded to CACI, INC. - FEDERAL for engineering services. 2. Significant contract value of $28,044,719.49 over 6 years. 3. Full and open competition was utilized, but effectiveness is questioned. 4. Potential for cost overruns due to Cost Plus Fixed Fee pricing structure.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. Without specific performance metrics or benchmarks, assessing the true value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the contract was awarded under full and open competition, the CPFF structure may not incentivize the most cost-effective solutions. The impact on price discovery is moderate, as competition sets a baseline, but the pricing model itself allows for cost escalation.
Taxpayer Impact: Taxpayer funds are utilized for engineering services. The CPFF structure necessitates careful oversight to ensure costs remain reasonable and aligned with project objectives.
Public Impact
Ensures critical engineering and facility operations support for the Department of the Navy. Supports national defense objectives through specialized engineering expertise. Potential for cost efficiencies or overruns directly impacts taxpayer investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing structure
- Lack of clear performance metrics for value assessment
- Long contract duration (6 years)
Positive Signals
- Awarded under full and open competition
- Experienced contractor (CACI, INC. - FEDERAL)
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for government infrastructure and defense projects. Spending benchmarks for similar services vary widely based on scope and complexity, but a $28M contract over six years suggests a significant, long-term requirement.
Small Business Impact
The data indicates this contract was awarded to a large business (CACI, INC. - FEDERAL) and does not show any specific set-asides or subcontracting goals for small businesses. Therefore, the direct impact on small business participation appears limited.
Oversight & Accountability
The contract's duration and CPFF structure warrant robust oversight from the Department of the Navy to ensure cost control and performance accountability. Regular audits and performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of detailed performance metrics for value assessment
- Long contract duration may reduce flexibility
- Limited visibility into small business participation
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.0 million to CACI, INC. - FEDERAL. IGF::CT::IGF ENGINEERING LOGISTIC, FACILITY OPERANTIONS AND ENGINEERING SERVICES
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 $28.0 million.
What is the period of performance?
Start: 2015-05-15. End: 2021-05-14.
What specific engineering services are being provided under this contract, and how do they align with the Navy's strategic objectives?
The contract covers 'ENGINEERING LOGISTIC, FACILITY OPERANTIONS AND ENGINEERING SERVICES.' While essential for maintaining facilities and operations, the precise alignment with strategic objectives would require a deeper dive into the specific task orders and the Navy's current priorities. Understanding the criticality of these services to mission success is key to assessing overall value.
How effectively has CACI managed costs under this CPFF contract, and what mechanisms are in place to mitigate potential cost overruns?
The CPFF structure inherently carries a risk of cost overruns if not rigorously managed. The effectiveness of cost management depends heavily on the Navy's oversight, including regular audits, performance reviews, and adherence to the fixed fee parameters. Without specific cost performance data, it's difficult to definitively assess CACI's management effectiveness.
Given the full and open competition, were there alternative solutions or contractors that could have provided similar services at a lower cost or with better performance metrics?
While full and open competition suggests a competitive bidding process, the CPFF structure might obscure true cost-effectiveness. It's possible that other firms could offer comparable services. A post-award analysis or comparison with similar contracts awarded under different pricing structures could reveal potential cost savings or performance improvements that were missed.
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: N0002414R3234
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: $28,566,262
Exercised Options: $28,566,262
Current Obligation: $28,044,719
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
Start Date: 2015-05-15
Current End Date: 2021-05-14
Potential End Date: 2021-05-14 00:00:00
Last Modified: 2023-01-27
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