CACI awarded $32M for engineering support, including software development and safety analysis

Contract Overview

Contract Amount: $32,015,416 ($32.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2015-09-24

End Date: 2021-09-23

Contract Duration: 2,191 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: IGF::CT::IGF CODE 80 ENGINEERING SUPPORT SERVICES CONTRACT FOR SOFTWARE DEVELOPMENT, SOFTWARE SAFETY AND ANALYTIC SUPPORT N00178-04-D-4030 FD07 FOLLOW ON CONTRACT.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to CACI, INC. - FEDERAL for work described as: IGF::CT::IGF CODE 80 ENGINEERING SUPPORT SERVICES CONTRACT FOR SOFTWARE DEVELOPMENT, SOFTWARE SAFETY AND ANALYTIC SUPPORT N00178-04-D-4030 FD07 FOLLOW ON CONTRACT. Key points: 1. Contract provides critical software development, safety, and analytic support. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of nearly 6 years indicates a long-term need. 4. Cost-plus incentive fee structure aims to align contractor and government interests. 5. The contract is a follow-on to a previous award, suggesting continuity of services. 6. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The total award amount of $32 million over approximately six years suggests a moderate annual spend. Benchmarking this against similar engineering support contracts for software development and safety analysis would provide a clearer picture of value for money. The cost-plus incentive fee (CPIF) pricing structure, while common, requires careful monitoring to ensure costs remain controlled and incentives are effectively driving desired outcomes. Without specific performance metrics or comparisons to industry standards for similar services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This typically leads to a more robust bidding process with multiple potential bidders vying for the contract. The number of bidders and the specific terms of the competition would further illuminate the level of price discovery achieved. A competitive process generally benefits the government by fostering lower prices and better terms.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services due to a wider pool of potential offerors.

Public Impact

The Department of the Navy benefits from specialized engineering and software support. Services include software development, ensuring modern and secure systems. Software safety analysis contributes to the reliability and security of critical systems. Analytic support aids in decision-making and program management. The contract supports technical expertise within the defense sector. Workforce implications include the need for skilled software engineers and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with cost-plus incentive fee contracts if not managed closely.
Reliance on a single contractor for critical software and safety functions could pose a risk.
Ensuring the contractor maintains up-to-date cybersecurity practices for software development.

Positive Signals

Follow-on nature suggests successful past performance and established working relationship.
Full and open competition indicates a potentially competitive pricing environment.
CPIF structure can incentivize efficiency and cost savings when properly structured.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on software development, safety, and analytics. This is a critical area for defense agencies, requiring specialized expertise. The market for such services is competitive, with numerous firms offering solutions. The total value of this specific award is moderate, but it represents a delivery order under a larger IDIQ, suggesting that the overall program spending could be significantly higher. Benchmarking against similar contracts in the defense IT and engineering services space would be informative.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, CACI, Inc. - Federal, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. The impact on the small business ecosystem would depend on whether CACI utilizes small business subcontractors, which is not detailed here. Further investigation into CACI's subcontracting practices would be needed to assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. As a delivery order under an IDIQ, the overarching contract likely has established oversight mechanisms. The cost-plus incentive fee structure necessitates close monitoring of costs and performance to ensure the incentives are effective and that the government receives good value. Transparency would be enhanced by public reporting of contract actions and performance, though detailed internal oversight processes are not publicly disclosed.

Related Government Programs

Defense Software Engineering Services
Naval IT Support Contracts
Engineering and Technical Services
Software Safety and Assurance
Analytic Support Services

Risk Flags

Cost-Plus Incentive Fee (CPIF) pricing requires diligent oversight to manage costs.
Follow-on contract: assess if previous performance justifies continued award.
Potential for vendor lock-in if critical systems rely heavily on this contractor's expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to CACI, INC. - FEDERAL. IGF::CT::IGF CODE 80 ENGINEERING SUPPORT SERVICES CONTRACT FOR SOFTWARE DEVELOPMENT, SOFTWARE SAFETY AND ANALYTIC SUPPORT N00178-04-D-4030 FD07 FOLLOW ON CONTRACT.

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 $32.0 million.

What is the period of performance?

Start: 2015-09-24. End: 2021-09-23.

What is CACI, Inc. - Federal's track record with the Department of Defense for similar engineering and software support contracts?

CACI, Inc. - Federal has a substantial history of contracting with the Department of Defense across various service areas, including IT, engineering, and professional services. For engineering and software support, CACI has been a significant player, often winning large-scale contracts. Their track record includes numerous awards for software development, systems engineering, and technical support. Analyzing past performance on similar contracts, including any past performance evaluations or disputes, would provide a clearer picture of their reliability and capability in delivering complex engineering and software solutions. The fact that this is a follow-on contract suggests a degree of satisfaction with their previous performance on related work.

How does the $32 million award compare to the total value of the parent IDIQ contract and other similar engineering support contracts?

The $32 million award represents a specific delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, the total value of which is not provided here. This means the $32 million is a portion of a potentially much larger overall program spend. To assess value, this figure should be compared against the total ceiling of the parent IDIQ and the spending on other delivery orders issued under it. Furthermore, benchmarking this award against similar engineering support contracts for software development and safety analysis awarded by other defense agencies or even within the Navy, but for different systems, would provide context on whether the pricing is competitive and reflects market rates for the services rendered.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this Cost Plus Incentive Fee (CPIF) contract?

While specific KPIs are not detailed in the provided data, CPIF contracts typically tie contractor profit to achieving specific performance targets, such as cost savings, schedule adherence, or technical performance milestones. For this contract, KPIs might include software defect rates, on-time delivery of software modules, successful completion of safety analyses, or efficiency gains in analytic support. Risk mitigation strategies would involve robust government oversight, regular performance reviews, and clear communication channels to address issues proactively. The incentive fee structure itself is a risk-sharing mechanism, aiming to align CACI's financial interests with the government's objectives, thereby mitigating risks related to cost overruns or underperformance.

What is the historical spending pattern for engineering support services, specifically software development and safety analysis, within the Department of the Navy?

The Department of the Navy historically spends billions of dollars annually on a wide array of engineering, IT, and professional services, including significant investments in software development and safety analysis. This spending is driven by the need to maintain, modernize, and develop complex naval systems, from ships and aircraft to IT infrastructure and weapons platforms. Software is integral to virtually all modern defense systems, necessitating continuous development, updates, and rigorous safety assessments. Spending patterns can fluctuate based on modernization priorities, new platform development, and cybersecurity requirements. This specific contract, being a follow-on, suggests a sustained requirement and a consistent allocation of funds for these types of services over multiple fiscal years.

How does the duration of the contract (nearly 6 years) impact the assessment of its value and the contractor's commitment?

A contract duration of nearly six years (2191 days) for engineering support services, particularly in the dynamic field of software development, indicates a long-term, strategic need by the Department of the Navy. This extended period allows for deeper integration of the contractor's expertise into ongoing programs and potentially fosters greater efficiency through familiarity and established processes. For the contractor, a longer duration signifies a significant commitment and a stable revenue stream, which can encourage investment in specialized personnel and resources. From a value perspective, a longer contract can lead to economies of scale and reduced transition costs compared to multiple shorter-term contracts, provided performance remains high and costs are managed effectively throughout the period.

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: N0002415R3101

Offers Received: 1

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: $33,447,703

Exercised Options: $33,447,703

Current Obligation: $32,015,416

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