Navy awards $49M+ engineering services contract to CACI Technologies, LLC for 4 years

Contract Overview

Contract Amount: $49,046,432 ($49.0M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2006-03-14

End Date: 2010-03-13

Contract Duration: 1,460 days

Daily Burn Rate: $33.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200606!SS2195!1700!N00174!INDIAN HEAD DIVISION NAVAL SURFA!N0017804D4026 !A!N! !Y!FG01 ! !20060314!20070314!057364507!094107844!045534641!N!CACI TECHNOLOGIES INC !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000001863477!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00174!0001! !

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $49.0 million to CACI TECHNOLOGIES, LLC for work described as: 200606!SS2195!1700!N00174!INDIAN HEAD DIVISION NAVAL SURFA!N0017804D4026 !A!N! !Y!FG01 ! !20060314!20070314!057364507!094107844!045534641!N!CACI TECHNOLOGIES INC !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!01000!510!51!ALEXANDRIA !ALEX… Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can pose risks if costs are not well-managed. 3. The award value of over $49 million over four years indicates a significant investment in engineering services. 4. The primary NAICS code (541330) points to a focus on engineering services, a critical sector for defense. 5. The contract was awarded by the Department of the Navy, a major defense agency. 6. The contractor, CACI Technologies, LLC, has a substantial presence in government contracting.

Value Assessment

Rating: good

The contract value of over $49 million spread across four years averages approximately $12.25 million annually. This figure needs to be benchmarked against similar engineering services contracts awarded by the Department of Defense or specifically the Department of the Navy to fully assess value for money. Without direct comparable data, it appears to be a substantial but not necessarily excessive award for a multi-year, complex engineering services requirement.

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 a bid. The presence of 21 bids suggests a robust competitive environment. A high number of bidders generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive proposals for the engineering services required.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations and technological advancements. The contract delivers essential engineering expertise, likely contributing to the design, development, or maintenance of naval systems and infrastructure. The geographic impact is primarily centered around the contractor's location in Virginia, but the services rendered support naval operations nationwide and potentially globally. The contract supports a workforce skilled in engineering and related technical fields, contributing to the broader defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not properly monitored.
The duration of the contract (4 years) means potential for cost overruns or scope creep over an extended period.
Reliance on a single contractor for a significant duration may limit flexibility in adapting to changing technological needs or market conditions.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield fair pricing.
The large number of bids (21) suggests strong market interest and a healthy competitive landscape.
The contractor, CACI Technologies, LLC, is a well-established entity in the government contracting space, implying experience and capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is vital for defense procurement, supporting everything from research and development to system design and lifecycle management. The market for engineering services supporting the federal government, particularly the Department of Defense, is substantial, with significant annual spending allocated to these specialized capabilities.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. Given the large award value and the nature of engineering services, it is possible that subcontracting opportunities may exist for small businesses, but this is not explicitly detailed in the provided information. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Navy. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance metrics. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Professional, Scientific, and Technical Services Contracts
Cost-Plus-Fixed-Fee Contracts
Federal IT and Engineering Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Extended contract duration may pose risks related to technological obsolescence or scope creep.
Need to verify small business subcontracting plan effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.0 million to CACI TECHNOLOGIES, LLC. 200606!SS2195!1700!N00174!INDIAN HEAD DIVISION NAVAL SURFA!N0017804D4026 !A!N! !Y!FG01 ! !20060314!20070314!057364507!094107844!045534641!N!CACI TECHNOLOGIES INC !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000001863477!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!200

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 $49.0 million.

What is the period of performance?

Start: 2006-03-14. End: 2010-03-13.

What is the historical spending pattern for engineering services by the Department of the Navy?

The Department of the Navy consistently allocates significant funding towards engineering services, essential for maintaining its technological superiority and operational readiness. Historical data indicates a steady demand for these services, encompassing areas such as naval architecture, systems engineering, software development, and research and development. Annual spending can fluctuate based on specific program requirements, modernization efforts, and budget allocations. For instance, major shipbuilding programs, aircraft carrier maintenance, and the development of new weapon systems all drive substantial engineering service expenditures. Analyzing trends over the past decade reveals a growing emphasis on advanced technologies, cybersecurity, and integrated systems engineering, reflecting the evolving defense landscape. This particular contract, valued at over $49 million, aligns with the typical scale of major engineering support awards within the Navy's portfolio.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to CACI Technologies, are common for research and development or complex services where the scope is not fully defined at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure offers flexibility but can be less cost-certain for the government compared to Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs. Other common types include Cost Plus Incentive Fee (CPIF), which adjusts the fee based on performance targets, and Cost Plus Award Fee (CPAF), where the fee is determined by subjective performance evaluations. While CPFF provides flexibility for evolving requirements, it necessitates robust government oversight to control costs and prevent contractor overspending. FFP contracts are generally preferred when requirements are well-defined due to their cost predictability.

What is CACI Technologies, LLC's track record with the Department of Defense?

CACI Technologies, LLC (and its predecessor entities) has a long and extensive track record of contracting with the Department of Defense (DoD) and various military branches, including the Department of the Navy. The company specializes in a wide range of services, including IT, intelligence, engineering, and mission support. Its history with the DoD includes numerous large-scale contracts, often involving complex technical and professional services. CACI is a significant player in the federal contracting landscape, consistently ranking among the top contractors. Their performance history with the DoD is generally characterized by the successful execution of contracts across diverse domains, though like any large contractor, specific contract performance can vary. The award of this $49M+ contract by the Navy further underscores their established relationship and perceived capability within the department.

What are the potential risks associated with a 4-year contract duration for engineering services?

A 4-year contract duration for engineering services, while providing stability, introduces several potential risks. Firstly, the extended timeline increases the possibility of scope creep, where the project's requirements expand beyond the original agreement, potentially leading to cost overruns if not managed tightly. Secondly, technological advancements can occur rapidly within a 4-year period. If the contract is not structured with flexibility for incorporating new technologies or adapting to evolving requirements, the services provided might become outdated or less effective by the contract's end. Thirdly, maintaining consistent quality and performance over such a long duration requires sustained oversight and contractor commitment. Finally, market conditions and contractor capabilities can change, potentially impacting the value proposition or the contractor's ability to deliver optimal results throughout the entire period.

How does the competition level (21 bidders) impact the government's leverage in future negotiations?

A high level of competition, such as the 21 bidders for this contract, significantly enhances the government's leverage, both for the current award and potentially for future negotiations. During the initial bidding process, intense competition typically drives down prices as contractors vie for the award. This provides the government with a strong position to negotiate favorable terms and pricing. Looking forward, the existence of a robust market with multiple capable providers means the government has options. If future requirements arise, or if modifications to the current contract are needed, the government can leverage the knowledge that other qualified contractors are available and interested. This reduces the risk of sole-source or limited-competition situations in the future, allowing for continued competitive bidding and potentially better value.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14151 PARK MEADOW DRIVE, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4026

IDV Type: IDC

Timeline