CACI Technologies awarded $36.7M for Navy fleet maintenance, highlighting engineering services demand

Contract Overview

Contract Amount: $36,737,273 ($36.7M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2015-09-26

End Date: 2019-09-28

Contract Duration: 1,463 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF FLEET MAINTENANCE SUPPORT SERVICES

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.7 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF FLEET MAINTENANCE SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in maintaining naval operational readiness. 2. Engineering services are critical for complex systems like naval fleets, indicating specialized expertise. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. A single award suggests a focused approach to fulfilling specific fleet maintenance needs. 5. The duration of the contract points to a long-term requirement for these services.

Value Assessment

Rating: good

The contract value of $36.7 million over approximately four years for fleet maintenance support services appears reasonable given the complexity of naval assets. Benchmarking against similar large-scale engineering support contracts for military branches would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests an effort to manage cost overruns, which is a positive indicator for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The fact that it resulted in a single award suggests that CACI Technologies, LLC was deemed the most advantageous offer based on the evaluation criteria. The level of competition is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

Naval fleet readiness and operational capability are directly enhanced by the maintenance services provided. The contract supports the Department of the Navy's mission to maintain and operate its fleet. Personnel in Virginia, where the contractor is located, likely benefit from employment opportunities. The services ensure the longevity and reliability of critical naval assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs exceed initial estimates.
Dependence on a single contractor could pose risks if performance issues arise.

Positive Signals

Firm-fixed-price contract helps control costs.
Full and open competition suggests a robust bidding process.
Long contract duration indicates a stable, ongoing need for these services.

Sector Analysis

The engineering services sector, particularly supporting defense applications, is a significant market. This contract falls within the broader category of professional, scientific, and technical services, with a specific focus on defense-related engineering. Spending in this area is often driven by the need to maintain complex, high-value assets like naval fleets, ensuring their operational readiness and extending their service life. Comparable spending benchmarks would involve looking at other large-scale maintenance and engineering contracts awarded by the Department of Defense to various branches.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, direct benefits to small businesses through this specific award are not evident. However, the prime contractor, CACI Technologies, LLC, may engage small businesses as subcontractors to fulfill portions of the contract, which would be a positive impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Naval Ship Maintenance Contracts
Defense Engineering Services
Fleet Readiness Programs
Department of the Navy IT and Engineering Support

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of contractor performance issues impacting fleet readiness.
Dependence on a single awardee for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.7 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF FLEET MAINTENANCE SUPPORT SERVICES

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 $36.7 million.

What is the period of performance?

Start: 2015-09-26. End: 2019-09-28.

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

CACI Technologies, LLC has a substantial history of securing and performing on contracts with the Department of Defense, spanning various service areas including IT, engineering, and professional services. Their portfolio often includes large-scale support services for military branches. Analyzing their past performance on similar fleet maintenance or complex engineering support contracts would reveal their ability to manage scope, budget, and timelines effectively. A review of contract databases and performance reports (if publicly available) would indicate a pattern of successful delivery or any recurring issues, providing insight into their reliability for this specific award.

How does the $36.7 million award compare to historical spending on fleet maintenance by the Navy?

The $36.7 million award for fleet maintenance support services represents a specific investment within the broader context of the Department of the Navy's overall budget for ship maintenance and readiness. To assess its scale, one would compare it to the Navy's annual spending on similar engineering and maintenance contracts over the past several fiscal years. If the Navy typically allocates tens or hundreds of millions annually to fleet maintenance, this $36.7 million award might represent a significant portion of a specific program or a single, large delivery order. Conversely, if it's a small fraction of the total maintenance budget, it might indicate a more specialized or targeted service.

What are the primary risks associated with this firm-fixed-price contract for fleet maintenance?

While firm-fixed-price contracts are designed to control costs, a primary risk for this fleet maintenance contract could be the contractor's ability to accurately estimate all potential maintenance needs within the fixed price. If unforeseen complexities or extensive repairs arise that were not adequately scoped, CACI Technologies, LLC might face reduced profit margins or pressure to cut corners, potentially impacting service quality. Another risk is the potential for scope creep, where the government requests additional services not originally included, which could lead to contract modifications and increased costs if not managed carefully. The government also bears the risk if the contractor's performance is subpar, as remedies might be costly or time-consuming.

How effective is full and open competition in ensuring value for money for engineering services like this?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for specialized engineering services. By allowing all responsible sources to submit bids, it creates a competitive environment where companies strive to offer the best combination of price, technical capability, and past performance. This process encourages innovation and efficiency as contractors seek to differentiate themselves. For complex services like fleet maintenance, a competitive bidding process helps the government identify the most qualified provider at a fair market price, reducing the likelihood of overpayment and ensuring that taxpayer funds are used efficiently.

What is the typical duration for contracts of this nature and value within the defense sector?

Contracts for complex engineering and maintenance services within the defense sector, especially those supporting major assets like naval fleets, often have durations ranging from one to five years, with options for extensions. A contract valued at $36.7 million, awarded as a delivery order with a duration of approximately 1463 days (around 4 years), falls within this typical range. Longer durations are common when there is a sustained need for services, allowing for stable planning and execution. Shorter durations might be used for more specific, time-bound projects, while very long contracts might raise concerns about flexibility and adapting to evolving technological or operational requirements.

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: N0002415R3311

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $36,855,859

Exercised Options: $36,855,859

Current Obligation: $36,737,273

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4026

IDV Type: IDC

Timeline