CACI, Inc. awarded $1.77B for R&D services, exceeding $960M in prior spending

Contract Overview

Contract Amount: $960,038,373 ($960.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2016-10-28

End Date: 2022-02-28

Contract Duration: 1,949 days

Daily Burn Rate: $492.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: AWARD MADE TO CACI, INC.-FEDERAL FOR JIDA FS/DE TASK ORDER, IN THE AMOUNT NOT TO EXCEED $1,773,158,264.00. IGF::CL::IGF

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $960.0 million to CACI, INC. - FEDERAL for work described as: AWARD MADE TO CACI, INC.-FEDERAL FOR JIDA FS/DE TASK ORDER, IN THE AMOUNT NOT TO EXCEED $1,773,158,264.00. IGF::CL::IGF Key points: 1. Contract value significantly surpasses previous related spending, indicating potential for increased scope or cost. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract type (Cost Plus Award Fee) introduces performance incentives but also potential for cost overruns. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical but complex sector. 5. The duration of the contract (over 5 years) allows for long-term project development. 6. Virginia is a key state for federal contracting, particularly in R&D and IT services.

Value Assessment

Rating: fair

The award amount of $1.77 billion is substantial. Benchmarking this against similar R&D contracts is challenging without more specific service details. However, the prior spending of over $960 million on related efforts suggests a significant increase in the current contract's scope or cost. The Cost Plus Award Fee structure means the final cost will depend on performance, making a definitive value assessment difficult at this stage. It is crucial to monitor the award fees paid and the actual costs incurred against the not-to-exceed amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The data shows two bids were received. While full and open competition is generally preferred for maximizing competition and achieving fair pricing, a low number of bids (two) might suggest limitations in the market for these specific R&D services or potential barriers to entry for other contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. However, with only two bids, the potential for significant price savings may have been limited compared to a scenario with numerous competitive offers.

Public Impact

The primary beneficiaries are likely government agencies requiring advanced research and development in physical, engineering, and life sciences. The contract will deliver specialized R&D services, potentially leading to technological advancements and innovations. The geographic impact is centered in Virginia, a hub for federal contracting and R&D activities. Workforce implications include the creation or sustainment of highly skilled jobs in research, engineering, and scientific fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to higher final costs if performance targets are aggressively pursued without strict cost controls.
A low number of bids (two) in a full and open competition may indicate a lack of market interest or contractor capability, potentially impacting price.
The significant increase in award value compared to prior related spending warrants scrutiny to ensure the expanded scope is justified and cost-effective.

Positive Signals

Awarding under full and open competition maximizes the potential for competitive pricing.
The Cost Plus Award Fee structure incentivizes contractor performance, potentially leading to higher quality outcomes.
The contract's long duration allows for sustained focus on complex R&D objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically code 541712, which covers R&D in the Physical, Engineering, and Life Sciences (except Biotechnology). This is a high-value, knowledge-intensive sector critical for technological advancement. The federal government is a major investor in R&D, with significant spending allocated across various agencies. Comparable spending benchmarks would typically involve analyzing other large-scale R&D contracts awarded by agencies like DoD, NASA, or NIH, considering the specific scientific domains and project complexities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or benefits specifically for small businesses arising from a set-aside. The prime contractor, CACI, Inc.-Federal, is a large business. Any subcontracting opportunities would be at the discretion of the prime contractor, and there is no explicit requirement for small business participation mandated by a set-aside.

Oversight & Accountability

Oversight for this contract would primarily fall under the awarding agency, the General Services Administration (GSA), and potentially the specific program executive office overseeing the JIDA FS/DE task order. The Inspector General (IG) for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, but detailed performance metrics and cost breakdowns may not be publicly available.

Related Government Programs

JIDA FS/DE Task Order
Research and Development Contracts
General Services Administration Contracts
CACI Federal Contracts
Cost Plus Award Fee Contracts

Risk Flags

Potential for cost overruns due to CPAF structure
Limited competition (2 bids) may impact price optimization
Significant increase in award value compared to prior spending
Complexity of R&D services may lead to unforeseen challenges

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $960.0 million to CACI, INC. - FEDERAL. AWARD MADE TO CACI, INC.-FEDERAL FOR JIDA FS/DE TASK ORDER, IN THE AMOUNT NOT TO EXCEED $1,773,158,264.00. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $960.0 million.

What is the period of performance?

Start: 2016-10-28. End: 2022-02-28.

What is CACI, Inc.-Federal's track record with large federal R&D contracts, particularly those involving Cost Plus Award Fee structures?

CACI, Inc.-Federal has a significant history of performing large federal contracts across various domains, including IT, intelligence, and defense. Their experience with R&D is substantial, often involving complex systems integration and advanced technology development. Regarding Cost Plus Award Fee (CPAF) contracts, CACI has managed numerous such awards. CPAF contracts require careful oversight to ensure that award fees are earned based on demonstrable performance against objective criteria, rather than subjective assessments. Analyzing CACI's past performance on similar CPAF R&D contracts would involve reviewing past performance evaluations, any incurred cost overruns, and the justification for award fees paid to ensure alignment with contract objectives and taxpayer value.

How does the $1.77 billion award compare to the total federal spending on R&D in the Physical, Engineering, and Life Sciences (NAICS 541712) in recent fiscal years?

The $1.77 billion award represents a significant portion of federal R&D spending within the specified NAICS code. Federal R&D spending is substantial, often exceeding $150 billion annually across all sectors. For NAICS 541712 specifically, annual federal obligations can range from tens to hundreds of billions, depending on the year and agency priorities. A single contract of this magnitude, especially if it represents a multi-year effort, can significantly influence the total spending figures for that category. To provide precise context, one would need to compare this award against the total government-wide obligations reported for NAICS 541712 in the relevant fiscal years (e.g., FY2016-FY2022) to understand its relative size and impact on the overall R&D investment landscape.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this size and duration?

The primary risks associated with a CPAF contract of this magnitude ($1.77 billion over approximately 5 years) include potential cost growth beyond initial estimates and challenges in objectively measuring performance to justify award fees. For CACI, the risk lies in managing costs effectively while meeting stringent performance requirements to maximize award fees. For the government, the risk is paying higher-than-necessary costs if performance metrics are not well-defined or if award fees are granted too liberally. Ensuring robust oversight, clear performance standards, and independent verification of results are critical to mitigating these risks and ensuring value for taxpayer money. The long duration also increases the risk of scope creep or misalignment with evolving technological needs if not managed proactively.

What specific R&D services are being procured under this contract, and how do they align with current government priorities?

The provided data identifies the contract as a task order for 'JIDA FS/DE'. JIDA typically refers to the Joint Artificial Intelligence Development Agency, and FS/DE could relate to 'Future Services / Defense Enterprise' or similar strategic initiatives. While the specific R&D services are not detailed, given the NAICS code (541712 - R&D in Physical, Engineering, and Life Sciences), it likely involves advanced research in areas such as AI applications, data analytics, cybersecurity, advanced materials, or complex systems engineering relevant to defense and national security. These align with current government priorities focused on technological superiority, modernization of defense capabilities, and leveraging AI for strategic advantage.

How does the number of bids (2) in this full and open competition impact price discovery and potential savings for taxpayers?

A low number of bids, such as two in this full and open competition, can limit effective price discovery. Ideally, a larger pool of bidders creates a more competitive environment, driving down prices as contractors vie for the award. With only two bidders, the winning contractor may have had less incentive to offer the most aggressive pricing, knowing the competitive set was limited. This could potentially lead to higher costs for taxpayers compared to a scenario with, for example, five or more bids. While full and open competition was utilized, the limited number of responses suggests that either the market for these specific services is concentrated, or there were barriers preventing more contractors from bidding, thus potentially reducing the competitive pressure on price.

What is the significance of the contract being awarded to CACI, Inc.-Federal, a known large government contractor, in the context of federal R&D spending?

The award to CACI, Inc.-Federal signifies the government's reliance on established large contractors for complex, high-value R&D initiatives. Large contractors like CACI possess the resources, infrastructure, and cleared personnel often required for large-scale, sensitive projects. This award reflects a strategy of leveraging existing contractor capabilities rather than developing them internally or relying on smaller, potentially less experienced firms. While this ensures project execution capacity, it also concentrates significant R&D funding within a few major players, potentially limiting opportunities for emerging technologies or smaller innovative companies to enter the federal R&D landscape.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: GSC-QF0B-16-33011

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

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: $2,426,356,180

Exercised Options: $2,245,678,748

Current Obligation: $960,038,373

Actual Outlays: $-1,215,078

Subaward Activity

Number of Subawards: 46

Total Subaward Amount: $107,103,141

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU407

IDV Type: IDC

Timeline