GSA's $25.8M IT Support Contract to CACI, Inc. for Financial Systems Shows Moderate Value and Full Competition

Contract Overview

Contract Amount: $25,786,189 ($25.8M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2013-06-29

End Date: 2018-09-28

Contract Duration: 1,917 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT FOR FINANCIAL INFORMATION SYSTEMS - PROGRAM MANAGEMENT, APPLICATION SUPPORT, AND APPLICATION DOCUMENTATION. IGF::OT::IGF

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $25.8 million to CACI, INC. - FEDERAL for work described as: IT SUPPORT FOR FINANCIAL INFORMATION SYSTEMS - PROGRAM MANAGEMENT, APPLICATION SUPPORT, AND APPLICATION DOCUMENTATION. IGF::OT::IGF Key points: 1. Contract value of $25.8M over 5 years suggests a moderate investment in IT support. 2. Full and open competition indicates a healthy market with potential for competitive pricing. 3. Fixed-price contract type generally shifts risk to the contractor, potentially benefiting the government. 4. Contract duration of 1917 days (approx. 5.25 years) aligns with typical IT support lifecycles. 5. Focus on financial information systems highlights a critical area for government operations. 6. Contract awarded to CACI, Inc. - Federal, a known entity in the federal IT space.

Value Assessment

Rating: good

The contract's total value of approximately $25.8 million over nearly five years suggests a reasonable annual spend of around $5 million for IT support services. Benchmarking against similar IT support contracts for financial systems within GSA or other agencies would provide a clearer picture of value for money. However, the firm-fixed-price structure implies that the contractor is responsible for cost overruns, which is generally favorable for the government. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates one award, but the 'full and open' designation implies that multiple bids were likely solicited and evaluated. This level of competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, ensuring that the government receives the best possible price and service through a robust bidding process.

Public Impact

Federal employees and agencies utilizing financial information systems benefit from reliable application support and documentation. The contract supports critical financial operations within the General Services Administration (GSA). Geographic impact is primarily within the operational sphere of GSA's financial systems, likely concentrated where these systems are managed. Workforce implications include the potential for CACI employees to be engaged in supporting these vital government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the IT support provided.
The 'firm fixed price' contract type, while beneficial for cost control, could incentivize the contractor to minimize effort if not properly monitored.
Potential for vendor lock-in if the systems supported are highly specialized and CACI possesses unique knowledge.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed price contract type shifts cost overrun risk to the contractor.
Contract duration aligns with typical IT support needs, allowing for stability.
Focus on financial information systems addresses a critical government function.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with agencies heavily reliant on contractors for system development, maintenance, and support. Contracts like this, supporting financial information systems, are crucial for maintaining operational integrity and compliance. Comparable spending benchmarks would involve looking at other GSA or agency contracts for similar IT support services, particularly those related to financial management systems, to gauge if the $25.8 million expenditure is within expected ranges.

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 specific benefits for the small business ecosystem stemming from a set-aside. The prime contractor, CACI, Inc. - Federal, is a large business, and any subcontracting would be at their discretion, not mandated by a small business set-aside provision. This means the primary impact on small businesses would be through potential opportunities as subcontractors to CACI, rather than direct contract awards.

Oversight & Accountability

Oversight for this contract would primarily reside with the General Services Administration (GSA), specifically the Federal Acquisition Service (FAS) which awarded the contract. As a firm-fixed-price contract, oversight would focus on ensuring deliverables meet the contract's specifications and performance standards. Transparency is generally facilitated through contract databases like FPDS. Accountability measures would be tied to the contract's performance clauses and the potential for remedies if CACI fails to meet its obligations. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services
Financial Management Systems
Application Development and Maintenance
Computer Systems Design Services
General Services Administration Contracts

Risk Flags

Contract completed
Potential for scope creep if not managed tightly
Reliance on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.8 million to CACI, INC. - FEDERAL. IT SUPPORT FOR FINANCIAL INFORMATION SYSTEMS - PROGRAM MANAGEMENT, APPLICATION SUPPORT, AND APPLICATION DOCUMENTATION. IGF::OT::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 $25.8 million.

What is the period of performance?

Start: 2013-06-29. End: 2018-09-28.

What is CACI, Inc. - Federal's track record with the General Services Administration and similar IT support contracts?

CACI, Inc. - Federal is a well-established government contractor with a significant presence across various federal agencies, including the GSA. They have a broad portfolio encompassing IT modernization, cybersecurity, enterprise resource planning (ERP) support, and various other IT services. Their history with GSA likely includes numerous contracts, both prime and subcontract, for a wide range of IT solutions. Analyzing their past performance on similar financial system support contracts, particularly those with firm-fixed-price structures and full and open competition, would reveal their ability to deliver within budget and meet performance expectations. Publicly available data and past performance reviews, if accessible, would provide deeper insights into their reliability and expertise in this domain.

How does the $25.8 million contract value compare to other IT support contracts for financial systems within GSA or other federal agencies?

The $25.8 million contract value over approximately 5.25 years translates to an average annual value of roughly $4.9 million. This figure is moderate within the context of large federal IT procurements. GSA, being a major provider of shared IT services and procurement vehicles, manages numerous contracts of varying sizes. Contracts supporting enterprise-wide financial systems (like ERPs) can range from a few million to hundreds of millions of dollars, depending on the scope, complexity, and number of users. To benchmark effectively, one would need to compare this contract against others for similar financial information systems (e.g., Oracle, SAP implementations) within GSA or agencies like the Department of Defense or Treasury, considering factors like the number of users supported, specific modules implemented, and the duration of the support.

What are the primary risks associated with this firm-fixed-price IT support contract, and how are they mitigated?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor might cut corners on quality or service to maximize profit if not adequately monitored, especially if unforeseen technical challenges arise. For the government, the risk is receiving subpar support that impacts financial system functionality. Mitigation strategies typically involve robust performance work statements (PWS), clearly defined deliverables, stringent acceptance criteria, and regular performance reviews. GSA's oversight team would be responsible for monitoring CACI's adherence to the PWS and ensuring that the IT support meets the required standards. The contract's duration also presents a risk of potential vendor lock-in if the supported systems become highly proprietary to CACI's expertise, though this is less common in standard IT support roles.

What does the 'Computer Systems Design Services' NAICS code (541512) imply about the scope of work for this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' indicates that the contract's scope likely involves designing, developing, and integrating hardware and/or software for clients. For this specific contract supporting financial information systems, this could encompass a range of activities beyond basic maintenance. It might include system analysis, requirements gathering, system architecture design, software development or customization, system integration, and potentially project management related to these design aspects. It suggests a focus on ensuring the financial systems are well-architected, efficient, and meet the evolving needs of the GSA, rather than just routine troubleshooting or help desk functions.

Given the contract's end date in 2018, what is the likely status of the IT support services provided by CACI?

Since the contract's end date was September 28, 2018, the services provided by CACI under this specific award have concluded. The General Services Administration (GSA) would have either transitioned these services to another contract vehicle, brought the function in-house, or potentially re-competed the requirement. If the need for these specific IT support services persisted, it's probable that a follow-on contract was awarded, possibly to CACI again or to a different vendor, following a new procurement process. Without access to GSA's subsequent contract awards for this function, the exact status post-2018 remains unknown, but the original contract period has definitely expired.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID09130038

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14151 PARK MEADOW DR, 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: $25,788,044

Exercised Options: $25,786,449

Current Obligation: $25,786,189

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $207,700

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0020

IDV Type: GWAC

Timeline