CACI INC - FEDERAL awarded $17.78M for Computer Systems Design Services, a Time and Materials contract

Contract Overview

Contract Amount: $17,773,994 ($17.8M)

Contractor: CACI Inc - Federal

Awarding Agency: Department of Defense

Start Date: 2006-08-21

End Date: 2015-11-23

Contract Duration: 3,381 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 51

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to CACI INC - FEDERAL for work described as: IT SERVICES Key points: 1. Contract value of $17.78M over 9+ years suggests a significant, long-term engagement. 2. Time and Materials pricing can pose risks if not closely managed, potentially leading to cost overruns. 3. The contract was awarded under full and open competition, indicating a competitive bidding process. 4. The Defense Information Systems Agency (DISA) is the awarding agency, highlighting its role in IT infrastructure. 5. This contract falls under Computer Systems Design Services, a common category for IT support. 6. The duration of over 9 years (3381 days) is substantial for an IT services contract.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure warrants careful monitoring. While T&M can offer flexibility, it lacks the cost certainty of fixed-price contracts. Benchmarking against similar DISA IT services contracts would be necessary to fully assess value for money. The sheer duration of the contract (over 9 years) also suggests a need for robust performance management to ensure continued value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. This typically leads to a more robust price discovery process and potentially better pricing for the government compared to sole-source or limited competition contracts. The number of offers (51) indicates a healthy level of interest and competition for this requirement.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down costs through market forces and encouraging multiple vendors to offer their best pricing.

Public Impact

The Department of Defense benefits from essential computer systems design and support services. This contract likely supports critical IT infrastructure and operations within the military. The geographic impact is primarily within the United States, supporting DoD facilities. Workforce implications include employment for IT professionals and support staff within CACI and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to uncontrolled cost growth if not diligently managed and monitored.
The extended duration of the contract (over 9 years) increases the risk of scope creep and potential for outdated technology if not actively managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's actual performance and value delivery.
The absence of small business subcontracting information raises questions about opportunities for smaller firms in this large contract.

Positive Signals

Awarded under full and open competition with 51 offers, indicating a strong competitive environment.
The contract is with CACI INC - FEDERAL, a known entity in federal IT services, suggesting a degree of established capability.
The contract supports the Defense Information Systems Agency (DISA), a critical agency for DoD IT, implying alignment with essential defense needs.

Sector Analysis

This contract falls within the IT Services sector, specifically Computer Systems Design Services. The federal IT services market is vast, with agencies like the Department of Defense being major spenders. Contracts of this nature are crucial for maintaining and upgrading complex defense information systems. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by DISA or similar defense agencies over similar timeframes.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct set-aside benefits for small businesses. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors, depending on CACI's subcontracting plan and the specific nature of the services required. 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 the program management office within the Defense Information Systems Agency (DISA). Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Department of Defense Computer Systems Design Services
Time and Materials IT Contracts
Federal IT Services Procurement
Large-Scale Defense IT Infrastructure

Risk Flags

Time and Materials Pricing Risk
Long Contract Duration
Potential for Scope Creep
Need for Robust Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to CACI INC - FEDERAL. IT SERVICES

Who is the contractor on this award?

The obligated recipient is CACI INC - FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2006-08-21. End: 2015-11-23.

What is CACI INC - FEDERAL's track record with the Department of Defense and DISA for similar IT services contracts?

CACI INC - FEDERAL has a substantial history of contracting with the Department of Defense (DoD) and its various agencies, including the Defense Information Systems Agency (DISA). They are a well-established federal contractor specializing in IT modernization, cybersecurity, and enterprise IT services. Reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for similar contracts would provide insight into their reliability, quality of service, and adherence to schedules and budgets. Historical data on contract awards and task orders issued to CACI by DISA would reveal the breadth and depth of their engagement in supporting defense IT infrastructure, indicating their experience and capability in managing complex, long-term IT service requirements.

How does the $17.78M contract value compare to other DISA computer systems design service contracts awarded around the same period?

The $17.78 million contract value for computer systems design services awarded to CACI INC - FEDERAL is a moderate-sized award within the context of the Defense Information Systems Agency's (DISA) overall IT spending. DISA frequently awards larger, multi-year contracts for enterprise IT services, network operations, and systems integration that can range from tens to hundreds of millions of dollars. To benchmark this specific contract, one would compare its value against other 'Computer Systems Design Services' (NAICS 541512) awards by DISA with similar durations (over 9 years) and contract types (Time and Materials). If other comparable contracts were significantly larger or smaller, it would provide context for whether this award represents a typical investment for the scope of services provided or if it deviates notably from the norm.

What are the primary risks associated with the Time and Materials (T&M) contract type for this $17.78M award?

The primary risk with a Time and Materials (T&M) contract, such as this $17.78M award, is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to higher overall costs for the government if labor hours are not efficiently utilized or if project scope expands without adequate controls. Effective oversight, including detailed tracking of labor hours, review of material costs, and robust change management processes, is crucial to mitigate these risks. Without stringent management, T&M contracts can exceed initial cost estimates, diminishing the overall value for money.

Given the 9+ year duration, how can the government ensure the technology and services remain relevant and effective?

Ensuring relevance and effectiveness over a 9+ year contract duration requires proactive contract management and strategic planning. The government should implement mechanisms for regular technology refresh cycles and performance reviews. This includes incorporating clauses that allow for adaptation to evolving technological landscapes and cybersecurity threats. Key performance indicators (KPIs) should be established and rigorously monitored to ensure the contractor is delivering services that meet current and future operational needs. Furthermore, periodic re-competition or contract modifications, based on market research and evolving requirements, can help ensure the government is leveraging the most current and cost-effective solutions available throughout the contract's life.

What does the high number of offers (51) suggest about the market for these types of IT services within the federal government?

The fact that 51 offers were received for this contract strongly indicates a robust and competitive market for Computer Systems Design Services within the federal government, particularly for agencies like the Department of Defense. This high level of interest suggests that numerous companies possess the capabilities and are actively seeking opportunities to contract with defense agencies. It implies that the government has a wide pool of potential vendors to choose from, which generally leads to better pricing, innovation, and service quality due to competitive pressures. This also suggests that barriers to entry for qualified IT service providers in the federal space may not be excessively high, fostering a dynamic vendor ecosystem.

How does this contract fit into the broader IT spending landscape of the Department of Defense?

This $17.78 million contract for Computer Systems Design Services represents a component of the Department of Defense's (DoD) vast and complex IT spending. The DoD's annual IT budget runs into the tens of billions of dollars, encompassing everything from enterprise resource planning systems and cybersecurity to tactical communications and cloud computing. Contracts like this one, focused on specific design and support services, contribute to the overall operational readiness and technological advancement of military forces. Its significance lies in supporting critical infrastructure managed by DISA, which underpins many DoD operations. While not a flagship program, it is indicative of the ongoing need for specialized IT expertise to maintain and evolve defense systems.

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

Offers Received: 51

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 1100 N. GLEBE RD, ARLINGTON, VA, 22201

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,773,994

Exercised Options: $17,773,994

Current Obligation: $17,773,994

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07T00BGD0021

IDV Type: GWAC

Timeline