DoD's $43.9M IT contract for CACI Inc. shows strong competition and fair value, with a 51-bidder pool

Contract Overview

Contract Amount: $43,884,048 ($43.9M)

Contractor: CACI Inc - Federal

Awarding Agency: Department of Defense

Start Date: 2006-05-17

End Date: 2012-01-26

Contract Duration: 2,080 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 51

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: 200608!600456!9700!HC1047!DISA, NATIONAL CAPITAL REGION !GS07T00BGD0058 !C!N! !N!HC104706F4150! !20060517!20070516!114896066!094107844!045534641!N!CACI, INC - FEDERAL !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000002891675!N!N!000000000000!7030!ADP SOFTWARE !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!A!20100629!B!A!Y!B! !A! !R! !001!F! !A! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !B!N! ! ! ! !9700!HC1046!0001! !

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $43.9 million to CACI INC - FEDERAL for work described as: 200608!600456!9700!HC1047!DISA, NATIONAL CAPITAL REGION !GS07T00BGD0058 !C!N! !N!HC104706F4150! !20060517!20070516!114896066!094107844!045534641!N!CACI, INC - FEDERAL !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIR… Key points: 1. The contract was awarded under full and open competition, indicating a robust bidding process. 2. A large number of bidders (51) suggests significant market interest and potential for competitive pricing. 3. The contract type (Cost Plus Award Fee) can incentivize performance but requires careful oversight. 4. The period of performance spans over 7 years, suggesting a long-term need for these IT services. 5. The contractor, CACI Inc. - Federal, has a significant presence in the federal IT services market. 6. The contract's value is substantial, reflecting the critical nature of the IT services provided.

Value Assessment

Rating: good

The contract's total value of $43.9 million over its extended period of performance (original end date 2007-05-16, extended to 2012-01-26) suggests a moderate investment for IT services. Benchmarking against similar large-scale IT support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the high number of bids received (51) typically drives down prices, implying a potentially competitive and fair price was achieved.

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 solicitation attracted a significant number of bidders (51), which is a strong indicator of a healthy competitive environment. A large bidder pool generally leads to better price discovery and allows the government to select the offer that provides the best overall value, considering both technical approach and cost.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in more favorable pricing than a sole-source or limited competition award. The government was able to leverage market forces to secure these IT services at a competitive rate.

Public Impact

The primary beneficiaries are likely military personnel and DoD operations that rely on the IT systems and services supported by this contract. Services delivered include computer systems design and related services, crucial for maintaining and enhancing DoD's technological infrastructure. The geographic impact is primarily within the Department of Defense, supporting its national mission. Workforce implications include employment opportunities for IT professionals within CACI Inc. - Federal and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require diligent oversight to ensure costs are reasonable and award fees are justified.
The extended performance period could lead to scope creep if not managed effectively.
Reliance on a single contractor for an extended period may reduce future competitive opportunities if not carefully planned.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential providers.
A high number of bidders (51) indicates strong market interest and competitive pressure.
The contractor, CACI Inc. - Federal, is an established player in the federal IT services sector.
The contract supports critical IT infrastructure for the Department of Defense.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The federal IT services market is vast and highly competitive, with numerous large and small businesses vying for government contracts. Spending in this category is consistently high as agencies modernize systems and maintain cybersecurity. This contract represents a significant, albeit specific, portion of the DoD's overall IT expenditure, supporting core operational capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated by a small business set-aside. However, as a large prime contractor, CACI Inc. - Federal may engage small businesses as subcontractors to fulfill portions of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (Defense Logistics Agency) and potentially the Department of Defense's Inspector General. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and financial auditing to ensure costs are justified and award fees are earned appropriately. Transparency is generally maintained through contract reporting mechanisms and public contract databases.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Federal Civilian IT Services
IT Support Services
Computer Systems Design Services

Risk Flags

Contract duration significantly exceeds typical IT service contracts, requiring careful monitoring of extensions and scope.
Cost Plus Award Fee structure necessitates stringent oversight to manage costs and ensure performance targets are met.
Potential for contractor lock-in due to long performance period and specialized services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.9 million to CACI INC - FEDERAL. 200608!600456!9700!HC1047!DISA, NATIONAL CAPITAL REGION !GS07T00BGD0058 !C!N! !N!HC104706F4150! !20060517!20070516!114896066!094107844!045534641!N!CACI, INC - FEDERAL !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000002891675!N!N!000000000000!7030!ADP SOFTWARE !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!A!201

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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $43.9 million.

What is the period of performance?

Start: 2006-05-17. End: 2012-01-26.

What is the track record of CACI Inc. - Federal with similar IT services contracts within the DoD?

CACI Inc. - Federal is a well-established government contractor with a long history of providing IT and professional services to the Department of Defense and other federal agencies. They frequently win large, complex contracts related to IT modernization, systems integration, cybersecurity, and enterprise IT support. Their track record includes numerous awards across various DoD components, often in competitive procurements. While specific performance metrics for past contracts are not detailed here, their continued success in winning significant awards suggests a generally positive performance history and strong capabilities in meeting DoD requirements. Further analysis would involve examining past performance evaluations and any documented issues on prior contracts.

How does the awarded value compare to the initial estimated value or ceiling, if available?

The provided data shows an 'awarded value' (a) of $43,884,048.27. The data does not explicitly state an initial estimated value or a contract ceiling separate from the awarded amount. However, the contract duration (dur) is 2080 months, which is approximately 173 years, indicating a potential discrepancy or a very long-term base contract with options. Assuming the 'awarded value' represents the total obligated amount or the value of the exercised contract period, it's difficult to compare to an initial estimate without more data. Typically, contracts have a base period and option periods, with funding incrementally obligated. The 'awarded value' likely reflects the total funding obligated to date or the value of the exercised contract period, which could be less than a potential ceiling.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for these IT services?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract structure revolve around cost control and performance measurement. For the government, there's a risk that costs could escalate beyond initial expectations, as the contractor is reimbursed for allowable costs plus an award fee based on performance. This necessitates robust oversight to ensure costs are reasonable and allocable, and that the performance criteria for the award fee are clearly defined, objective, and rigorously evaluated. For the contractor, the risk lies in not meeting the performance targets, which would result in a lower or zero award fee, impacting their profit margin. Effective management and clear communication are crucial to mitigate these risks and ensure the contract delivers value.

What is the historical spending trend for similar Computer Systems Design Services (NAICS 541512) within the DoD?

Historical spending on NAICS code 541512 (Computer Systems Design Services) within the Department of Defense is substantial and generally trends upwards, reflecting the continuous need for IT modernization, cybersecurity enhancements, and system integration. The DoD is one of the largest federal buyers of these services. While specific annual figures for DoD alone are not provided in this dataset, broader federal spending data indicates billions of dollars are allocated annually to this category across various agencies. Factors influencing this spending include evolving technological landscapes, national security requirements, and the lifecycle management of complex defense systems. This contract, valued at approximately $43.9 million, represents a segment of that larger, consistent demand.

How does the number of bidders (51) impact the potential for innovation and service quality?

A large number of bidders, such as the 51 received for this contract, generally fosters a competitive environment that can spur innovation and drive higher service quality. When faced with numerous competitors, companies are incentivized to differentiate themselves not only on price but also on the technical merit, innovative approaches, and overall quality of their proposed solutions. This intense competition can lead to the government receiving a wider array of sophisticated technical proposals and potentially selecting a contractor who offers a more advanced or efficient solution. Furthermore, the pressure to win and retain such a significant contract encourages contractors to maintain high service standards throughout the performance period.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 51

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 1100 N. GLEBE RD, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $80,267,613

Exercised Options: $53,565,197

Current Obligation: $43,884,048

Parent Contract

Parent Award PIID: GS07T00BGD0058

IDV Type: GWAC

Timeline