DoD awards $16.9M contract for business application support services to CACI, Inc

Contract Overview

Contract Amount: $16,915,986 ($16.9M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2024-03-01

End Date: 2026-02-28

Contract Duration: 729 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BUSINESS APPLICATION SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to CACI, INC. - FEDERAL for work described as: BUSINESS APPLICATION SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is 729 days, indicating a medium-term engagement. 3. Services fall under Computer Systems Design Services, a common IT support category. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. Awarded by Washington Headquarters Services, a key administrative body within the DoD. 6. CACI, Inc. - Federal is the prime contractor, a known entity in federal IT services.

Value Assessment

Rating: good

The contract value of $16.9 million over two years for business application support services appears reasonable within the context of federal IT contracts. Benchmarking against similar IT support contracts for large federal agencies suggests that this pricing is competitive. The Firm Fixed Price structure provides cost certainty for the government, indicating good value if performance objectives are met. Further analysis would require detailed scope of work and comparison to specific service level agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The government likely received multiple proposals, allowing for a thorough evaluation of technical capabilities and pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to better pricing and service quality by leveraging market forces. This ensures that government funds are used efficiently by selecting the most cost-effective and capable solution.

Public Impact

The Department of Defense benefits from enhanced business application support, crucial for operational efficiency. Federal employees within the DoD will likely experience improved IT services and system reliability. The contract supports IT infrastructure and services primarily within the Washington D.C. metropolitan area. This contract sustains jobs within the IT services sector, particularly for CACI, Inc. - Federal employees and potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical business application support could pose a risk.
Ensuring CACI, Inc. - Federal maintains adequate staffing levels and expertise throughout the contract term.

Positive Signals

Firm Fixed Price contract structure provides cost predictability for the government.
Award to an established federal contractor like CACI, Inc. - Federal suggests a degree of reliability.
Full and open competition indicates a robust selection process, likely yielding a strong offer.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to system design, integration, and support. This contract for business application support services fits within the broader category of IT professional services, which includes areas like custom software development, IT management consulting, and cloud services. The Department of Defense is a major consumer of these services, often awarding large, multi-year contracts to support its complex technological infrastructure. Spending benchmarks for similar IT support contracts within large federal agencies typically range from tens to hundreds of millions of dollars annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. While CACI, Inc. - Federal is a large business, there may be opportunities for small businesses to participate as subcontractors. The prime contractor's subcontracting plan, if applicable, would detail their commitment to engaging small businesses. Without specific subcontracting goals, the direct impact on the small business ecosystem is limited, though indirect benefits through the supply chain are possible.

Oversight & Accountability

Oversight for this contract will likely be managed by the Washington Headquarters Services contracting office and relevant program managers within the Department of Defense. Performance will be monitored against the contract's deliverables and service level agreements. The Firm Fixed Price nature of the contract means that financial oversight will focus on ensuring the contractor meets performance standards without exceeding the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are internal to the agency.

Related Government Programs

Department of Defense IT Support Services
Washington Headquarters Services Contracts
Computer Systems Design Services
Federal Application Development and Maintenance

Risk Flags

Contractor performance risk
Scope definition and management risk
Technical obsolescence risk
Key personnel dependency risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to CACI, INC. - FEDERAL. BUSINESS APPLICATION SUPPORT 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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2024-03-01. End: 2026-02-28.

What is CACI, Inc. - Federal's track record with similar Department of Defense contracts?

CACI, Inc. - Federal has a substantial track record with the Department of Defense, frequently securing contracts for a wide array of IT services, including systems integration, software development, cybersecurity, and enterprise IT support. They are a well-established prime contractor known for handling large-scale federal IT programs. Their history with the DoD includes numerous awards across different branches and agencies, demonstrating a capacity to meet complex requirements. While specific performance metrics for past contracts are not publicly detailed in this summary, their continued success in winning competitive bids suggests a generally positive performance history and strong client relationships within the DoD.

How does the $16.9 million value compare to other business application support contracts within the DoD?

The $16.9 million value for this two-year contract for business application support services is moderate when compared to the vast landscape of DoD IT spending. Large federal agencies, particularly the DoD, often award contracts for similar services that can range from tens of millions to hundreds of millions of dollars over multiple years. This specific award appears to be for a defined scope of support, possibly for a specific set of applications or a particular directorate within Washington Headquarters Services. It is not an exceptionally large award in the context of overall DoD IT budgets, suggesting it is targeted and potentially cost-effective for the services rendered.

What are the primary risks associated with this contract?

Key risks include potential over-reliance on CACI, Inc. - Federal for critical business application support, which could create vulnerabilities if the contractor faces performance issues or financial instability. Scope creep is another common risk in IT service contracts; if the requirements are not meticulously defined and managed, the project's cost and timeline could expand beyond the initial agreement. Ensuring the contractor maintains adequate staffing with the necessary technical expertise throughout the contract's duration is also crucial. Finally, the effectiveness of the business applications themselves and their integration with other DoD systems present inherent operational risks that the contractor's support aims to mitigate.

How effective is the Firm Fixed Price (FFP) contract type for ensuring program effectiveness?

The Firm Fixed Price (FFP) contract type is generally effective for ensuring program effectiveness when the scope of work is well-defined and unlikely to change significantly. It incentivizes the contractor to control costs and manage resources efficiently to maximize profit, which can lead to timely delivery and adherence to specifications. For the government, FFP provides budget certainty. However, if requirements evolve or unforeseen technical challenges arise, the rigidity of FFP can sometimes hinder flexibility and potentially lead to disputes or workarounds that might compromise optimal solutions. In this case, for business application support, FFP is suitable if the maintenance and enhancement tasks are clearly delineated.

What are the historical spending patterns for business application support services within Washington Headquarters Services?

Historical spending patterns for business application support services within Washington Headquarters Services (WHS) are not detailed in the provided data. However, WHS, as a central administrative entity for the DoD, consistently requires robust IT support to manage its diverse business operations, including personnel, financial, and logistical systems. Spending in this area typically reflects the complexity and scale of the applications supported, as well as the number of users. Agencies like WHS often engage in multi-year contracts for such services, with annual expenditures fluctuating based on modernization efforts, system upgrades, and evolving operational needs. It is reasonable to assume consistent, significant investment in this area to maintain critical government functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: HQ003424R0031

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: $43,400,923

Exercised Options: $16,915,986

Current Obligation: $16,915,986

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,834,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0009

IDV Type: GWAC

Timeline