CACI awarded $67.8M for Comptroller Mission System Support, with a significant portion allocated to labor hours

Contract Overview

Contract Amount: $67,866,907 ($67.9M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2020-08-16

End Date: 2025-06-15

Contract Duration: 1,764 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: COMPTROLLER MISSION SYSTEM SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $67.9 million to CACI, INC. - FEDERAL for work described as: COMPTROLLER MISSION SYSTEM SUPPORT Key points: 1. Value for money is assessed through comparison with similar IT support contracts. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include the contract's duration and reliance on labor hours. 4. Performance context is framed by the need for ongoing IT system support. 5. Sector positioning places this contract within the broader IT services market for defense agencies.

Value Assessment

Rating: fair

The contract's value of $67.8 million over its period of performance appears within a reasonable range for complex IT system support. However, without specific benchmarks for Comptroller Mission System support, a precise value-for-money assessment is challenging. The reliance on labor hours (NAICS 541512) means that cost escalation is a potential risk if not managed effectively through oversight and defined task orders. Benchmarking against similar large-scale IT support contracts for defense agencies would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of a single award for a delivery order suggests that while the initial competition was broad, the subsequent award was made to one entity. The level of competition at the initial stage is positive for price discovery, but the specifics of the bidding process and the number of proposals received are not detailed here.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. It ensures that the government explores a wide range of potential solutions and contractors, maximizing the chances of securing the best value.

Public Impact

The Department of Defense, specifically the Defense Finance and Accounting Service, is the primary beneficiary of these IT support services. The contract ensures the continued operation and support of critical financial and accounting systems for military personnel and operations. Services delivered are essential for maintaining the integrity and functionality of the Comptroller Mission System. The geographic impact is primarily within the Department of Defense's operational footprint, supporting its financial management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to reliance on labor hours without strict controls.
Contract duration of nearly five years could lead to vendor lock-in if not managed proactively.
Scope creep is a risk in long-term IT support contracts if not clearly defined and monitored.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract supports critical defense financial systems, indicating a high level of importance.
Long-term contract provides stability for essential IT services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services (NAICS 541512). The market for defense IT support is substantial, driven by the complex and critical nature of military operations. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by the Department of Defense to similar system integrators, considering factors like system complexity, user base, and service level agreements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to CACI, Inc. - Federal, it is unlikely to involve significant subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The absence of small business set-asides means the direct impact on the small business IT ecosystem for this specific award is minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Finance and Accounting Service. Accountability measures would be tied to performance metrics outlined in the contract's statement of work and delivery orders. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Financial Management Systems
IT Support Services
Computer Systems Design Services
Department of Defense IT Modernization

Risk Flags

Reliance on labor hours can lead to cost uncertainty.
Long contract duration may present challenges for future flexibility.
Potential for scope creep in complex IT support systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.9 million to CACI, INC. - FEDERAL. COMPTROLLER MISSION SYSTEM SUPPORT

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 Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $67.9 million.

What is the period of performance?

Start: 2020-08-16. End: 2025-06-15.

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

CACI, Inc. - Federal has a substantial history of performing IT support and systems integration services for the Department of Defense. They are a major contractor across various defense agencies, often handling complex systems like financial management, logistics, and intelligence platforms. Their track record includes numerous large-scale contracts, some of which have faced scrutiny regarding cost, performance, or contract modifications. Analyzing their past performance on contracts with similar scope, duration, and complexity, particularly those involving financial systems, would provide context for their capability and potential risks associated with this Comptroller Mission System Support contract. Specific performance metrics and any past issues or successes on comparable DoD contracts would be crucial for a comprehensive assessment.

How does the $67.8 million value compare to similar IT system support contracts within the DoD?

The $67.8 million contract value for Comptroller Mission System Support is a significant but not extraordinary figure for large-scale IT services within the Department of Defense. The DoD procures billions of dollars in IT services annually, with many contracts for system design, integration, and support exceeding this amount. To benchmark effectively, one would compare this contract to others awarded for similar functions (e.g., financial systems support, enterprise resource planning maintenance) to agencies of comparable size and complexity. Factors such as the number of users supported, the criticality of the system, the scope of services (e.g., development, maintenance, help desk), and the contract duration (1764 days, approximately 4.8 years) are key comparison points. Without access to a detailed database of comparable contracts and their specific performance metrics, it's difficult to definitively state if $67.8 million represents excellent, fair, or questionable value, but it aligns with the scale of major IT service contracts in the defense sector.

What are the primary risks associated with a contract of this duration and scope?

The primary risks associated with a contract of this duration (nearly five years) and scope (Comptroller Mission System Support) include potential cost overruns, scope creep, and vendor lock-in. Reliance on labor hours, as indicated by the contract type (PT: LABOR HOURS), can lead to escalating costs if not meticulously managed through strong oversight, defined task orders, and competitive pricing adjustments. Scope creep, where the requirements expand beyond the original agreement, is a common risk in long-term IT projects and can inflate costs and delay timelines. Vendor lock-in is another concern; as CACI, Inc. - Federal becomes deeply integrated with the Comptroller Mission System, it can become difficult and costly for the government to transition to a different provider in the future. Ensuring robust contract management, clear performance metrics, and regular reviews are crucial to mitigate these risks.

How effective is 'full and open competition' in ensuring value for taxpayer money in IT support contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in IT support contracts. By allowing all eligible responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids that drive down prices and improve service quality. This process encourages innovation as contractors strive to differentiate their offerings. However, the effectiveness is contingent on the clarity of the solicitation, the fairness of the evaluation process, and the government's ability to accurately define its needs. For complex IT systems, defining requirements precisely can be challenging, and even with full competition, a poorly defined scope can lead to suboptimal outcomes or cost overruns. Therefore, while full and open competition provides the best framework, diligent contract management and clear requirements are essential complements to ensure true value.

What are the implications of this contract being awarded as a Delivery Order under a larger contract vehicle?

The data indicates this is a 'Delivery Order' (AW: DELIVERY ORDER), which implies it was awarded under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or similar multiple-award contract vehicle. The implications are that the initial competition likely occurred when the parent IDIQ contract was awarded, establishing the terms, conditions, and potentially pricing structures. This specific delivery order then represents a tasking of services under that established framework. While the parent contract may have undergone full and open competition, the award of individual delivery orders might be subject to different competitive procedures (e.g., fair opportunity to compete among awardees of the IDIQ). This approach can streamline procurement for follow-on work but requires careful management to ensure that competition at the delivery order level remains robust and that the government continues to receive best value.

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: HQ042320Q5000

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $67,866,907

Exercised Options: $67,866,907

Current Obligation: $67,866,907

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $196,592

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