DoD awards $652M for background investigation fieldwork, with CACI Inc. securing the largest portion

Contract Overview

Contract Amount: $652,382,166 ($652.4M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2026-03-31

Contract Duration: 1,126 days

Daily Burn Rate: $579.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER FOR BACKGROUND INVESTIGATION FIELDWORK SERVICES.

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $652.4 million to CACI, INC. - FEDERAL for work described as: TASK ORDER FOR BACKGROUND INVESTIGATION FIELDWORK SERVICES. Key points: 1. This contract represents a significant investment in national security personnel vetting. 2. The firm-fixed-price structure aims to control costs for the government. 3. Competition dynamics for this type of service are crucial for ensuring fair pricing. 4. Performance context is key, as the quality of investigations directly impacts security. 5. The Defense Counterintelligence and Security Agency (DCSA) is a major player in federal background checks. 6. This award falls within the broader category of investigation and personal background check services.

Value Assessment

Rating: good

The total award of $652.3 million over approximately three years suggests a substantial need for these services. Benchmarking against similar large-scale investigation contracts is difficult without more granular data on the scope and complexity of each investigation. However, the firm-fixed-price nature of the contract indicates an effort to establish predictable costs. The value proposition hinges on the efficiency and accuracy of the fieldwork conducted by CACI, Inc. - Federal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach is generally favored for ensuring the government receives competitive pricing and a wide range of potential solutions. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging innovation among contractors.

Public Impact

The primary beneficiaries are federal agencies requiring background investigations for personnel. Services delivered include essential fieldwork for vetting individuals in sensitive positions. The geographic impact is nationwide, covering the operational areas of the Department of Defense. Workforce implications include employment opportunities for investigators and support staff within CACI and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting investigation timelines.
Ensuring consistent quality and accuracy across a large volume of investigations.
Managing the scalability of fieldwork resources to meet fluctuating demand.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type helps control costs.
Long-term nature of the contract allows for contractor investment in resources and processes.

Sector Analysis

The federal sector for investigation and personal background check services is substantial, driven by national security requirements. This contract with CACI, Inc. - Federal, for $652.3 million, represents a significant portion of this market. The Defense Counterintelligence and Security Agency (DCSA) is the primary entity responsible for conducting these investigations across the government. Comparable spending benchmarks are often found within large indefinite-delivery/indefinite-quantity (IDIQ) contracts that support similar vetting needs.

Small Business Impact

While the primary awardee is CACI, Inc. - Federal, the contract's scale may present subcontracting opportunities for small businesses. Analysis of the subcontracting plan, if applicable, would reveal the extent to which small businesses are expected to participate. The government's commitment to small business utilization is a key factor in assessing the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would likely be managed by the Defense Counterintelligence and Security Agency (DCSA) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms and performance standards. Transparency is generally maintained through contract award databases, though specific performance metrics may be considered sensitive.

Related Government Programs

Federal Background Investigation Services
Personnel Security Investigations
National Security Vetting
Defense Security Service Contracts
Contracting for Investigative Services

Risk Flags

Performance Risk
Data Security Risk
Workforce Management Risk
Scope Creep Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $652.4 million to CACI, INC. - FEDERAL. TASK ORDER FOR BACKGROUND INVESTIGATION FIELDWORK 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 Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $652.4 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-03-31.

What is the historical spending pattern for background investigation fieldwork services by the Department of Defense?

Historical spending on background investigation fieldwork services by the Department of Defense has been substantial and often consolidated under large prime contracts. Agencies like the Defense Counterintelligence and Security Agency (DCSA) manage significant budgets for these operations. Prior to the current award, similar contracts were in place, often with durations of several years, reflecting the ongoing need for continuous vetting. Spending levels can fluctuate based on geopolitical events, changes in security directives, and the overall size of the federal workforce requiring clearance. Analyzing past contract awards, including their total values and durations, provides context for the current $652.3 million award to CACI, Inc. - Federal, indicating a consistent and significant federal investment in this critical area.

How does the per-investigation cost for this contract compare to industry benchmarks?

Determining the precise per-investigation cost for this contract is challenging without knowing the exact number and types of investigations to be performed. The total award of $652.3 million is for a period of approximately three years, covering 'background investigation fieldwork services.' These services can range from basic record checks to in-depth interviews and analysis. Industry benchmarks for background investigations vary widely based on the level of clearance required (e.g., Secret, Top Secret, SCI) and the complexity of the investigation. However, given the scale and the firm-fixed-price nature, the government likely negotiated rates that aim for efficiency. Without specific task order details or a breakdown of investigation types, a direct comparison to industry averages is speculative, but the large contract value suggests a focus on high-volume, standardized processes.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

Key performance indicators (KPIs) for background investigation fieldwork services typically revolve around timeliness, accuracy, and completeness of investigations. For this contract, the Defense Counterintelligence and Security Agency (DCSA) would likely monitor metrics such as the average time to complete an investigation, the rate of investigations requiring rework due to errors or omissions, and adherence to established investigative procedures. Performance monitoring would involve regular reviews of contractor reports, quality assurance checks, and potentially site visits. Contractual clauses would specify remedies for failing to meet performance standards, which could include financial penalties or even termination. The firm-fixed-price structure incentivizes the contractor to meet these KPIs efficiently.

What is CACI, Inc. - Federal's track record in providing similar investigation services to the government?

CACI, Inc. - Federal has a substantial track record in providing a wide array of services to the U.S. government, including IT, intelligence, and support services. Within the realm of security and investigations, CACI has historically been involved in various aspects of personnel vetting and background checks. Their experience often includes supporting defense and intelligence agencies with complex requirements. While specific details of past contracts for background investigation fieldwork may vary, CACI's established presence and broad capabilities suggest they possess the infrastructure and expertise necessary to manage a contract of this magnitude. Government contract databases and past performance reviews would offer more granular insights into their specific successes and challenges in this domain.

What are the potential risks associated with a contract of this size and scope for background investigations?

Potential risks associated with a contract of this size and scope include contractor performance failures, such as delays in completing investigations, which could impact national security operations and personnel readiness. Ensuring the consistent quality and accuracy of a high volume of investigations across diverse geographic locations presents a significant challenge. There's also a risk of data breaches or mishandling of sensitive personal information. Furthermore, managing the workforce of investigators, ensuring proper training, and maintaining morale are critical operational risks. The government also faces risks related to cost overruns if the scope of work expands beyond initial projections or if unforeseen complexities arise, despite the firm-fixed-price structure.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $652,382,166

Exercised Options: $652,382,166

Current Obligation: $652,382,166

Actual Outlays: $86,825,505

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $239,022,034

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HS002123D0002

IDV Type: IDC

Timeline