DoD's $37.4M C2S3 contract awarded to CACI for custom programming services

Contract Overview

Contract Amount: $37,433,329 ($37.4M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-26

End Date: 2019-11-14

Contract Duration: 1,875 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF AWARD OF SSESR 2019 TOR FOR COMMAND AND CONTROL SOFTWARE SUPPORT SERVICES (C2S3)

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $37.4 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF AWARD OF SSESR 2019 TOR FOR COMMAND AND CONTROL SOFTWARE SUPPORT SERVICES (C2S3) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is 1875 days, indicating a long-term need for these services. 4. The contract was awarded as a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract was awarded to CACI Technologies, LLC, a known entity in the federal contracting space.

Value Assessment

Rating: fair

Benchmarking the value of this $37.4 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the government pays the contractor's allowable costs plus a fixed fee. This structure can incentivize cost increases if not rigorously overseen. Without details on the specific services delivered and their effectiveness, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bids suggests a reasonable level of competition for this requirement. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value.

Taxpayer Impact: Taxpayers benefit from a competitive process as it is intended to drive down costs and ensure the government receives the best possible services for the allocated funds.

Public Impact

The primary beneficiaries are the Department of the Army, which receives Command and Control Software Support Services (C2S3). The services delivered are custom computer programming, crucial for maintaining and enhancing command and control systems. The contract is managed by the Department of Defense, indicating a national-level impact on military operations. While specific workforce implications are not detailed, such contracts typically support skilled IT professionals and software developers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed effectively.
Lack of specific performance metrics makes it difficult to assess the true value delivered.
Long contract duration (1875 days) requires sustained oversight to ensure continued relevance and efficiency.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Multiple bids (6) suggest a competitive market for these services.
Contract awarded to a known entity, CACI Technologies, LLC, which may imply a level of established capability.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The federal IT services market is substantial, with significant spending on software development, maintenance, and support. Contracts like this are essential for modernizing and maintaining critical defense systems. Benchmarking against similar custom programming contracts would require access to detailed service descriptions and pricing structures.

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 for small businesses stemming from a set-aside provision. However, the prime contractor, CACI Technologies, LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure accountability. Transparency is generally facilitated through contract award databases, but detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Command and Control Systems
Software Development Services
Department of Defense IT Procurement
Custom Computer Programming

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited public data on specific performance metrics hinders comprehensive value assessment.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF AWARD OF SSESR 2019 TOR FOR COMMAND AND CONTROL SOFTWARE SUPPORT SERVICES (C2S3)

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $37.4 million.

What is the period of performance?

Start: 2014-09-26. End: 2019-11-14.

What is the track record of CACI Technologies, LLC in delivering similar Command and Control Software Support Services?

CACI Technologies, LLC is a well-established federal contractor with a significant presence in IT services, including software development and support for defense agencies. While specific details on their performance for this particular C2S3 contract are not provided in the summary data, CACI has a history of performing large-scale IT contracts for the Department of Defense and other government entities. Their broader portfolio includes areas like C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems, which are closely related to Command and Control. A deeper dive into past performance evaluations and contract close-out reports for CACI on similar DoD contracts would provide a more precise assessment of their track record.

How does the awarded amount of $37.4 million compare to similar Command and Control Software Support Services contracts?

Comparing the $37.4 million award for C2S3 to similar contracts requires identifying contracts with comparable scope, duration, and service complexity within the Command and Control domain. The provided data indicates a 1875-day duration (approximately 5 years), suggesting a substantial, long-term requirement. Without access to a database of comparable contracts with detailed service descriptions and pricing, a direct benchmark is difficult. However, given the critical nature of C2 systems in defense, such funding levels are not uncommon for comprehensive support and development services. The Cost Plus Fixed Fee (CPFF) nature of the contract also means the final cost could vary, making direct comparisons with fixed-price contracts less straightforward.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for software support services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded for C2S3, is the potential for cost overruns. In a CPFF structure, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee. This can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the total cost. Effective risk mitigation requires robust government oversight, including detailed cost monitoring, audits, and clear definitions of allowable costs. Scope creep, where the project's requirements expand beyond the initial agreement without corresponding adjustments to the fee or schedule, is another significant risk that needs careful management.

What is the expected effectiveness or program outcome of the Command and Control Software Support Services (C2S3)?

The expected effectiveness of the C2S3 contract is to ensure the reliable operation, maintenance, and potential enhancement of critical Command and Control software systems for the Department of the Army. Effective C2 systems are vital for military decision-making, situational awareness, and operational coordination. The program's success would be measured by the software's uptime, responsiveness, security posture, and its ability to support evolving mission requirements. Without specific performance metrics outlined in the award data, assessing the program's effectiveness relies on the assumption that the chosen contractor, CACI, will deliver services that meet the Army's operational needs and security standards.

How has federal spending on custom computer programming services (NAICS 541511) trended over the past five years?

Federal spending on custom computer programming services (NAICS 541511) has generally shown a consistent upward trend over the past five years, reflecting the increasing reliance of government agencies on tailored software solutions to meet unique operational requirements. Agencies across defense, civilian, and intelligence sectors continue to invest in modernizing legacy systems, developing new applications, and integrating complex IT infrastructures. Factors driving this trend include digital transformation initiatives, cybersecurity needs, and the demand for advanced data analytics and AI capabilities. While specific year-over-year figures fluctuate based on agency budgets and priorities, the overall trajectory indicates sustained and significant federal investment in this service category.

Industry Classification

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

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

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: $49,034,548

Exercised Options: $37,909,065

Current Obligation: $37,433,329

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $435,756

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T12DE010

IDV Type: IDC

Timeline