DoD awards $60M+ CACI contract for custom computer programming, raising value and competition questions
Contract Overview
Contract Amount: $60,079,825 ($60.1M)
Contractor: CACI Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2014-09-30
End Date: 2017-01-07
Contract Duration: 830 days
Daily Burn Rate: $72.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $60.1 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF Key points: 1. Contract value exceeds $60 million, indicating significant investment. 2. Competition method is 'FULL AND OPEN COMPETITION', suggesting a robust market. 3. Risk assessment is needed due to the 'COST PLUS FIXED FEE' contract type. 4. Spending falls within the IT sector, specifically custom programming services.
Value Assessment
Rating: fair
The contract value of over $60 million for custom computer programming services appears substantial. Benchmarking against similar contracts for 'Custom Computer Programming Services' (NAICS 541511) is crucial to determine if the pricing is competitive, especially given the 'COST PLUS FIXED FEE' structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION', which typically allows for the widest possible range of bidders and promotes price discovery. However, the 'COST PLUS FIXED FEE' (CPFF) pricing structure can sometimes lead to less aggressive bidding compared to fixed-price contracts.
Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, the CPFF structure warrants scrutiny to ensure costs are managed effectively and do not inflate the final price.
Public Impact
Significant taxpayer funds allocated for IT services. Potential for cost overruns due to CPFF contract type. Impact on the IT services market and competition. Ensuring effective delivery of custom programming solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing structure
- Long contract duration (830 days)
- Potential for scope creep in custom programming
Positive Signals
- Full and open competition
- Experienced contractor (CACI TECHNOLOGIES, LLC)
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services. Spending in this area is common across government agencies, but benchmarks for similar custom development projects are essential for evaluating cost-effectiveness.
Small Business Impact
The data does not indicate whether small businesses were involved in the subcontracting opportunities for this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight is critical for CPFF contracts to ensure costs are reasonable and allocable. The Department of Defense and Department of the Army should have mechanisms in place to monitor expenditures and contractor performance throughout the contract lifecycle.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee pricing
- Potential for cost overruns
- Lack of specific performance metrics in provided data
- Unclear small business participation
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.1 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF
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 $60.1 million.
What is the period of performance?
Start: 2014-09-30. End: 2017-01-07.
What was the total cost incurred versus the estimated cost for this contract, and how does it compare to similar CPFF contracts?
Without access to the final incurred costs and detailed breakdowns, it's difficult to definitively assess the value. However, the 'COST PLUS FIXED FEE' structure inherently carries a risk of costs exceeding initial estimates. Comparing the final cost to benchmarks for similar custom programming projects awarded under CPFF would provide a clearer picture of its cost-effectiveness and whether it represented good value for the taxpayer.
What specific risks were identified during the 'FULL AND OPEN COMPETITION' process that might have led to the CPFF structure, and how were they mitigated?
The CPFF structure is often used when the scope of work is not fully defined or when there's uncertainty about the costs involved, common in custom development. During a full and open competition, potential bidders might have highlighted these uncertainties, leading the agency to opt for a CPFF to ensure they could secure the necessary expertise while managing risk. Mitigation would involve robust oversight, clear performance metrics, and regular cost reviews.
How effectively did CACI TECHNOLOGIES, LLC deliver the custom computer programming services, and did the delivered solutions meet the Department of the Army's requirements?
Effectiveness is best measured by the successful deployment and utilization of the custom programming solutions developed under this contract. Key performance indicators (KPIs) related to functionality, reliability, user satisfaction, and achievement of the Army's intended objectives would be crucial. Without performance reports or user feedback, assessing the true effectiveness of the delivered services remains speculative.
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: 3
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: $90,259,934
Exercised Options: $60,899,653
Current Obligation: $60,079,825
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $334,819
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
Start Date: 2014-09-30
Current End Date: 2017-01-07
Potential End Date: 2017-01-07 00:00:00
Last Modified: 2025-04-24
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