CACI Technologies awarded $65.6M for Army engineering and technical support, with a significant portion for reprogramming analysis

Contract Overview

Contract Amount: $65,619,186 ($65.6M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2015-01-29

End Date: 2019-07-28

Contract Duration: 1,641 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL,CT::IGF ARMY REPROGRAMMING ANALYSIS TEAM - PROGRAM OFFICE ENGINEERING AND TECHNICAL SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $65.6 million to CACI TECHNOLOGIES, LLC for work described as: IGF::CL,CT::IGF ARMY REPROGRAMMING ANALYSIS TEAM - PROGRAM OFFICE ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Contract value of $65.6 million over its period of performance. 2. Primarily focused on engineering and technical support for the Army, including reprogramming analysis. 3. Awarded through full and open competition, indicating a competitive bidding process. 4. Contract duration of over 3 years, suggesting a need for sustained support. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 6. The base award value is $39.9 million, with potential for growth through subsequent orders.

Value Assessment

Rating: fair

The contract's total value of $65.6 million over approximately 3.5 years averages to about $18.7 million annually. Benchmarking this against similar IT engineering and technical support contracts is challenging without more specific service details. However, the CPFF contract type introduces inherent risk for cost control. The base award of $39.9 million suggests a significant portion of the work was defined upfront, but the potential for growth to $65.6 million indicates flexibility and potential for scope expansion.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. With 3 bidders identified, this indicates a moderate level of competition. While not a large number, it suggests that the government sought multiple proposals and likely received competitive pricing. The specific details of the evaluation criteria and the winning proposal's strengths are not provided, but the competitive nature is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, leading to potentially lower costs and better service quality.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential engineering and technical support. Services delivered include program office engineering and technical support, with a specific emphasis on reprogramming analysis. The geographic impact is likely concentrated within the Army's operational and administrative centers, primarily in Virginia where the contractor is located. Workforce implications include the employment of skilled engineers and technical specialists by CACI Technologies, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
The significant increase from the base award ($39.9M) to the total award ($65.6M) suggests potential for scope creep or unmanaged cost growth.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
The contract's duration of over three years necessitates continuous monitoring to ensure ongoing relevance and efficiency.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should drive better value.
The contractor, CACI Technologies, LLC, is a well-established entity in the government contracting space, suggesting experience and capability.
The contract supports critical Army functions, including reprogramming analysis, which is vital for resource management and operational planning.
The base award provides a defined scope, offering a degree of predictability for initial budgeting and resource allocation.

Sector Analysis

This contract falls within the Information Technology (IT) and professional services sector, specifically custom computer programming services and engineering support. The market for such services is substantial, with numerous government contractors vying for these types of awards. The Department of Defense is a major client in this sector, frequently outsourcing complex technical and analytical functions. Benchmarking against similar contracts would require detailed analysis of service scope, duration, and contractor performance, but the $65.6 million value positions it as a significant award.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). CACI Technologies, LLC is a large business. There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though large prime contractors often utilize small business subcontractors for specialized tasks.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor costs and ensure the fixed fee remains appropriate. Transparency is facilitated by the contract being awarded through full and open competition, with details likely available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army IT Support Services
Defense Reprogramming Analysis
Engineering and Technical Services Contracts
Custom Computer Programming Services
Department of Defense IT Procurement

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring to control costs.
Significant potential for growth from base award to total award warrants scrutiny of scope and cost management.
Lack of detailed performance metrics makes objective value assessment difficult.
Contract duration necessitates ongoing oversight to ensure continued relevance and efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.6 million to CACI TECHNOLOGIES, LLC. IGF::CL,CT::IGF ARMY REPROGRAMMING ANALYSIS TEAM - PROGRAM OFFICE ENGINEERING AND TECHNICAL SUPPORT

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 $65.6 million.

What is the period of performance?

Start: 2015-01-29. End: 2019-07-28.

What is the specific nature of the 'reprogramming analysis' and its importance to the Army?

Reprogramming analysis within the Department of Defense refers to the process of reviewing and justifying requests to shift funds between different budget accounts. This is a critical function because Congress appropriates funds for specific purposes, and any deviation requires formal approval through the reprogramming process. The Army, like other branches, must adhere to these budgetary controls. Analysis in this context likely involves evaluating the necessity of the proposed fund shifts, ensuring they align with strategic objectives, assessing potential impacts on other programs, and preparing the documentation required for congressional notification and approval. Effective reprogramming analysis ensures that funds are used efficiently and in accordance with legal and policy requirements, preventing waste and maintaining fiscal accountability.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty. Compared to Firm-Fixed-Price (FFP) contracts, CPFF shifts more cost risk to the government, as the final price is not known upfront. However, it can be advantageous for complex, R&D-intensive, or evolving requirements where FFP might stifle innovation or lead to inadequate proposals. Other cost-reimbursement types include Cost Plus Incentive Fee (CPIF), which adds performance incentives, and Cost Plus Award Fee (CPAF), which includes subjective award criteria. For IT engineering and technical support, FFP is often preferred for well-defined tasks, while CPFF or CPIF might be used for more developmental or integrated support roles.

What is CACI Technologies, LLC's track record with similar Army contracts?

CACI Technologies, LLC, is a major government contractor with extensive experience supporting the Department of Defense, including the Army. They have a history of performing IT, engineering, and technical support services across various Army commands and programs. While specific details on past performance for identical 'reprogramming analysis' tasks are not provided in this data snippet, CACI's broad portfolio suggests they possess the necessary infrastructure and expertise. A deeper dive into their contract history would reveal past performance ratings, any significant issues or accolades, and the scale of previous similar engagements. Generally, CACI is recognized for its capabilities in areas like C4ISR, cybersecurity, enterprise IT, and program management support, which are relevant to this contract's domain.

What are the potential risks associated with the $25.7 million difference between the base and total award values?

The difference of $25.7 million (from $39.9M base to $65.6M total) represents a potential increase of over 64% from the initial award amount. This significant variance could indicate several risks. Firstly, it might suggest that the initial scope defined in the base award was incomplete or underestimated, leading to the need for substantial modifications or additions. Secondly, under a CPFF structure, this growth could translate directly into higher costs for the government if not meticulously managed and justified. It raises questions about the initial cost estimation accuracy and the effectiveness of program management in controlling scope and expenditures. Without further details on how this increase was utilized (e.g., additional task orders, option periods exercised), it's difficult to definitively assess the risk, but it warrants close scrutiny of contract modifications and performance.

How does this contract's spending compare to overall Army IT or engineering support budgets?

The $65.6 million awarded to CACI Technologies, LLC for engineering and technical support is a notable sum for a single contract. However, when compared to the overall IT and engineering support budgets of the Department of the Army, it represents a relatively small fraction. The Army's annual budget runs into the tens of billions of dollars, with significant allocations for IT modernization, cybersecurity, research and development, and operational support. This specific contract likely addresses a specialized need within a larger program or functional area. To provide a precise comparison, one would need to identify the specific Army program this contract supports and compare its value against the total budget allocated to that program or the broader category of engineering and technical services within the Army's overall financial structure.

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: $84,992,067

Exercised Options: $65,619,186

Current Obligation: $65,619,186

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,815,313

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