DoD's $23.6M Cyber Support Task Order to CACI Technologies Shows Strong Competition and Value

Contract Overview

Contract Amount: $23,613,053 ($23.6M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2018-02-16

End Date: 2021-08-21

Contract Duration: 1,282 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS TASK ORDER IS FOR INFORMATION SECURITY (IS) AND DEFENSIVE CYBER (DC) SUPPORT FOR 36 MONTHS.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to CACI TECHNOLOGIES, LLC for work described as: THIS TASK ORDER IS FOR INFORMATION SECURITY (IS) AND DEFENSIVE CYBER (DC) SUPPORT FOR 36 MONTHS. Key points: 1. The contract's cost-plus-fixed-fee structure allows for flexibility while managing expenses. 2. Full and open competition suggests a robust market for these specialized cyber services. 3. The duration of 1282 days indicates a significant, long-term need for these capabilities. 4. The task order falls under R&D in Physical, Engineering, and Life Sciences, aligning with advanced cyber defense needs. 5. CACI Technologies' selection implies a strong track record in information security and defensive cyber operations. 6. The contract's value is moderate within the context of large-scale defense IT and R&D spending.

Value Assessment

Rating: good

The contract's value of approximately $23.6 million over 36 months for specialized Information Security and Defensive Cyber support appears reasonable. While specific benchmarking data for this exact niche is limited, the cost-plus-fixed-fee (CPFF) pricing structure is common for R&D and complex service contracts where scope can evolve. The fixed fee component provides a degree of cost control for the government. Without direct comparisons to similar task orders for identical services, a definitive value-for-money assessment is challenging, but the competitive nature of the award suggests fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 3 bidders suggests a healthy competitive environment for these specialized cyber support services. This level of competition is generally favorable for the government, as it drives down prices and encourages innovation among offerors seeking to win the contract.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government received proposals from multiple sources, fostering a competitive bidding process that should lead to a fair market price.

Public Impact

The Department of the Army benefits from enhanced information security and defensive cyber capabilities. The contract delivers critical support for protecting military networks and data. Services are likely concentrated within the Maryland region, indicated by the 'MD' state code. The contract supports specialized roles in cybersecurity, potentially impacting a skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Reliance on a single contractor for critical cyber defense functions could pose a risk if performance degrades.
The evolving nature of cyber threats may require contract modifications or additional funding.

Positive Signals

Awarded under full and open competition, indicating a competitive market and likely fair pricing.
The fixed fee component of the CPFF contract provides a ceiling on contractor profit.
The task order addresses a critical national security need for defensive cyber operations.

Sector Analysis

This contract falls within the broader Information Technology and Research & Development sectors, specifically focusing on cybersecurity services. The market for defensive cyber operations is robust and growing, driven by increasing cyber threats to government and private entities. Comparable spending benchmarks in this area are difficult to pinpoint due to the specialized nature of the services, but large federal agencies like the Department of Defense consistently invest billions annually in cybersecurity solutions and R&D to maintain technological superiority and protect critical infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a task order under a larger vehicle, subcontracting opportunities for small businesses may exist, depending on the prime contractor's strategy and the specific requirements of the work. However, the primary awardee, CACI Technologies, LLC, is a large business, suggesting the direct contract value is not flowing to the small business sector.

Oversight & Accountability

Oversight for this task order would typically be managed by the contracting officer and the program management office within the Department of the Army. The contract type (Cost Plus Fixed Fee) necessitates close monitoring of costs and performance to ensure adherence to the agreed-upon fixed fee and prevent scope creep. Transparency is generally maintained through contract reporting mechanisms, and while no specific Inspector General (IG) jurisdiction is mentioned, the DoD IG has broad authority over defense spending.

Related Government Programs

Department of Defense Information Technology Services
Cybersecurity Research and Development
Information Security Services
Defensive Cyber Operations Support
Army IT Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Evolving cyber threats may necessitate contract modifications or additional funding.
Reliance on a single task order for critical functions could pose a risk if performance issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to CACI TECHNOLOGIES, LLC. THIS TASK ORDER IS FOR INFORMATION SECURITY (IS) AND DEFENSIVE CYBER (DC) SUPPORT FOR 36 MONTHS.

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 $23.6 million.

What is the period of performance?

Start: 2018-02-16. End: 2021-08-21.

What is CACI Technologies, LLC's track record with the Department of Defense, particularly in cybersecurity and R&D contracts?

CACI Technologies, LLC, and its parent company CACI International Inc., have a long-standing and extensive history of contracting with the Department of Defense (DoD) across a wide array of services, including IT, intelligence, and cybersecurity. They are a significant player in the federal contracting space, frequently awarded large prime contracts and task orders. Their portfolio often includes support for command, control, communications, computers, and intelligence (C4I) systems, as well as advanced research and development initiatives. Specific to cybersecurity and defensive cyber operations, CACI has been involved in numerous programs related to network defense, threat intelligence, vulnerability management, and cyber situational awareness. Their consistent awards suggest a strong performance record and the ability to meet the complex requirements of the DoD. However, like any large contractor, specific performance details and past issues on individual contracts would require deeper investigation into contract performance reports and any associated corrective actions.

How does the $23.6 million value of this task order compare to similar cybersecurity support contracts within the DoD?

The $23.6 million value for a 36-month task order focused on Information Security (IS) and Defensive Cyber (DC) support is within a common range for specialized services within the Department of Defense. Large federal agencies, particularly the DoD, often award contracts in the tens to hundreds of millions of dollars for comprehensive cybersecurity solutions, R&D, and operational support. For instance, broader cybersecurity services contracts can range from tens of millions to over a billion dollars. This specific task order's value suggests a focused scope of work, likely involving a dedicated team of experts and specific technological support rather than an enterprise-wide solution. When compared to other task orders for similar niche capabilities, such as threat analysis, incident response, or cyber intelligence support, this value appears moderate. The cost-plus-fixed-fee (CPFF) structure also means the final cost could fluctuate slightly based on actual labor hours and expenses, capped by the fixed fee.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to CACI Technologies, LLC, revolve around cost control and potential for scope creep. For the government, the risk is that the 'cost' portion could exceed initial estimates if the contractor's expenses are higher than anticipated, even though the fee is fixed. This requires diligent oversight from the government to ensure costs are reasonable and allocable to the contract. Contractors bear the risk if their actual costs exceed what they project, as their profit is capped by the fixed fee. For cybersecurity services, the evolving threat landscape and technological advancements can lead to unforeseen requirements, increasing the likelihood of scope changes. Without robust government oversight and clear definition of deliverables, there's a risk that the contract could expand beyond its original intent, potentially increasing overall expenditure beyond the initial projections, even with a fixed fee.

How effective is 'full and open competition' in ensuring value for money for specialized R&D contracts like this one?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for specialized R&D contracts. By allowing all responsible sources to submit proposals, the government maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids that reflect fair market value. This process encourages innovation as contractors strive to differentiate their offerings and pricing. For R&D contracts, where the final outcome can be uncertain, competition helps identify the most capable and cost-effective approach. The presence of multiple bidders, as indicated by the 3 bidders for this task order, further strengthens the competitive dynamic. It allows the government to compare technical approaches, past performance, and pricing across different vendors, leading to a more informed selection and ultimately, better value for taxpayer dollars. However, the effectiveness also depends on the clarity of the solicitation and the government's ability to evaluate proposals rigorously.

What are the historical spending patterns for Information Security and Defensive Cyber support within the Department of the Army?

The Department of the Army, like the broader Department of Defense, has shown a consistent and increasing trend in spending on Information Security (IS) and Defensive Cyber (DC) support over the past decade. This surge is driven by the escalating sophistication and frequency of cyber threats targeting military networks, sensitive data, and critical infrastructure. Historical spending data would reveal significant investments in areas such as network defense, threat intelligence, cybersecurity operations centers (SOCs), vulnerability management, incident response, and research into advanced cyber capabilities. These investments are often distributed across various contract types, including R&D, services, and procurement of security technologies. The Army's budget typically allocates substantial portions to maintaining cyber superiority and protecting its vast digital ecosystem, making IS and DC support a critical and continuously funded area. Specific figures would require detailed analysis of historical budget appropriations and contract award databases.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: $33,909,194

Exercised Options: $33,909,194

Current Obligation: $23,613,053

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $13,461,757

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W15P7T14DA211

IDV Type: IDC

Timeline