DoD's $48.8M engineering services contract awarded to CACI Technologies, LLC, under full and open competition

Contract Overview

Contract Amount: $48,781,281 ($48.8M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2015-09-30

End Date: 2018-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF TASK ORDER FOR SUPPORT FOR THE TROJAN PROGRAMS AWARDED UNDER R23G MATO

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $48.8 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF TASK ORDER FOR SUPPORT FOR THE TROJAN PROGRAMS AWARDED UNDER R23G MATO Key points: 1. Contract value of $48.8M for engineering services over three years. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period of 1095 days, indicating a medium-term engagement. 4. Contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract was awarded as a Delivery Order under a larger contract vehicle (R23G MATO). 7. The award was made to CACI Technologies, LLC, a known government contractor. 8. The contract is not a small business set-aside, with no reported subcontracting goals.

Value Assessment

Rating: fair

The total contract value of $48.8M for three years of engineering services requires benchmarking against similar contracts for specific support to the Trojan programs. Without more detailed scope of work, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be effective if costs are well-managed and the fee is reasonable. However, CPFF contracts can sometimes lead to higher overall costs compared to fixed-price contracts if not closely monitored.

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 bids. The presence of two bidders (no) suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred for maximizing price discovery and achieving best value, the limited number of bidders might warrant further investigation into market dynamics or potential barriers to entry for other firms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through a wider pool of potential offerors. However, with only two bidders, the potential for significant cost savings may be constrained compared to scenarios with more robust competition.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Army, receiving engineering support services. The services delivered are engineering support for the 'Trojan Programs', which are likely critical to national security operations. The geographic impact is primarily within Maryland (SN: MARYLAND), where the contractor is located or where services are performed. Workforce implications include employment opportunities for engineers and technical staff within CACI Technologies, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to cost overruns if not rigorously managed.
Limited competition (2 bidders) may have restricted the potential for achieving the lowest possible price.
The specific nature of 'Trojan Programs' is not detailed, making it difficult to assess the full scope and potential risks.
The contract was awarded as a delivery order under a larger contract vehicle, which might obscure the full lifecycle cost and competition details.

Positive Signals

Awarded under full and open competition, which is a positive indicator for a fair and transparent process.
The fixed fee component of the CPFF contract provides some level of cost predictability for the government.
CACI Technologies, LLC is an established government contractor, suggesting a degree of familiarity with DoD requirements.
The contract duration of three years allows for continuity of essential engineering support.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. The NAICS code 541330 specifically covers establishments primarily engaged in providing architectural, engineering, and related services. The defense sector often represents a significant portion of spending in this category due to the complex and specialized nature of military technology and infrastructure. Benchmarking would involve comparing this contract's value and terms to other engineering support contracts awarded by the DoD or other federal agencies for similar types of specialized technical services.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses. This suggests that the primary focus was on obtaining the most capable contractor through full and open competition, rather than specifically promoting small business participation. The absence of set-asides or subcontracting requirements means that the direct impact on the small business ecosystem for this particular award is likely minimal, though CACI Technologies, LLC may engage small businesses as subcontractors at its discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. As a delivery order under a larger contract vehicle, oversight mechanisms might be integrated into the parent contract's framework. Transparency is generally facilitated through contract award databases like FPDS. Specific accountability measures would be tied to performance metrics and deliverables outlined in the task order. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Engineering Services
Information Technology Support Services
Professional and Technical Services
DoD Task Orders
CACI Technologies Contracts

Risk Flags

Limited Competition
Cost Plus Fixed Fee Contract Type
Lack of Specific Program Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.8 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF TASK ORDER FOR SUPPORT FOR THE TROJAN PROGRAMS AWARDED UNDER R23G MATO

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 $48.8 million.

What is the period of performance?

Start: 2015-09-30. End: 2018-09-29.

What is the specific nature of the 'Trojan Programs' and the engineering support required?

The provided data does not specify the exact nature of the 'Trojan Programs'. However, given the context of Department of Defense engineering services, these programs likely relate to intelligence, surveillance, reconnaissance, or communication systems critical to national security. Engineering support could encompass design, development, testing, integration, maintenance, or lifecycle management of these complex systems. Without further details on the program's objectives and technical requirements, a precise understanding of the scope and criticality of the engineering services is limited. This lack of transparency can make it challenging to fully assess the value and risks associated with the contract.

How does the $48.8M contract value compare to similar engineering support contracts for defense programs?

Benchmarking the $48.8M contract value requires identifying comparable contracts for engineering support services within the Department of Defense, particularly those related to intelligence, communications, or specialized systems. Factors such as contract duration (3 years), contract type (CPFF), and the specific technical expertise required would need to be considered. Without access to a detailed database of similar contracts with specific scopes of work, a precise comparison is difficult. However, $48.8M over three years for specialized engineering support in the defense sector is a substantial award, suggesting a significant scope or high level of technical complexity. Further analysis would involve looking at average costs per year or per labor hour for comparable roles and services.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than necessary if the contractor's costs are not efficiently managed or if the fixed fee is disproportionately high relative to the effort. While the fixed fee provides some cost certainty for the contractor's profit, the government bears the risk of cost overruns. For the contractor, the incentive is to complete the work within the estimated cost to maximize their profit margin, but this can sometimes lead to cutting corners if not properly overseen. Effective government oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for money.

What is the track record of CACI Technologies, LLC in providing similar engineering services to the DoD?

CACI Technologies, LLC is a well-established government contractor with a significant history of providing a wide range of services to the Department of Defense and other federal agencies, including IT, engineering, and professional services. Their track record generally includes numerous contract awards across various defense programs. While specific performance details for individual contracts are not publicly detailed in this summary, CACI's continued success in winning large contracts suggests a generally positive performance history and capability to meet complex government requirements. A deeper dive into past performance evaluations and any reported issues would provide a more comprehensive view of their specific track record for engineering support.

How does the competition level (2 bidders) impact price discovery and potential savings for taxpayers?

A competition level with only two bidders, while technically 'full and open', suggests a potentially limited market for this specific requirement or barriers to entry for other firms. This reduced competition can limit the downward pressure on pricing that might occur with a larger number of bids. Taxpayers may not benefit from the full range of potential cost savings that could be achieved in a more robustly competitive environment. While the government still aims for best value, the lack of broader competition might mean the final price is higher than it could have been if more firms were vying for the contract. It raises questions about whether the market was fully explored or if specific requirements inadvertently limited the bidder pool.

What are the implications of this contract being a Delivery Order under a larger contract vehicle (R23G MATO)?

Awarding this contract as a Delivery Order under a larger contract vehicle (R23G MATO) means that the initial competition likely occurred at the vehicle level, establishing terms and conditions for a range of potential future orders. This specific task order then competed or was awarded based on that pre-established vehicle. This approach can streamline procurement by having pre-vetted contractors and terms. However, it can sometimes obscure the full lifecycle cost and the specific competition dynamics for individual task orders. It also means that the 'full and open' nature of this specific award is contingent on how the parent vehicle was competed and managed.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 2

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: $99,024,129

Exercised Options: $69,430,939

Current Obligation: $48,781,281

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD413

IDV Type: IDC

Timeline