DoD's $30.3M engineering services contract for training assessment support awarded to CACI, Inc

Contract Overview

Contract Amount: $30,301,053 ($30.3M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2013-01-16

End Date: 2017-08-14

Contract Duration: 1,671 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: TECHNICAL, ENGINEERING AND LOGISTICS SUPPORT FOR THE FORCE TRAINING ASSESSMENT DEPARTMENT.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.3 million to CACI, INC. - FEDERAL for work described as: TECHNICAL, ENGINEERING AND LOGISTICS SUPPORT FOR THE FORCE TRAINING ASSESSMENT DEPARTMENT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type (Cost Plus Incentive Fee) can lead to cost overruns if not managed carefully. 3. Performance period spans over 4 years, indicating a long-term need for these services. 4. The contract was a delivery order under a larger contract, implying a phased approach to service delivery. 5. The value of this specific delivery order is substantial, reflecting significant support requirements. 6. The contractor, CACI, Inc., is a well-established entity in the federal contracting space.

Value Assessment

Rating: good

The contract value of $30.3 million for engineering and logistics support appears reasonable given the 4-year duration and the nature of services provided to the Department of the Navy. Benchmarking against similar technical support contracts within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Incentive Fee (CPIF) contract type, while allowing for flexibility, requires diligent oversight to ensure costs remain within acceptable parameters and that incentives effectively drive performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The Department of the Navy sought a broad range of potential offerors, which is a positive sign for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is intended to drive down costs and ensure the government receives the best value for its investment in critical training assessment support.

Public Impact

The primary beneficiaries are the Department of the Navy and the Force Training Assessment Department, receiving essential technical, engineering, and logistics support. Services delivered are crucial for evaluating and improving military training programs. The geographic impact is likely concentrated within areas where the Navy conducts its training assessments, potentially across various naval bases. Workforce implications include the direct employment of personnel by CACI, Inc. to fulfill the contract requirements, as well as indirect impacts on military personnel involved in training assessment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost growth inherent in CPIF contracts if performance incentives are not structured to tightly control expenditures.
Long performance period could lead to scope creep or evolving requirements that may not have been fully anticipated at the outset.
Reliance on a single contractor for a significant duration necessitates robust performance monitoring to ensure continued quality and responsiveness.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Contractor (CACI, Inc.) has a significant presence and experience in providing similar services to the federal government.
Delivery order structure may allow for phased implementation and better management of resources and deliverables.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry supporting government operations. The market for defense-related engineering and logistics support is substantial, with numerous large and small businesses competing for federal contracts. This specific award to CACI, Inc. for training assessment support aligns with the government's ongoing need for specialized expertise to maintain and enhance military readiness and effectiveness.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific delivery order. While CACI, Inc. is a large business, there may be subcontracting opportunities for small businesses within the scope of this contract. Further analysis would be needed to determine the extent of small business utilization and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers responsible for the Force Training Assessment Department. Accountability measures are embedded within the CPIF contract structure, linking contractor performance to financial incentives. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are often internal.

Related Government Programs

Defense Training and Simulation
Military Logistics Support
Engineering Consulting Services
Federal IT and Technical Services
Naval Operations Support

Risk Flags

Potential for cost overruns due to CPIF contract type.
Long contract duration may lead to evolving requirements.
Need for robust oversight to ensure performance and value.
Limited public information on specific performance metrics and competition details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.3 million to CACI, INC. - FEDERAL. TECHNICAL, ENGINEERING AND LOGISTICS SUPPORT FOR THE FORCE TRAINING ASSESSMENT DEPARTMENT.

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.3 million.

What is the period of performance?

Start: 2013-01-16. End: 2017-08-14.

What is CACI, Inc.'s track record with similar Department of Defense contracts?

CACI, Inc. is a major federal contractor with extensive experience supporting the Department of Defense across various domains, including IT, intelligence, and engineering services. They have a history of winning and performing on large-scale contracts, often involving complex technical and logistical support. While specific performance details for every contract are not publicly available, their sustained presence and continued awards suggest a generally positive track record. However, like any large contractor, they may have faced past performance issues or disputes on specific projects, which would be detailed in government past performance databases accessible to contracting officers.

How does the $30.3 million value compare to similar engineering support contracts for military training?

The $30.3 million value for a 4-year contract (approximately $7.5 million per year) for specialized engineering and logistics support for training assessment appears to be within a reasonable range for the defense sector. Similar contracts supporting complex military training programs, which often require highly specialized technical expertise, can range from several million to tens of millions of dollars annually, depending on the scope, duration, and criticality of the services. Without specific details on the exact deliverables and the level of effort required, a precise benchmark is difficult. However, given CACI's established role and the nature of the services, the value is not immediately indicative of being excessively high or low.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract of this magnitude?

The primary risks with a CPIF contract of this magnitude ($30.3 million) revolve around cost control and contractor performance alignment. CPIF contracts are designed to incentivize efficiency by sharing cost savings or overruns between the government and the contractor based on pre-defined targets and performance metrics. The risk lies in the potential for the contractor to incur higher costs than anticipated if the incentive structure is not robustly designed or if unforeseen technical challenges arise. Conversely, if incentives are too aggressive, the contractor might cut corners on quality. Effective government oversight is crucial to monitor costs, ensure performance targets are met, and adjust incentives as needed to maintain alignment with government objectives.

How effective is full and open competition in ensuring value for money for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for services like engineering and logistics support where multiple qualified contractors exist. It allows the government to solicit proposals from a wide range of potential providers, fostering a competitive environment that drives down prices and encourages innovation. For this $30.3 million contract, this approach likely resulted in a more competitive bid landscape than a sole-source or limited competition award. The effectiveness is further amplified when coupled with a well-defined Statement of Work and robust evaluation criteria that prioritize both technical merit and cost.

What is the historical spending trend for engineering and logistics support within the Department of the Navy?

The Department of the Navy consistently allocates significant funding towards engineering, technical, and logistics support services, reflecting the complexity and scale of its operations. Historical spending data shows a sustained demand for these services, driven by platform maintenance, modernization programs, research and development, and operational readiness requirements. While specific figures fluctuate annually based on budget allocations and strategic priorities, the overall trend indicates a substantial and ongoing investment in these areas. Contracts like this one for training assessment support are part of this broader pattern of investment in specialized expertise to maintain naval superiority.

What are the potential implications of this contract on future training assessment technologies or methodologies?

Contracts for training assessment support, particularly those involving engineering and logistics, can have significant implications for future training technologies and methodologies. By engaging contractors like CACI, Inc., the Navy gains access to specialized expertise that can help identify gaps, evaluate new technologies, and refine existing processes. This collaboration can lead to the development or adoption of more advanced simulation tools, data analytics for performance tracking, and adaptive learning platforms. The insights gained from the contractor's support can directly influence R&D investments and shape the future direction of military training, ensuring it remains relevant and effective in evolving operational environments.

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

Solicitation ID: N0002412R3161

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $84,741,298

Exercised Options: $84,741,298

Current Obligation: $30,301,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline