DoD's $24.4M CACI contract for CORE PDSS services shows strong competition and fair value

Contract Overview

Contract Amount: $24,377,874 ($24.4M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2019-12-31

End Date: 2021-12-29

Contract Duration: 729 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: CORE PDSS SERVICES YEAR 1

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22556

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to CACI, INC. - FEDERAL for work described as: CORE PDSS SERVICES YEAR 1 Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Fixed Price Incentive contract type suggests a focus on performance and cost control. 3. The contract duration of 729 days provides a reasonable timeframe for service delivery. 4. CACI, Inc. - Federal, a large established contractor, is well-positioned to deliver these services. 5. Spending on this contract is within the typical range for custom computer programming services. 6. No small business set-aside was utilized, suggesting the scope may not have been tailored for smaller entities.

Value Assessment

Rating: good

The contract's value of approximately $24.4 million over two years for custom computer programming services appears reasonable when benchmarked against similar IT service contracts. The fixed-price incentive structure incentivizes the contractor to meet performance targets while managing costs. Without specific performance data or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the 'full and open' designation implies a significant number of interested parties, which is a positive sign for price discovery.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by forcing contractors to offer their best prices and services to win the award.

Public Impact

The Department of the Navy benefits from the delivery of essential custom computer programming services. This contract supports the development and maintenance of critical program data systems. The services are likely to impact personnel within the Department of Defense, improving operational efficiency. The geographic impact is primarily within the United States, supporting federal IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess service quality.
The fixed-price incentive structure requires careful monitoring to ensure cost overruns are managed effectively.
Reliance on a single large contractor for critical services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a healthy market response.
CACI, Inc. - Federal has a significant track record in government contracting.
The fixed-price incentive contract type aligns incentives for performance and cost control.
The contract duration allows for sustained service delivery and integration.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically custom computer programming services. The market for such services is large and highly competitive, with numerous large and small businesses offering specialized solutions to government agencies. The Department of Defense is a major consumer of IT services, with significant annual spending allocated to software development, system integration, and IT support, making this contract a typical component of their overall IT procurement strategy.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This suggests that the scope of work was likely too large or specialized for small business participation, or that the competition favored larger, established firms. The absence of small business involvement could limit opportunities for smaller companies to contribute to this specific defense program.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers, who are responsible for monitoring performance, approving payments, and ensuring compliance with contract terms. The fixed-price incentive structure itself provides a degree of oversight by linking contractor profit to performance and cost targets. Transparency is generally maintained through contract award databases, though detailed internal performance reports may not be publicly accessible.

Related Government Programs

Department of Defense IT Services
Custom Software Development Contracts
Navy IT Procurement
Federal Civilian IT Services

Risk Flags

Contract awarded as Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract.
Fixed Price Incentive contract type requires careful monitoring of performance and cost targets.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to CACI, INC. - FEDERAL. CORE PDSS SERVICES YEAR 1

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 $24.4 million.

What is the period of performance?

Start: 2019-12-31. End: 2021-12-29.

What is CACI, Inc. - Federal's track record with the Department of Defense?

CACI, Inc. - Federal is a long-standing and significant contractor for the Department of Defense (DoD), providing a wide array of IT and professional services. They have a history of winning and performing on numerous large-scale contracts across various military branches and agencies. Their portfolio includes services such as enterprise IT, cybersecurity, data analytics, cloud computing, and mission support. While specific performance details for every contract are not always public, CACI's continued success in securing substantial government contracts, including with the DoD, suggests a generally positive track record and established relationship with the agency. Their extensive experience positions them as a reliable, albeit large, provider for complex government requirements.

How does the $24.4 million value compare to similar custom computer programming contracts?

The $24.4 million contract value for CORE PDSS services over approximately two years is within the expected range for custom computer programming and IT support services procured by large federal agencies like the Department of Defense. Custom development projects, especially those involving complex systems and integration, can range from a few million to tens or even hundreds of millions of dollars depending on scope, duration, and technological complexity. Given that this is a delivery order under a larger contract vehicle (implied by 'AW: DELIVERY ORDER'), the total value is significant but not exceptionally high for the sector. Benchmarking against similar contracts for system development, software engineering, or IT modernization within the DoD or other large federal entities would likely place this contract at a moderate to significant spending level, reflecting the specialized nature of the services.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance issues if the contractor, CACI, Inc. - Federal, fails to meet the specific requirements of the CORE PDSS services, particularly under the fixed-price incentive structure. Cost overruns are a risk, although the incentive nature of the contract aims to mitigate this by aligning contractor profit with cost control. There's also a risk related to vendor lock-in or over-reliance on a single provider for critical IT functions, which could impact flexibility and future modernization efforts. Furthermore, changes in technology or evolving defense needs could render the developed systems obsolete or require costly modifications, posing a programmatic risk. Finally, the complexity of custom programming can lead to integration challenges with existing DoD systems.

How effective is the fixed-price incentive (FPI) contract type for this service?

The Fixed-Price Incentive (FPI) contract type is generally considered effective for services like custom computer programming where performance targets can be clearly defined and measured, and where there is a reasonable degree of cost certainty, but also potential for cost fluctuations. For the DoD's CORE PDSS services, an FPI contract incentivizes CACI, Inc. - Federal to achieve specific performance objectives while also managing costs, as their profit is tied to meeting or exceeding these targets within negotiated cost ceilings. This structure aims to balance the government's need for cost control with the contractor's need for fair profit, encouraging efficiency and quality. However, the effectiveness hinges on the clarity and measurability of the performance metrics and the accuracy of the initial cost estimates and target prices.

What are the historical spending patterns for custom computer programming services by the Department of the Navy?

The Department of the Navy (DoN) consistently allocates substantial funding towards custom computer programming services, reflecting its extensive reliance on specialized IT solutions to support its vast operational and administrative functions. Historical spending patterns show a significant and often increasing trend in IT procurement, including custom software development, system integration, and IT modernization. This spending is driven by the need to maintain and upgrade complex legacy systems, develop new capabilities for naval operations, enhance cybersecurity, and improve data management and analytics. The DoN frequently utilizes various contract vehicles, including large IDIQs and specific delivery orders like this one, to procure these services, often competing them fully to leverage market capabilities and achieve competitive pricing. Annual spending can fluctuate based on specific program needs and budget allocations, but the overall demand for custom programming remains a consistent and significant expenditure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785418R7600

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $24,377,874

Exercised Options: $24,377,874

Current Obligation: $24,377,874

Actual Outlays: $21,662,784

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $13,926,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785419D7614

IDV Type: IDC

Timeline