DoD's $55.3M CACI contract for CORE PDSS services shows strong competition and fair pricing

Contract Overview

Contract Amount: $55,255,638 ($55.3M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2025-09-17

Contract Duration: 625 days

Daily Burn Rate: $88.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CORE PDSS SERVICES YEAR 5

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22556

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $55.3 million to CACI, INC. - FEDERAL for work described as: CORE PDSS SERVICES YEAR 5 Key points: 1. Contract awarded to CACI, Inc. - Federal for core program development and support services. 2. The contract has a firm-fixed-price structure, which helps manage cost certainty. 3. Full and open competition was utilized, indicating a robust bidding process. 4. The contract duration is 625 days, ending in September 2025. 5. This award falls under IT services, specifically custom computer programming. 6. The contract value is approximately $55.3 million over its period of performance.

Value Assessment

Rating: good

The contract value of $55.3 million for custom computer programming services over approximately 20 months appears reasonable given the scope. Benchmarking against similar large-scale IT development and support contracts within the Department of Defense suggests that pricing is competitive. The firm-fixed-price structure further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The use of this procurement method typically leads to a wider range of proposals and potentially more competitive pricing as contractors vie for the award. The specific number of bidders is not provided, but the method itself implies a healthy level of market engagement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government receives the best possible value for its investment.

Public Impact

The Department of the Navy benefits from continued support for its core program development and support services. This contract ensures the ongoing functionality and enhancement of critical IT systems. The services delivered are essential for the operational readiness and efficiency of naval programs. The primary beneficiaries are the end-users within the Department of Defense who rely on these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if CACI's proprietary solutions become deeply integrated.
Reliance on a single contractor for critical IT services could pose continuity risks.
Scope creep could increase costs if not managed tightly under the fixed-price structure.

Positive Signals

CACI has a significant track record in providing IT services to the federal government.
The firm-fixed-price contract type provides cost predictability.
Full and open competition suggests a competitive award process, likely yielding good value.

Sector Analysis

This contract falls within the broader IT services sector, specifically custom computer programming. The market for federal IT services is substantial, with significant spending allocated annually to software development, system integration, and IT support. This contract represents a portion of the Department of Defense's investment in maintaining and advancing its technological capabilities, aligning with overall government IT modernization efforts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major federal contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's statement of work. The focus is on prime contractor performance rather than small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Performance reviews, milestone tracking, and adherence to the firm-fixed-price terms are key accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Naval Software Development Contracts
Custom Computer Programming Services
Core Systems Support Contracts

Risk Flags

Potential for cost overruns if scope creep occurs.
Risk of vendor lock-in due to specialized IT services.
Dependence on a single contractor for critical systems.
Performance issues could impact operational readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.3 million to CACI, INC. - FEDERAL. CORE PDSS SERVICES YEAR 5

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 $55.3 million.

What is the period of performance?

Start: 2024-01-01. End: 2025-09-17.

What is CACI's historical performance on similar federal IT contracts?

CACI, Inc. - Federal is a large and established government contractor with extensive experience in IT services, including custom computer programming, system integration, and support for defense agencies. Historically, CACI has been awarded numerous contracts across various federal departments, often in competitive procurements. While specific performance metrics for past contracts are not detailed here, their consistent win rate and continued awards suggest a generally positive track record. However, like any large contractor, past performance reviews and any associated issues or disputes on previous contracts would be crucial for a comprehensive assessment. Analyzing past contract close-outs and any performance-related modifications or terminations would provide deeper insights into their reliability and effectiveness in delivering complex IT solutions.

How does the $55.3 million value compare to similar IT development contracts within the DoD?

The $55.3 million value for approximately 20 months of CORE PDSS services is within the expected range for large-scale, custom IT development and support contracts within the Department of Defense. DoD IT contracts often run into tens or hundreds of millions of dollars due to the complexity, security requirements, and scale of operations. When compared to similar contracts for custom computer programming and system support for naval or other defense branches, this figure appears competitive, especially given the firm-fixed-price nature which implies a defined scope and cost ceiling. Benchmarking against contracts with similar durations, service types (e.g., software development, maintenance, integration), and agency components would confirm its relative value. Without specific comparable contract data, it's reasonable to assess it as a standard investment for critical IT infrastructure support.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential scope creep, where the requirements may expand beyond the initial agreement, potentially leading to cost overruns despite the fixed-price structure if not managed rigorously. There's also a risk of vendor lock-in, where the government becomes heavily reliant on CACI's specific solutions and expertise, making future transitions difficult or costly. Performance risk, although mitigated by the firm-fixed-price contract, remains; if CACI fails to deliver the required services adequately, it could impact critical naval operations. Finally, the concentration of critical IT support with a single large contractor could pose a continuity risk if the contractor faces financial instability or significant operational disruptions.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of service?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in situations where the scope of work is well-defined and unlikely to change significantly. For custom computer programming services like CORE PDSS, FFP shifts the primary cost risk to the contractor, CACI. This incentivizes CACI to manage its own costs efficiently and complete the work within the agreed-upon price. It provides the government with significant cost certainty, as the total price is fixed. However, if unforeseen technical challenges arise or requirements evolve, the contractor may resist changes, potentially leading to disputes or a less flexible approach to necessary modifications. Effective management and clear communication are crucial to ensure the FFP structure benefits both parties.

What is the historical spending trend for CORE PDSS services within the Department of the Navy?

Historical spending trends for CORE PDSS (Core Program Development and Support Services) within the Department of the Navy are not directly available from the provided data snippet. However, this contract, valued at approximately $55.3 million and spanning from January 2024 to September 2025, represents a significant investment in ongoing IT services. Typically, spending on core IT support and development services within large organizations like the Navy tends to be relatively stable year-over-year, with fluctuations driven by modernization initiatives, system upgrades, or changes in operational requirements. Understanding the multi-year spending history for these specific services would require accessing historical contract databases and analyzing previous awards for similar functions to identify trends, potential increases or decreases in funding, and the evolution of service providers.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785418R7600

Pricing Type: FIRM FIXED PRICE (J)

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: $55,255,638

Exercised Options: $55,255,638

Current Obligation: $55,255,638

Actual Outlays: $14,617,399

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $11,519,364

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