DoD's $61M administrative management consulting contract awarded to CACI Technologies, LLC, with no competition

Contract Overview

Contract Amount: $61,024,186 ($61.0M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2012-10-11

End Date: 2014-07-31

Contract Duration: 658 days

Daily Burn Rate: $92.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROFESSIONAL SERVICES AND SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $61.0 million to CACI TECHNOLOGIES, LLC for work described as: PROFESSIONAL SERVICES AND SUPPORT Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can incentivize cost overruns. 2. Lack of competition raises concerns about potential overpayment and suboptimal service. 3. Contract duration of 658 days suggests a significant, ongoing need for services. 4. Awarded by the Defense Contract Management Agency, indicating a focus on defense operations support. 5. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

The contract's value of $61 million for administrative management and general management consulting services requires careful benchmarking. Without competitive bids, it is difficult to ascertain if the pricing reflects fair market value. The cost-plus-fixed-fee structure, while offering flexibility, can lead to higher costs compared to fixed-price contracts if not managed rigorously. Further analysis would involve comparing the per-hour rates and overall project costs to similar government contracts for management consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service, or in cases of urgent need. The absence of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government and taxpayers.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from the cost savings that typically arise from a competitive bidding process. This could result in the government paying a premium for the services rendered.

Public Impact

The primary beneficiaries are likely Department of Defense agencies requiring administrative and management support. Services delivered likely include strategic planning, organizational efficiency improvements, and operational support. The geographic impact is centered around the Department of Defense's operational areas, primarily within the United States. Workforce implications may involve the deployment of CACI consultants to support various defense initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Cost-plus-fixed-fee contract type can incentivize higher costs if not closely monitored.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to the absence of competitive re-solicitation.

Positive Signals

CACI Technologies, LLC is a known entity in government contracting, suggesting established capabilities.
The contract duration indicates a sustained need for these critical administrative services.
Awarded by the Defense Contract Management Agency, implying alignment with defense operational requirements.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting. The federal government is a significant consumer of these services to improve efficiency, implement new policies, and manage complex operations. The market for management consulting services is large and competitive, but sole-source awards bypass this competition. Benchmarks for similar services often vary widely based on scope, duration, and the specific expertise required.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this significant contract are likely limited, potentially excluding them from a substantial portion of federal spending in this category.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA) and the contracting officer. Accountability measures would be defined in the contract terms, focusing on performance deliverables and adherence to the cost-plus-fixed-fee structure. Transparency is limited due to the sole-source nature of the award, with justification for the non-competitive award being a key area for scrutiny.

Related Government Programs

Defense Contract Management Agency Operations Support
Department of Defense Management Consulting Services
Professional Services and Support Contracts

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.0 million to CACI TECHNOLOGIES, LLC. PROFESSIONAL SERVICES AND SUPPORT

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $61.0 million.

What is the period of performance?

Start: 2012-10-11. End: 2014-07-31.

What specific administrative management and general management consulting services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. While specific service details are not itemized, these services typically encompass areas such as strategic planning, organizational structure analysis, process improvement, policy development, and operational efficiency enhancements. Given the awarding agency is the Defense Contract Management Agency (DCMA), the services likely supported DCMA's mission in overseeing defense contracts, ensuring compliance, and managing program execution. This could involve advising on best practices, developing performance metrics, or assisting in the management of complex defense acquisition programs.

What is the typical cost structure for similar government consulting contracts?

Government consulting contracts can utilize various pricing structures, including Firm-Fixed-Price (FFP), Cost-Plus-Fixed-Fee (CPFF), Cost-Plus-Incentive-Fee (CPIF), and Time and Materials (T&M). The CPFF structure used here involves the government reimbursing the contractor for allowable costs plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve. However, it carries a risk of cost overruns if not managed diligently. Benchmarking CPFF contracts requires comparing not only the fixed fee but also the underlying cost rates (labor, overhead) against similar services and agencies to assess value for money.

What are the risks associated with a sole-source contract award of this magnitude?

Sole-source awards, especially for large contracts like this $61 million award, present several risks. Primarily, the lack of competition means the government cannot leverage market forces to secure the best possible price and value. This can lead to overpayment. Secondly, it limits the government's access to a broader range of innovative solutions or specialized expertise that might be available from other qualified vendors. There's also a risk of complacency from the awarded contractor, as there is no immediate competitive pressure to maintain high performance standards or cost efficiency. Finally, sole-source awards can raise concerns about fairness and transparency in the procurement process.

How does the contract type (Cost Plus Fixed Fee) impact contractor performance and cost control?

The Cost Plus Fixed Fee (CPFF) contract type aims to provide flexibility for evolving project scopes while offering the contractor a defined profit margin (the fixed fee). The government bears the risk of cost overruns, as it reimburses the contractor's actual allowable costs. This structure can incentivize contractors to incur costs, as their profit is fixed regardless of the final cost. Effective cost control relies heavily on robust government oversight, detailed cost accounting standards, and clear contract clauses defining allowable costs. Without stringent monitoring, CPFF contracts can become significantly more expensive than fixed-price alternatives.

What is the historical spending trend for administrative management and general management consulting services by the Department of Defense?

The Department of Defense (DoD) is a major consumer of professional services, including administrative management and general management consulting. Historical spending data reveals a consistent and substantial investment in these areas to support its vast and complex operations. While specific figures for this particular contract are provided, broader trends show that the DoD frequently procures such services across various agencies and commands. Factors influencing spending include evolving defense strategies, modernization efforts, and the need for specialized expertise in areas like logistics, human resources, and financial management. Analyzing historical spending patterns can reveal whether this $61 million award is in line with previous investments or represents a significant increase or decrease.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002412R6322

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

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: $61,049,186

Exercised Options: $61,049,186

Current Obligation: $61,024,186

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $5,377,762

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline