CACI Technologies awarded $59.8M for administrative management consulting, a sole-source contract

Contract Overview

Contract Amount: $59,809,158 ($59.8M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2014-08-22

End Date: 2016-09-15

Contract Duration: 755 days

Daily Burn Rate: $79.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF PROFESSIONAL SERVICES AND SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $59.8 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF PROFESSIONAL SERVICES AND SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Services fall under administrative management and general management consulting. 3. Contract duration was 755 days, indicating a medium-term engagement. 4. The contract was awarded by the Defense Contract Management Agency. 5. No small business set-aside was utilized for this procurement. 6. The contract type was Cost Plus Fixed Fee, which can carry cost overrun risks.

Value Assessment

Rating: fair

The contract value of $59.8 million for administrative management consulting services over approximately two years appears within a reasonable range for large-scale government engagements. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source contracts for management consulting within the Department of Defense would provide a clearer picture of pricing competitiveness. The Cost Plus Fixed Fee (CPFF) contract type suggests that costs were estimated and a fixed fee was added, which can sometimes lead to higher overall costs if initial estimates are inaccurate.

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 resources required for the specific service. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that typically arise from a competitive bidding process. The justification for a sole-source award would need to be thoroughly documented to ensure it was appropriate.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government did not have the opportunity to solicit the best possible pricing from a range of qualified contractors.

Public Impact

The Department of Defense benefits from administrative and management consulting services to improve operational efficiency. Services likely support various administrative functions within the defense sector. The geographic impact is primarily within the United States, supporting DoD operations. The contract supports specialized consulting roles, potentially impacting the federal workforce through contractor support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Cost Plus Fixed Fee contract type carries inherent risks of cost overruns if not managed diligently.
Lack of transparency in the justification for sole-source award could obscure potential alternatives.
Limited public information on specific performance metrics makes it difficult to assess effectiveness.
Contract duration of 755 days without clear performance milestones raises questions about ongoing need and value.

Positive Signals

CACI is a well-established government contractor with a significant presence in the defense sector.
The contract addresses critical administrative and management needs within the Department of Defense.
The award was managed by the Defense Contract Management Agency, suggesting established oversight processes.
The services provided likely contribute to the overall mission effectiveness of the DoD.

Sector Analysis

This contract falls within the professional services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for these services is competitive, but sole-source awards, like this one, represent a portion where specific expertise or circumstances dictate the procurement approach. Comparable spending benchmarks for management consulting services within the DoD are often in the tens to hundreds of millions of dollars annually, depending on the scope and duration.

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 the primary award went to a large business, and opportunities for small businesses to participate would likely be through subcontracting directly with CACI, if CACI chooses to engage them. The absence of a set-aside indicates that the procurement was not specifically designed to foster small business participation at the prime contract level.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures would be embedded in the Cost Plus Fixed Fee structure, requiring CACI to justify costs and adhere to the fixed fee. Transparency is limited due to the sole-source nature and the lack of detailed public reporting on performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Management Consulting Services
Administrative Support Services Federal Contracts
General Management Consulting Services
Professional Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award may indicate limited competition.
CPFF contract type carries potential for cost overruns.
Lack of detailed performance metrics hinders value assessment.
No small business set-aside noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.8 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF 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 $59.8 million.

What is the period of performance?

Start: 2014-08-22. End: 2016-09-15.

What specific administrative and management consulting services did CACI Technologies, LLC provide under this contract?

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' (NAICS code 541611). While the specific tasks are not detailed, these services typically encompass areas such as organizational efficiency improvements, strategic planning, process re-engineering, policy development, program management support, and general administrative operational support. For the Department of Defense, this could involve advising on resource allocation, improving internal workflows, developing management frameworks, or supporting the implementation of new administrative policies and procedures across various commands or agencies.

What is the typical cost range for similar sole-source administrative management consulting contracts within the Department of Defense?

Determining a precise 'typical' cost range for sole-source administrative management consulting contracts within the DoD is challenging due to the highly variable nature of scope, duration, and specific expertise required. However, contracts of this magnitude ($59.8 million over approximately two years) are not uncommon for large federal agencies requiring specialized support. Sole-source awards, by definition, lack direct price comparison from a competitive process. Benchmarking would ideally involve comparing to other sole-source awards for similar services, or to competitively awarded contracts for comparable tasks, while acknowledging the inherent price differences that competition usually introduces. The CPFF structure also influences the final cost based on actual expenses incurred.

What were the specific justifications for awarding this contract on a sole-source basis to CACI Technologies, LLC?

The provided data only states the contract was 'NOT COMPETED,' indicating a sole-source award. The specific justifications for such an award are typically documented in a Justification and Approval (J&A) document, which is required by federal acquisition regulations (FAR). Common reasons for sole-source awards include unique capabilities possessed by only one contractor, urgent and compelling needs where competition is not feasible, or when the services are a follow-on to a previously competed contract where only one contractor can provide the necessary continuity. Without access to the J&A for this specific contract, the precise rationale remains unknown.

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the final cost and risk for the government compared to other contract types?

The Cost Plus Fixed Fee (CPFF) contract type involves the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing the contractor's profit. This structure is often used when the scope of work is not precisely defined, or when there is uncertainty about the costs involved. For the government, the primary risk is that actual costs could exceed initial estimates, leading to a higher total price than anticipated, although the fee itself remains fixed. The contractor is incentivized to control costs to ensure their fixed fee is profitable, but there is less direct incentive to minimize costs compared to fixed-price contracts. Oversight is critical to ensure costs are allowable and reasonable.

What is CACI Technologies, LLC's track record with the Department of Defense for similar consulting services?

CACI Technologies, LLC is a major federal contractor with a substantial history of serving the Department of Defense across a wide range of services, including IT, intelligence, and professional services. They frequently receive awards for management and consulting support. While this specific contract was sole-source, CACI's overall track record with the DoD is extensive, involving numerous contracts of varying types and values. Performance on past contracts, including any past performance evaluations and award trends, would have likely been considered during the sole-source justification process, even if not publicly detailed.

What were the performance outcomes or key deliverables achieved under this contract?

The provided data does not include specific performance outcomes or key deliverables for this contract. Performance assessment for government contracts typically involves metrics related to timeliness, quality, cost control, and adherence to requirements. For management consulting, deliverables might include reports, strategic plans, process improvement recommendations, or implemented solutions. Without access to contract performance reports, award fee evaluations, or final delivery documentation, it is not possible to assess the specific outcomes or the success of the services rendered under this $59.8 million award.

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: N0002414R6307

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: $75,150,161

Exercised Options: $66,892,553

Current Obligation: $59,809,158

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $10,727,377

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline