CACI Technologies awarded $45.1M for NAVSEA strategy support, facing questions on value and competition

Contract Overview

Contract Amount: $45,096,435 ($45.1M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2017-04-12

End Date: 2023-01-31

Contract Duration: 2,120 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF SUPPORT SERVICES FOR NAVSEA CHIEF STRATEGY OFFICE (SEA 00X)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.1 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF SUPPORT SERVICES FOR NAVSEA CHIEF STRATEGY OFFICE (SEA 00X) Key points: 1. Contract value of $45.1M over 6 years suggests a significant investment in strategic support. 2. Full and open competition was utilized, indicating a broad market search. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns. 4. Performance context is tied to the NAVSEA Chief Strategy Office, highlighting critical advisory functions. 5. Engineering services (NAICS 541330) are the primary domain, aligning with technical and strategic needs. 6. The award was a delivery order under a larger contract, suggesting a phased approach to service delivery.

Value Assessment

Rating: fair

The total award of $45.1M over approximately six years for engineering and strategy support services appears substantial. Benchmarking against similar contracts for strategic advisory services within the Department of Defense is challenging without more granular data on the specific tasks performed. The cost-plus-fixed-fee (CPFF) contract type, while common for complex services, carries inherent risks of cost escalation if not meticulously managed. Further analysis of the fixed fee relative to the total contract value would be beneficial to assess value for money.

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 had the opportunity to compete. The data indicates there were 4 bids received, which is a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the specific number of bidders (4) provides a baseline for assessing price discovery. A higher number of bidders typically leads to more robust price competition.

Taxpayer Impact: The use of full and open competition is positive for taxpayers as it aims to secure competitive pricing and a wider range of qualified contractors, potentially leading to better value.

Public Impact

The primary beneficiaries are the Department of the Navy and specifically the NAVSEA Chief Strategy Office, receiving strategic and engineering support. Services delivered likely include strategic planning, policy development, program analysis, and engineering advisory functions. The geographic impact is centered around the Department of the Navy's operations, primarily in Virginia where the contractor is located. Workforce implications include the employment of skilled engineers, analysts, and strategic advisors by CACI Technologies, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure can incentivize higher costs if not tightly managed.
Long contract duration (over 6 years) increases the risk of scope creep and price increases.
Limited detail on specific performance metrics makes it difficult to assess effectiveness independently.
Delivery order structure means the full scope and cost may evolve over time.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
Multiple bids (4) suggest a degree of market interest and potential for competitive pricing.
Contract supports a critical function (NAVSEA Chief Strategy Office), implying strategic importance.
Contractor (CACI) is a well-established entity in government contracting.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for these services is substantial, driven by government needs for technical expertise, strategic planning, and program management. Spending in this sector is often characterized by long-term relationships and complex, high-value contracts. Comparable spending benchmarks would typically involve other large-scale engineering support contracts awarded by military branches for strategic advisory and technical services.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business set-aside) field is false. There is no explicit information regarding subcontracting plans for small businesses within this delivery order. This suggests that the prime contractor, CACI Technologies, LLC, is likely performing the majority of the work directly or with large business subcontractors, potentially limiting opportunities for the small business ecosystem on this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The Inspector General for the Department of Defense would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, but detailed performance reports and fee structures are often internal. Accountability measures would be tied to contract performance clauses and delivery order requirements.

Related Government Programs

NAVSEA Strategic Planning Support
Department of Defense Engineering Services
Naval Sea Systems Command Contracts
Cost-Plus-Fixed-Fee Services
Federal Engineering Consulting

Risk Flags

Cost Overrun Potential
Long-Term Contract Risk
Limited Competition Detail
CPFF Structure Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.1 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF SUPPORT SERVICES FOR NAVSEA CHIEF STRATEGY OFFICE (SEA 00X)

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.1 million.

What is the period of performance?

Start: 2017-04-12. End: 2023-01-31.

What is the track record of CACI Technologies, LLC in delivering similar engineering and strategic support services to the Department of Defense?

CACI Technologies, LLC has a long and extensive track record of providing a wide array of services to the Department of Defense and other federal agencies, including IT, intelligence, and engineering support. They are a significant player in the government contracting space. Their history includes numerous large contracts similar in scope to this one, often involving complex technical and strategic advisory roles. While generally considered a capable contractor, like any large firm, they have faced scrutiny on specific contracts regarding performance, cost management, and past performance evaluations. A detailed review of their past performance ratings and any documented issues on prior DoD contracts would provide a more complete picture of their reliability for this specific NAVSEA requirement.

How does the awarded amount of $45.1M compare to the typical spending for similar strategic support services within the Navy or DoD?

The awarded amount of $45.1 million over approximately six years for strategic and engineering support to the NAVSEA Chief Strategy Office is substantial but falls within the range of major service contracts awarded by the Department of Defense. Benchmarking requires comparing it to contracts with similar scope, duration, and complexity, specifically those providing high-level strategic advisory and engineering expertise to senior leadership within major commands. Contracts for strategic planning, policy development, and advanced technical consulting for entities like NAVSEA can easily reach tens of millions of dollars. Without specific details on the deliverables and labor mix, a precise comparison is difficult, but the figure is consistent with the significant investment required for such critical support functions within a large military organization.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?

The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility for evolving requirements, presents specific risks. For the government, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. If the contractor's actual costs exceed initial estimates, the government still pays those costs, plus the pre-negotiated fixed fee. This can lead to cost overruns if the contractor does not manage resources efficiently or if the scope expands significantly without adequate adjustments to the fee structure. For the contractor, the risk lies in underestimating the costs, which could reduce their profit margin if the fixed fee is not adjusted for unforeseen complexities or scope changes. Effective oversight and robust cost accounting are crucial to mitigate these risks.

What does the level of competition (4 bidders) indicate about the potential for price discovery and value for money?

Having four bidders in a full and open competition suggests a moderate level of market engagement for this contract. While more than a single bidder, it may not represent the most intense price competition achievable. A higher number of bidders (e.g., 7-10+) often drives prices down more aggressively as companies vie for the award. However, four bidders still provide a basis for comparison and negotiation, allowing the government to assess if the proposed prices are reasonable relative to each other and the estimated value of the services. The specific nature of specialized engineering and strategic support services can sometimes limit the pool of highly qualified bidders, making four a potentially acceptable outcome depending on market dynamics.

How does the duration of the contract (delivery order period ending Jan 2023, implying a start around April 2017) impact the assessment of its value and potential risks?

The contract's duration, spanning approximately six years (from April 2017 to January 2023), is significant for assessing value and risk. A longer duration can provide stability and allow for deeper integration of services, potentially leading to better outcomes and efficiency gains over time. However, it also increases the risk of scope creep, cost escalation, and potential misalignment with evolving strategic priorities if not managed proactively. For a value assessment, it implies a sustained need for these services. From a risk perspective, the extended period necessitates continuous government oversight to ensure performance remains high, costs are controlled, and the contract continues to meet the government's needs effectively throughout its lifecycle. The CPFF structure amplifies these risks over a longer term.

What are the implications of this contract being a 'delivery order' under a larger contract?

This contract being a delivery order signifies that it was issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) or similar type of multiple-award contract. This approach allows agencies to procure services more efficiently by having established contract vehicles in place. For taxpayers, it can mean faster procurement cycles and potentially pre-negotiated rates. However, it also means that the full scope and total value of the underlying contract vehicle might be larger than this single delivery order. Assessing the overall value and competition requires looking at the parent contract as well. It implies that CACI Technologies, LLC was one of several awardees on a broader contract, and this specific order represents a defined tasking within that framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002416R3226

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $46,455,102

Exercised Options: $46,455,102

Current Obligation: $45,096,435

Actual Outlays: $1,849,829

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4026

IDV Type: IDC

Timeline