CACI Enterprise Solutions awarded $193M for Navy HR IT services, highlighting significant IT support needs

Contract Overview

Contract Amount: $193,094,615 ($193.1M)

Contractor: CACI Enterprise Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-06

End Date: 2022-11-04

Contract Duration: 1,155 days

Daily Burn Rate: $167.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MYNAVY HR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $193.1 million to CACI ENTERPRISE SOLUTIONS, LLC for work described as: MYNAVY HR Key points: 1. Contract value indicates substantial investment in IT infrastructure and services for naval human resources. 2. Competition dynamics suggest a robust market for IT support services within the defense sector. 3. Performance period spans over three years, implying a long-term need for sustained IT support. 4. The contract type (Cost Plus Fixed Fee) may allow for flexibility but requires careful cost monitoring. 5. Focus on Computer Systems Design Services points to the critical role of IT in modern HR functions.

Value Assessment

Rating: good

The $193 million award for Computer Systems Design Services appears to be a significant investment in the Department of the Navy's HR IT infrastructure. Benchmarking against similar large-scale IT service contracts within the DoD, this award falls within a typical range for comprehensive system design and support. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex projects, necessitates diligent oversight to ensure costs remain reasonable and aligned with the fixed fee. Without specific per-unit cost data, a direct value-for-money assessment is challenging, but the scale suggests a critical need being met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bids suggests a competitive environment for this type of IT service. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. The fact that it was competed broadly is a positive sign for market efficiency.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for IT services, preventing potential overpricing that could occur in a less contested award.

Public Impact

Naval personnel and their families will benefit from improved HR services facilitated by modern IT systems. The contract delivers essential computer systems design and support services for the Department of the Navy's HR functions. Services are likely to have a nationwide impact, supporting naval bases and personnel across the United States. The contract supports a workforce of IT professionals and potentially impacts the efficiency of HR staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can lead to cost overruns if not managed tightly.
The duration of the contract (over 3 years) requires ongoing monitoring of performance and value.
Dependence on a single contractor for critical HR IT systems poses a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a healthy market and potential for competitive pricing.
The contract addresses a critical function (HR) for a major branch of the military.
Multiple bids suggest strong vendor interest and capability in this IT service area.

Sector Analysis

The IT services sector, particularly within defense, is characterized by high demand for specialized skills in system design, integration, and support. This contract for Computer Systems Design Services fits within the broader category of IT professional services, a market segment that sees significant government spending. The Department of Defense is a major consumer of these services, often requiring solutions tailored to complex operational environments. Benchmarks for similar IT support contracts within the federal government often range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While CACI Enterprise Solutions, LLC is a large business, the subcontracting opportunities generated by this award could potentially benefit small businesses within the IT services ecosystem. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse.

Related Government Programs

DoD Human Resources IT Modernization Programs
Navy Enterprise Resource Planning (ERP) Systems
Defense Civilian Personnel Data System (DCPDS)
IT Services for Military Personnel Management

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Potential for cost overruns inherent in CPFF structure.
Long-term contract duration necessitates ongoing performance monitoring.
Dependence on contractor for critical HR IT systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $193.1 million to CACI ENTERPRISE SOLUTIONS, LLC. MYNAVY HR

Who is the contractor on this award?

The obligated recipient is CACI ENTERPRISE SOLUTIONS, 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 $193.1 million.

What is the period of performance?

Start: 2019-09-06. End: 2022-11-04.

What is the track record of CACI Enterprise Solutions, LLC with Department of Defense contracts, particularly in IT services?

CACI Enterprise Solutions, LLC has a substantial history of contracting with the Department of Defense, often securing large awards for a variety of IT and professional services. Their portfolio includes work in areas such as enterprise IT, cybersecurity, data analytics, and systems engineering. For the Department of the Navy specifically, CACI has been involved in numerous contracts supporting IT infrastructure, software development, and mission-critical systems. Their performance history with the DoD is generally characterized by a high volume of work across different agencies and branches, indicating significant experience and established relationships. However, as with any large contractor, specific contract performance can vary, and detailed reviews of past performance metrics would be necessary for a comprehensive assessment.

How does the $193 million award compare to other IT service contracts awarded by the Department of the Navy in recent years?

The $193 million award to CACI Enterprise Solutions, LLC for Computer Systems Design Services is a significant but not unprecedented figure for the Department of the Navy. The Navy, like other branches of the DoD, frequently awards large contracts for IT modernization, system sustainment, and new technology integration. Awards in the range of $50 million to $200 million for multi-year IT support and development contracts are common. This particular award, spanning over three years, aligns with the typical duration and value of comprehensive IT service agreements aimed at supporting critical functions like human resources. It suggests a substantial need for IT expertise to manage and enhance the Navy's HR systems, reflecting the broader trend of increasing IT investment within defense agencies.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for complex or uncertain projects, carry inherent risks. For the government, the primary risk is potential cost overrun, as the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. If costs escalate beyond initial projections, the total contract value can increase significantly, potentially exceeding the government's budget. This necessitates rigorous cost monitoring, auditing, and control by the contracting officer and program team. Another risk is the contractor's incentive to control costs, as their profit is fixed regardless of the actual expenses incurred. This can sometimes lead to less focus on cost efficiency compared to fixed-price contracts. Ensuring clear definitions of allowable costs and robust reporting mechanisms are crucial to mitigate these risks.

What is the strategic importance of IT services for the Department of the Navy's Human Resources functions?

IT services are strategically vital for the Department of the Navy's Human Resources functions, underpinning nearly every aspect of personnel management. Modern HR systems, enabled by advanced IT, are crucial for efficient recruitment, onboarding, payroll, benefits administration, training management, performance evaluations, and retention efforts. For a large organization like the Navy, with a vast and geographically dispersed workforce, robust IT infrastructure is essential for managing personnel data accurately, securely, and in compliance with regulations. Investing in computer systems design and support ensures that these HR functions are streamlined, accessible, and capable of supporting the Navy's mission readiness by effectively managing its most valuable asset: its people.

How has federal spending on IT services for HR functions evolved over the past five years?

Federal spending on IT services for HR functions has seen a consistent upward trend over the past five years, driven by a government-wide push for modernization and efficiency. Agencies are increasingly recognizing the strategic value of integrated HR systems that can improve data analytics, automate routine processes, and enhance employee self-service capabilities. This includes investments in cloud-based solutions, data management platforms, and cybersecurity measures to protect sensitive personnel information. The COVID-19 pandemic further accelerated the adoption of digital HR tools to support remote workforces and maintain continuity of operations. Consequently, contracts for HR IT services, encompassing system design, implementation, maintenance, and support, have grown in both number and value across various federal agencies, including the Department of Defense.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003919R0063

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI Enterprise Solutions LLC

Address: 14370 NEWBROOK DRIVE STE 100, 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: $323,741,778

Exercised Options: $234,959,227

Current Obligation: $193,094,615

Actual Outlays: $22,791,869

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $42,855,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200009W

IDV Type: GWAC

Timeline