DoD Awards CACI $16.9M for SCORPION Trailer Development, Testing
Contract Overview
Contract Amount: $16,918,165 ($16.9M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2024-08-01
End Date: 2026-07-10
Contract Duration: 708 days
Daily Burn Rate: $23.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SCORPION TRAILER DEVELOP, DELIVER, AND TEST (FAT) OF 1 QTY.
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87107
Plain-Language Summary
Department of Defense obligated $16.9 million to CACI, INC. - FEDERAL for work described as: SCORPION TRAILER DEVELOP, DELIVER, AND TEST (FAT) OF 1 QTY. Key points: 1. Contract awarded to CACI, Inc. - Federal for SCORPION trailer development. 2. Significant funding allocated for a single trailer unit, raising questions about unit cost. 3. Lack of competition suggests potential for higher costs and limited innovation. 4. Engineering services sector sees continued investment from the Department of the Navy.
Value Assessment
Rating: questionable
The contract value of $16.9 million for one trailer unit appears exceptionally high. Benchmarking against similar complex development and testing contracts is crucial to assess if this pricing is justified.
Cost Per Unit: $16,918,164.54
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to a higher cost for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition on this significant award may result in suboptimal use of taxpayer funds due to the absence of market-driven price negotiation.
Public Impact
Taxpayers may be overpaying for a single specialized trailer due to the lack of competition. The high cost per unit could impact the overall budget for related defense programs. Transparency in the justification for a sole-source award is essential for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High cost per unit
- Sole-source award
- Lack of competition
Positive Signals
- Clear awardee identified
- Specific project scope defined
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise and significant government investment. Benchmarks for similar complex engineering and testing contracts are needed for comparison.
Small Business Impact
The awardee, CACI, Inc. - Federal, is a large business. There is no indication that small business participation was a consideration or requirement in this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable and that the project objectives are met efficiently. Justification for the lack of competition should be readily available.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High cost per unit
- Sole-source award
- Lack of competition
- Potential for price inflation
Tags
engineering-services, department-of-defense, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.9 million to CACI, INC. - FEDERAL. SCORPION TRAILER DEVELOP, DELIVER, AND TEST (FAT) OF 1 QTY.
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 $16.9 million.
What is the period of performance?
Start: 2024-08-01. End: 2026-07-10.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's impossible to confirm the specific reason. However, agencies are expected to conduct thorough market research and price analysis, even in sole-source situations, to ensure the government receives good value and avoids overpayment.
How does the $16.9 million cost for a single SCORPION trailer compare to industry benchmarks for similar specialized vehicle development and testing?
The reported cost of $16.9 million for one SCORPION trailer is exceptionally high and likely exceeds typical benchmarks for standard vehicles. However, if the SCORPION trailer involves highly specialized, cutting-edge technology, extensive testing protocols, or unique integration requirements, the cost could be justifiable. A detailed breakdown of costs and comparison with similar niche projects is necessary for a proper assessment.
What are the potential risks associated with awarding a contract of this magnitude without competition, particularly regarding cost overruns and schedule delays?
The primary risk of a sole-source award is the absence of competitive pressure, which can lead to inflated costs and reduced incentive for efficiency. Without competing proposals, there's less assurance that the chosen contractor offers the best value or that the initial cost estimate is accurate. This increases the likelihood of cost overruns and potential schedule delays if the contractor faces unforeseen challenges without the buffer of competitive pricing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $16,918,165
Exercised Options: $16,918,165
Current Obligation: $16,918,165
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $1,646,236
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA872319D0001
IDV Type: IDC
Timeline
Start Date: 2024-08-01
Current End Date: 2026-07-10
Potential End Date: 2026-07-10 00:00:00
Last Modified: 2025-08-19
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