DoD's $72.6M Educational Support Services Contract to CACI Inc. - Federal Awarded in 2002

Contract Overview

Contract Amount: $72,638,890 ($72.6M)

Contractor: CACI Inc - Federal

Awarding Agency: Department of Defense

Start Date: 2002-06-05

End Date: 2010-02-28

Contract Duration: 2,825 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23502

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $72.6 million to CACI INC - FEDERAL for work described as: Key points: 1. Contract value of $72.6M over its lifecycle suggests significant investment in educational support. 2. Awarded to a single large business, indicating potential for limited small business participation. 3. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges. 4. Long duration of 2825 days (approx. 7.7 years) implies a stable, long-term need for these services. 5. Services fall under Educational Support Services (NAICS 611710), a niche but critical area for government personnel development. 6. The contract was awarded under Full and Open Competition, suggesting a robust bidding process.

Value Assessment

Rating: fair

The total award amount of $72.6 million for educational support services over nearly 8 years indicates a substantial investment. Benchmarking this against similar long-term educational support contracts is difficult without more specific service details. The CPFF structure, while allowing flexibility, can lead to higher costs if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is challenging, but the duration and scope suggest a significant, ongoing need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' which is the most competitive method. This implies that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the use of this procurement method generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition contracts. The government likely received multiple proposals, allowing for a comparative evaluation.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is obtaining services at a fair market value through a transparent bidding process.

Public Impact

The primary beneficiaries are likely Department of Defense personnel who receive educational support services. Services delivered are categorized under Educational Support Services, which could encompass training, curriculum development, or academic advising. The geographic impact is likely concentrated within the areas served by the Department of the Navy, potentially worldwide. Workforce implications include the potential for employment of educators, trainers, and administrative staff by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not rigorously monitored.
Long contract duration (nearly 8 years) may reduce flexibility to adapt to changing educational needs or technologies.
Lack of specific details on performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
Award to a single large contractor may limit opportunities for small businesses to participate directly or indirectly.

Positive Signals

Awarded through Full and Open Competition, indicating a competitive bidding process that should yield fair pricing.
The significant duration suggests a consistent and valued service delivery, meeting long-term requirements.
The contract falls under Educational Support Services, a critical area for personnel development within the DoD.
The contract was awarded to CACI Inc. - Federal, a known entity in government contracting, suggesting a level of established capability.

Sector Analysis

Educational Support Services, classified under NAICS code 611710, represent a specialized segment within the broader professional, scientific, and technical services sector. This sector is characterized by a demand for expertise in training, development, and learning solutions. Government spending in this area often supports military readiness, civilian workforce development, and specialized academic programs. Comparable spending benchmarks would typically involve analyzing other large, long-term contracts for training and educational services awarded by federal agencies, considering factors like the number of personnel served and the complexity of the training.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Awarded to a large business prime contractor, CACI Inc. - Federal, this contract may offer subcontracting opportunities for small businesses. However, without specific subcontracting plans or goals detailed in the award, the extent of small business involvement remains unclear. The absence of set-asides suggests that the primary focus was on securing the best overall offer through full and open competition, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, the awarding agency, and potentially the Department of Defense's Inspector General if specific concerns arise. Mechanisms for oversight would typically include regular performance reviews, financial audits (especially given the CPFF structure), and adherence to contract terms and conditions. Transparency is facilitated by contract award databases, but detailed performance reports and cost breakdowns are often not publicly available, limiting full transparency.

Related Government Programs

Department of Defense Training and Education Programs
Federal Workforce Development Services
Government IT and Professional Services Contracts
Military Personnel Support Services

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence Risk (Long Duration)
Performance Management Challenges (Long Duration)
Limited Flexibility (Long Duration)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.6 million to CACI INC - FEDERAL. See the official description on USAspending.

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 $72.6 million.

What is the period of performance?

Start: 2002-06-05. End: 2010-02-28.

What specific educational support services were provided under this contract?

The contract falls under NAICS code 611710, 'Educational Support Services.' While the specific services are not detailed in the provided data, this category typically includes services such as curriculum design and development, educational consulting, academic tutoring, testing services, and the administration of educational programs. For the Department of the Navy, these services could range from professional development and leadership training for officers and enlisted personnel to specialized academic support for civilian employees or even educational programs for dependents. The exact nature of the services would be elaborated in the contract's statement of work (SOW).

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact value for money compared to other contract types?

The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not well-defined or involves significant uncertainty, allowing for flexibility. However, it can incentivize contractors to incur more costs, as their profit (the fixed fee) remains constant regardless of the total cost. For value for money, this necessitates stringent government oversight to ensure costs are reasonable and necessary. Compared to Firm-Fixed-Price (FFP) contracts, where the contractor bears cost risk, CPFF generally offers less cost certainty for the government and may result in higher overall expenditures if not managed effectively. The long duration of this contract further emphasizes the need for robust cost control measures.

What is CACI Inc. - Federal's track record with similar large-scale government contracts?

CACI Inc. - Federal is a well-established government contractor with a significant history of providing a wide range of services, including IT, intelligence, and support services, to various federal agencies. They frequently engage in large, complex contracts, often awarded through full and open competition. Their track record includes numerous awards across defense, intelligence, and civilian sectors. While specific performance details for every contract are not always public, CACI generally maintains a strong presence and is considered a major player in the federal contracting landscape. Their experience suggests they possess the organizational capacity and expertise to manage substantial contracts like the one for educational support services.

What are the potential risks associated with a contract of this duration (nearly 8 years)?

Contracts spanning nearly eight years carry several inherent risks. Firstly, the educational landscape, technologies, and specific needs of the Department of the Navy could evolve significantly over this period, potentially rendering the contracted services outdated or less effective. Secondly, long-term contracts can reduce the government's flexibility to pivot to new solutions or contractors if performance issues arise or if better alternatives become available. Thirdly, maintaining consistent oversight and performance management over such an extended period can be challenging for government contracting officers. Finally, the fixed fee in a CPFF contract might not accurately reflect the market value or contractor effort by the end of the contract term, potentially leading to overpayment or underpayment relative to the work performed.

How does the 'Educational Support Services' category compare to other major spending categories within the Department of Defense?

Educational Support Services, under NAICS 611710, represent a relatively niche spending category within the Department of Defense (DoD) when compared to major expenditure areas like procurement of major weapon systems, personnel salaries and benefits, base operations, or large-scale IT infrastructure development. While crucial for personnel development and readiness, the total dollar value of contracts in this specific category is typically much smaller than defense procurement or personnel costs. The DoD's overall budget is in the hundreds of billions, with a significant portion allocated to hardware, research and development, and personnel. Educational support services, while important, constitute a smaller fraction of this vast spending.

Industry Classification

NAICS: Educational Services › Educational Support Services › Educational Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 1100 N GLEBE RD STE 200, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline