CACI awarded $18.7M contract for Navy program management support, raising questions about competition

Contract Overview

Contract Amount: $18,706,093 ($18.7M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2023-07-14

End Date: 2024-03-11

Contract Duration: 241 days

Daily Burn Rate: $77.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES FOR PMS 325 AND PMS 300

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to CACI, INC. - FEDERAL for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES FOR PMS 325 AND PMS 300 Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Significant portion of contract value allocated to engineering services, a core competency. 3. Contract duration of 241 days suggests a focused, short-term support need. 4. High contract value for program management support indicates critical role in naval operations. 5. Performance metrics and value-for-money assessment are crucial given the lack of competitive bidding.

Value Assessment

Rating: fair

The contract value of $18.7 million for approximately 8 months of service appears substantial for program management support. Benchmarking against similar contracts for engineering and management services within the Department of the Navy is difficult without more detailed service descriptions. The 'NOT COMPETED' status suggests that a thorough price analysis may not have been conducted against market alternatives, potentially impacting overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one source is capable of meeting the requirement, or in specific emergency situations. The lack of competition means that the Department of the Navy did not benefit from the price discovery and innovation that typically arises from multiple bidders vying for a contract.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms is reduced when only one vendor is considered.

Public Impact

Naval program managers and personnel benefit from enhanced support services. Services delivered are critical for the successful execution of PMS 325 and PMS 300 programs. Geographic impact is primarily within the Department of the Navy's operational and administrative centers. Workforce implications include the potential for CACI personnel to augment government staff in specialized roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and innovation.
Lack of transparency in the procurement process due to non-competitive award.
Potential for cost overruns if not closely monitored due to fixed-fee structure.

Positive Signals

Award to an established contractor (CACI) suggests a known quantity for service delivery.
Focus on program management support indicates alignment with critical naval objectives.
Defined contract period suggests a clear scope and timeline for services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting program management for naval systems. The market for such specialized support services is competitive, but sole-source awards bypass this dynamic. Comparable spending benchmarks for program management support can vary widely based on the complexity and duration of the programs supported, but this award represents a significant investment in a specific area of naval operations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like CACI means that opportunities for small businesses to participate in this specific contract are likely limited unless they are part of CACI's supply chain or are engaged in separate, smaller contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the procurement process challenging.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Program Management Support
Engineering Services for Defense Programs
CACI Federal Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns in CPFF contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to CACI, INC. - FEDERAL. PROGRAM MANAGEMENT SUPPORT SERVICES FOR PMS 325 AND PMS 300

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 $18.7 million.

What is the period of performance?

Start: 2023-07-14. End: 2024-03-11.

What specific program management functions will CACI provide under this contract?

While the data indicates 'PROGRAM MANAGEMENT SUPPORT SERVICES FOR PMS 325 AND PMS 300,' the specific functions are not detailed. Typically, such support can include planning, organizing, directing, and controlling program activities; managing schedules and budgets; coordinating with stakeholders; risk management; and ensuring compliance with regulations. For PMS 325 (likely related to Aegis Combat System) and PMS 300 (potentially related to Surface Ship Modernization), these services would be critical for the successful development, acquisition, and sustainment of naval platforms and systems. A deeper dive into the contract's Statement of Work (SOW) would clarify the precise deliverables and responsibilities.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data states the contract was 'NOT COMPETED,' indicating a sole-source award. Common justifications for sole-source procurements include that only one responsible source can satisfy the agency's needs, or that an urgent and compelling need exists that the agency would be seriously injured without immediate contract award. Without further documentation, it's presumed the Department of the Navy determined that CACI, Inc. - Federal was the only entity capable of providing the specialized program management support required for PMS 325 and PMS 300 within the specified timeframe and scope, or that a competitive process would introduce unacceptable delays or risks.

How does the contract type (Cost Plus Fixed Fee) influence risk and contractor incentive?

A Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This type of contract is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, as is common in complex program management. For the government, the risk lies in the potential for costs to exceed initial estimates, although the fixed fee provides some predictability in profit. For the contractor, the incentive is to control costs to maximize profit, as the fee is fixed regardless of the final cost. However, CPFF contracts can sometimes lead to less aggressive cost control compared to fixed-price contracts.

What is the historical spending trend for program management support services for PMS 325 and PMS 300?

The provided data only includes details for this specific contract award ($18.7M from July 2023 to March 2024). To assess historical spending trends, one would need to examine contract databases for previous awards related to PMS 325 and PMS 300, looking at contract values, durations, and award types over several fiscal years. This would reveal whether spending in this area has been consistent, increasing, or decreasing, and whether previous awards were also sole-source or competed. Without this historical context, it's difficult to determine if this $18.7M award represents a typical investment or an anomaly.

What are the potential risks associated with CACI, Inc. - Federal's performance on this contract?

Potential risks associated with CACI's performance include failure to meet program objectives, schedule delays, cost overruns (though mitigated by the fixed fee aspect of CPFF), and inadequate communication or coordination with Navy stakeholders. Given the sole-source nature, there's also a risk that the government may not receive the most innovative solutions or the best value compared to what a competitive environment might yield. Performance issues could impact the critical naval programs (PMS 325 and PMS 300) that CACI is supporting, potentially affecting readiness or modernization efforts.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0016423RB002

Offers Received: 1

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: $26,895,459

Exercised Options: $26,895,459

Current Obligation: $18,706,093

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline