DoD's Navy awards CACI $160M PSS contract for Unmanned/Small Combatants FMS support

Contract Overview

Contract Amount: $15,958,300 ($16.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2025-07-25

End Date: 2030-07-24

Contract Duration: 1,825 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: PEO USC PMS 525 FOR PROFESSIONAL SUPPORT SERVICE (PSS) TO INCLUDE ENGINEERING SERVICES, PROGRAM MANAGEMENT, TRAINING, AND FACILITIES LEASE TO SUPPORT FOREIGN MILIARY SALES (FMS) CASES FOR U.S. NAVY UNMANNED AND SMALL COMBATANTS WITHIN PEO USC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to CACI, INC. - FEDERAL for work described as: PEO USC PMS 525 FOR PROFESSIONAL SUPPORT SERVICE (PSS) TO INCLUDE ENGINEERING SERVICES, PROGRAM MANAGEMENT, TRAINING, AND FACILITIES LEASE TO SUPPORT FOREIGN MILIARY SALES (FMS) CASES FOR U.S. NAVY UNMANNED AND SMALL COMBATANTS WITHIN PEO USC. Key points: 1. Contract supports critical Foreign Military Sales (FMS) for Navy unmanned and small combatants. 2. CACI, Inc. - Federal secured this significant contract. 3. The contract spans five years, indicating a long-term need for these services. 4. Engineering Services (NAICS 541330) is the primary sector focus.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee (CPFF) type, which allows for cost reimbursement plus a fixed fee. This structure can be effective for complex projects where costs are difficult to predict but requires careful oversight to manage expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible contractors to bid.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Enhances U.S. Navy's capability to support allies through FMS. Supports the development and sustainment of unmanned and small combatant systems. Contributes to the readiness and modernization of partner nation naval forces. Potential for technology transfer and interoperability improvements with allies.

Waste & Efficiency Indicators

Waste Risk Score: 87 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently.
Reliance on a single contractor for critical FMS support could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Long-term contract (5 years) provides stability for critical support services.
Supports key U.S. foreign policy and defense objectives via FMS.

Sector Analysis

This contract falls within the Engineering Services sector, supporting the Department of Defense's strategic initiatives for naval modernization and foreign military sales. Spending in this area is crucial for maintaining technological superiority and supporting allied defense capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Therefore, small businesses were likely not primary awardees, though they may participate as subcontractors.

Oversight & Accountability

The contract's CPFF structure necessitates robust oversight from the Department of the Navy to ensure costs are reasonable and the fixed fee is justified. Monitoring performance against program objectives is key to accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Dependency on a single contractor for critical FMS support.
Complexity of managing diverse services (engineering, training, facilities) across multiple FMS cases.
Ensuring consistent quality and performance across a 5-year contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to CACI, INC. - FEDERAL. PEO USC PMS 525 FOR PROFESSIONAL SUPPORT SERVICE (PSS) TO INCLUDE ENGINEERING SERVICES, PROGRAM MANAGEMENT, TRAINING, AND FACILITIES LEASE TO SUPPORT FOREIGN MILIARY SALES (FMS) CASES FOR U.S. NAVY UNMANNED AND SMALL COMBATANTS WITHIN PEO USC.

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 $16.0 million.

What is the period of performance?

Start: 2025-07-25. End: 2030-07-24.

What is the estimated total cost of the fixed fee component across the contract's duration, and how does it compare to industry benchmarks for similar services?

The contract type is Cost Plus Fixed Fee (CPFF), meaning the fee is fixed regardless of the final cost. While the total contract value is $159.58 million, the specific fixed fee amount isn't detailed. Benchmarking this fee would require access to detailed cost breakdowns and comparison with similar long-term engineering and program management contracts within the DoD.

What specific metrics are in place to measure CACI's performance in providing engineering, program management, and training services for FMS cases?

Performance metrics for CPFF contracts typically include adherence to schedule, technical performance standards, and effective program management. For FMS cases, specific metrics would likely involve successful delivery of support, timely resolution of issues, and positive feedback from the foreign partners receiving the support, all overseen by the PEO USC.

How will the Department of the Navy ensure that the facilities lease component of the contract provides value for money and meets operational needs?

The Navy will likely ensure value through competitive bidding for the lease if possible, or by benchmarking lease costs against market rates for similar facilities in the relevant geographic area. Performance standards for the leased facilities, including availability, security, and suitability for supporting FMS case activities, will be critical oversight elements.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0016425R3004

Offers Received: 3

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: $158,560,461

Exercised Options: $144,494,202

Current Obligation: $15,958,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7295

IDV Type: IDC

Timeline