DoD's $524M IT and engineering services contract awarded to CACI, Inc. for simulation and data analysis

Contract Overview

Contract Amount: $52,390,890 ($52.4M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2021-09-17

End Date: 2026-06-10

Contract Duration: 1,727 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: COMPUTER SIMULATION AND CONTROL, DATA ANALYSIS, SOFTWARE DEVELOPMENT, INFORMATION TECHNOLOGY AND INFORMATION ASSURANCE SUPPORT FOR ENGINEERING SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $52.4 million to CACI, INC. - FEDERAL for work described as: COMPUTER SIMULATION AND CONTROL, DATA ANALYSIS, SOFTWARE DEVELOPMENT, INFORMATION TECHNOLOGY AND INFORMATION ASSURANCE SUPPORT FOR ENGINEERING SERVICES Key points: 1. Contract focuses on critical IT, data analysis, and software development for engineering services. 2. Significant investment in simulation and control capabilities highlights a strategic focus. 3. The duration of the contract suggests a long-term need for these specialized services. 4. Awarded to a large, established federal contractor, indicating a preference for proven capabilities. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 6. Geographic concentration in Virginia may indicate a specific operational or research hub.

Value Assessment

Rating: good

The contract's value of $523.9 million over approximately five years suggests a substantial investment in IT and engineering support. Benchmarking this against similar large-scale IT and engineering services contracts within the Department of Defense indicates a competitive but significant award. The Cost Plus Fixed Fee (CPFF) structure, while common for complex projects, necessitates rigorous oversight to ensure costs remain aligned with the fixed fee and overall project objectives. Without specific per-unit cost data, a direct value-for-money assessment is challenging, but the scale implies a need for specialized, high-level expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competition was sought. This approach aims to leverage the broadest possible market to find the best technical solution and value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and increases the likelihood of selecting the most cost-effective solution.

Public Impact

The Department of the Navy benefits from enhanced engineering services, simulation, and data analysis capabilities. Software development and IT support will likely improve operational efficiency and decision-making within engineering divisions. The contract supports critical defense engineering functions, contributing to national security. Workforce implications include potential employment opportunities for IT specialists, software developers, and engineering support staff, primarily in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed meticulously.
The long duration of the contract may reduce flexibility to adapt to rapidly changing technological needs.
Concentration of services in one geographic area could pose risks if disruptions occur.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
CACI, Inc. - Federal is a large, established contractor with a significant track record in federal IT services.
The contract addresses core engineering and IT needs, suggesting strategic alignment with DoD objectives.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on IT and data analysis support. The broader IT services market for the federal government is substantial, with significant spending allocated to software development, data management, and IT infrastructure. This contract represents a portion of the Department of Defense's investment in advanced technological capabilities to support its engineering and operational requirements. Comparable spending benchmarks in this area often involve multi-year, high-value contracts for specialized technical support.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor is a large business. While there is no explicit information on subcontracting plans, large federal contracts often include provisions for small business participation. The absence of a small business set-aside means direct opportunities for small businesses are limited to subcontracting roles, which depend on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of costs, performance, and adherence to the statement of work. Transparency is typically maintained through regular reporting requirements from the contractor and contract performance reviews. The Inspector General's office for the Department of Defense may conduct audits or investigations as deemed necessary.

Related Government Programs

Department of Defense IT Services
Engineering and Technical Services
Software Development Contracts
Data Analysis Support
Simulation and Modeling Services

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep
Technological Obsolescence
Contractor Performance Variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.4 million to CACI, INC. - FEDERAL. COMPUTER SIMULATION AND CONTROL, DATA ANALYSIS, SOFTWARE DEVELOPMENT, INFORMATION TECHNOLOGY AND INFORMATION ASSURANCE SUPPORT FOR ENGINEERING SERVICES

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 $52.4 million.

What is the period of performance?

Start: 2021-09-17. End: 2026-06-10.

What is CACI, Inc. - Federal's track record with similar Department of Defense contracts?

CACI, Inc. - Federal is a major federal contractor with extensive experience supporting the Department of Defense across various domains, including IT, intelligence, and engineering services. They have a history of managing large, complex contracts, often involving software development, cybersecurity, and data analytics. Their performance on previous DoD contracts has generally been rated positively, though like any large contractor, they have faced scrutiny on specific projects. This specific contract's value and duration align with CACI's typical portfolio, suggesting they possess the scale and expertise required. Historical data indicates CACI is a frequent recipient of DoD awards, reflecting their established presence and capabilities within the defense sector.

How does the pricing structure (Cost Plus Fixed Fee) compare to other IT and engineering service contracts of similar scope?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex, research-oriented, or developmental projects where the final costs are difficult to predict precisely at the outset. In such cases, the government agrees to cover the actual costs incurred by the contractor plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers more flexibility for the contractor to adapt to evolving requirements, which can be beneficial for innovative or uncertain projects. However, it carries a higher risk of cost overruns for the government if not managed diligently. For IT and engineering services, especially those involving R&D or advanced simulation, CPFF is a standard approach, though fixed-price or other incentive-based contracts are also used for projects with clearer scopes and deliverables.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential cost overruns due to the CPFF structure, scope creep if requirements are not well-defined, and contractor performance issues. Mitigation strategies typically involve robust contract oversight by the government, including detailed performance metrics, regular progress reviews, and strict change control processes. For cost risks, continuous monitoring of expenditures against the estimated cost and the fixed fee is crucial. Contractor performance is managed through performance-based metrics and potential award fees or penalties. The long duration also presents a risk of technological obsolescence or changing mission needs, which can be mitigated by incorporating flexibility clauses and regular strategic reviews within the contract.

How effective is the 'full and open competition' approach likely to be for this specific type of service?

Full and open competition is generally the most effective method for ensuring the government receives the best value, as it allows the widest possible pool of qualified vendors to compete. For IT and engineering services, which can range from standardized support to highly specialized development, this approach is particularly beneficial. It encourages innovation and drives down prices by fostering a competitive environment. The effectiveness is maximized when the solicitation clearly defines requirements and evaluation criteria, allowing vendors to propose optimal solutions. While it requires more upfront effort in solicitation and evaluation, the long-term benefits in terms of cost savings and access to cutting-edge capabilities usually outweigh these initial investments.

What are the historical spending patterns for similar engineering and IT support services within the Department of the Navy?

The Department of the Navy consistently allocates significant portions of its budget to IT services, software development, and specialized engineering support. Historical spending patterns show a trend towards multi-year, high-value contracts awarded through competitive processes, often to large, established defense contractors. There has been a growing emphasis on data analytics, simulation, and advanced IT infrastructure to support modernization efforts. Spending in these areas often fluctuates based on strategic priorities, technological advancements, and specific platform development needs. Contracts like this one, valued in the hundreds of millions over several years, are typical for sustaining and advancing critical defense capabilities.

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: N0016721R3003

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: $55,500,247

Exercised Options: $55,500,247

Current Obligation: $52,390,890

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $75,755

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