DoD's $16.8M contract for knowledge-based services awarded to CACI, Inc. - Federal

Contract Overview

Contract Amount: $16,822,408 ($16.8M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2025-03-13

End Date: 2026-11-23

Contract Duration: 620 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: KNOWLEDGE BASED SERVICES (KBS) FOLLOW-ON SUPPORT FOR CODE 80

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to CACI, INC. - FEDERAL for work described as: KNOWLEDGE BASED SERVICES (KBS) FOLLOW-ON SUPPORT FOR CODE 80 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires robust oversight. 3. This is a delivery order under a larger contract, indicating a phased approach to service delivery. 4. The contract duration is 620 days, spanning over a year and a half. 5. The primary NAICS code (541330) points to engineering services, suggesting technical expertise is required. 6. The contract is for follow-on support, implying a need for continuity and established performance.

Value Assessment

Rating: fair

Benchmarking the value of this $16.8 million contract is challenging without specific performance metrics or detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs incurred plus a fixed fee, which can lead to cost overruns if not managed carefully. Comparing this to similar knowledge-based services contracts for the Department of Defense would require access to a broader dataset of comparable procurements. However, the fixed fee component provides some level of cost predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it's a delivery order suggests it was likely competed as part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. The number of bidders is not specified, but full and open competition generally aims to maximize the pool of potential offerors, which can lead to better pricing and innovation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

The Department of Defense benefits from continued knowledge-based services for code 80. This contract supports critical functions within the Department of the Navy. The services delivered are likely to be technical and analytical in nature, supporting engineering requirements. The geographic impact is primarily within Maryland, where the contract is managed or performed. The workforce implications involve skilled professionals in engineering and knowledge-based services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
Follow-on support contracts can sometimes lead to complacency if performance is not continuously monitored.
The specific nature of 'CODE 80' is not detailed, which could obscure the full scope of services and associated risks.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract is a delivery order, implying it's part of a structured procurement process.
CACI, Inc. - Federal is an established contractor, suggesting familiarity with government contracting requirements.

Sector Analysis

The federal sector for engineering and technical services is substantial, with agencies like the Department of Defense being major consumers. This contract falls under the broader category of professional, scientific, and technical services, which includes a wide range of specialized expertise. The market is characterized by a mix of large, established firms and smaller niche providers. Spending in this area is often driven by complex defense systems, research and development, and ongoing operational support requirements.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) noted for this contract. This suggests that the primary awardee, CACI, Inc. - Federal, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order, which could limit opportunities for the small business ecosystem on this particular contract. Further review of the parent contract or specific subcontracting goals would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor incurred costs and ensure the fixed fee remains appropriate. Transparency will depend on the agency's reporting practices and the level of detail made public regarding performance and expenditures. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Engineering Services
Knowledge-Based Services Contracts
Naval Systems Support Contracts
Follow-on Support Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Follow-on nature of the contract may lead to complacency if not actively managed.
Lack of specific detail on 'CODE 80' could obscure risks and performance expectations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to CACI, INC. - FEDERAL. KNOWLEDGE BASED SERVICES (KBS) FOLLOW-ON SUPPORT FOR CODE 80

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 $16.8 million.

What is the period of performance?

Start: 2025-03-13. End: 2026-11-23.

What is the historical spending pattern for 'KNOWLEDGE BASED SERVICES (KBS) FOLLOW-ON SUPPORT FOR CODE 80' with the Department of Defense?

Analyzing historical spending for this specific 'CODE 80' requires access to detailed contract databases and the ability to filter by the exact service description and agency. Without more granular data on previous contracts related to 'CODE 80', it's difficult to establish a precise historical spending pattern. However, the current award of $16.8 million for a follow-on support contract suggests a sustained need for these services over time. Typically, follow-on contracts indicate a successful prior engagement and a continuing requirement, implying that similar or potentially larger amounts may have been spent on this service in previous periods. A comprehensive review would involve searching for all contracts associated with 'CODE 80' and CACI, Inc. - Federal, or similar service descriptions, within the Department of Defense over several fiscal years to identify trends in award values, contract types, and durations.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to industry norms for similar engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is common in government contracting, particularly for services where the scope of work may evolve or is difficult to define precisely upfront, such as research and development or complex engineering projects. For engineering services, CPFF is often used when the contractor is expected to perform a significant amount of design, analysis, or problem-solving. The 'fixed fee' component provides the contractor with a predetermined profit margin, incentivizing them to control costs to maximize their return. However, it places a significant oversight burden on the government to ensure that the costs incurred are reasonable and allocable to the contract. Compared to fixed-price contracts, CPFF offers more flexibility but potentially higher overall costs if not managed diligently. Industry norms often see a mix of contract types, with fixed-price contracts preferred for well-defined scopes and CPFF or other cost-reimbursement types used for less defined or more complex efforts.

What are the key performance indicators (KPIs) typically used to evaluate the success of knowledge-based services contracts like this one?

Evaluating the success of knowledge-based services (KBS) contracts, especially those involving engineering and follow-on support, typically relies on a combination of performance, cost, and schedule metrics. Key Performance Indicators (KPIs) often include measures of technical accuracy and quality (e.g., error rates in analysis, adherence to engineering standards), timeliness of deliverables (e.g., meeting milestones, on-time report submission), responsiveness to requests (e.g., turnaround time for technical queries), and overall customer satisfaction. For a CPFF contract, monitoring the actual costs against the estimated costs and the fixed fee is also critical. Success is often measured by the contractor's ability to provide expert insights, solve complex problems, and contribute to the overall mission objectives of the agency, in this case, the Department of the Navy's 'CODE 80' initiative, within the agreed-upon budget and timeframe.

What is CACI, Inc. - Federal's track record with the Department of Defense for similar engineering and knowledge-based services?

CACI, Inc. - Federal is a large and established government contractor with a significant presence across various defense and intelligence agencies, including the Department of Defense (DoD). They have a long history of providing a wide array of services, including IT, engineering, intelligence analysis, and program management. Their track record with the DoD typically involves numerous contracts, ranging in value and complexity. Information on their past performance is often available through federal procurement data systems, which can detail contract awards, performance ratings (if publicly released), and any past performance issues or commendations. For this specific type of knowledge-based engineering support, CACI has consistently been a major player, often winning significant contracts due to their broad capabilities and established relationships within the defense sector. A detailed review of their contract history with the DoD would reveal specific successes and potentially any challenges encountered on similar projects.

What are the potential risks associated with a follow-on support contract for 'CODE 80' and how are they mitigated?

Follow-on support contracts, while often indicating successful prior performance, carry inherent risks. One primary risk is complacency, where the incumbent contractor may become less diligent, assuming continued business. Another risk is the potential for scope creep or the introduction of new requirements that were not fully anticipated during the initial competition, which can impact costs and timelines. Furthermore, if the original contract had underlying issues that were not fully resolved, these could persist. Mitigation strategies typically involve robust contract management and oversight by the government. This includes clearly defined performance standards, regular performance reviews, and active monitoring of costs and deliverables. For a CPFF contract, stringent financial oversight is essential. Agencies often use performance metrics and award-term provisions (if applicable) to incentivize continued high performance and manage risks associated with long-term support relationships.

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: N0016724R3005

Offers Received: 2

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: $66,173,136

Exercised Options: $28,491,166

Current Obligation: $16,822,408

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $281,822

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