CACI awarded $71.1M for Surface Combatant Lifecycle Support, highlighting engineering services for the Navy

Contract Overview

Contract Amount: $71,157,771 ($71.2M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2019-01-23

End Date: 2024-01-22

Contract Duration: 1,825 days

Daily Burn Rate: $39.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NSWCDD V DEPARTMENT COMPUTER PROGRAM ENGINEERING SERVICES (CPES) TO PROVIDE LIFECYCLE SUPPORT FOR THE DEPLOYED SURFACE COMBATANTS AND SUPPORT IN THE TRANSITION OF NEW BASELINES TO THE FLEET.

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $71.2 million to CACI, INC. - FEDERAL for work described as: NSWCDD V DEPARTMENT COMPUTER PROGRAM ENGINEERING SERVICES (CPES) TO PROVIDE LIFECYCLE SUPPORT FOR THE DEPLOYED SURFACE COMBATANTS AND SUPPORT IN THE TRANSITION OF NEW BASELINES TO THE FLEET. Key points: 1. Contract provides essential lifecycle support for surface combatants, ensuring fleet readiness. 2. Engineering services are critical for maintaining and upgrading complex naval systems. 3. The contract duration of 1825 days indicates a long-term commitment to support. 4. Focus on transitioning new baselines to the fleet suggests modernization efforts. 5. The fixed-fee structure aims to control costs while ensuring service delivery. 6. This award represents a significant investment in naval engineering capabilities.

Value Assessment

Rating: good

The contract value of $71.1 million over five years for comprehensive lifecycle support of surface combatants appears reasonable. Benchmarking against similar large-scale engineering support contracts for naval platforms suggests this pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) contract type allows for cost control while incentivizing efficient service delivery. The relatively low number of modifications (1) suggests stable execution and predictable service needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should drive favorable pricing and service quality. This approach is generally preferred for ensuring the government receives the best value.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the return on investment for defense spending.

Public Impact

Naval surface combatants and the fleet will benefit from sustained engineering support and modernization. The U.S. Navy's operational readiness and technological edge are enhanced. Personnel involved in the operation and maintenance of these vessels receive crucial technical assistance. The contract supports specialized engineering jobs within the defense sector, primarily in Virginia. This award contributes to the overall security and defense posture of the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term lifecycle support contracts if not managed diligently.
Reliance on a single contractor for critical engineering services could pose a risk if performance falters.
Ensuring continuous innovation and adaptation to evolving threats within the fixed-fee structure.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long contract duration indicates a stable, ongoing need and successful past performance.
The CPFF structure provides a balance between cost control and necessary service provision.
Focus on lifecycle support and new baseline transitions demonstrates strategic planning for fleet modernization.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense and naval applications. The market for defense engineering services is substantial, driven by the continuous need for maintenance, upgrades, and modernization of complex military platforms. Comparable spending often involves multi-year contracts for lifecycle support of major weapon systems, with values ranging from tens to hundreds of millions of dollars depending on the system's complexity and fleet size.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary awardee, CACI, Inc. - Federal, is likely a large business. While large prime contracts can sometimes offer subcontracting opportunities for small businesses, the absence of specific set-aside provisions means direct opportunities for small businesses may be limited unless they are part of CACI's supply chain or subcontracting plan.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Navy's contracting officers and program managers. The contract type (CPFF) necessitates close monitoring of costs and performance to ensure adherence to the fixed fee and scope. Transparency is generally maintained through contract reporting mechanisms, and potential issues could be addressed by the Naval Sea Systems Command (NAVSEA) or relevant Inspector General offices if performance or financial irregularities arise.

Related Government Programs

Naval Surface Warfare Center Dahlgren Division (NSWCDD) Contracts
Surface Combatant Modernization Programs
Department of Defense Engineering Services
Navy Lifecycle Support Contracts
CACI Federal Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of contractor performance issues impacting fleet readiness.
Dependency on specialized technical expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.2 million to CACI, INC. - FEDERAL. NSWCDD V DEPARTMENT COMPUTER PROGRAM ENGINEERING SERVICES (CPES) TO PROVIDE LIFECYCLE SUPPORT FOR THE DEPLOYED SURFACE COMBATANTS AND SUPPORT IN THE TRANSITION OF NEW BASELINES TO THE FLEET.

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 $71.2 million.

What is the period of performance?

Start: 2019-01-23. End: 2024-01-22.

What is CACI, Inc. - Federal's track record with similar Department of Defense contracts, particularly for naval engineering services?

CACI, Inc. - Federal has a substantial history of performing complex IT and engineering services for the Department of Defense, including extensive work with the Navy. They have been awarded numerous contracts for systems engineering, software development, IT infrastructure support, and program management across various naval platforms. Their experience often includes lifecycle support, modernization, and sustainment of critical defense systems. While specific performance metrics for past contracts are not detailed here, their continued success in securing large-scale, long-term contracts with agencies like the Department of the Navy suggests a generally positive track record and demonstrated capability in delivering required services.

How does the $71.1 million contract value compare to other lifecycle support contracts for naval surface combatants?

The $71.1 million contract value for five years of lifecycle support for surface combatants is a significant but not extraordinary amount within the context of naval procurement. Large naval platforms, such as destroyers and cruisers, require continuous and complex engineering support throughout their operational lifespan, which can span decades. Annual spending on such support can easily run into tens of millions of dollars, depending on the specific systems, modernization needs, and fleet size. Compared to contracts for new ship construction or major overhauls, this figure is moderate, but for ongoing sustainment and engineering services, it represents a substantial investment reflecting the critical nature of maintaining fleet readiness and technological relevance.

What are the primary risks associated with providing lifecycle support for deployed surface combatants?

Key risks in providing lifecycle support for deployed surface combatants include the inherent complexity and aging of the platforms, leading to unforeseen maintenance issues and obsolescence of components. There's a risk of scope creep, where the definition of 'lifecycle support' expands beyond initial expectations, potentially increasing costs. Technical risks involve the integration of new technologies with legacy systems and ensuring cybersecurity. Furthermore, reliance on a single contractor for critical support can pose a risk if performance degrades or if the contractor faces financial instability. Ensuring consistent availability of skilled personnel and managing supply chain disruptions for specialized parts are also significant concerns.

How effective is the Cost Plus Fixed Fee (CPFF) contract type in managing costs for long-term engineering services like this?

The Cost Plus Fixed Fee (CPFF) contract type aims to balance cost control with the need for flexibility in long-term, complex service contracts. The 'cost-plus' element allows the contractor to recover allowable costs incurred, which is beneficial when the exact scope or effort is difficult to define precisely upfront, as is often the case with lifecycle support. The 'fixed fee' provides the contractor with a predetermined profit margin, incentivizing them to manage costs efficiently to maximize their profit within that fee. For the government, it offers a degree of cost predictability while ensuring the contractor is motivated to perform. However, effective oversight is crucial to ensure costs are reasonable and allocable, and to prevent potential overruns if the fixed fee becomes insufficient for the actual work required.

What are the historical spending patterns for engineering services related to naval surface combatants by the Department of the Navy?

Historical spending patterns by the Department of the Navy for engineering services related to naval surface combatants show a consistent and significant investment over many years. This spending is driven by the need to maintain the operational readiness, technological superiority, and extended service life of a large and complex fleet. Budgets allocated for sustainment, modernization, and lifecycle support typically represent a substantial portion of the Navy's overall procurement and R&D appropriations. Spending fluctuates based on fleet modernization cycles, new platform introductions, and evolving threat environments. Contracts for engineering services, including those for systems integration, software sustainment, and platform upgrades, are frequently awarded through competitive processes, with values often in the tens to hundreds of millions of dollars annually for major classes of ships.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017818R3013

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: $89,384,714

Exercised Options: $77,767,484

Current Obligation: $71,157,771

Actual Outlays: $6,892,416

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline