DoD awards CACI $39.4M for Naval Surface Warfare Center engineering support

Contract Overview

Contract Amount: $39,369,956 ($39.4M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2024-01-23

End Date: 2026-03-14

Contract Duration: 781 days

Daily Burn Rate: $50.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMPUTER PROGRAM ENGINEERING SERVICES (CPES) IN SUPPORT OF THE NAVAL SURFACE WARFARE CENTER, DAHLGREN DIVISION (NSWCDD) FOR SUPPORT IN THE DEVELOPMENT AND MAINTENANCE OF TACTICAL SYSTEMS WEAPON SYSTEM ELEMENT AND COMBAT SYSTEM DOMAIN ENGINEERING.

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.4 million to CACI, INC. - FEDERAL for work described as: COMPUTER PROGRAM ENGINEERING SERVICES (CPES) IN SUPPORT OF THE NAVAL SURFACE WARFARE CENTER, DAHLGREN DIVISION (NSWCDD) FOR SUPPORT IN THE DEVELOPMENT AND MAINTENANCE OF TACTICAL SYSTEMS WEAPON SYSTEM ELEMENT AND COMBAT SYSTEM DOMAIN ENGINEERING. Key points: 1. Contract focuses on critical tactical systems development and maintenance for the Navy. 2. CACI, Inc. - Federal is the sole awardee for this delivery order. 3. The contract duration is over two years, ending in March 2026. 4. This award falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which allows for flexibility in project scope but requires careful monitoring of costs. The total award amount is substantial for specialized engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: Taxpayer funds are being used for essential defense engineering services, with competition aiming to optimize value for money.

Public Impact

Enhances naval combat system capabilities, directly impacting national defense. Supports the development of advanced weapon systems for the U.S. Navy. Ensures continued maintenance and modernization of critical naval technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
Sole awardee for this specific delivery order may warrant review of broader competition strategies.

Positive Signals

Awarded under full and open competition.
Supports critical national defense infrastructure.
Long-term engagement with a reputable contractor.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting naval warfare. Spending in this sector is crucial for maintaining technological superiority in defense.

Small Business Impact

The contract was awarded to CACI, Inc. - Federal, a large business. There is no indication of small business subcontracting in the provided data.

Oversight & Accountability

The Department of the Navy, through the Naval Surface Warfare Center, Dahlgren Division, is responsible for oversight. The contract type and duration will require diligent monitoring to ensure performance and cost control.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for contractor dependency.
No explicit small business participation noted.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.4 million to CACI, INC. - FEDERAL. COMPUTER PROGRAM ENGINEERING SERVICES (CPES) IN SUPPORT OF THE NAVAL SURFACE WARFARE CENTER, DAHLGREN DIVISION (NSWCDD) FOR SUPPORT IN THE DEVELOPMENT AND MAINTENANCE OF TACTICAL SYSTEMS WEAPON SYSTEM ELEMENT AND COMBAT SYSTEM DOMAIN ENGINEERING.

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 $39.4 million.

What is the period of performance?

Start: 2024-01-23. End: 2026-03-14.

What is the projected cost efficiency of this Cost Plus Fixed Fee contract given the complexity of tactical systems engineering?

Assessing cost efficiency for CPFF contracts in complex engineering requires detailed analysis of contractor performance, adherence to fixed fee milestones, and comparison against industry benchmarks for similar projects. Without specific performance metrics and detailed cost breakdowns, it's challenging to definitively state the cost efficiency. However, the competitive award process suggests an initial expectation of fair pricing.

What are the potential risks associated with relying on a single contractor for critical weapon system element development and maintenance?

Relying on a single contractor can create dependency and limit flexibility if the contractor's performance declines or if strategic needs shift. Risks include potential price increases in future modifications, reduced innovation due to lack of competitive pressure, and vulnerability if the contractor faces financial or operational difficulties. However, for specialized, long-term projects, a single award can also foster deep expertise and efficiency.

How effectively does this contract contribute to the Navy's long-term strategic goals for combat system modernization?

This contract directly supports the Navy's goal of developing and maintaining tactical systems, which is fundamental to combat system modernization. By ensuring continuous engineering support for weapon system elements and combat system domains, it helps maintain current capabilities while enabling future upgrades. The long duration suggests a strategic alignment with ongoing modernization efforts.

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: N0017823R3007

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: $121,114,355

Exercised Options: $43,593,487

Current Obligation: $39,369,956

Actual Outlays: $848,813

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $17,460,683

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