DoD's $18.3M engineering services contract with CACI, Inc. shows strong competition and fair value

Contract Overview

Contract Amount: $18,351,937 ($18.4M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2020-08-12

End Date: 2025-06-15

Contract Duration: 1,768 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM BUDGET INFO SYSTEM - FOLLOW ON

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to CACI, INC. - FEDERAL for work described as: PROGRAM BUDGET INFO SYSTEM - FOLLOW ON Key points: 1. The contract demonstrates a competitive procurement process, indicating potential for good value. 2. Engineering services are critical for defense operations, suggesting strategic importance. 3. The contract duration of over 4 years points to a long-term need and relationship. 4. Performance is benchmarked against similar contracts to ensure value for money. 5. The sector positioning is within engineering services, a key support function for the Navy. 6. Risk indicators are monitored through performance metrics and oversight mechanisms.

Value Assessment

Rating: good

The contract's value appears reasonable given the scope of engineering services required by the Department of the Navy. Benchmarking against similar contracts for engineering support within the defense sector suggests that the pricing is competitive. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control through the fixed fee component. The total award amount of $18.3 million over its period of performance indicates a significant but not excessive investment for specialized engineering expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and ensures that the government receives the most advantageous offer based on both technical merit and cost.

Taxpayer Impact: Taxpayers benefit from a competitive award process that drives down costs and ensures the government is not overpaying for essential engineering services.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operations and projects. Services delivered include critical engineering support, potentially encompassing design, analysis, and technical consultation. The geographic impact is primarily within Virginia, where the contractor is located and likely where services are rendered or managed. Workforce implications include the employment of skilled engineers and technical professionals by CACI, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus contracts if not closely monitored.
Reliance on a single contractor for extended periods can create vendor lock-in.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration indicates a stable and predictable need for services.
CACI, Inc. is a known entity in federal contracting, implying a degree of established capability.

Sector Analysis

The engineering services sector within the federal government is substantial, supporting a wide array of agency missions, particularly in defense and infrastructure. This contract falls within the broader professional, scientific, and technical services category. Comparable spending benchmarks for engineering services contracts within the Department of Defense often range from millions to hundreds of millions of dollars, depending on the complexity and duration. This $18.3 million award is a moderate-sized contract within this domain.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. However, the prime contractor, CACI, Inc., may engage small businesses as subcontractors, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Navy's contracting officers and program managers. Accountability measures would include adherence to contract terms, performance metrics, and financial reporting. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Professional, Scientific, and Technical Services
Department of the Navy Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost-Plus contract risk
Long-term contract dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to CACI, INC. - FEDERAL. PROGRAM BUDGET INFO SYSTEM - FOLLOW ON

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 $18.4 million.

What is the period of performance?

Start: 2020-08-12. End: 2025-06-15.

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

CACI, Inc. has a significant and long-standing track record of providing a wide range of services, including engineering and IT solutions, to the Department of Defense across various branches. Their history with the DoD includes numerous contracts, many of which are substantial in value and duration. For engineering services specifically, CACI has been involved in complex projects requiring technical expertise, program management, and systems integration. Their performance on past contracts with the DoD is generally viewed as established, though like any large contractor, specific contract performance can vary. Reviewing past performance evaluations and contract close-outs would provide a more granular understanding of their specific success rates and any challenges encountered on similar engineering endeavors.

How does the $18.3 million award compare to typical engineering services contracts awarded by the Navy?

The $18.3 million award for engineering services to CACI, Inc. is a moderate-sized contract within the context of the Department of the Navy's overall spending. The Navy procures a vast array of engineering support, ranging from small, specialized task orders to large, multi-year programs. Contracts for complex systems engineering, naval architecture, or major platform modernization can easily exceed hundreds of millions of dollars. Conversely, smaller, more focused engineering support contracts might be in the low millions. Therefore, this $18.3 million award represents a significant but not exceptionally large investment, likely covering a substantial scope of work or a critical period of support for a specific Navy program or requirement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for engineering services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure, like the one awarded to CACI, Inc., revolve around cost control and contractor incentive. For the government, the main risk is that the contractor's actual costs could exceed initial estimates, potentially leading to a higher overall price than anticipated, even with a fixed fee. While the fee is fixed, the 'cost' portion is variable. Contractors may have less incentive to control costs rigorously compared to fixed-price contracts, as they are reimbursed for allowable costs. Conversely, contractors bear the risk of underestimating costs, as their profit is capped by the fixed fee. Effective oversight, detailed cost tracking, and robust negotiation are crucial to mitigate these risks for the government.

What is the historical spending trend for engineering services by the Department of the Navy?

The Department of the Navy consistently allocates substantial funding towards engineering services, reflecting the complexity and maintenance requirements of its vast fleet and infrastructure. Historical spending trends show a steady demand for these services, driven by new platform development, modernization programs, sustainment, and research and development initiatives. While specific annual figures fluctuate based on budgetary priorities and major acquisition cycles, the overall investment in engineering support remains a significant and critical component of the Navy's budget. Factors such as geopolitical conditions, technological advancements, and fleet readiness needs influence the year-to-year allocation for these essential services.

How does the 'full and open competition' award mechanism impact the value received by taxpayers?

The 'full and open competition' award mechanism is designed to maximize value for taxpayers by fostering a competitive environment. By allowing all responsible sources to submit bids, the government increases the likelihood of receiving innovative solutions and the most favorable pricing. Competition drives down costs as contractors vie for the contract, often leading to proposals that are more cost-effective and technically superior than they might be under less competitive scenarios. This process also enhances transparency and accountability, as the selection criteria and evaluation process are typically well-defined. Ultimately, full and open competition helps ensure that taxpayer dollars are used efficiently and effectively to meet government needs.

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: N0018920R3029

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: $18,373,322

Exercised Options: $18,373,322

Current Obligation: $18,351,937

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $5,245,528

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