CACI awarded $33.1M for Naval Forces Logistics Support, raising questions on competition and value

Contract Overview

Contract Amount: $33,141,678 ($33.1M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2022-08-21

End Date: 2023-06-30

Contract Duration: 313 days

Daily Burn Rate: $105.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAVAL FORCES LOGISTICS SUPPORT SERVICES

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to CACI, INC. - FEDERAL for work described as: NAVAL FORCES LOGISTICS SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The cost-plus-fixed-fee structure may incentivize higher spending without strict cost controls. 3. Lack of competition raises concerns about whether the government secured the best possible value. 4. The contract duration of 313 days is relatively short, suggesting a need for ongoing support. 5. Engineering services are critical for naval operations, but the specific nature of support is unclear. 6. Performance metrics and oversight details are not readily available, hindering a full assessment of value.

Value Assessment

Rating: questionable

Benchmarking the value of this $33.1M contract is challenging due to the lack of competitive bidding and limited public data on the specific services rendered. The cost-plus-fixed-fee (CPFF) contract type, while offering flexibility, can lead to higher costs if not managed rigorously. Without comparable sole-source contracts for similar logistics support services, it's difficult to definitively assess if CACI's pricing is competitive or if the government achieved optimal value for its investment. The provided data does not offer enough detail to compare unit costs or specific service rates against market benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning CACI, INC. - FEDERAL was the only bidder considered. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from multiple vendors. While sole-source awards can be justified under specific circumstances (e.g., urgent need, unique capabilities), they inherently limit price discovery and reduce the pressure on contractors to offer their most competitive pricing. The absence of competition means taxpayers do not benefit from the potential cost savings that a robust bidding process could yield.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these services. Without multiple bids, there's no market validation of the price, and the government cannot be certain it received the most cost-effective solution available.

Public Impact

Naval forces personnel and operations are the primary beneficiaries, receiving essential logistics support. The services provided are critical for maintaining the readiness and effectiveness of naval assets. The geographic impact is likely concentrated around naval bases or operational areas where CACI provides support. The contract supports a workforce, potentially including engineers and logistics specialists, employed by CACI. Ensuring efficient logistics directly contributes to national security objectives by supporting military readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Cost-plus-fixed-fee contract type can incentivize increased spending if not closely monitored.
Limited transparency on specific performance metrics and value realization makes oversight difficult.
Lack of detailed service breakdown hinders independent assessment of necessity and efficiency.
Absence of small business subcontracting goals raises questions about broader economic impact.

Positive Signals

CACI is a known entity in federal contracting, suggesting some level of established capability.
The contract addresses critical naval logistics needs, essential for operational effectiveness.
The fixed fee component of the CPFF contract provides some cost certainty for the government.
The contract is managed by the Department of the Navy, a major defense entity with procurement expertise.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a significant segment of the federal contracting market supporting defense and other government operations. The total federal spending on engineering services is substantial, with the Department of Defense being a primary consumer. Contracts like this are crucial for maintaining the complex infrastructure and operational capabilities required by the armed forces. Benchmarking against similar logistics support contracts within the defense sector is difficult without more specific details on the scope of work and performance requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, CACI, INC. - FEDERAL. While large contracts can sometimes include subcontracting plans that benefit small businesses, the absence of explicit set-aside or subcontracting goals in the provided data means the direct impact on the small business ecosystem is likely minimal for this specific award. Further investigation into CACI's overall subcontracting practices would be needed for a comprehensive assessment.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, a component of the Department of Defense. As a sole-source award, it may receive heightened scrutiny. The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure costs are reasonable and the fixed fee is justified. Transparency is limited by the lack of publicly available performance reports or detailed service breakdowns. The Inspector General for the Department of Defense may have jurisdiction for audits and investigations if fraud, waste, or abuse is suspected.

Related Government Programs

Naval Logistics Command Support Services
Department of Defense Engineering Services
CACI Federal Contracts
Sole-Source Defense Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competitive bidding
Limited transparency on performance metrics
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to CACI, INC. - FEDERAL. NAVAL FORCES LOGISTICS SUPPORT 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 $33.1 million.

What is the period of performance?

Start: 2022-08-21. End: 2023-06-30.

What is CACI's track record with the Department of the Navy for similar logistics support services?

CACI, INC. - FEDERAL has a significant history of contracting with the Department of the Navy and the broader Department of Defense, often providing a range of services including IT, engineering, and professional support. Their track record includes numerous awards, some competitive and some sole-source, across various defense agencies. While CACI is a large and established federal contractor, the specific performance history on past naval logistics support contracts, particularly those awarded sole-source or under similar CPFF structures, would require a deeper dive into contract performance reports and past performance evaluations. Without access to these specific details, it's difficult to definitively assess their past performance in this precise area.

How does the $33.1M value compare to similar naval logistics support contracts awarded competitively?

Direct comparison of this $33.1M sole-source contract to competitively awarded naval logistics support contracts is challenging due to the inherent differences in pricing dynamics. Competitive bids typically drive prices down, whereas sole-source awards lack this pressure. To assess value, one would ideally compare the scope of services, duration, and specific deliverables against similar contracts. However, without detailed public information on the specific services rendered under this CACI contract and comparable competitive contracts, a precise value-for-money assessment is not feasible. The absence of competition suggests this price may not represent the lowest possible cost the government could have achieved.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for logistics support?

The primary risks associated with this contract structure are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to innovate or optimize costs. The government may not be getting the best possible value. Secondly, the cost-plus-fixed-fee (CPFF) structure, while providing some cost certainty through the fixed fee, can incentivize the contractor to incur higher costs to increase the base upon which the fee is calculated, especially if oversight is not rigorous. This can lead to cost overruns and reduced overall efficiency if not managed carefully by the procuring agency.

How effective is the Department of the Navy in managing sole-source contracts to ensure optimal performance and value?

The Department of the Navy, like other major defense agencies, has established procurement regulations and oversight mechanisms designed to manage contracts, including sole-source awards. Their effectiveness can vary depending on the specific contract, the program office's resources, and the diligence of contracting officers and program managers. For sole-source contracts, justification and approval processes are critical, and agencies are expected to conduct thorough market research and price analyses. However, the inherent limitations of sole-source procurement mean that even with robust management, the potential for suboptimal value compared to a competitive process remains a concern. Continuous monitoring and performance evaluation are key.

What is the historical spending trend for naval forces logistics support services by the Department of the Navy?

Historical spending on naval forces logistics support services by the Department of the Navy is substantial and generally trends upwards, reflecting the increasing complexity of naval operations, aging fleets, and evolving technological requirements. While specific figures for 'logistics support services' can fluctuate based on operational tempo, new platform acquisitions, and strategic priorities, the overall defense budget allocation typically supports consistent, significant investment in this area. Analyzing year-over-year spending patterns, contract types utilized (competitive vs. sole-source), and major awardees would provide a clearer picture of trends and potential shifts in procurement strategies over time.

What specific engineering services are included under this contract, and how are they critical to naval operations?

The provided data classifies this contract under 'Engineering Services' (NAICS 541330) but does not detail the specific engineering tasks performed. Naval logistics support can encompass a wide array of engineering disciplines, potentially including systems engineering, maintenance engineering, technical support for naval platforms (ships, aircraft, submarines), infrastructure engineering, and lifecycle support analysis. These services are critical for ensuring the operational readiness, safety, and efficiency of naval assets. They might involve troubleshooting complex systems, developing maintenance strategies, providing technical documentation, or advising on upgrades and repairs, all of which are vital for maintaining the Navy's global operational capabilities.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018922R0054

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: $35,688,126

Exercised Options: $35,688,126

Current Obligation: $33,141,678

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,664,415

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline