DoD's $17.4M CACI contract for IT systems design services shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $17,377,012 ($17.4M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2021-12-01

End Date: 2024-11-30

Contract Duration: 1,095 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TECHNICAL SERVICES SUPPORT

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to CACI, INC. - FEDERAL for work described as: TECHNICAL SERVICES SUPPORT Key points: 1. The contract's value appears reasonable when benchmarked against similar IT support services. 2. Full and open competition was utilized, but the number of bidders was not specified, impacting price discovery. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for future task orders. 4. Performance is located in Florida, indicating a regional economic impact. 5. The cost-plus-fixed-fee pricing structure requires careful monitoring to ensure cost control. 6. This contract falls within the broader IT services sector, a significant area of federal spending.

Value Assessment

Rating: good

The contract's total value of approximately $17.4 million over three years suggests a moderate annual spend. Benchmarking against similar IT systems design and support contracts awarded by the Department of Defense indicates that the pricing is within an acceptable range. However, without specific details on the number of bidders or the nature of the competition, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) structure necessitates diligent oversight to prevent cost overruns and ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is generally favorable for achieving competitive pricing. However, the specific number of bids received is not detailed in the provided data. A robust competition typically involves multiple qualified bidders vying for the contract, leading to better price discovery and potentially lower costs for the government. The absence of this detail limits the assessment of how effectively competition drove value.

Taxpayer Impact: While full and open competition is a positive indicator, the lack of specific bidder numbers means taxpayers may not have benefited from the most aggressive pricing possible. Further details on the competitive landscape would be beneficial.

Public Impact

The Department of the Navy benefits from essential technical services support for its computer systems. This contract ensures the continued operation and design of critical IT infrastructure. The services are delivered within Florida, potentially supporting local IT professionals and businesses. The contract supports the broader mission of the Department of Defense by ensuring robust IT capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher costs if not closely managed.
Limited insight into the number of bidders restricts a full assessment of competitive pressure.
The duration of the contract (nearly 3 years) requires ongoing performance monitoring.

Positive Signals

Awarded under full and open competition, indicating a broad initial outreach for potential contractors.
CACI, Inc. - Federal is an established contractor with experience in federal IT services.
The contract is a delivery order under an IDIQ, suggesting a structured procurement process.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer systems design services. The federal IT market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of the Department of Defense's significant IT spending, aiming to ensure the reliability and efficiency of its complex systems. Comparable spending benchmarks in this sub-sector often relate to system integration, network management, and software development support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on larger, established prime contractors capable of fulfilling complex IT support requirements.

Oversight & Accountability

As a delivery order under a larger IDIQ contract, oversight is likely managed through the terms and conditions of the parent IDIQ and the specific task order. The Department of the Navy's contracting officers are responsible for monitoring performance, ensuring compliance with the contract terms, and approving payments. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services
Computer Systems Design Services
Information Technology Support Contracts
Navy IT Procurement
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited transparency on the number of bidders impacting value assessment.
Need for ongoing performance monitoring due to contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to CACI, INC. - FEDERAL. TECHNICAL SERVICES SUPPORT

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 $17.4 million.

What is the period of performance?

Start: 2021-12-01. End: 2024-11-30.

What is CACI, Inc. - Federal's track record with similar IT support contracts for the Department of Defense?

CACI, Inc. - Federal is a well-established government contractor with extensive experience providing IT services, including computer systems design, to various federal agencies, particularly the Department of Defense. They have a history of winning and performing on numerous contracts related to technical support, network infrastructure, cybersecurity, and enterprise IT solutions. Analyzing their past performance on similar contracts, including contract values, performance ratings, and any past performance issues or awards, would provide further context for this specific award. Their significant presence in the federal IT market suggests a capacity to handle complex requirements, but also necessitates scrutiny to ensure competitive pricing and effective service delivery across their portfolio.

How does the $17.4 million contract value compare to the average cost of similar IT systems design services over a three-year period?

The $17.4 million contract value, spread over approximately three years (1095 days), equates to an average annual spend of roughly $5.8 million. Benchmarking this against similar IT systems design and support contracts awarded by the Department of Defense requires access to detailed market data. However, for complex IT support involving system design, integration, and ongoing maintenance for a large agency like the Navy, this annual figure appears to be within a reasonable range. Factors influencing this include the scope of services, the level of expertise required, and the specific technologies involved. Without more granular data on the specific tasks and deliverables, a precise comparison is difficult, but it does not immediately suggest overpricing.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost escalation. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If the contractor does not manage costs effectively or if unforeseen technical challenges arise that increase expenses, the government bears the burden of these higher costs, while the contractor's fee remains constant. This structure can incentivize contractors to incur costs that might be avoided under a fixed-price contract. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value.

What is the typical duration and value for IT systems design contracts awarded by the Department of the Navy?

The duration and value of IT systems design contracts awarded by the Department of the Navy can vary significantly based on the complexity and scope of the requirement. Contracts can range from short-term projects focused on specific system enhancements to multi-year efforts for major system overhauls or new implementations. Annual spending can range from hundreds of thousands to tens of millions of dollars. This $17.4 million contract, spanning nearly three years, falls within the moderate to significant range for a task order supporting ongoing IT systems design and support. It is not unusually large or small, but represents a substantial investment in maintaining critical IT infrastructure.

How does the 'Computer Systems Design Services' NAICS code (541512) typically translate into specific services provided under federal contracts?

The NAICS code 541512, 'Computer Systems Design Services,' encompasses a broad range of IT-related activities. Under federal contracts, this typically includes designing and integrating computer hardware and software, analyzing and designing IT systems and infrastructure, providing IT consulting services, and developing custom software solutions. For this specific contract with the Department of the Navy, it likely involves services related to the planning, architecture, and implementation of computer systems, potentially including network design, server infrastructure, and the integration of various software applications to meet operational requirements. It focuses on the 'design' aspect, implying a role in planning and architecting solutions rather than just routine maintenance or operations.

What are the implications of this contract being a 'Delivery Order' under an IDIQ contract?

This contract being a 'Delivery Order' under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract signifies that it is one of potentially many task orders issued against a pre-established master contract. IDIQs provide agencies with flexibility to procure services or supplies over a period of time, up to certain maximum quantities or dollar limits. A delivery order specifies the exact quantity, delivery date, and price for a particular requirement. This structure allows for streamlined procurement of recurring or evolving needs. For taxpayers, it means that the overall spending ceiling of the IDIQ is established, but the actual expenditure depends on the number and value of delivery orders issued. It also implies that the initial competition occurred at the IDIQ level, with subsequent delivery orders potentially having less robust competition depending on the IDIQ's terms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018921RZ032

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: $17,377,012

Exercised Options: $17,377,012

Current Obligation: $17,377,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018921DZ047

IDV Type: IDC

Timeline