DoD's $28.7M ETSS Labor contract awarded to CACI, Inc. for computer systems design services

Contract Overview

Contract Amount: $28,759,714 ($28.8M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2022-12-01

End Date: 2026-05-31

Contract Duration: 1,277 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ETSS LABOR

Place of Performance

Location: MILLINGTON, SHELBY County, TENNESSEE, 38053

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to CACI, INC. - FEDERAL for work described as: ETSS LABOR Key points: 1. Contract value represents a significant investment in IT support services for the Department of Defense. 2. The full and open competition suggests a robust market for these specialized services. 3. Performance period spans over three years, indicating a need for sustained support. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring. 5. Awarded to a single contractor, CACI, Inc., highlighting their established position in this domain. 6. The geographic location of performance in Tennessee may indicate regional IT support hubs.

Value Assessment

Rating: good

Benchmarking the value of this $28.7 million contract requires more granular data on the specific services rendered. However, for large-scale IT support contracts, this amount appears within a reasonable range, especially considering the duration and the specialized nature of computer systems design. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee component and deliver value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the designation suggests a healthy level of market interest and capability.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging innovation among potential bidders.

Public Impact

The Department of Defense benefits from enhanced computer systems design and support, crucial for operational effectiveness. Services delivered likely include system architecture, integration, maintenance, and potentially cybersecurity enhancements. The geographic impact is centered in Tennessee, potentially supporting regional military installations or IT centers. Workforce implications include the creation or sustainment of skilled IT jobs within CACI, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Reliance on a single contractor for critical IT services can pose a risk if performance degrades.
The specific scope of 'Computer Systems Design Services' needs clear definition to avoid scope creep.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing and vendor selection.
Long performance period indicates a stable and ongoing need for these services.
CACI, Inc. is a well-established federal contractor with a track record in IT services.

Sector Analysis

The IT services sector for the federal government is a substantial market. Contracts for computer systems design and related services are critical for agencies to maintain and modernize their technological infrastructure. This $28.7 million contract falls within the typical range for significant IT support engagements, reflecting the ongoing demand for specialized expertise in areas like system integration, network management, and software development within the defense sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, CACI, Inc., may still engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their internal subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the Cost Plus Fixed Fee contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements, though specific performance metrics and oversight activities are often internal to the agency.

Related Government Programs

Defense IT Support Services
Computer Systems Design and Related Services
IT Professional Services
CACI, Inc. Federal Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Vendor Lock-in Potential
Performance Degradation Risk
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to CACI, INC. - FEDERAL. ETSS LABOR

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 $28.8 million.

What is the period of performance?

Start: 2022-12-01. End: 2026-05-31.

What is CACI, Inc.'s track record with similar Department of Defense IT contracts?

CACI, Inc. is a major federal contractor with extensive experience supporting the Department of Defense (DoD) across a wide range of IT services. They have a long history of winning and performing on large-scale contracts involving systems integration, software development, cybersecurity, and IT infrastructure management for various military branches. Their past performance with the DoD often includes complex projects requiring high levels of security clearance and technical expertise. Analyzing their specific performance on prior, comparable DoD IT contracts would involve reviewing past performance evaluations, any documented disputes or contract modifications, and their overall financial health as a large, publicly traded company. This contract's value and duration are consistent with the types of engagements CACI typically undertakes for defense clients.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar IT services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset, or when there is a high degree of uncertainty in the costs. In this arrangement, the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change, but it shifts more cost risk to the government. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts, CPFF provides a fixed profit margin, whereas CPIF and CPAF allow for adjustments to the fee based on performance against specific targets. For IT services like computer systems design, where innovation and adaptation are key, CPFF can be suitable, but it necessitates robust government oversight to control costs and ensure the fixed fee remains a fair profit for the work performed.

What are the potential risks associated with a $28.7 million IT services contract awarded to a single vendor?

Awarding a significant contract of $28.7 million to a single vendor, CACI, Inc., presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily reliant on one provider, potentially limiting future flexibility or negotiation leverage. Secondly, if CACI's performance falters or they face financial difficulties, it could significantly disrupt critical IT services for the Department of the Navy. Thirdly, a lack of direct competition throughout the performance period might reduce the incentive for continuous innovation or aggressive cost management compared to a multi-vendor or more competitively structured environment. Mitigating these risks involves strong contract management, clear performance metrics, regular performance reviews, and contingency planning for potential vendor issues.

What does the 'Computer Systems Design Services' classification imply for the scope of this contract?

The NAICS code 541512, 'Computer Systems Design Services,' indicates that the primary focus of this contract is on providing expertise in designing and integrating computer hardware and software. This typically encompasses a broad range of activities, including analyzing user needs, designing system architecture, developing specifications for hardware and software, and overseeing the implementation and integration of these systems. It can also involve consulting services related to IT infrastructure, network design, and potentially cybersecurity architecture. The scope is generally broader than just software development or hardware installation; it focuses on the holistic design and planning of complex computer systems to meet specific organizational requirements, such as those of the Department of the Navy.

How does the contract's performance period (2022-2026) align with typical IT modernization cycles in the DoD?

The performance period for this contract, spanning from December 1, 2022, to May 31, 2026 (approximately 3.5 years), aligns reasonably well with the typical IT modernization cycles within the Department of Defense (DoD). DoD IT modernization efforts often involve multi-year strategies due to the complexity, scale, and security requirements inherent in military systems. While some rapid technology refreshes occur, foundational system design and integration projects frequently extend over several years. This contract duration suggests it supports a significant, ongoing effort in computer systems design rather than a short-term project or a rapid deployment. It allows for phased implementation, testing, and integration, which are crucial for ensuring the reliability and effectiveness of defense IT infrastructure.

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: $28,759,714

Exercised Options: $28,759,714

Current Obligation: $28,759,714

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $336,348

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