DoD's $18.5M CACI contract for management consulting services awarded under full and open competition

Contract Overview

Contract Amount: $18,504,295 ($18.5M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2026-06-30

Contract Duration: 1,276 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NPC RAMS

Place of Performance

Location: MILLINGTON, SHELBY County, TENNESSEE, 38055

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to CACI, INC. - FEDERAL for work described as: NPC RAMS Key points: 1. Contract awarded to CACI, Inc. - Federal for administrative management and general management consulting. 2. Significant duration of 1276 days suggests a substantial and ongoing need for these services. 3. The contract type is Cost Plus Fixed Fee, which can introduce cost overrun risks if not managed carefully. 4. Awarded by the Department of the Navy, indicating a focus on naval operational support. 5. The North American Industry Classification System (NAICS) code 541611 points to specialized management consulting expertise. 6. The contract value of $18.5 million over its term requires careful performance monitoring to ensure value. 7. The presence of two Delivery Orders suggests phased implementation or distinct service components.

Value Assessment

Rating: fair

Benchmarking the value of this $18.5 million contract for administrative management and general management consulting services is challenging without specific deliverables. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if contractor efficiencies are not rigorously pursued. Comparing this to similar contracts for management consulting within the Department of Defense would provide a clearer picture of whether the pricing structure and overall award represent good value for the services rendered. The duration of over three years suggests a significant investment, necessitating close oversight to ensure objectives are met efficiently.

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 fact that it resulted in a single delivery order awarded to CACI, Inc. - Federal suggests that CACI was the most advantageous offer received based on the evaluation criteria. The level of competition at the outset is positive for price discovery, but the subsequent award to a single contractor warrants scrutiny to ensure the initial competition effectively drove down costs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wide range of potential providers, maximizing the chances of securing the best value for public funds.

Public Impact

The Department of the Navy benefits from specialized administrative and management consulting services to enhance operational efficiency. The services delivered are expected to support the strategic and administrative functions within the naval services. The contract's impact is primarily within the federal government, specifically the Department of Defense. The contract may indirectly impact the federal workforce by potentially improving management practices and resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs if not managed diligently.
Long contract duration (1276 days) requires sustained oversight to prevent scope creep and maintain focus on objectives.
Limited public information on specific performance metrics makes it difficult to assess the true value delivered.
The award to a single entity after competition warrants a review of the evaluation process to ensure fairness and optimal pricing.

Positive Signals

Awarded through full and open competition, suggesting a robust initial selection process.
Contractor CACI, Inc. - Federal is a known entity in federal contracting, potentially bringing established expertise.
The contract addresses administrative management and general management consulting, critical functions for organizational effectiveness.
The Department of the Navy is a major federal agency, implying the contract supports significant governmental operations.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions from strategic planning to operational improvements. The market for management consulting services to the federal government is competitive, with numerous firms vying for contracts. Benchmarks for similar consulting services can vary widely based on the specific expertise required, the duration of the engagement, and the complexity of the issues addressed.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in the provided data. Without specific subcontracting plans or goals, it is difficult to assess the extent to which small businesses will benefit from this award. The prime contractor, CACI, Inc. - Federal, is a large business, suggesting that direct set-aside benefits for small businesses are unlikely.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent financial oversight to ensure costs are reasonable and allocable. Transparency is dependent on the agency's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Management Consulting Services
Naval Operations Support Contracts
Federal Administrative Services Contracts
Cost Plus Fixed Fee Contracts
Professional, Scientific, and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration requires sustained oversight to ensure value and prevent scope creep.
Limited public detail on specific performance metrics hinders independent value assessment.
Potential for contractor to prioritize fee over cost efficiency in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to CACI, INC. - FEDERAL. NPC RAMS

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 $18.5 million.

What is the period of performance?

Start: 2023-01-01. End: 2026-06-30.

What is the track record of CACI, Inc. - Federal in delivering similar management consulting services to the Department of Defense?

CACI, Inc. - Federal is a well-established government contractor with a significant history of providing a wide range of services to the Department of Defense (DoD) and other federal agencies. Their portfolio often includes IT, intelligence, and enterprise resource planning solutions, alongside management and consulting services. While specific performance metrics for this particular contract are not publicly detailed, CACI's extensive experience suggests a capacity to handle complex consulting engagements. However, as with any large contractor, past performance reviews and contract close-outs would provide a more granular understanding of their success rates, adherence to timelines, and client satisfaction across various projects. It is advisable to consult federal procurement databases and agency performance reports for a comprehensive assessment of their track record.

How does the $18.5 million contract value compare to similar management consulting contracts awarded by the Department of the Navy?

The $18.5 million contract value for administrative management and general management consulting services over approximately 3.5 years (1276 days) is a substantial award. To benchmark this effectively, one would need to compare it against other contracts for similar services within the Department of the Navy (DoN) or the broader DoD. Factors such as the specific scope of work, the level of expertise required, the duration, and the contract type (Cost Plus Fixed Fee in this case) significantly influence pricing. Generally, consulting contracts of this magnitude suggest a need for strategic or complex operational support. Without access to a detailed database of comparable DoN consulting contracts, it's difficult to definitively state if this represents a high, low, or average value. However, the duration and value indicate a significant commitment of resources.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as this $18.5 million award to CACI, Inc. - Federal, revolve around cost control and contractor incentives. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. The risk for the government is that the contractor may have less incentive to control costs rigorously compared to a fixed-price contract, as cost overruns are generally covered. This can lead to the total project cost exceeding initial estimates. Effective management and oversight by the contracting agency are crucial to mitigate this risk. This includes stringent auditing of costs, clear definition of allowable expenses, and close monitoring of project progress to ensure efficiency and prevent unnecessary expenditures. The fixed fee itself is intended to provide some incentive for the contractor to complete the work efficiently, but the overall cost risk remains higher for the government.

What specific administrative management or general management consulting services are likely being provided under this contract?

Given the NAICS code 541611 (Administrative Management and General Management Consulting Services) and the awarding agency (Department of the Navy), the services likely encompass a broad range of support aimed at improving organizational efficiency, effectiveness, and strategic direction. This could include areas such as organizational design and restructuring, process improvement, strategic planning and implementation, performance management systems, human capital strategy, financial management consulting, and policy development. The 'administrative management' aspect suggests support for day-to-day operations, while 'general management' points towards higher-level strategic advice. The specific nature of the services would depend on the Navy's current needs, potentially related to operational readiness, resource allocation, or modernization initiatives.

How does the competition level (full and open) typically influence the pricing and quality of services for federal contracts?

Full and open competition is generally considered the most effective method for federal agencies to obtain the best value for their money. By allowing all responsible sources to submit bids, agencies maximize the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing. A larger number of bidders often drives down prices as companies vie for the contract. Furthermore, robust competition can lead to higher quality services, as contractors are motivated to differentiate themselves through innovation, superior performance, and competitive pricing. While this contract was awarded under full and open competition, the data indicates only one delivery order was issued to CACI, Inc. - Federal. This suggests that while the initial competition may have been broad, the subsequent award process for the delivery order resulted in a single selected vendor. The effectiveness of the initial competition in securing optimal pricing and quality hinges on the evaluation criteria and the rigor applied during the selection process.

What are the potential implications of this contract for the federal workforce, particularly within the Department of the Navy?

This contract for administrative management and general management consulting services could have several implications for the federal workforce within the Department of the Navy. Firstly, the consulting services may be aimed at improving workforce management, such as optimizing staffing levels, enhancing training programs, or streamlining HR processes. Secondly, the consultants might be tasked with redesigning organizational structures or workflows, which could lead to changes in job roles, responsibilities, or reporting lines for existing personnel. In some cases, consulting engagements can identify areas for efficiency that might lead to workforce reductions or reallocations. Conversely, the consulting could also support initiatives that enhance employee morale, productivity, or career development. The ultimate impact depends on the specific objectives of the consulting engagement and how the recommendations are implemented by the Navy leadership.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: N0018918RZ028

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: $20,026,710

Exercised Options: $20,026,710

Current Obligation: $18,504,295

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $184,101

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018918DZ043

IDV Type: IDC

Timeline