DoD's $7.8M IT contract for data management services awarded to CACI, Inc. - Federal

Contract Overview

Contract Amount: $7,843,317 ($7.8M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2025-01-07

End Date: 2027-01-06

Contract Duration: 729 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: OPNAV N16 DATA MANAGEMENT

Place of Performance

Location: MILLINGTON, SHELBY County, TENNESSEE, 38055

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $7.8 million to CACI, INC. - FEDERAL for work described as: OPNAV N16 DATA MANAGEMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract duration of approximately two years provides a stable period for service delivery. 3. CACI, Inc. - Federal, a large established contractor, is likely to have the resources for this task. 4. The Computer Systems Design Services category indicates a focus on IT infrastructure and support. 5. The Cost Plus Fixed Fee contract type allows for flexibility but requires careful cost oversight. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of approximately $7.8 million over two years for data management services appears reasonable within the context of IT support for a major agency like the Department of the Navy. Benchmarking against similar IT services contracts within the DoD suggests that pricing for system design and integration services can vary widely, but this award falls within a typical range for a contract of this scope and duration. The Cost Plus Fixed Fee structure necessitates close monitoring of actual costs to ensure value for money is achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best possible solution and value from the market.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government explored multiple options to secure the best value for these critical data management services.

Public Impact

The Department of the Navy benefits from enhanced data management capabilities, crucial for operational efficiency and decision-making. Personnel within the Navy will likely receive improved IT support and access to better-managed data systems. The services delivered are essential for maintaining and upgrading the Navy's information technology infrastructure. The contract supports the IT workforce, potentially through CACI's employment of skilled professionals in computer systems design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The lack of specific performance metrics in the provided data makes it difficult to assess performance outcomes.
Reliance on a single large contractor for critical IT functions can pose risks if not properly managed.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor, CACI, Inc. - Federal, is a well-established entity with significant experience in government IT services.
The contract duration of two years provides stability for service continuity.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated to system design, integration, and support. Contracts like this are common as agencies continually update and maintain their complex IT infrastructures. Benchmarks for similar IT services within the Department of Defense often range from millions to tens of millions of dollars, depending on scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a large business prime contractor, CACI, Inc. - Federal. While this may limit direct opportunities for small businesses as prime contractors on this specific award, large contractors often engage small businesses as subcontractors for specialized services, though the extent of this is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee structure requires diligent monitoring of expenditures against the fixed fee to ensure cost control and value. Transparency is typically maintained through regular reporting requirements from the contractor and potential reviews by the agency's Inspector General, particularly concerning financial accountability and performance.

Related Government Programs

Department of Defense IT Services
Navy Information Technology Support
Computer Systems Design Services
Data Management Solutions
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Limited information on specific performance metrics.
No explicit small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.8 million to CACI, INC. - FEDERAL. OPNAV N16 DATA MANAGEMENT

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 $7.8 million.

What is the period of performance?

Start: 2025-01-07. End: 2027-01-06.

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

CACI, Inc. - Federal has a substantial history of contracting with the Department of the Navy and the broader Department of Defense, providing a wide array of IT services including systems design, integration, cybersecurity, and data management. Their track record generally indicates a capacity to handle large-scale government contracts. Specific performance metrics for past contracts would be necessary for a detailed assessment, but their consistent presence as a prime contractor suggests a generally satisfactory performance history. The agency likely reviewed CACI's past performance during the source selection process for this award.

How does the $7.8 million value compare to similar data management contracts within the DoD?

The $7.8 million value for approximately two years of service for data management and computer systems design is within a common range for IT support contracts within the Department of Defense. However, direct comparisons are challenging without knowing the specific scope, complexity, and deliverables. Contracts for enterprise-level data warehousing, advanced analytics, or large-scale system migrations could easily exceed this amount, while smaller, more focused support tasks might be valued lower. This contract appears to be of moderate size for specialized IT services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of actual costs exceeding estimates. This necessitates robust oversight from the agency to scrutinize all allowable costs. If the contractor's cost accounting is not meticulous or if unforeseen technical challenges arise, the total cost to the government could be higher than initially anticipated. Effective management and clear definition of work are crucial to mitigate these risks.

What is the expected impact of this contract on the Navy's data management capabilities?

This contract is expected to significantly enhance the Navy's data management capabilities by providing essential computer systems design services. This likely involves improving existing systems, developing new ones, or integrating disparate data sources to create a more cohesive and accessible data environment. Enhanced data management can lead to better operational insights, improved decision-making, increased efficiency in data retrieval and analysis, and stronger compliance with data governance policies. The ultimate impact is a more modernized and effective IT infrastructure supporting naval operations.

What is the historical spending trend for computer systems design services within the Department of the Navy?

Historical spending trends for computer systems design services within the Department of the Navy have generally shown a consistent and often increasing demand, reflecting the ongoing need to modernize and maintain complex IT systems. The Navy, like other branches of the DoD, invests heavily in IT to support its global operations, research, and administrative functions. Spending in this category can fluctuate based on major system upgrades, new technology adoption, and evolving cybersecurity requirements. While specific annual figures for this NAICS code (541512) would require deeper data analysis, the overall trend indicates sustained government investment in these critical services.

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: $22,637,099

Exercised Options: $12,661,099

Current Obligation: $7,843,317

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,698,084

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