DoD's $24.7M task order to CACI for electronic equipment repair faces scrutiny over limited competition

Contract Overview

Contract Amount: $24,769,408 ($24.8M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2022-03-04

End Date: 2026-03-03

Contract Duration: 1,460 days

Daily Burn Rate: $17.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ESTABLISH TASK ORDER

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to CACI, INC. - FEDERAL for work described as: ESTABLISH TASK ORDER Key points: 1. The contract's value, while significant, requires careful benchmarking against similar repair and maintenance services. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayer funds. 3. The 'Cost Plus Fixed Fee' structure necessitates close monitoring to ensure cost containment. 4. The contractor, CACI, Inc. - Federal, has a substantial presence in government contracting, warranting a review of past performance. 5. The repair and maintenance of electronic and precision equipment is a critical but often complex service area. 6. The contract's duration of nearly four years suggests a need for sustained performance and quality assurance.

Value Assessment

Rating: fair

Benchmarking the $24.7 million cost for electronic equipment repair and maintenance against similar contracts is challenging without more specific service details. The 'Cost Plus Fixed Fee' (CPFF) contract type means the final cost is not fixed upfront, making direct price comparisons difficult. While CPFF can be appropriate for complex or uncertain scopes, it requires robust oversight to prevent cost overruns and ensure value. Without comparable data on per-unit costs or specific service metrics, assessing the true value for money is difficult, leaning towards a 'fair' assessment pending further analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a 'Delivery Order' under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, but the provided data indicates it was 'NOT COMPETED' at the task order level. This suggests that either the task order was placed on a sole-source basis or potentially under a pre-existing contract vehicle where competition was previously established but not for this specific order. The lack of competition for this task order limits price discovery and may not yield the best possible pricing for the government.

Taxpayer Impact: When a contract is not competed at the task order level, taxpayers may not benefit from the competitive pricing that could arise from multiple bids, potentially leading to higher costs.

Public Impact

The Department of the Navy benefits from the continued operational readiness of its electronic and precision equipment. This contract supports the maintenance and repair of critical defense systems, ensuring their functionality. The services are likely concentrated in Maryland, given the 'ST' and 'SN' codes indicating the state. The contract supports jobs within CACI, Inc. - Federal and potentially its subcontractors in the technical repair and maintenance fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for this task order limits price discovery and potentially increases costs for taxpayers.
The 'Cost Plus Fixed Fee' structure requires diligent oversight to manage costs effectively and prevent overruns.
Specific details on the scope of 'Other Electronic and Precision Equipment Repair and Maintenance' are needed for a thorough value assessment.
The contract's duration of nearly four years necessitates ongoing performance monitoring to ensure sustained quality.

Positive Signals

CACI, Inc. - Federal is an established government contractor, suggesting experience in this service area.
The contract addresses a critical need for the maintenance and repair of essential defense equipment.
The 'Delivery Order' award mechanism implies it falls under a potentially broader, previously competed contract vehicle.

Sector Analysis

The market for electronic and precision equipment repair and maintenance is diverse, encompassing a wide range of specialized services. This contract falls under NAICS code 811219, 'Other Electronic and Precision Equipment Repair and Maintenance.' This sector is characterized by a mix of large defense contractors and smaller specialized firms. Government spending in this area is substantial, driven by the need to maintain complex military hardware. Benchmarking this contract's value requires comparing its specific services against industry standards and other government repair contracts, which can be challenging due to the specialized nature of the equipment.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration or requirement for this specific task order. There is no indication of a small business set-aside. Therefore, the direct impact on the small business ecosystem appears minimal for this award. However, it is possible that CACI, Inc. - Federal may engage small businesses as subcontractors, which would need to be assessed through subcontracting reports if available.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a 'Cost Plus Fixed Fee' contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements stipulated in the contract. The specific Inspector General jurisdiction would likely be that of the Department of Defense.

Related Government Programs

Defense Logistics Agency (DLA) Repair and Maintenance Contracts
Naval Sea Systems Command (NAVSEA) Maintenance Contracts
Air Force Sustainment Center Repair Services
Army Aviation and Missile Command (AMCOM) Maintenance

Risk Flags

Limited Competition
Cost Plus Fixed Fee Structure
Lack of Specific Service Details for Benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to CACI, INC. - FEDERAL. ESTABLISH TASK ORDER

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 $24.8 million.

What is the period of performance?

Start: 2022-03-04. End: 2026-03-03.

What is CACI, Inc. - Federal's track record with similar electronic equipment repair and maintenance contracts for the Department of Defense?

CACI, Inc. - Federal is a large and established government contractor with a broad portfolio of services, including IT, intelligence, and engineering support. While specific details on their track record for 'Other Electronic and Precision Equipment Repair and Maintenance' under NAICS 811219 are not provided in this data snippet, their extensive history with the DoD suggests they possess the necessary infrastructure and experience. A deeper dive into their contract history, performance evaluations (e.g., CPARS), and past awards in similar service categories would be necessary to fully assess their specific capabilities and reliability for this type of work. Their size and experience generally indicate a capacity to handle complex requirements, but the quality and cost-effectiveness of their past performance in this niche would require further investigation.

How does the $24.7 million cost compare to similar electronic equipment repair contracts awarded by the DoD or other federal agencies?

Directly comparing the $24.7 million cost is challenging without granular details on the specific types of electronic and precision equipment being repaired, the scope of work, and the service level agreements. The 'Cost Plus Fixed Fee' (CPFF) nature of this contract means the final cost is not predetermined, making simple dollar-value comparisons potentially misleading. To benchmark effectively, one would need to identify comparable contracts with similar equipment complexity, repair requirements, contract types (ideally fixed-price for easier comparison, or CPFF with detailed cost breakdowns), and contract durations. Analyzing the fixed fee percentage relative to the estimated cost and comparing it to industry averages for CPFF contracts could provide some insight. Without such detailed comparative data, assessing whether this contract represents good value for money is difficult.

What are the primary risks associated with a 'Cost Plus Fixed Fee' contract for electronic equipment repair, and how are they mitigated?

The primary risk with a 'Cost Plus Fixed Fee' (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs incurred, plus a fixed fee. This can incentivize less cost-conscious behavior compared to fixed-price contracts. Risks include scope creep, inefficient resource utilization, and inflated costs for materials or labor. Mitigation strategies are crucial and typically involve robust government oversight. This includes detailed review and approval of all incurred costs, regular audits, strict adherence to the contract's Statement of Work (SOW), and clear performance metrics. The government must actively manage the contract, ensuring that the fixed fee remains appropriate for the effort and that the contractor is held accountable for delivering the required services within reasonable cost parameters. Strong contract administration and clear communication channels are essential.

What is the expected impact of this contract on the operational readiness of the Department of the Navy's electronic and precision equipment?

This contract is intended to directly support and enhance the operational readiness of the Department of the Navy's electronic and precision equipment. By ensuring that critical systems are properly maintained and repaired, the contract helps to minimize downtime and extend the service life of valuable assets. Reliable repair services are essential for maintaining the functionality of complex military hardware, which in turn ensures that naval forces have the equipment they need to perform their missions effectively. The successful execution of this contract should lead to fewer equipment failures, quicker turnaround times for repairs, and ultimately, a higher state of readiness across the affected platforms and systems.

Given this was 'NOT COMPETED,' what are the implications for future competition and potential cost savings for the government?

The fact that this task order was 'NOT COMPETED' has several implications. Firstly, it means that the government did not solicit bids from multiple potential offerors for this specific requirement, thereby foregoing the opportunity to leverage competitive pressures to achieve the lowest possible price. This can lead to higher costs for taxpayers compared to a fully competed scenario. Secondly, it may indicate a reliance on a specific contractor or a pre-existing contract vehicle where competition was previously established but not refreshed for this particular order. For future cost savings, the government should aim to compete task orders whenever feasible, or ensure that existing IDIQ vehicles are periodically re-competed to incorporate new market entrants and drive innovation and price reductions. Understanding the justification for 'NOT COMPETED' is key to assessing if this was an appropriate exception.

What is the significance of NAICS code 811219 ('Other Electronic and Precision Equipment Repair and Maintenance') in the context of federal spending?

NAICS code 811219 covers a broad spectrum of repair and maintenance services for electronic and precision equipment, excluding specialized categories like computers or communication equipment which have their own codes. This includes items like scientific instruments, photographic equipment, and various types of industrial and defense-related electronic hardware. Federal spending under this code is significant because maintaining the operational capability of diverse and often highly specialized equipment is crucial for agencies like the Department of Defense, scientific research institutions, and intelligence agencies. The breadth of this code means contracts can vary widely in scope and value, from routine servicing to complex overhauls, making it a vital, albeit diverse, category for government procurement.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042121R0133

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: $37,350,886

Exercised Options: $26,966,954

Current Obligation: $24,769,408

Actual Outlays: $2,765

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $880,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042122D0072

IDV Type: IDC

Timeline