DoD awards $8.86M engineering services task order to CACI, Inc. with 1259 days duration

Contract Overview

Contract Amount: $8,857,874 ($8.9M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2023-09-15

End Date: 2027-02-25

Contract Duration: 1,259 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NEW TASK ORDER WITH FUNDING

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $8.9 million to CACI, INC. - FEDERAL for work described as: NEW TASK ORDER WITH FUNDING Key points: 1. Value for money assessed through comparison to similar engineering service contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract type (Cost Plus Fixed Fee) which shifts some risk to the government. 4. Performance context is a long duration task order, suggesting a significant scope of work. 5. Sector positioning within engineering services for defense applications. 6. The contract's duration and cost structure warrant close monitoring for cost overruns.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type, while common for complex engineering efforts, inherently carries more risk for the government compared to fixed-price contracts. Benchmarking the $8.86 million award against similar engineering services contracts awarded by the Department of the Navy or other DoD components for comparable scope and duration is crucial. Without specific details on the services rendered, a precise value-for-money assessment is challenging, but the CPFF structure suggests a need for robust oversight to ensure costs remain reasonable and within expected parameters.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final award price.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider pool of contractors to offer their services, potentially leading to innovation and better value.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations. This contract likely supports critical defense infrastructure or systems requiring engineering expertise. The geographic impact is centered in Maryland, where CACI, Inc. - Federal is located. Workforce implications include employment opportunities for engineers and technical staff within CACI.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.
Long contract duration (over 3 years) increases the potential for scope creep and cost escalation.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
Engineering services can be complex, requiring diligent oversight to ensure quality and adherence to specifications.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contractor CACI, Inc. - Federal is a known entity in the federal contracting space.
Task order is for engineering services, a critical need for defense operations.
Long duration suggests a stable, ongoing requirement that the contractor can fulfill.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry supporting the defense sector. The market for defense engineering services is substantial, driven by the continuous need for design, development, testing, and sustainment of complex military systems and infrastructure. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD, particularly within the Navy, to assess the pricing and scope relative to industry standards.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, CACI, Inc. - Federal, may engage small businesses as subcontractors depending on their own subcontracting plans and the specific needs of the task order, which is not detailed here.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy, the contracting agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing will be essential to monitor expenditures and ensure costs are reasonable and allocable. Transparency is facilitated through contract award databases, but detailed performance reporting and Inspector General oversight would depend on specific contract clauses and agency policies. Accountability measures would be tied to performance against the contract's statement of work and any defined milestones.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Engineering Services
Department of Defense Engineering Support Contracts
Professional, Scientific, and Technical Services (NAICS 541330)
CACI, Inc. - Federal Contract History
Cost Plus Fixed Fee Contracts in Defense

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring for cost control.
Long contract duration increases exposure to scope creep and potential cost escalation.
Lack of detailed scope of work limits precise value-for-money assessment.
No small business set-aside noted, potentially limiting small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to CACI, INC. - FEDERAL. NEW TASK ORDER WITH FUNDING

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 $8.9 million.

What is the period of performance?

Start: 2023-09-15. End: 2027-02-25.

What is CACI, Inc. - Federal's track record with Cost Plus Fixed Fee (CPFF) contracts within the Department of Defense?

CACI, Inc. - Federal has a significant history of performing on Cost Plus Fixed Fee (CPFF) contracts across various federal agencies, including the Department of Defense. CPFF contracts are common for complex, research-intensive, or uncertain scope projects where defining a fixed price upfront is difficult. While this contract structure allows for flexibility and cost reimbursement, it places a greater emphasis on robust government oversight to manage costs effectively. CACI's experience with CPFF contracts suggests they possess the necessary financial systems and project management capabilities to handle such agreements. However, the success of any CPFF contract hinges on diligent monitoring of costs, adherence to the fixed fee, and clear communication between the contractor and the government to prevent cost overruns and ensure value delivery. Analyzing CACI's past performance on similar CPFF contracts, including any reported cost variances or audit findings, would provide a more detailed assessment of their proficiency in managing this contract type.

How does the $8.86 million cost for 1259 days of engineering services compare to similar contracts?

The average daily cost for this contract is approximately $7,036 ($8,857,873.78 / 1259 days). To benchmark this value, we would need to compare it against other engineering services contracts awarded by the Department of the Navy or DoD with similar scope, complexity, and duration. Factors such as the specific engineering disciplines required (e.g., naval architecture, systems engineering, electrical engineering), the level of security clearance needed, and the geographic location can significantly influence pricing. Contracts for highly specialized or mission-critical engineering support often command higher daily rates. Without a detailed statement of work and specific service requirements, a precise comparison is difficult. However, this daily rate should be evaluated against market data for comparable engineering services to determine if it represents a fair and reasonable price for the services rendered.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This means the government bears the risk of cost increases if the project takes longer or requires more resources than initially estimated. For engineering services, risks include unforeseen technical challenges, scope creep (uncontrolled changes or growth in project scope), and difficulties in accurately estimating labor hours and material costs. Effective risk mitigation requires stringent government oversight, detailed cost tracking, regular audits, and clear communication channels to manage scope and costs proactively. The fixed fee itself is not subject to change, providing some cost certainty for that portion of the contract value.

What is the expected program effectiveness or outcome of this engineering services contract?

The expected program effectiveness and outcome of this engineering services contract are directly tied to the specific statement of work (SOW) issued by the Department of the Navy, which is not provided in the data. Generally, engineering services contracts aim to deliver technical solutions, designs, analyses, or support for complex systems, platforms, or infrastructure. For the Navy, this could involve anything from ship design and modernization to weapons systems development, cybersecurity engineering, or infrastructure planning. The effectiveness will be measured by the contractor's ability to meet the technical requirements, adhere to schedules, deliver high-quality work products, and ultimately contribute to the Navy's mission readiness and operational capabilities. Success hinges on clear objectives, well-defined deliverables, and robust performance monitoring by the contracting agency.

How has federal spending on engineering services (NAICS 541330) by the Department of the Navy trended historically?

Federal spending on engineering services, categorized under NAICS code 541330, by the Department of the Navy has historically been substantial, reflecting the complexity and scale of naval operations and acquisitions. While specific year-over-year trends require detailed analysis of historical contract databases, the Navy consistently invests heavily in engineering support for shipbuilding, aircraft development, weapons systems, and shore infrastructure. Spending in this category is influenced by defense budgets, modernization priorities, and geopolitical factors. Periods of increased shipbuilding or major platform upgrades typically correlate with higher spending on engineering services. Conversely, budget constraints or shifts in strategic focus could lead to fluctuations. Analyzing trends would involve examining contract awards over several fiscal years to identify patterns and understand the drivers of spending in this critical sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042122R0190

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: $25,359,889

Exercised Options: $11,928,542

Current Obligation: $8,857,874

Actual Outlays: $104,405

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $50,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042123D0011

IDV Type: IDC

Timeline