DoD awards $6.96M engineering services task order to CACI, Inc. - Federal

Contract Overview

Contract Amount: $6,957,568 ($7.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2023-09-20

End Date: 2027-02-25

Contract Duration: 1,254 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CRIC OTHER DOD TASK ORDER

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.0 million to CACI, INC. - FEDERAL for work described as: CRIC OTHER DOD TASK ORDER Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. Engineering services are critical for defense operations, indicating a need for specialized expertise. 3. The contract duration of over 3 years suggests a long-term requirement for these services. 4. Awarded as a delivery order, it represents a specific call for services under a larger contract vehicle. 5. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight to manage costs. 6. The task order is for engineering services, a sector with significant federal investment.

Value Assessment

Rating: fair

Benchmarking the value of this specific $6.96 million task order is challenging without knowing the scope of engineering services. However, the cost-plus-fixed-fee (CPFF) structure can sometimes lead to higher costs if not managed diligently, as contractor expenses are reimbursed plus a fixed fee. Comparing this to similar engineering services contracts within the Department of Defense would provide better context on whether the pricing is competitive for the defined deliverables.

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 number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests that the Department of the Navy sought the best value proposition from the market.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and ensures that the government receives services at a fair market value. It also promotes a wider range of potential contractors, increasing the likelihood of finding specialized expertise.

Public Impact

The Department of Defense benefits from specialized engineering services to support its operational and developmental needs. This contract likely supports critical defense infrastructure or technology development projects. The services are primarily delivered in Maryland, impacting the local economy and workforce in that region. The contract may indirectly support a workforce of engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require robust oversight to prevent cost overruns and ensure the fixed fee remains appropriate for the work performed.
The duration of the contract (over 3 years) necessitates ongoing monitoring to ensure continued performance and value.
Without specific details on the engineering services, it's difficult to assess the risk of performance failures.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield good value.
CACI, Inc. - Federal is an established contractor, suggesting a degree of reliability and experience.
The contract is for engineering services, a core competency for defense operations.

Sector Analysis

Engineering services represent a significant segment of the federal contracting market, particularly within the defense sector. This contract falls under the Engineering Services category (NAICS 541330), which encompasses firms providing specialized engineering expertise for various applications. The Department of Defense is a major consumer of these services, utilizing them for design, development, testing, and maintenance of complex systems and infrastructure. Comparable spending benchmarks for engineering services within the DoD are substantial, reflecting the critical nature of these functions.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. However, CACI, Inc. - Federal, as a large prime contractor, may engage small businesses as subcontractors on other projects, contributing indirectly to their growth.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. The cost-plus-fixed-fee structure necessitates close monitoring of expenditures and performance against the contract's objectives. Transparency is typically maintained through contract reporting mechanisms, and while no specific Inspector General jurisdiction is mentioned for this task order, the DoD's IG office generally oversees defense spending for fraud, waste, and abuse.

Related Government Programs

Department of Defense Engineering Services
CACI, Inc. - Federal Contracts
Naval Engineering Support
Cost Plus Fixed Fee Contracts

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates ongoing performance monitoring.
Lack of specific scope details limits detailed risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.0 million to CACI, INC. - FEDERAL. CRIC OTHER DOD 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 $7.0 million.

What is the period of performance?

Start: 2023-09-20. End: 2027-02-25.

What is CACI, Inc. - Federal's track record with the Department of Defense for engineering services?

CACI, Inc. - Federal has a substantial track record with the Department of Defense, having secured numerous contracts across various service categories, including engineering. Their history with the DoD indicates experience in delivering complex solutions and managing large-scale projects. Analyzing their past performance on similar engineering services contracts, particularly those with a cost-plus-fixed-fee structure, would provide insight into their ability to manage costs effectively and meet performance requirements. Past performance reviews and award histories available through federal procurement databases can offer a more detailed picture of their reliability and success rate in fulfilling defense-related engineering needs.

How does the $6.96 million value of this task order compare to typical engineering services contracts awarded by the Navy?

The $6.96 million value of this task order is within a common range for specialized engineering services procured by the Department of the Navy. However, without specific details on the scope of work, it's difficult to make a precise comparison. The Navy procures a wide spectrum of engineering services, from small, focused technical studies to large, multi-year design and integration projects. Task orders of this magnitude often represent specific phases of larger programs or distinct support requirements. Benchmarking against contracts with similar service descriptions and durations would be necessary to determine if this award represents a particularly high or low value for the services rendered.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services revolve around cost control and potential for scope creep. For the government, the risk is that the contractor may not be incentivized to control costs as rigorously as in a fixed-price contract, as their costs are reimbursed. If the fixed fee is not adequately negotiated or if the scope of work expands without proper adjustments, the total contract cost can exceed initial estimates. For the contractor, the risk lies in accurately estimating the costs to perform the work and ensuring the fixed fee adequately compensates them for their effort and risk, especially if unforeseen technical challenges arise.

How effective are full and open competition processes in ensuring value for money in defense engineering services?

Full and open competition is generally considered the most effective method for ensuring value for money in defense engineering services. By allowing all responsible sources to compete, the government can leverage market forces to obtain the best combination of price, technical capability, and performance. This process encourages multiple bidders to offer innovative solutions and competitive pricing to win the contract. While it requires more upfront effort in solicitation and evaluation, the potential for cost savings and access to a wider pool of expertise typically outweighs these costs, leading to better overall value for taxpayer dollars compared to less competitive procurement methods.

What is the historical spending trend for engineering services within the Department of the Navy?

Historical spending trends for engineering services within the Department of the Navy have consistently been substantial, reflecting the vast and complex nature of naval operations, shipbuilding, and infrastructure maintenance. The Navy relies heavily on specialized engineering expertise for everything from ship design and modernization to weapons systems development and shore facility management. Annual expenditures in this category often run into billions of dollars, fluctuating based on defense budgets, modernization priorities, and specific acquisition programs. Analyzing detailed historical data would reveal patterns related to specific types of engineering services in high demand, major program investments, and the distribution of spending across different contracting vehicles and awardees.

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: $31,758,214

Exercised Options: $11,069,495

Current Obligation: $6,957,568

Actual Outlays: $659,717

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $778,887

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