DoD Awards $13.8M CACI Contract for Electronic Equipment Repair, Lacking Competition
Contract Overview
Contract Amount: $13,805,087 ($13.8M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2024-09-20
End Date: 2026-09-19
Contract Duration: 729 days
Daily Burn Rate: $18.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABOR - O&M
Place of Performance
Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.8 million to CACI, INC. - FEDERAL for work described as: LABOR - O&M Key points: 1. Significant contract value for specialized repair services. 2. Sole-source award raises concerns about price discovery and competition. 3. Long contract duration (729 days) impacts flexibility. 4. Focus on electronic equipment maintenance within the defense sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee adequately reflects market rates for similar repair services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and potentially leads to higher costs for taxpayers as market pressures are absent.
Taxpayer Impact: The lack of competition for this $13.8M contract means taxpayers may be paying a premium for electronic equipment repair services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the necessity and cost-effectiveness of this specific sole-source award. Potential for reduced innovation in repair services without market competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Essential maintenance services for defense equipment
- Experienced contractor (CACI)
Sector Analysis
This contract falls within the Other Electronic and Precision Equipment Repair and Maintenance sector. Spending in this area is critical for maintaining operational readiness of defense assets. Benchmarks for similar sole-source repair contracts are often higher due to lack of competition.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. Transparency in the justification for sole-sourcing is crucial for accountability.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated costs
- Cost-plus contract risks
- Limited small business participation
- Long-term commitment without market validation
Tags
other-electronic-and-precision-equipment, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to CACI, INC. - FEDERAL. LABOR - O&M
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 $13.8 million.
What is the period of performance?
Start: 2024-09-20. End: 2026-09-19.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as urgency, unique capabilities of a specific contractor, or the unavailability of other sources. Without detailed documentation from the Department of Defense, it's impossible to ascertain the precise reasons. However, such justifications are often scrutinized to ensure they are valid and not simply a means to avoid the competitive bidding process.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this contract?
A Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost to the government can increase if the contractor's costs exceed initial estimates. This structure shifts some cost risk to the government, especially if cost controls and oversight are not robust, potentially leading to higher overall spending than anticipated.
What is the expected effectiveness of CACI, Inc. - Federal in performing these electronic equipment repair services?
CACI, Inc. - Federal is a well-established government contractor with a significant presence in IT and support services. While their past performance and experience suggest a high likelihood of effective service delivery, the lack of competition makes it difficult to benchmark their proposed service levels and quality against potential alternatives. Effectiveness will ultimately be measured by the operational readiness of the equipment they service.
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: $13,841,327
Exercised Options: $13,841,327
Current Obligation: $13,805,087
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $10,431,200
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
Start Date: 2024-09-20
Current End Date: 2026-09-19
Potential End Date: 2026-09-19 00:00:00
Last Modified: 2025-09-10
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