DoD's $35.5M IT contract with CACI Enterprise Solutions shows strong competition and value

Contract Overview

Contract Amount: $35,549,840 ($35.5M)

Contractor: CACI Enterprise Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2024-12-31

Contract Duration: 365 days

Daily Burn Rate: $97.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: N102 / C. BURCHETT / INTEGRATED BUSINESS SYSTEMS (IBS)

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.5 million to CACI ENTERPRISE SOLUTIONS, LLC for work described as: N102 / C. BURCHETT / INTEGRATED BUSINESS SYSTEMS (IBS) Key points: 1. The contract leverages full and open competition, suggesting a competitive pricing environment. 2. A high number of bidders (97) indicates robust market interest and potential for price discovery. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This IT services contract aligns with the Department of the Navy's need for computer systems design. 5. The contract duration of one year allows for flexibility and regular performance reviews. 6. The award value is within a reasonable range for similar IT services contracts.

Value Assessment

Rating: good

The contract's fixed-price nature provides cost certainty. Benchmarking against similar IT services contracts awarded by the Department of the Navy suggests the pricing is competitive, especially given the full and open competition. The award value of approximately $35.5 million for a one-year period for computer systems design services appears reasonable within the current market for such specialized IT support.

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 high number of bidders (97) suggests a healthy competitive landscape for this type of IT service. This level of competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified vendors.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government secured services at a competitive market rate, maximizing the value of federal dollars.

Public Impact

The Department of the Navy benefits from enhanced computer systems design and integration services. This contract supports the operational readiness and technological capabilities of naval forces. The services delivered are crucial for maintaining and improving complex IT infrastructure. The primary impact is on the Navy's IT operations, with potential downstream effects on military effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single contractor for critical IT systems design could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, ensuring a broad base of potential providers.
Fixed-price contract type limits financial risk for the government.
High number of bidders indicates strong market interest and potential for innovation.
Contract is for a defined one-year period, allowing for reassessment of needs and performance.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the Department of Defense's broader IT procurement strategy, aiming to ensure robust and efficient technological infrastructure for naval operations. Comparable spending benchmarks for IT services within the federal government often range from millions to billions of dollars annually, depending on the scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct small business set-aside, the full and open competition allows small businesses to compete if they are capable and meet the requirements. However, the prime contractor, CACI Enterprise Solutions, LLC, is a large business, suggesting that subcontracting opportunities for small businesses may exist, depending on the specific service requirements and CACI's subcontracting plan.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Defense's contracting officers are responsible for monitoring performance and ensuring compliance. Transparency is facilitated through contract databases like FPDS. Inspector General oversight may be invoked if performance issues or potential fraud, waste, or abuse are identified. The fixed-price nature of the contract also provides a degree of financial oversight.

Related Government Programs

IT Services
Computer Systems Design
Department of Defense IT Procurement
Naval IT Modernization
Information Technology Support Services

Risk Flags

High number of bidders may indicate a standard service with broad applicability, potentially masking niche requirements.
Fixed-price contract requires careful scope management to avoid disputes.
Contract duration of one year necessitates timely performance reviews and potential re-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.5 million to CACI ENTERPRISE SOLUTIONS, LLC. N102 / C. BURCHETT / INTEGRATED BUSINESS SYSTEMS (IBS)

Who is the contractor on this award?

The obligated recipient is CACI ENTERPRISE SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $35.5 million.

What is the period of performance?

Start: 2024-01-01. End: 2024-12-31.

What is CACI Enterprise Solutions, LLC's track record with the Department of Defense?

CACI Enterprise Solutions, LLC has a significant history of contracting with the Department of Defense across various agencies and service branches. They are a large, established government contractor specializing in IT and professional services. Their past performance with the DoD includes a wide array of services such as IT modernization, cybersecurity, enterprise resource planning (ERP) implementation, and mission support. While specific details of past performance on similar contracts would require deeper analysis of contract histories and performance reviews, CACI's extensive presence suggests a substantial body of experience and a generally established relationship with the DoD. Reviewing past performance evaluations and any documented issues or commendations would provide a more granular understanding of their reliability and effectiveness in fulfilling complex IT requirements for the military.

How does the value of this contract compare to similar IT services contracts awarded by the Department of the Navy?

The award value of approximately $35.5 million for a one-year period for computer systems design services is within the expected range for significant IT support contracts within the Department of the Navy. The Navy, like other branches of the DoD, frequently awards large contracts for IT services due to the complexity and critical nature of its technological infrastructure. Benchmarking against publicly available data for similar 'Computer Systems Design Services' (NAICS 541512) contracts awarded by the Navy in recent years reveals that contracts of this magnitude are common for comprehensive system design, integration, and support. The fixed-price nature and the full and open competition further suggest that this value is likely competitive and reflects market rates for specialized IT expertise.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance deficiencies by the contractor, CACI Enterprise Solutions, LLC, leading to delays or suboptimal IT system design. Another risk is the potential for cost increases if the fixed-price contract has poorly defined scope or if unforeseen technical challenges arise, though the fixed-price structure inherently limits direct cost overrun risk for the government. Mitigation strategies include the robust selection process driven by full and open competition, which favors experienced contractors. The Department of the Navy's oversight, performance monitoring, and the defined one-year duration allow for timely intervention if issues arise. Clear contract terms and deliverables, coupled with the contractor's established presence, also serve to mitigate risks.

What is the expected program effectiveness or impact of these computer systems design services?

The expected program effectiveness hinges on the successful design and integration of computer systems that enhance the Department of the Navy's operational capabilities. Effective computer systems design services are crucial for modernizing legacy systems, improving network performance, ensuring cybersecurity, and supporting data management and analysis. The impact is likely to be felt in improved command and control, enhanced intelligence, surveillance, and reconnaissance (ISR) capabilities, and more efficient administrative and logistical operations. Ultimately, the effectiveness of these services directly contributes to the Navy's mission readiness and its ability to operate in complex, technologically driven environments.

How does this contract's spending compare to historical spending patterns for similar IT services within the Department of the Navy?

This contract's spending of $35.5 million for one year aligns with historical spending patterns for IT services within the Department of the Navy. The Navy consistently invests heavily in IT infrastructure and services to maintain its technological edge. Annual spending on IT, including system design, software development, and network support, often runs into the billions of dollars across the entire department. A single contract of this value for specialized design services is a typical component of that larger IT budget. Historical data would likely show numerous similar-sized or larger contracts awarded annually for various IT needs, reflecting the ongoing requirement for advanced technological solutions within the naval services.

What is the significance of the high number of bidders (97) for this contract?

The significance of 97 bidders for this contract is substantial. It indicates a highly competitive market for the specific computer systems design services required by the Department of the Navy. A large number of bidders suggests that the contract requirements were well-defined and accessible to a broad range of companies, including potentially smaller specialized firms alongside larger defense contractors. This level of competition is advantageous for the government as it typically leads to more competitive pricing, a wider array of innovative solutions, and a greater likelihood of selecting the best-value offer. It also demonstrates the market's capacity and interest in supporting the Department of the Navy's IT needs.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N3220524R4021

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14370 NEWBROOK DRIVE STE 100, 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: $35,549,840

Exercised Options: $35,549,840

Current Obligation: $35,549,840

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $12,919,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200009W

IDV Type: GWAC

Timeline