CACI awarded $18.1M for Portsmouth Naval Shipyard engineering support, with a 5-year performance period

Contract Overview

Contract Amount: $18,119,153 ($18.1M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2025-08-28

End Date: 2030-07-31

Contract Duration: 1,798 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PORTSMOUTH NAVAL SHIPYARD (PNS) ENGINEERING SUPPORT SERVICES

Place of Performance

Location: KITTERY, YORK County, MAINE, 03904

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to CACI, INC. - FEDERAL for work described as: PORTSMOUTH NAVAL SHIPYARD (PNS) ENGINEERING SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the extensive 5-year duration and specialized nature of engineering support for a naval shipyard. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, CACI, Inc. - Federal. 4. This contract supports critical infrastructure maintenance and modernization at a key naval facility. 5. The geographic focus on Maine highlights the importance of this shipyard to the regional economy and defense posture.

Value Assessment

Rating: good

The contract value of $18.1 million over nearly five years for specialized engineering support at a major naval shipyard seems within a reasonable range. Benchmarking against similar large-scale engineering services contracts for defense infrastructure would provide a more precise value-for-money assessment. However, the duration and scope suggest a significant undertaking that justifies the awarded amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of two bids suggests a competitive environment, which generally benefits the government by driving down prices and encouraging innovation. The specific number of bidders and the details of the solicitation process would offer further insight into the strength of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of securing services at the best possible price through market forces.

Public Impact

Naval operations and maintenance at Portsmouth Naval Shipyard are directly supported, ensuring readiness and efficiency. The contract sustains critical engineering expertise required for complex naval vessel maintenance and repair. The workforce at Portsmouth Naval Shipyard benefits from continued operational support, potentially preserving jobs and specialized skills. The geographic impact is concentrated in Maine, supporting the regional economy through federal spending and associated economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined, leading to cost overruns.
Dependence on a single contractor for critical engineering functions could pose a risk if performance falters.
Ensuring timely delivery of services to meet the demanding schedule of naval shipyard operations.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Long-term contract duration allows for stable planning and execution of complex engineering tasks.
Award to a known entity, CACI, Inc. - Federal, suggests a level of established capability and past performance.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government and private-sector activities, including defense infrastructure, aerospace, and civil engineering. The market for specialized engineering support for naval facilities is substantial, driven by the ongoing need for maintenance, modernization, and operational readiness of naval assets. Comparable spending benchmarks would typically be found within defense-specific engineering support contracts.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business contractor, CACI, Inc. - Federal. Further analysis would be needed to determine if CACI has established subcontracting plans with small businesses to fulfill parts of this requirement, which would be crucial for assessing the contract's impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers responsible for Portsmouth Naval Shipyard. Accountability measures are embedded in the firm-fixed-price contract terms, requiring CACI to deliver specified engineering services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Naval Shipyard Operations and Maintenance
Defense Engineering Services
Department of the Navy Contracts
Portsmouth Naval Shipyard Support
Federal Engineering Consulting

Risk Flags

Potential for performance issues impacting critical naval operations.
Risk of schedule delays affecting shipyard readiness.
Need for clear definition of services to prevent scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to CACI, INC. - FEDERAL. PORTSMOUTH NAVAL SHIPYARD (PNS) ENGINEERING SUPPORT SERVICES

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 $18.1 million.

What is the period of performance?

Start: 2025-08-28. End: 2030-07-31.

What is CACI, Inc. - Federal's track record with similar engineering support contracts for naval facilities?

CACI, Inc. - Federal has a substantial history of providing IT and engineering services to the Department of Defense and other federal agencies. Their experience often includes complex project management, systems engineering, and technical support for large-scale government operations. For naval facilities specifically, CACI has been involved in various support roles, though the exact scope and scale of past contracts directly comparable to this Portsmouth Naval Shipyard award would require detailed review of their contract history. Their performance on previous contracts, including any past issues or commendations related to engineering services, would be a key indicator of their capability to execute this new agreement successfully.

How does the awarded amount compare to the estimated value or market rates for similar engineering support services?

The awarded amount of $18.1 million over approximately five years for engineering support at Portsmouth Naval Shipyard needs to be benchmarked against similar contracts. Factors such as the specific technical requirements, the complexity of the shipyard's needs, and the prevailing market rates for specialized engineering talent in the region are crucial. Without direct comparisons to contracts for similar naval facilities or large-scale industrial engineering projects, it's difficult to definitively assess value for money. However, the full and open competition suggests that the price achieved is likely competitive within the market for such specialized services.

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

Key risks include potential performance deficiencies by the contractor, CACI, Inc. - Federal, leading to delays in critical shipyard operations. Another risk is the possibility of cost overruns if the scope of work expands beyond initial estimates, although the firm-fixed-price structure aims to mitigate this. Schedule adherence is also a significant risk, given the demanding nature of naval shipyard maintenance. Mitigation strategies likely involve robust contract oversight by the Navy, clear performance metrics, regular progress reviews, and potentially liquidated damages clauses for significant delays. The contractor's own risk management processes are also critical.

How effective is the firm-fixed-price contract type in ensuring value for taxpayers in this context?

The firm-fixed-price (FFP) contract type is generally considered beneficial for taxpayers when the scope of work is well-defined and risks can be reasonably estimated. In this case, it shifts the primary financial risk to CACI, Inc. - Federal, incentivizing them to manage costs efficiently and complete the work within the agreed-upon price. This reduces the risk of unexpected cost increases for the government. However, if unforeseen technical challenges arise that significantly alter the scope, an FFP contract can sometimes lead to contractor reluctance to perform additional work or requests for contract modifications, which could indirectly impact overall project success or necessitate future, potentially higher-priced contracts.

What is the historical spending trend for engineering support services at Portsmouth Naval Shipyard or similar naval facilities?

Analyzing historical spending for engineering support at Portsmouth Naval Shipyard and comparable naval facilities is essential for context. Significant year-over-year increases or decreases in spending could indicate changes in operational tempo, infrastructure investment priorities, or shifts in contracting strategies. Understanding these trends helps determine if the current $18.1 million award represents a continuation of established spending patterns, a significant increase reflecting new requirements, or a decrease due to efficiency gains or reduced needs. Without specific historical data, it's challenging to place this award within a long-term financial trajectory.

What are the implications of the 5-year duration on the contract's overall value and risk?

The nearly 5-year duration (1798 days) of this contract offers significant advantages for both the government and the contractor. For the government, it provides stability and continuity of essential engineering services, reducing the administrative burden and potential disruption associated with frequent re-competitions. For CACI, Inc. - Federal, it allows for better resource planning, investment in specialized personnel and equipment, and potentially economies of scale. However, a longer duration also increases the risk of technological obsolescence or changes in requirements over time. It also means that taxpayers are committed to this level of spending for an extended period, making the initial value assessment even more critical.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N3904025R3002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $145,308,941

Exercised Options: $22,932,249

Current Obligation: $18,119,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7295

IDV Type: IDC

Timeline