DoD's $39.7M Naval Engineering Support Contract Awarded to CACI, Inc. for Amphibious Ship Services

Contract Overview

Contract Amount: $39,749,164 ($39.7M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2023-02-23

End Date: 2026-02-22

Contract Duration: 1,095 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAVAL SYSTEMS ENGINEERING DIRECTORATE ENGINEERING SUPPORT SERVICES - SHIP DESIGN, ENGINEERING, AND INTEGRATION SUPPORT FOR AMPHIBIOUS AND AUXILIARY SHIPS

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.7 million to CACI, INC. - FEDERAL for work described as: NAVAL SYSTEMS ENGINEERING DIRECTORATE ENGINEERING SUPPORT SERVICES - SHIP DESIGN, ENGINEERING, AND INTEGRATION SUPPORT FOR AMPHIBIOUS AND AUXILIARY SHIPS Key points: 1. Contract focuses on critical engineering and integration support for amphibious and auxiliary ships. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1095 days indicates a long-term need for these specialized services. 4. CACI, Inc. - Federal is the prime contractor, with potential for significant subcontracting. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring. 6. This award falls under the Engineering Services NAICS code (541330). 7. The primary agency is the Department of the Navy, highlighting its importance to naval operations.

Value Assessment

Rating: good

The contract value of approximately $39.7 million over three years for specialized naval engineering services appears reasonable given the scope. Benchmarking against similar large-scale engineering support contracts for naval platforms suggests this pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure, while common for complex projects, necessitates diligent oversight to ensure value for money and prevent cost overruns. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the initial award seems aligned with industry standards for such critical support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized service. While two bidders are better than one, a higher number of competitors could potentially drive prices down further and foster greater innovation. The agency's decision to proceed with a CPFF contract type after competition implies a balance between achieving a competitive price and accommodating the inherent uncertainties in complex engineering projects.

Taxpayer Impact: A full and open competition, even with two bidders, generally provides a better opportunity for taxpayers to receive competitive pricing compared to sole-source or limited competitions. This process helps ensure that the selected contractor's proposed costs are scrutinized against market alternatives.

Public Impact

The primary beneficiaries are the U.S. Navy's amphibious and auxiliary ship programs, ensuring their continued operational readiness and modernization. Services delivered include ship design, engineering, and integration support, crucial for maintaining and upgrading naval assets. The geographic impact is primarily centered around naval facilities and shipyards where these services will be performed, likely concentrated in Virginia given the contractor's presence. Workforce implications include the potential for employment of skilled engineers, naval architects, and technical specialists by CACI, Inc. - Federal and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not managed tightly.
Limited competition (two bidders) may not have yielded the absolute lowest price.
The specific technical scope and deliverables require ongoing scrutiny to ensure alignment with naval needs.
Dependence on a single prime contractor for critical engineering functions carries inherent risk.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
CACI, Inc. - Federal is an established government contractor with a track record in defense services.
The contract duration suggests a stable, long-term requirement, allowing for focused expertise development.
The focus on naval engineering is critical for national defense capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's need for specialized naval architecture and marine engineering. The market for such services is driven by government defense spending, particularly on shipbuilding, modernization, and maintenance. Comparable spending benchmarks in this niche often involve multi-million dollar contracts for design, integration, and lifecycle support of complex military platforms. The size of this award is significant within the engineering services sub-sector focused on defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contractor, CACI, Inc. - Federal may have subcontracting opportunities for small businesses, but the extent of this is not detailed in the provided information. Analysis of the subcontracting plan, if available, would be necessary to assess the impact on the small business ecosystem. Without specific set-aside goals, the primary focus appears to be on large business prime performance.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Systems Engineering Directorate and the Department of the Navy contracting officers. Accountability measures are typically embedded within the Cost Plus Fixed Fee contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Ship Design and Engineering Services
Amphibious Assault Ship Programs
Auxiliary Ship Support Contracts
Department of Defense Engineering Services
Naval Systems Engineering Support

Risk Flags

Potential for cost overruns due to CPFF contract type.
Moderate competition level (2 bidders) may limit price discovery.
Dependence on a single prime contractor for critical functions.
Scope creep risk in complex engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.7 million to CACI, INC. - FEDERAL. NAVAL SYSTEMS ENGINEERING DIRECTORATE ENGINEERING SUPPORT SERVICES - SHIP DESIGN, ENGINEERING, AND INTEGRATION SUPPORT FOR AMPHIBIOUS AND AUXILIARY SHIPS

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 $39.7 million.

What is the period of performance?

Start: 2023-02-23. End: 2026-02-22.

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

CACI, Inc. - Federal has a substantial history of providing IT, engineering, and professional services to the Department of Defense and other federal agencies. Within the naval domain, they have supported various shipbuilding programs, fleet readiness initiatives, and systems integration efforts. Their experience often includes complex engineering analysis, software development for command and control systems, and lifecycle support for naval platforms. While specific contract values and performance details vary, their consistent presence as a prime contractor on significant defense contracts suggests a recognized capability in meeting the demanding requirements of naval engineering and support services. This particular award builds upon that established foundation.

How does the $39.7 million value compare to other engineering support contracts for naval vessels?

The $39.7 million contract value for three years of engineering support for amphibious and auxiliary ships is a significant but not extraordinary figure within the context of major naval procurements. Large-scale engineering and integration contracts for naval vessels can range from tens of millions to billions of dollars, depending on the complexity, duration, and specific systems involved. For specialized design, engineering, and integration support over a multi-year period, this award appears to be in the mid-to-high range for a single delivery order or task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, or as a standalone contract for a specific set of services. It reflects a substantial investment in maintaining and advancing the capabilities of critical naval assets.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to CACI, is the potential for cost escalation. While the 'fixed fee' component provides a defined profit margin for the contractor, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If project scope expands, unforeseen technical challenges arise, or contractor efficiency is low, the total cost to the government can increase significantly beyond initial estimates. This necessitates robust government oversight, detailed cost tracking, and clear definition of allowable costs to mitigate the risk of the government paying more than necessary for the services rendered. Contractor performance and efficient resource management are critical.

How effective is full and open competition in ensuring value for money in specialized engineering services?

Full and open competition is generally the most effective method for ensuring value for money in specialized engineering services, as it maximizes the pool of potential bidders and encourages competitive pricing. By allowing all responsible sources to participate, the government increases the likelihood of receiving innovative solutions and cost-effective proposals. However, the effectiveness is contingent on the number and capability of the bidders. In this case, with two bidders, the competition level is moderate. While it likely yielded a more competitive price than a sole-source award, a larger number of highly qualified bidders could potentially have driven the price even lower or spurred greater innovation. The government's evaluation criteria and negotiation strategy also play a crucial role.

What are the historical spending patterns for naval engineering support services by the Department of the Navy?

The Department of the Navy historically allocates substantial funding towards naval engineering support services, encompassing ship design, modernization, maintenance, and systems integration. Spending in this category is consistently high due to the complexity and long lifecycle of naval assets. Annual expenditures can fluctuate based on shipbuilding schedules, modernization programs, and readiness requirements. Contracts for engineering support are often awarded through various mechanisms, including large IDIQ vehicles and specific project-based awards like this one. Trends indicate a continuous need for advanced engineering expertise to maintain technological superiority and operational readiness of the fleet, making this a significant and recurring area of federal spending.

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: N6426722R3007

Offers Received: 2

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: $66,915,847

Exercised Options: $41,170,870

Current Obligation: $39,749,164

Actual Outlays: $597,552

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $32,421,489

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