DoD's $31.9M engineering services contract with CACI, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $31,934,259 ($31.9M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2018-03-05

End Date: 2023-02-18

Contract Duration: 1,811 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: KEY MANAGEMENT ENGINEERING, INSTALL, TRAINING AND SUSTAINMENT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to CACI, INC. - FEDERAL for work described as: KEY MANAGEMENT ENGINEERING, INSTALL, TRAINING AND SUSTAINMENT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 3. Performance period spans over 5 years, indicating a long-term need for these services. 4. The contract was awarded to CACI, Inc. - Federal, a significant player in the federal contracting space. 5. Services include engineering, installation, training, and sustainment, covering a broad scope of support. 6. The contract was issued as a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract's value of $31.9 million over approximately five years suggests a moderate investment for comprehensive engineering and sustainment services. Benchmarking against similar large-scale engineering support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the Cost Plus Fixed Fee structure, while common, requires careful monitoring to ensure costs remain reasonable and do not escalate beyond initial expectations. The absence of specific performance metrics makes a definitive value assessment challenging without further data.

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 data shows two bids were received. A higher number of bidders typically suggests more robust competition, which can lead to better pricing and innovation. With only two bids, the level of competition might be considered moderate, potentially limiting the downward pressure on price and the range of solutions explored.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a market that drives down costs and improves service quality. While two bids represent some level of competition, taxpayers would ideally see more bidders to ensure the most cost-effective outcome.

Public Impact

The Department of Defense benefits from specialized engineering, installation, training, and sustainment services. These services likely support critical defense systems and infrastructure, ensuring operational readiness. The contract's geographic impact is not specified but likely relates to DoD facilities or operations. Workforce implications could include employment for engineers, technicians, and support staff employed by CACI, Inc. - Federal and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Limited competition (two bidders) may have resulted in a higher price than a more competitive scenario.
The broad scope of services could lead to challenges in performance monitoring and quality assurance.

Positive Signals

Awarded through full and open competition, indicating an effort to maximize available sources.
Long performance period suggests a stable, ongoing need for critical services.
CACI, Inc. - Federal is an established contractor with experience in federal IT and engineering services.

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 government and private entities with specialized expertise in design, development, and implementation of complex systems. The federal government is a significant consumer of engineering services, particularly within defense, infrastructure, and technology domains. The market size for federal engineering services is substantial, with spending often concentrated in areas requiring high levels of technical proficiency and security clearance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, CACI, Inc. - Federal, may engage small businesses as subcontractors to fulfill parts of the contract, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily be managed by the awarding agency, the Department of Defense, through its contracting officers and contract specialists. The Defense Contract Management Agency (DCMA) is listed as the servicing agency, indicating their role in contract administration and oversight. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Engineering Services
Professional, Scientific, and Technical Services
Defense Support Services
IT and Engineering Support

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of suboptimal pricing due to limited competition.
Long contract duration may increase exposure to price escalation or obsolescence.
Need for diligent oversight to ensure performance and cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to CACI, INC. - FEDERAL. KEY MANAGEMENT ENGINEERING, INSTALL, TRAINING AND SUSTAINMENT 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $31.9 million.

What is the period of performance?

Start: 2018-03-05. End: 2023-02-18.

What is CACI, Inc. - Federal's track record with similar Department of Defense contracts?

CACI, Inc. - Federal has a substantial track record with the Department of Defense, frequently securing contracts for a wide array of services including IT, engineering, intelligence, and support functions. Their history with the DoD is characterized by numerous awards across various agencies and branches. While specific performance details for each contract are not publicly detailed in summary data, their consistent presence and award volume suggest a generally accepted capability to meet DoD requirements. However, a deeper dive into past performance reviews, any contract disputes, or terminations would be necessary for a comprehensive assessment of their reliability and effectiveness on this specific type of engineering services contract.

How does the Cost Plus Fixed Fee (CPFF) structure impact value for money in this contract?

The Cost Plus Fixed Fee (CPFF) contract structure aims to provide flexibility for complex projects where costs are difficult to estimate precisely upfront. The 'cost plus' portion means the contractor is reimbursed for allowable costs incurred, while the 'fixed fee' represents a predetermined profit margin. This structure can incentivize contractors to control costs, as their fee is fixed regardless of the final cost. However, it also carries risks: if costs escalate significantly due to unforeseen issues, the government still pays the allowable costs plus the fixed fee, potentially leading to a higher overall expenditure than anticipated. Effective oversight and robust cost accounting by the government are crucial to ensure value for money under a CPFF arrangement.

What are the potential risks associated with the limited competition (two bidders) for this contract?

Limited competition, as seen with only two bidders for this contract, presents several potential risks. Firstly, it can lead to reduced price competition, meaning the government may pay a higher price than if there were multiple bidders vying for the contract. Secondly, it narrows the range of innovative solutions or approaches that might have been proposed by a larger pool of competitors. This could result in the government not securing the most optimal or cost-effective solution available in the market. Furthermore, a lack of robust competition might reduce the contractor's incentive to perform at peak efficiency, as their options for securing future work might be less dependent on demonstrating superior performance against a wider field of rivals.

How does the duration of this contract (over 5 years) influence its overall risk profile?

A contract duration exceeding five years, as indicated for this delivery order, introduces specific risk factors. Long-term contracts can lead to price escalation over time, especially if not adequately protected by economic price adjustment clauses. There's also a risk of technological obsolescence if the services or systems supported become outdated before the contract's end. Furthermore, a prolonged engagement can sometimes lead to contractor complacency or a reduced sense of urgency if oversight is not consistently rigorous. Conversely, a longer duration can also provide stability and allow for deeper expertise development by the contractor, potentially leading to more efficient and effective service delivery over the contract's life, provided performance is continuously monitored.

What are the implications of this contract being a 'Delivery Order' under a larger contract vehicle?

This contract being a 'Delivery Order' signifies that it was awarded under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) or similar type of contract vehicle. This approach allows agencies to procure services or supplies efficiently without needing to conduct a full, separate competition for each individual task or order. The primary contract vehicle itself would have undergone a competitive process. However, the specific terms, pricing, and competition level for this particular delivery order are what's being analyzed here. The advantage is speed and streamlined acquisition, but it means the competition and pricing analysis are tied to the terms established for the parent contract vehicle, which may have been awarded years prior.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523617R3051

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: $34,547,154

Exercised Options: $34,502,933

Current Obligation: $31,934,259

Actual Outlays: $1,649,188

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline