CACI, INC. - FEDERAL awarded $55.2M contract for Engineering Services by Department of the Navy

Contract Overview

Contract Amount: $55,258,266 ($55.3M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2021-01-15

End Date: 2025-01-14

Contract Duration: 1,460 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: HOLDING SLIN FOR CLIN 0001CPFF

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $55.3 million to CACI, INC. - FEDERAL for work described as: HOLDING SLIN FOR CLIN 0001CPFF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 3. The contract duration is 4 years, indicating a long-term need for these engineering services. 4. The primary agency is the Department of Defense, specifically the Department of the Navy. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this $55.2 million contract requires more detailed cost breakdowns and comparison to similar engineering service contracts. The CPFF structure necessitates close monitoring to ensure costs remain reasonable and aligned with the fixed fee. Without specific performance metrics or deliverables, a definitive value assessment is challenging. However, the duration suggests a sustained need, which can sometimes indicate fair pricing for ongoing support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This approach generally fosters price discovery and allows the government to select the most advantageous offer. The number of bidders and the specific evaluation criteria would provide further insight into the robustness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage a wider range of innovative solutions.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations and projects. This contract likely supports various naval engineering initiatives, potentially including design, development, and maintenance. The geographic impact is primarily within Virginia, where CACI, INC. - FEDERAL is located, but the services could support naval operations globally. The contract may have implications for the engineering workforce, potentially creating or sustaining jobs within CACI and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit, requiring stringent oversight.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value and effectiveness of the services.
The duration of the contract (4 years) could lead to complacency or reduced urgency if not actively managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment that should benefit cost efficiency.
The contract is with a known entity, CACI, INC. - FEDERAL, which may have a track record with the Department of the Navy.
The fixed fee component of the CPFF contract provides a degree of cost certainty for the government on the fee portion.

Sector Analysis

Engineering services, particularly those supporting defense agencies, represent a significant segment of the professional services market. This contract falls under the broader category of engineering and architectural services, with a specific focus on defense applications. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other military branches for similar technical expertise and scope.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false. This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting goals for small businesses mentioned in this summary. Further investigation into the contract's subcontracting plan would be needed to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is often facilitated through contract databases like FPDS, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services Contracts
Naval Sea Systems Command (NAVSEA) Contracts
Professional Services Contracts
Cost Plus Fixed Fee Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) related orders

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
Long contract duration increases risk of scope creep and potential for contractor complacency.
Lack of specific performance metrics in summary data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.3 million to CACI, INC. - FEDERAL. HOLDING SLIN FOR CLIN 0001CPFF

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 $55.3 million.

What is the period of performance?

Start: 2021-01-15. End: 2025-01-14.

What is CACI, INC. - FEDERAL's track record with the Department of the Navy for similar engineering services?

Assessing CACI, INC. - FEDERAL's track record with the Department of the Navy requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A history of successful project completion, adherence to schedules and budgets, and positive feedback from previous Navy engagements would indicate a strong track record. Conversely, a history of disputes, cost overruns, or performance deficiencies would raise concerns. Without specific historical data for this contractor and agency pairing, it's difficult to definitively state their track record.

How does the $55.2 million value compare to similar engineering services contracts awarded by the Navy?

To benchmark the $55.2 million value, we would need to compare it against other contracts for engineering services awarded by the Department of the Navy or similar defense agencies over a comparable period. Key comparison points include the scope of work, duration, contract type (e.g., CPFF, FFP), and the specific engineering disciplines involved. If this contract represents a standard scope for a 4-year duration and involves complex naval engineering, the price might be within a reasonable range. However, if similar, broader scopes have been awarded for less, or if this contract's scope is relatively narrow, it could indicate potential overpricing or inefficiencies. Access to detailed contract line item numbers (CLINs) and work breakdown structures would enable a more granular comparison.

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

The primary risk with a CPFF contract of this $55.2 million magnitude is the potential for cost escalation. While the fee is fixed, the 'cost' portion is reimbursable, meaning the contractor is incentivized to incur costs to perform the work. If cost controls are weak or the scope of work is not precisely defined and managed, the total cost to the government can significantly exceed initial estimates, even with a fixed fee. This necessitates robust government oversight, detailed cost tracking, and proactive management of any scope changes. Another risk is the potential for the contractor to prioritize higher-cost approaches if they believe it leads to a higher overall reimbursement, despite the fixed fee.

What specific engineering services are being procured under this contract?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. This broad classification typically encompasses a wide range of activities, including but not limited to: systems engineering, design and development, technical analysis, research and development support, testing and evaluation, and lifecycle support for complex systems. For the Department of the Navy, these services could relate to naval platforms (ships, submarines), weapons systems, C4ISR systems, or shore infrastructure. A detailed Statement of Work (SOW) within the contract documents would specify the exact nature, scope, and deliverables of the engineering services required.

How does the contract's duration of 4 years impact its overall value and risk profile?

A 4-year duration for a $55.2 million engineering services contract suggests a long-term, potentially strategic need for the services provided. From a value perspective, a longer duration can allow for economies of scale, deeper integration of the contractor's expertise, and more stable program execution. However, it also increases the risk of cost creep over time, potential for contractor complacency, and the possibility that the procured services may become outdated if technology or requirements evolve rapidly. For the government, managing a long-term CPFF contract requires sustained vigilance in oversight, performance management, and ensuring the continued relevance of the contracted services throughout the period of performance.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6523617R0005

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: $55,258,266

Exercised Options: $55,258,266

Current Obligation: $55,258,266

Actual Outlays: $3,801,939

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,690,987

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523620D8003

IDV Type: IDC

Timeline