DoD's $31M IGF DAI Contract with CACI Raises Questions on Value and Competition

Contract Overview

Contract Amount: $30,978,815 ($31.0M)

Contractor: CACI Enterprise Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2016-03-29

End Date: 2019-03-28

Contract Duration: 1,094 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF DAI IMPLEMENTATION SUSTAINMENT AND DEVELOPMENT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to CACI ENTERPRISE SOLUTIONS, LLC for work described as: IGF::OT::IGF DAI IMPLEMENTATION SUSTAINMENT AND DEVELOPMENT SERVICES Key points: 1. Contract awarded to CACI Enterprise Solutions, LLC for $31M. 2. Full and open competition was utilized. 3. The contract is for custom computer programming services. 4. The contract duration was 1094 days. 5. No small business participation was noted.

Value Assessment

Rating: questionable

The contract's value of $31M over three years for custom computer programming services warrants scrutiny. Benchmarking against similar contracts for IT implementation and sustainment is crucial to determine if the pricing reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad search for qualified vendors. However, the specific pricing outcomes and whether multiple bids were truly competitive need further analysis to ensure optimal price discovery.

Taxpayer Impact: Taxpayer funds totaling $31M were allocated. The effectiveness of the competition in securing the best value for this amount is a key consideration for fiscal responsibility.

Public Impact

Significant federal IT spending on system implementation and sustainment. Potential impact on the efficiency and effectiveness of defense logistics operations. Questions regarding the long-term value and necessity of the services provided. Lack of small business involvement may limit broader economic participation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Potential for cost overruns if not managed effectively
Dependence on a single vendor for critical system sustainment

Positive Signals

Awarded under full and open competition
Firm fixed price contract type can limit cost uncertainty

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Federal spending in this area is substantial, supporting critical government operations. Benchmarks for similar sustainment and development contracts are essential for evaluating cost-effectiveness.

Small Business Impact

The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses to contribute to this significant IT project were either not pursued or not awarded, which could be a missed opportunity for economic development.

Oversight & Accountability

Oversight of this contract would involve monitoring performance against deliverables, ensuring adherence to the firm fixed price, and verifying that the services provided align with the Department of Defense's strategic IT goals. Regular reviews are essential for accountability.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Lack of small business participation
Potential for scope creep impacting cost and timeline
Dependence on a single contractor for critical system functions
Need for detailed performance metrics to assess value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to CACI ENTERPRISE SOLUTIONS, LLC. IGF::OT::IGF DAI IMPLEMENTATION SUSTAINMENT AND DEVELOPMENT SERVICES

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $31.0 million.

What is the period of performance?

Start: 2016-03-29. End: 2019-03-28.

What was the specific scope of work for the IGF DAI implementation, sustainment, and development services, and how did it align with the agency's needs?

The contract focused on custom computer programming services for the IGF DAI system. A detailed analysis of the original requirements, subsequent modifications, and the delivered functionalities is necessary to assess alignment with the Defense Logistics Agency's operational needs and strategic objectives. Understanding the evolution of the scope is key to evaluating the overall value.

How did the pricing structure and final award amount compare to independent cost estimates or bids from other competitors under the full and open competition?

While awarded under full and open competition, the provided data lacks details on the number of bids received or the comparison of CACI's bid against estimates. A thorough review would involve examining the competitive range, the government's cost realism analysis, and any post-award debriefings to understand the price discovery process and ensure the $31M represented a fair and reasonable price.

What metrics were used to measure the effectiveness and success of the IGF DAI system sustainment and development services provided by CACI?

Effectiveness metrics are not detailed in the provided data. Key performance indicators (KPIs) related to system uptime, bug resolution times, successful deployment of new features, user satisfaction, and overall impact on logistics efficiency would be crucial. Without these, assessing the true value and effectiveness of the $31M investment is challenging.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

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: $30,978,815

Exercised Options: $30,978,815

Current Obligation: $30,978,815

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $5,216,269

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline