CACI Enterprise Solutions awarded $34M for DAI compliance and configuration management support

Contract Overview

Contract Amount: $34,080,022 ($34.1M)

Contractor: CACI Enterprise Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2016-06-04

End Date: 2019-06-03

Contract Duration: 1,094 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: IGF::OT::IGF DAI COMPLIANCE AND CONFIGURATION MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.1 million to CACI ENTERPRISE SOLUTIONS, LLC for work described as: IGF::OT::IGF DAI COMPLIANCE AND CONFIGURATION MANAGEMENT SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition suggests a healthy market for these specialized services. 3. Potential risks include contractor performance and the evolving nature of IT systems. 4. This contract supports critical Defense Logistics Agency IT infrastructure. 5. The services fall within the custom computer programming sector.

Value Assessment

Rating: good

The contract value of $34 million over approximately three years for IT compliance and configuration management support appears to be within a reasonable range for services of this nature. Benchmarking against similar contracts for custom computer programming services within the Department of Defense would provide a more precise assessment of value for money. However, the cost-plus-incentive-fee (CPIF) structure suggests an alignment of contractor incentives with government objectives, which can be a positive indicator for achieving desired outcomes efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The level of competition is a positive sign for price discovery and ensuring that the selected contractor provides the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where providers compete on price and quality, leading to more cost-effective solutions for government IT needs.

Public Impact

The Department of Defense benefits from enhanced compliance and configuration management of its IT systems. Services delivered ensure the stability and security of critical Defense Logistics Agency (DLA) IT infrastructure. The primary geographic impact is within the DLA's operational areas, likely supporting its mission globally. The contract supports a workforce skilled in IT compliance, configuration management, and custom programming.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in IT projects if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
The evolving nature of IT security threats requires continuous adaptation and vigilance.

Positive Signals

The use of a Cost Plus Incentive Fee (CPIF) contract structure incentivizes contractor performance and cost control.
Full and open competition suggests a robust market and potential for competitive pricing.
The contract supports essential IT functions for a major defense agency.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The IT services market within the federal government is substantial, with significant spending allocated to software development, maintenance, and IT support. Contracts like this are crucial for maintaining and upgrading the complex IT systems that underpin agency operations. Comparable spending benchmarks for IT support services within the Department of Defense can vary widely based on complexity and duration, but this contract's value appears aligned with typical engagements for specialized IT support.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. While CACI Enterprise Solutions, LLC is a large business, the contract does not explicitly mention subcontracting goals for small businesses. Further analysis would be needed to determine if subcontracting opportunities were pursued or if there are broader implications for the small business IT ecosystem supporting federal contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency's contracting officers and program managers. The Cost Plus Incentive Fee (CPIF) structure includes performance metrics that would be monitored to ensure contractor accountability. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency IT Modernization Programs
Department of Defense Enterprise Resource Planning (ERP) Systems
Federal Civilian IT Modernization Initiatives
Custom Software Development Services for Government

Risk Flags

Potential for cost overruns due to CPIF structure if not closely monitored.
Dependence on contractor expertise for critical IT functions.
Cybersecurity risks inherent in managing defense IT systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.1 million to CACI ENTERPRISE SOLUTIONS, LLC. IGF::OT::IGF DAI COMPLIANCE AND CONFIGURATION MANAGEMENT SUPPORT 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 $34.1 million.

What is the period of performance?

Start: 2016-06-04. End: 2019-06-03.

What is the track record of CACI Enterprise Solutions, LLC in delivering similar IT compliance and configuration management services to the federal government?

CACI Enterprise Solutions, LLC has a significant history of providing IT services to the federal government, including compliance, configuration management, and custom programming. Their extensive portfolio includes work across various defense and civilian agencies. Analyzing past performance evaluations, contract modifications, and any reported issues on similar contracts would provide a clearer picture of their reliability and expertise in this specific domain. A review of their past performance metrics and client feedback would be essential to fully assess their capabilities and potential risks associated with this contract.

How does the awarded value of $34 million compare to market rates for similar custom computer programming services?

Benchmarking the $34 million contract value against market rates for custom computer programming services requires detailed analysis of the specific skill sets, labor categories, and geographic locations involved. Given the contract duration of approximately three years and the CPIF structure, the average annual value is around $11.3 million. Federal procurement data and industry reports suggest that IT support services for defense agencies can command significant prices due to security requirements and specialized expertise. A direct comparison with similar solicitations and awarded contracts for comparable services within the Department of Defense would be necessary to definitively assess if this represents a competitive market rate or if there are potential areas for cost savings.

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

Key risks include potential contractor underperformance, cybersecurity vulnerabilities, and the possibility of scope creep. Mitigation strategies likely involve robust performance monitoring by the DLA, adherence to strict cybersecurity protocols, and clear definition and management of contract scope. The CPIF contract type itself aims to mitigate cost overruns by incentivizing efficiency. Regular reviews and audits by the government contracting team are standard practice to identify and address risks proactively. The evolving nature of IT also presents a risk that requires continuous adaptation and potential contract modifications.

How effective has the Defense Logistics Agency been in managing its IT compliance and configuration management in the past?

The effectiveness of the Defense Logistics Agency (DLA) in managing its IT compliance and configuration management is a critical factor for the success of this contract. Past performance reviews, IG reports, and internal DLA assessments would provide insights into their historical effectiveness. The DLA manages a vast and complex IT infrastructure, and challenges in compliance and configuration are common across large organizations. This contract aims to bolster those capabilities, suggesting a recognition of the need for specialized support to maintain and improve these functions. Analyzing trends in IT system stability, security incidents, and audit findings related to DLA IT would offer a clearer picture of past effectiveness.

What has been the historical spending trend for DAI compliance and configuration management support services within the Department of Defense?

Historical spending on Defense Integrated Automated Systems (DAI) compliance and configuration management support services within the Department of Defense (DoD) would likely show a consistent need for such services, given the critical nature of financial management systems. Spending trends are influenced by system upgrades, modernization efforts, and evolving regulatory requirements. Analyzing aggregate spending data for similar IT support contracts within the DoD over the past several years would reveal patterns and potential increases or decreases in investment in this area. This specific contract represents a portion of that broader spending landscape.

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

Solicitation ID: SP470116R0003

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $34,080,022

Exercised Options: $34,080,022

Current Obligation: $34,080,022

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $6,876,456

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline