DoD's $37.7M PIEE Support Services contract awarded to CACI Enterprise Solutions, highlighting IT services for logistics

Contract Overview

Contract Amount: $37,755,028 ($37.8M)

Contractor: CACI Enterprise Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-29

End Date: 2026-07-15

Contract Duration: 746 days

Daily Burn Rate: $50.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROCUREMENT INTEGRATED ENTERPRISE ENVIRONMENT (PIEE) SUPPORT SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.8 million to CACI ENTERPRISE SOLUTIONS, LLC for work described as: PROCUREMENT INTEGRATED ENTERPRISE ENVIRONMENT (PIEE) SUPPORT SERVICES Key points: 1. Value for money assessed through benchmarking against similar IT support contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and reliance on a single awardee for critical IT functions. 4. Performance context relies on CACI's established track record in enterprise IT solutions. 5. Sector positioning places this contract within the broader Defense IT services market. 6. The contract's fixed-price nature aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The contract value of $37.7 million over approximately two years appears reasonable when benchmarked against similar large-scale IT support services for federal agencies. CACI Enterprise Solutions, a known entity in government contracting, was awarded this Delivery Order. The firm-fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for value. However, a detailed comparison with specific per-unit costs for services rendered would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a degree of competition, though the exact number of proposals received and their relative strengths are not detailed here. A competitive process generally leads to better price discovery and potentially more innovative solutions for the government.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it encourages competitive pricing and reduces the risk of inflated costs compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who rely on the PIEE system for procurement and financial management. This contract delivers essential IT support services, ensuring the operational continuity and functionality of the PIEE platform. The geographic impact is national, supporting DoD operations across various locations. Workforce implications include the employment of IT professionals by CACI Enterprise Solutions to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if PIEE becomes overly reliant on CACI's specific expertise.
Dependence on a single delivery order awardee for critical IT infrastructure support.
Scope creep could increase costs if not managed tightly within the firm-fixed-price structure.

Positive Signals

Award to an established contractor with a proven track record in enterprise IT solutions.
Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition process generally leads to better pricing and service offerings.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT support services for a critical defense procurement system. The market for enterprise IT support services for the federal government is substantial, with numerous large and small businesses competing for contracts. This award to CACI Enterprise Solutions aligns with the trend of major IT service providers supporting large federal agencies with complex system maintenance and enhancement.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, though CACI may engage small businesses as subcontractors depending on their internal strategies and the specific needs of the PIEE support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reviews are standard mechanisms to ensure contractor performance and adherence to contract terms. Transparency is facilitated through contract award databases like FPDS and SAM.gov, though detailed performance metrics are often internal.

Related Government Programs

Procurement Integrated Enterprise Environment (PIEE)
Defense Logistics Agency IT Support Contracts
Federal Civilian IT Services
Department of Defense Enterprise Systems

Risk Flags

Contract Duration
Vendor Lock-in Potential
Reliance on Single Awardee

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 million to CACI ENTERPRISE SOLUTIONS, LLC. PROCUREMENT INTEGRATED ENTERPRISE ENVIRONMENT (PIEE) 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 $37.8 million.

What is the period of performance?

Start: 2024-06-29. End: 2026-07-15.

What is CACI Enterprise Solutions' track record with the Department of Defense and specifically with PIEE support?

CACI Enterprise Solutions, LLC has a significant and long-standing track record of providing IT services to the Department of Defense across various agencies and programs. While specific details on their involvement with the Procurement Integrated Enterprise Environment (PIEE) prior to this award are not explicitly detailed in the provided data, CACI is a major government contractor known for its expertise in enterprise resource planning (ERP), cloud computing, cybersecurity, and IT infrastructure management. Their history with DoD includes numerous large-scale contracts for system development, integration, and sustainment. This award suggests they possess the necessary qualifications and past performance to meet the demanding requirements of supporting a critical system like PIEE, which underpins a vast array of defense procurement and financial operations.

How does the $37.7 million contract value compare to similar IT support services for federal agencies?

The $37.7 million contract value for approximately two years of PIEE support services is within the expected range for large-scale IT support contracts awarded to major federal IT service providers. Similar contracts for enterprise system maintenance, sustainment, and enhancement for agencies like the General Services Administration (GSA), Department of Veterans Affairs (VA), or other branches of the DoD often fall within the tens to hundreds of millions of dollars over multi-year periods. Factors influencing this value include the complexity of the system, the number of users, the scope of services (e.g., help desk, system administration, cybersecurity, development), and the required service levels. Given PIEE's critical role in defense procurement, this value appears commensurate with the scope and importance of the services required.

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

Key risks include potential over-reliance on a single vendor (CACI) for critical IT infrastructure, which could lead to vendor lock-in and reduced leverage in future negotiations. Another risk is scope creep, where the requirements may expand beyond the initial agreement, potentially leading to cost increases if not managed effectively, although the firm-fixed-price (FFP) structure inherently shifts cost overrun risk to the contractor. Performance degradation or security vulnerabilities are also inherent risks in IT support contracts. Mitigation strategies typically involve robust contract oversight by the Defense Logistics Agency (DLA), including performance monitoring, regular reviews, clearly defined deliverables, and strong change control processes. The FFP nature itself is a primary mitigation for cost risk. Furthermore, maintaining open communication channels and potentially exploring multi-vendor strategies for future procurements can address vendor lock-in concerns.

How effective is the full and open competition process in ensuring value for taxpayers in this specific contract?

The full and open competition process is generally considered the most effective method for ensuring value for taxpayers in federal contracting. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices, encourages innovation, and increases the likelihood of selecting the best-value solution. In this case, with two bidders identified, the competition, while not extensive, still provides a basis for price comparison and selection. The effectiveness is further enhanced by the firm-fixed-price contract type, which caps the government's financial exposure. However, the true measure of effectiveness would involve analyzing the bid prices, the technical proposals, and the ultimate performance outcomes against the initial investment to confirm that taxpayer funds were used efficiently and effectively.

What are the historical spending patterns for PIEE support services, and how does this award fit within them?

Historical spending data for PIEE support services, prior to this specific award, would reveal the trends in investment for maintaining and enhancing this critical defense procurement platform. Typically, such systems require continuous funding for operations, maintenance, cybersecurity, and upgrades to adapt to evolving threats and requirements. This $37.7 million award for approximately two years suggests a sustained level of investment consistent with the ongoing operational needs of a large enterprise system. If previous contracts for PIEE support were in a similar dollar range and duration, this award fits within established spending patterns. Significant deviations from historical spending could warrant further investigation into the reasons, such as expanded scope, new technological requirements, or changes in market pricing.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470924Q1014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14370 NEWBROOK DR STE 247, 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: $48,592,282

Exercised Options: $37,755,028

Current Obligation: $37,755,028

Actual Outlays: $4,704,471

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $8,156,097

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0009

IDV Type: IDC

Timeline