DoD's CALEA Support Services contract awarded to CACI Technologies, valued at $27.5M, highlights engineering service needs

Contract Overview

Contract Amount: $27,488,199 ($27.5M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2008-07-02

End Date: 2013-03-27

Contract Duration: 1,729 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: COMMUNICATIONS ASSISTANCE FOR LAW ENFORCEMENT ACT (CALEA) SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to CACI TECHNOLOGIES, LLC for work described as: COMMUNICATIONS ASSISTANCE FOR LAW ENFORCEMENT ACT (CALEA) SUPPORT SERVICES Key points: 1. Contract awarded for engineering services related to CALEA, indicating a need for specialized technical support. 2. The contract duration of approximately 4.8 years suggests a long-term requirement for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The contractor, CACI Technologies, LLC, has a significant presence in government contracting. 5. The contract's value of $27.5M falls within a moderate spending range for specialized engineering support. 6. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs to ensure value. 7. The contract was awarded to a single entity, CACI Technologies, LLC, for the entire duration.

Value Assessment

Rating: good

The contract value of $27.5 million over nearly five years for CALEA support services appears reasonable given the specialized nature of engineering services required by the Department of Defense. Benchmarking against similar contracts for law enforcement technology support or specialized engineering services would provide a more precise value assessment. The CPFF structure necessitates diligent oversight to manage costs effectively and ensure the government receives good value for its investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which typically aids in price discovery and can lead to more favorable pricing for the government. The fact that it was competed broadly is a positive sign for taxpayer value.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms and pricing to secure the contract.

Public Impact

This contract directly supports law enforcement agencies by ensuring compliance with the Communications Assistance for Law Enforcement Act (CALEA). It enables the Department of Defense to maintain necessary technical capabilities for lawful surveillance and communications interception. The services provided are critical for national security and public safety initiatives. The contract supports specialized engineering roles, potentially creating or sustaining jobs in the technology and defense sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed meticulously.
Reliance on a single contractor for the full duration may limit flexibility and future innovation.
The specific engineering services required are not detailed, making it difficult to assess the full scope of work and potential risks.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, CACI Technologies, LLC, is an established entity with experience in government contracts.
The contract duration suggests a stable and ongoing need for these critical support services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting communications assistance for law enforcement. The market for such specialized technical support is driven by regulatory requirements like CALEA and the evolving landscape of telecommunications. Government spending in this area is often tied to national security and public safety mandates, with comparable contracts existing across various federal agencies requiring similar technical expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal based on the provided information. Further investigation into subcontracting plans would be necessary to fully assess any indirect effects.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the CPFF structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be sensitive.

Related Government Programs

Communications Assistance for Law Enforcement Act (CALEA) Implementation
Law Enforcement Technology Support
Telecommunications Compliance Services
Department of Defense IT and Engineering Support

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires vigilant oversight to prevent cost overruns.
Limited number of bidders (2) may indicate potential barriers to entry or a niche market.
Contract duration of nearly five years necessitates long-term planning and performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to CACI TECHNOLOGIES, LLC. COMMUNICATIONS ASSISTANCE FOR LAW ENFORCEMENT ACT (CALEA) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2008-07-02. End: 2013-03-27.

What is the historical spending trend for CALEA support services within the Department of Defense?

Analyzing historical spending for CALEA support services within the Department of Defense requires access to detailed federal procurement data beyond this single contract. However, the existence of this $27.5 million contract awarded in 2008 and ending in 2013 suggests a sustained need for such services. Trends likely reflect evolving telecommunications technologies and increasing demands from law enforcement for access capabilities. Spending in this area can fluctuate based on legislative changes, technological advancements, and specific agency priorities related to national security and public safety. Without broader data, it's difficult to establish a precise trend, but this contract indicates a significant investment over its period.

How does the per-unit cost of CALEA support services under this contract compare to industry benchmarks?

Determining a precise per-unit cost for CALEA support services under this contract is challenging without knowing the specific units of service delivered (e.g., hours of engineering support, number of systems supported, specific technical tasks completed). The contract type is Cost Plus Fixed Fee (CPFF), which means the government pays the contractor's actual costs plus a fixed fee. Benchmarking would require comparing the total cost ($27.5 million) against the volume and complexity of services rendered, and then comparing that derived rate to similar engineering or technical support contracts in the government or commercial sectors. Given the specialized nature of CALEA compliance and engineering support, costs are likely to be higher than general IT services but should be justifiable based on expertise and regulatory requirements.

What is CACI Technologies, LLC's track record with similar Department of Defense contracts?

CACI Technologies, LLC is a well-established government contractor with a substantial portfolio of contracts across various federal agencies, including the Department of Defense. They have a history of providing a wide range of services, including IT, engineering, intelligence analysis, and support services. Their track record with the DoD often includes large, complex programs. For CALEA-related or similar telecommunications and engineering support contracts, CACI has demonstrated capabilities. A deeper dive into their contract history would reveal specific performance ratings, past performance evaluations, and any significant issues or successes on comparable projects, providing a clearer picture of their reliability and expertise in this domain.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one for CALEA support services, is the potential for cost overruns. While the fee is fixed, the government bears the risk of actual costs exceeding initial estimates. This necessitates robust oversight and diligent cost tracking by the government to ensure that expenditures are reasonable, allocable, and necessary. If the contractor's cost management is poor or unforeseen technical challenges arise, the total contract cost can escalate significantly. Another risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit margin (the fixed fee) is guaranteed regardless of cost efficiency, although they are still incentivized to complete the work to earn that fee.

How does the competition level (2 bidders) impact the value received by the government for this contract?

Having two bidders for this contract suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower prices, two bidders still provide a basis for comparison and negotiation. It indicates that at least two firms possessed the necessary qualifications and interest to pursue the work. This level of competition is likely to yield better value than a sole-source award but may not be as advantageous as a contract with numerous bidders vying for the opportunity. The government's negotiation strategy and the specific capabilities offered by each bidder would ultimately determine the extent of value realized.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3239

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14151 PARK MEADOW DRIVE, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,521,093

Exercised Options: $27,521,093

Current Obligation: $27,488,199

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4026

IDV Type: IDC

Timeline