DoD's $24.1M R&D contract for CACI Data Tactics Corporation shows fair value with 2 bidders

Contract Overview

Contract Amount: $24,156,564 ($24.2M)

Contractor: CACI Data Tactics Corporation

Awarding Agency: Department of Defense

Start Date: 2010-09-29

End Date: 2012-10-01

Contract Duration: 733 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CLOUD COMPUTING

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to CACI DATA TACTICS CORPORATION for work described as: CLOUD COMPUTING Key points: 1. Contract value appears reasonable given the R&D focus and limited competition. 2. The 'Research and Development in Biotechnology' sector is highly specialized. 3. Potential risks include cost overruns typical of Cost Plus Fixed Fee contracts. 4. Performance context is limited due to the R&D nature of the work. 5. This contract fits within the broader DoD IT and R&D spending landscape. 6. The use of a Definitive Contract suggests a need for ongoing services.

Value Assessment

Rating: fair

The contract's value of $24.1 million for R&D in biotechnology over two years appears within a reasonable range for specialized research. Benchmarking is difficult without more specific details on the research scope, but the presence of two bidders suggests some level of market interest. The Cost Plus Fixed Fee (CPFF) structure indicates that the government assumes some risk for cost overruns, which is common in R&D where outcomes can be uncertain. However, the fixed fee component provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With two bidders, the competition level was moderate. This suggests that while there was some market engagement, it was not a highly contested bid, which could potentially impact price negotiation. The government likely sought proposals that met specific technical and research requirements.

Taxpayer Impact: A moderate level of competition means taxpayers likely received a fair price, though a more competitive environment might have yielded further cost savings.

Public Impact

The Department of Defense benefits from advancements in biotechnology research. Services delivered include specialized research and development activities. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include employment for specialized scientific and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a risk with CPFF contracts, especially in R&D.
The limited number of bidders (2) may have reduced competitive pressure on pricing.
The specific R&D outcomes and their ultimate utility are not detailed, posing a potential value-for-money risk.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified contractors.
The contractor, CACI Data Tactics Corporation, is a known entity in government contracting.
The contract duration of over two years allows for sustained research effort.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on biotechnology. The R&D market for defense applications is characterized by high specialization and significant government investment. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the biotechnology research, but federal R&D spending in this area is substantial, driven by national security and technological advancement needs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract likely requiring significant resources and specialized expertise, it is improbable that small businesses would be primary awardees or subcontractors unless specifically engaged by the prime contractor. The absence of set-aside provisions means opportunities for small business participation are not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring the contractor to justify costs and deliver on the fixed fee objectives. Transparency is generally maintained through contract reporting mechanisms, though specific research details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Biotechnology Research Contracts
CACI Data Tactics Corporation Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns in R&D.
Limited competition (2 bidders) may have reduced price negotiation leverage.
The specific R&D outcomes and their direct applicability to defense needs require further scrutiny.
Biotechnology R&D is inherently complex and subject to scientific uncertainty.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to CACI DATA TACTICS CORPORATION. CLOUD COMPUTING

Who is the contractor on this award?

The obligated recipient is CACI DATA TACTICS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2010-09-29. End: 2012-10-01.

What is the track record of CACI Data Tactics Corporation with the Department of Defense, particularly in R&D contracts?

CACI Data Tactics Corporation has a significant history of contracting with the Department of Defense across various service areas, including IT, intelligence, and research and development. While specific R&D performance data for this particular contract isn't detailed here, CACI's broader portfolio suggests experience in complex government projects. Analyzing past performance reviews, contract modifications, and any reported issues on similar DoD contracts would provide a more comprehensive understanding of their track record. Their ability to secure and execute contracts of this magnitude indicates a level of established capability and trust within the defense sector.

How does the $24.1 million value compare to similar biotechnology R&D contracts awarded by the DoD?

Benchmarking the $24.1 million value requires a detailed comparison with contracts for similar biotechnology R&D efforts, considering factors like duration, scope, complexity, and specific research areas. Without more granular data on the contract's objectives, it's challenging to make a precise comparison. However, federal R&D spending in biotechnology can range from millions to hundreds of millions of dollars, depending on the project's scale and strategic importance. The presence of two bidders suggests that the market perceived this value as adequate for the anticipated research, but further analysis of comparable contract awards would be needed to confirm if it represents optimal value for money.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in biotechnology?

The primary risks with a CPFF contract for biotechnology R&D include potential cost overruns and the contractor's incentive to manage costs efficiently. In R&D, especially in a field as complex as biotechnology, the scope and timeline can be unpredictable, leading to costs exceeding initial estimates. While the fixed fee provides the contractor with a profit incentive, the government bears the risk of increased costs beyond the estimated amount. Ensuring robust oversight, clear milestones, and effective communication is crucial to mitigate these risks and ensure the project stays within budget and achieves its research objectives.

What is the expected effectiveness or impact of the research funded by this $24.1 million contract?

The effectiveness and impact of the research funded by this contract are not explicitly detailed in the provided data. As a contract for 'Research and Development in Biotechnology,' its intended impact likely relates to advancing scientific knowledge, developing new technologies, or creating solutions relevant to national security or defense applications within the biotechnology domain. The ultimate effectiveness would be measured by the successful completion of research objectives, the potential for follow-on development or implementation, and the contribution to the DoD's strategic goals in biotechnology. A thorough review of the contract's SOW (Statement of Work) and performance metrics would be necessary to assess expected outcomes.

How has federal spending on biotechnology R&D by the Department of Defense evolved over the past decade?

Federal spending on biotechnology R&D by the Department of Defense has generally seen fluctuations driven by evolving national security priorities, technological advancements, and budget allocations. While specific historical data for this contract isn't available, the DoD consistently invests in biotechnology for applications ranging from medical countermeasures and soldier performance enhancement to advanced materials and biodefense. Trends often reflect a growing emphasis on areas like synthetic biology, genomics, and bio-manufacturing. Analyzing broader DoD R&D budgets and specific program allocations would reveal trends in biotechnology investment over the past decade.

What does the 'Definitive Contract' award type signify in the context of this R&D project?

The 'Definitive Contract' award type signifies a contract that is fixed in price and scope, representing the final agreement between the government and the contractor. In the context of this R&D project, it suggests that the initial requirements were sufficiently defined to establish a firm contract, even though the R&D process itself may involve exploration and adaptation. Definitive contracts are typically used when the scope of work is well-understood, unlike basic research contracts which might be more exploratory. This award type implies a commitment to a specific set of research objectives and deliverables over the contract's duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 7901 JONES BR DR STE 700, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,156,564

Exercised Options: $24,156,564

Current Obligation: $24,156,564

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline