DoD Awards CACI $44M for Army C4 Services Integration, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $44,008,541 ($44.0M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2023-07-25
End Date: 2026-08-26
Contract Duration: 1,128 days
Daily Burn Rate: $39.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HQDA G-6 SUPPORT FOR NETWORK COMMAND, CONTROL, COMM, AND COMPUTERS (C4) SERVICES INTEGRATION (NC4SI) SERVICES TASKS TO IMPLEMENT ARMY REGULATION (AR) 25-1: ARMY INFO TECHNOLOGY AND ITS GOVERNING DEPT OF DEFENSE (DOD) DIRECTIVES AND INSTRUCTIONS.
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $44.0 million to CACI, INC. - FEDERAL for work described as: HQDA G-6 SUPPORT FOR NETWORK COMMAND, CONTROL, COMM, AND COMPUTERS (C4) SERVICES INTEGRATION (NC4SI) SERVICES TASKS TO IMPLEMENT ARMY REGULATION (AR) 25-1: ARMY INFO TECHNOLOGY AND ITS GOVERNING DEPT OF DEFENSE (DOD) DIRECTIVES AND INSTRUCTIONS. Key points: 1. Contract value is $44M for C4 services integration. 2. CACI, Inc. - Federal is the sole awardee. 3. Risk of cost overruns due to fixed-price contract and potential scope creep. 4. IT sector spending on network and computer systems design.
Value Assessment
Rating: questionable
The contract is firm-fixed-price, which can limit contractor risk but may lead to cost overruns if requirements expand. Benchmarking against similar IT services contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award is a delivery order, and the pricing for this specific task order needs further scrutiny to ensure it reflects fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential IT services. The firm-fixed-price nature aims for cost certainty, but vigilance is needed to prevent overspending.
Public Impact
Ensures critical network, command, control, communications, and computer (C4) services for the Army. Supports implementation of Army IT regulations and DoD directives. Potential for increased IT efficiency and modernization within Army operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Firm-fixed-price contract with potential for scope creep.
- No small business participation noted.
- Limited transparency on specific task order pricing.
Positive Signals
- Awarded under full and open competition.
- Supports critical Army IT infrastructure.
- Long-term contract duration provides stability.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computer systems design and integration services. DoD IT spending is substantial, and this contract contributes to maintaining and modernizing the Army's C4 capabilities.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as the 'sb' field is false. Efforts to ensure small business participation in future IT service contracts should be considered.
Oversight & Accountability
The award is a delivery order under a larger contract. Oversight will be crucial to monitor performance, manage scope, and ensure the firm-fixed-price contract does not lead to excessive costs for the government.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to firm-fixed-price structure.
- Lack of small business participation.
- Limited transparency on specific task order pricing.
- Complexity of C4 integration services.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.0 million to CACI, INC. - FEDERAL. HQDA G-6 SUPPORT FOR NETWORK COMMAND, CONTROL, COMM, AND COMPUTERS (C4) SERVICES INTEGRATION (NC4SI) SERVICES TASKS TO IMPLEMENT ARMY REGULATION (AR) 25-1: ARMY INFO TECHNOLOGY AND ITS GOVERNING DEPT OF DEFENSE (DOD) DIRECTIVES AND INSTRUCTIONS.
Who is the contractor on this award?
The obligated recipient is CACI, INC. - FEDERAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $44.0 million.
What is the period of performance?
Start: 2023-07-25. End: 2026-08-26.
What is the specific breakdown of services and associated costs within this delivery order to assess value for money?
Without a detailed breakdown of the services included in this specific delivery order, it is challenging to definitively assess value for money. The $44M award covers C4 services integration tasks for Army Regulation 25-1 implementation. Further analysis of the SOW and labor categories would be needed to benchmark against industry standards and ensure competitive pricing.
What are the primary risks associated with a firm-fixed-price contract for complex IT integration services?
The primary risk with a firm-fixed-price contract for complex IT integration is scope creep. If the requirements evolve or are not clearly defined upfront, the contractor may incur additional costs attempting to meet new demands, potentially leading to requests for equitable adjustments or cost overruns. Conversely, the government risks receiving less than optimal service if the contractor cuts corners to maintain profitability.
How does this contract contribute to the overall effectiveness of the Army's C4 capabilities?
This contract is intended to enhance the effectiveness of the Army's C4 capabilities by ensuring the integration of network, command, control, communications, and computer services. Successful implementation of Army Regulation 25-1 and related DoD directives should lead to improved interoperability, security, and efficiency in the Army's IT infrastructure, ultimately supporting mission readiness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc
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: $108,686,738
Exercised Options: $47,722,015
Current Obligation: $44,008,541
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $19,088,306
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0009
IDV Type: GWAC
Timeline
Start Date: 2023-07-25
Current End Date: 2026-08-26
Potential End Date: 2026-08-26 12:08:00
Last Modified: 2026-01-29
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