DoD's $69M IT support contract to CACI Technologies, awarded under a full and open competition

Contract Overview

Contract Amount: $68,989,173 ($69.0M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-22

End Date: 2024-06-25

Contract Duration: 1,800 days

Daily Burn Rate: $38.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS TASK ORDER UNDER SSES NEXGEN MULTIPLE AWARD INDEFINITE QUANTITY, IDIQ CONTRACT TO PROVIDE SUPPORT FOR ARAT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $69.0 million to CACI TECHNOLOGIES, LLC for work described as: THIS TASK ORDER UNDER SSES NEXGEN MULTIPLE AWARD INDEFINITE QUANTITY, IDIQ CONTRACT TO PROVIDE SUPPORT FOR ARAT Key points: 1. Contract awarded for custom computer programming services, indicating a need for specialized IT support. 2. The contract duration of 1800 days (approx. 5 years) suggests a long-term requirement for these services. 3. Awarded to CACI Technologies, LLC, a significant player in the federal IT services market. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 5. Virginia is the primary state for performance, potentially impacting local IT workforce and economic activity. 6. This task order is part of a larger Multiple Award Indefinite Quantity (MAIQ) contract, suggesting a framework for ongoing IT needs.

Value Assessment

Rating: good

The contract's value of approximately $69 million over five years for custom computer programming services appears reasonable within the context of large federal IT procurements. Benchmarking against similar large-scale IT support contracts for the Department of the Army suggests this level of spending is within expected ranges for complex programming and system support. The Cost Plus Fixed Fee (CPFF) structure, while requiring diligent oversight to ensure value, is common for services where scope may evolve. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the award under full and open competition provides some assurance of competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters robust price discovery and encourages multiple bidders to compete, potentially leading to more favorable pricing for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment was sought and likely achieved, which is a positive indicator for cost-effectiveness.

Taxpayer Impact: A full and open competition maximizes the potential for competitive pricing, which directly benefits taxpayers by ensuring the government is not overpaying for essential IT services.

Public Impact

The Department of the Army benefits from enhanced IT support and custom programming services, crucial for its operational effectiveness. Military personnel and civilian staff will likely experience improved system performance and access to necessary digital tools. The contract supports CACI Technologies, LLC, contributing to employment within the IT sector, particularly in Virginia. The services delivered are essential for maintaining and advancing the Army's technological infrastructure and capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require rigorous oversight to prevent cost overruns and ensure efficient resource utilization.
The broad nature of 'custom computer programming services' could lead to scope creep if not managed tightly.
Reliance on a single contractor for a significant task order under an IDIQ may limit flexibility if needs change rapidly.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The contract is part of a larger MAIQ, indicating a strategic approach to IT procurement and potential for future efficiencies.
CACI Technologies, LLC is an established federal contractor with a track record in IT services, suggesting a level of reliability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Custom Computer Programming Services. The federal IT services market is vast and highly competitive, with significant spending allocated annually to software development, system integration, and IT support. This contract represents a portion of the Department of Defense's substantial IT budget, aimed at maintaining and modernizing its complex technological infrastructure. Comparable spending benchmarks for large-scale IT support contracts often run into tens or hundreds of millions of dollars over several years, making this $69 million award a significant but not extraordinary investment within the sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to CACI Technologies, LLC, it is unlikely to have significant direct subcontracting opportunities specifically designated for small businesses unless mandated by the prime contractor or agency policy beyond the standard requirements. The absence of small business set-aside flags suggests that the primary competition was focused on larger, established IT service providers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor costs against the fixed fee and ensure the contractor is operating efficiently. Transparency is facilitated through contract reporting mechanisms and potentially through the agency's contract data reporting systems. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army IT Support Services
Custom Computer Programming Services
Department of Defense IT Modernization
Multiple Award Indefinite Quantity (MAIQ) Contracts
IT Services for Military Operations

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight.
Potential for scope creep in custom programming services.
No specific small business subcontracting goals mentioned.
Performance metrics and specific value-for-money details not fully elaborated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.0 million to CACI TECHNOLOGIES, LLC. THIS TASK ORDER UNDER SSES NEXGEN MULTIPLE AWARD INDEFINITE QUANTITY, IDIQ CONTRACT TO PROVIDE SUPPORT FOR ARAT

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 Army).

What is the total obligated amount?

The obligated amount is $69.0 million.

What is the period of performance?

Start: 2019-07-22. End: 2024-06-25.

What is CACI Technologies, LLC's track record with the Department of the Army and similar IT contracts?

CACI Technologies, LLC is a well-established federal contractor with a significant history of providing IT and professional services to the Department of Defense, including the Army. They frequently win large contracts for systems integration, software development, cybersecurity, and IT support. Their track record generally indicates experience in managing complex, large-scale projects. However, like many large contractors, they have also faced scrutiny and contract disputes on occasion. A detailed review of their past performance ratings and any significant contract issues with the Army would provide a more granular understanding of their reliability for this specific task order.

How does the $69 million cost compare to similar IT support contracts awarded by the Department of the Army?

The $69 million cost for approximately five years of custom computer programming and IT support services is within the expected range for large federal IT procurements, particularly for the Department of the Army. Large-scale IT modernization, system development, and ongoing operational support contracts for military branches often range from tens to hundreds of millions of dollars. This specific task order, awarded under an IDIQ, suggests it's part of a broader IT strategy. Benchmarking against other Army IT support contracts of similar scope and duration would confirm if this pricing is competitive, but initial indications suggest it is aligned with market rates for such services.

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

The primary risks with a CPFF contract for custom programming services revolve around cost control and scope management. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses allowable costs. This can incentivize contractors to incur higher costs if not carefully monitored, potentially exceeding the anticipated total project cost. For custom programming, the risk of scope creep is also significant; evolving requirements can lead to increased effort and costs. Effective oversight, detailed work breakdown structures, and robust change control processes are essential to mitigate these risks and ensure the government receives value.

How effective are the competition dynamics in ensuring value for taxpayers on this contract?

The contract was awarded under 'full and open competition,' which is generally the most effective mechanism for ensuring value for taxpayers. This approach allows all responsible sources to bid, fostering a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders typically leads to better price discovery and selection of the offer that represents the best value to the government. While the specific number of bidders isn't detailed, the competitive nature of the award process itself is a strong indicator that taxpayer funds are being used efficiently, as the government is likely receiving services at a market-driven price.

What is the historical spending trend for custom computer programming services within the Department of the Army?

Historical spending trends for custom computer programming services within the Department of the Army have consistently been substantial, reflecting the critical role of IT in modern military operations. The Army relies heavily on specialized software for command and control, logistics, intelligence, training, and personnel management. Spending in this category typically fluctuates based on modernization initiatives, new system development, and the need to maintain legacy systems. Over the past decade, federal agencies, including the Army, have increasingly focused on digital transformation, which often translates to sustained or increased investment in custom programming and related IT services to meet evolving operational demands.

What are the potential performance risks if CACI Technologies, LLC underperforms on this contract?

Performance risks associated with CACI Technologies, LLC underperforming on this contract could significantly impact the Department of the Army's operations. Delays in custom programming can disrupt critical workflows, hinder the deployment of new capabilities, and affect readiness. System instability or bugs resulting from poor development practices could lead to operational inefficiencies, security vulnerabilities, and increased costs for remediation. The Army might face challenges in meeting its mission objectives if the IT systems supported by this contract fail to perform as expected. Contract remedies, such as performance improvement plans or termination for default, exist but addressing the root cause of underperformance and finding alternative solutions can be costly and time-consuming.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $69,540,216

Exercised Options: $69,540,216

Current Obligation: $68,989,173

Actual Outlays: $1,445,129

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $17,067,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T12DE010

IDV Type: IDC

Timeline