DoD's $51.5M CACI contract for engineering support shows strong competition and long-term R&D focus

Contract Overview

Contract Amount: $51,554,693 ($51.6M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-01

End Date: 2026-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RS3 TASK ORDER ENTITLED CATS2 IS TO PROVIDE ENGINEERING AND TECHNICAL SUPPORT, SYSTEMS ENGINEERING, TECHNOLOGY INSERTION AND INTEGRATION FOR RTI.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $51.6 million to CACI TECHNOLOGIES, LLC for work described as: RS3 TASK ORDER ENTITLED CATS2 IS TO PROVIDE ENGINEERING AND TECHNICAL SUPPORT, SYSTEMS ENGINEERING, TECHNOLOGY INSERTION AND INTEGRATION FOR RTI. Key points: 1. Contract awarded through full and open competition, suggesting a competitive market for these specialized services. 2. The contract duration of 1460 days (4 years) indicates a need for sustained engineering and technical support. 3. Focus on Research and Development (NAICS 541715) aligns with strategic investments in advanced capabilities. 4. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while managing contractor profit. 5. No small business set-aside was utilized, indicating the primary contractor is not a small business. 6. The contract is managed by the Department of the Army, a significant component of the DoD. 7. Virginia is the state where the contract is managed, a common hub for defense contracting.

Value Assessment

Rating: good

The contract's value of approximately $51.5 million over four years for engineering and technical support appears reasonable given the specialized nature of R&D services. Benchmarking against similar large-scale engineering support contracts within the Department of Defense would provide a more precise value-for-money assessment. The CPFF structure, while allowing for flexibility, requires careful oversight to ensure costs remain controlled and aligned with the fixed fee.

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 specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for these complex R&D services.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions being considered. This approach helps ensure that the government is not overpaying for services and is receiving the best possible value.

Public Impact

The primary beneficiary is the Department of the Army, receiving critical engineering and technical support for its systems. Services delivered include systems engineering, technology insertion, and integration, crucial for maintaining and advancing military capabilities. The contract's geographic impact is primarily within Virginia, where the contract is managed, but the services likely support broader Army operations. Workforce implications include employment opportunities for engineers, technical specialists, and support staff within CACI Technologies, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Dependence on a single large contractor (CACI Technologies, LLC) could limit future flexibility or competition.
The broad scope of 'engineering and technical support' may require detailed performance monitoring to ensure alignment with specific R&D objectives.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
Long-term contract duration (4 years) suggests a stable and predictable need for these critical services.
Focus on R&D aligns with strategic modernization efforts within the Department of Defense.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541715, which covers physical, engineering, and life sciences R&D. This sector is characterized by innovation, specialized expertise, and often long development cycles. Spending in this area by the DoD is critical for maintaining technological superiority. Comparable spending benchmarks would involve analyzing other large R&D support contracts awarded by defense agencies for similar technical services.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication that CACI Technologies, LLC is a small business. Therefore, the direct impact on small business set-asides is minimal. However, CACI, as a prime contractor, may engage small businesses as subcontractors to fulfill specific needs, contributing to the broader small business ecosystem. The extent of subcontracting to small businesses would need further investigation.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Research and Development Contracts
Engineering and Technical Support Services
Department of the Army IT and R&D Spending
CACI Technologies Contracts
RS3 Task Orders

Risk Flags

Cost Control Risk (CPFF)
Technological Obsolescence Risk (Long Duration R&D)
Scope Creep Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.6 million to CACI TECHNOLOGIES, LLC. RS3 TASK ORDER ENTITLED CATS2 IS TO PROVIDE ENGINEERING AND TECHNICAL SUPPORT, SYSTEMS ENGINEERING, TECHNOLOGY INSERTION AND INTEGRATION FOR RTI.

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 $51.6 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-05-31.

What is the track record of CACI Technologies, LLC in performing similar R&D engineering support contracts for the Department of Defense?

CACI Technologies, LLC has a substantial history of performing complex engineering, IT, and technical support services for various U.S. government agencies, including the Department of Defense. Their portfolio often includes systems engineering, integration, and R&D support across multiple domains. Analyzing their past performance ratings, contract history (including any past performance issues or awards), and the scale of previously managed contracts would provide insight into their capability to execute this specific task order. Publicly available data from contract databases and agency performance reports can offer a baseline assessment, though detailed internal evaluations are typically proprietary.

How does the estimated cost of this contract compare to similar R&D engineering support contracts awarded by the DoD?

A precise comparison requires access to detailed cost breakdowns and specific service scopes of comparable contracts. However, the approximate $51.5 million value over four years, averaging around $12.9 million annually, falls within the range for significant R&D support services for a major agency like the Department of the Army. Factors influencing cost include the level of technical complexity, required security clearances, specific R&D focus areas (e.g., advanced materials, cyber, AI), and the contractor's overhead structure. Benchmarking against contracts with similar NAICS codes (541715) and contract types (CPFF) awarded within the last 1-2 years by DoD components would be necessary for a robust value assessment.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for R&D services?

The primary risks with a CPFF contract for R&D services revolve around cost control and scope definition. While the fixed fee provides the contractor with a profit incentive, the 'cost plus' portion means the government reimburses allowable costs. If R&D efforts encounter unforeseen technical challenges or require more resources than initially estimated, costs can escalate significantly. There's a risk of 'scope creep' if requirements are not tightly managed, leading to increased costs without a corresponding increase in the fixed fee. Effective oversight, detailed cost tracking, and robust change management processes are critical to mitigate these risks and ensure the government receives good value.

How effective is the 'full and open competition' approach likely to be in ensuring optimal value for this specific R&D contract?

Full and open competition is generally considered the most effective method for achieving optimal value, as it maximizes the pool of potential bidders, fostering a competitive environment that can drive down prices and encourage innovation. For specialized R&D engineering support, this approach allows the Army to solicit proposals from a wide range of technically capable firms. The effectiveness hinges on the clarity of the solicitation (e.g., Statement of Work, evaluation criteria) and the agency's ability to rigorously evaluate proposals based on both technical merit and cost. If the market contains multiple highly qualified firms, competition should yield a strong outcome.

What are the potential implications of the contract's duration (4 years) on technological relevance and adaptability in the R&D sector?

A four-year contract duration for R&D support offers stability and allows the contractor to deeply integrate with the program office, fostering institutional knowledge and long-term project development. This is beneficial for complex, multi-phase R&D efforts. However, the rapid pace of technological advancement, particularly in areas like AI, cyber, and advanced materials, poses a risk. By the end of the four-year period, the technologies being developed or supported might be nearing obsolescence, or entirely new paradigms may have emerged. Contractual mechanisms for incorporating new technologies or adapting the scope mid-term, along with regular reviews, are crucial to maintain relevance.

What is the significance of NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) in the context of DoD spending?

NAICS code 541715 represents a critical area of investment for the Department of Defense, focusing on the foundational scientific and engineering research that underpins future military capabilities. This code encompasses a broad spectrum of activities, from basic research to applied research and experimental development, aimed at discovering new knowledge and applying it to create novel technologies, systems, or processes. DoD spending under this code is essential for maintaining a technological edge over potential adversaries, driving innovation in areas like advanced materials, propulsion, sensors, cybersecurity, and artificial intelligence. Contracts like this one signify the DoD's commitment to long-term technological superiority.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

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: $93,384,604

Exercised Options: $51,554,693

Current Obligation: $51,554,693

Subaward Activity

Number of Subawards: 63

Total Subaward Amount: $29,530,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0157

IDV Type: IDC

Timeline