Army awards $35.3M for software systems analysis, CACI Technologies to lead R&D efforts

Contract Overview

Contract Amount: $35,283,041 ($35.3M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-26

End Date: 2029-05-25

Contract Duration: 1,825 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW TASK ORDER FOR ARMY REPROGRAMMING ANALYSIS TEAM PROGRAM OFFICE (ARAT-PO) SOFTWARE SYSTEMS

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $35.3 million to CACI TECHNOLOGIES, LLC for work described as: NEW TASK ORDER FOR ARMY REPROGRAMMING ANALYSIS TEAM PROGRAM OFFICE (ARAT-PO) SOFTWARE SYSTEMS Key points: 1. Contract focuses on specialized software systems analysis for Army reprogramming. 2. Value-for-money assessment is pending further benchmarking against similar R&D services. 3. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 4. Risk indicators are moderate, typical for complex R&D software development contracts. 5. Performance context involves a 5-year duration, allowing for phased development and evaluation. 6. Sector positioning is within the defense R&D landscape, supporting critical military software needs.

Value Assessment

Rating: fair

The contract value of $35.3 million over five years for software systems analysis appears within a reasonable range for specialized R&D services. However, a precise value-for-money assessment requires benchmarking against similar contracts for reprogramming analysis software and comparing the proposed labor rates and overhead to industry standards. The cost-plus-fixed-fee structure necessitates careful monitoring of costs to ensure efficiency and prevent overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a degree of competition, which is generally favorable for price discovery and achieving a fair market price. The specific details of the bidding process and the evaluation criteria would provide further insight into the competitiveness.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages vendors to offer their best value propositions.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive enhanced capabilities in software systems analysis for its reprogramming efforts. Services delivered include critical analysis and development related to software systems, supporting operational efficiency and strategic planning. The geographic impact is primarily within the Department of Defense's operational and developmental centers, likely concentrated in Maryland. Workforce implications may involve specialized software engineers, analysts, and project managers, potentially drawing from a skilled labor pool in the defense technology sector.

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 contractor expertise for critical software analysis could pose a risk if key personnel depart.
Ensuring the developed software meets evolving Army requirements over the 5-year period.
Cybersecurity risks associated with handling sensitive defense-related software systems.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Contractor (CACI Technologies) has a significant presence and experience in defense IT and R&D.
Long-term contract duration allows for sustained focus and development of specialized capabilities.
Focus on a critical area (reprogramming analysis) for military operations.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on software systems analysis for defense applications. The market for defense IT and R&D services is substantial, with significant government spending allocated to maintaining and upgrading complex military software. Comparable spending benchmarks would involve analyzing other contracts for similar software development, systems integration, and analytical services within the Department of Defense and other federal agencies.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration for this specific task order, as indicated by 'ss': false and 'sb': false. While CACI Technologies, LLC is a large business, the subcontracting opportunities for small businesses will depend on CACI's procurement strategy. Analysis of CACI's subcontracting plan would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Department of the Army contracting officers and program managers responsible for the ARAT-PO. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is typically facilitated through contract reporting systems and potential reviews by the Government Accountability Office (GAO) or the Department of Defense Inspector General, depending on the nature of any issues that may arise.

Related Government Programs

Army Software Development Programs
Defense R&D Contracts
Systems Analysis Services
Reprogramming and Budgeting Support

Risk Flags

Cost Overrun Risk (CPFF Structure)
Performance Dependency on Contractor Expertise
Evolving Requirement Management
Cybersecurity Vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 million to CACI TECHNOLOGIES, LLC. NEW TASK ORDER FOR ARMY REPROGRAMMING ANALYSIS TEAM PROGRAM OFFICE (ARAT-PO) SOFTWARE SYSTEMS

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 $35.3 million.

What is the period of performance?

Start: 2024-05-26. End: 2029-05-25.

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

CACI Technologies, LLC has a substantial track record with the Department of Defense, frequently securing contracts for IT services, software development, systems engineering, and analytical support. Their experience spans various branches of the military, including the Army, Navy, and Air Force. For instance, CACI has been involved in large-scale IT modernization efforts, cybersecurity solutions, and intelligence analysis support. Their history suggests a capacity to handle complex R&D projects and manage significant contract values. A deeper dive into their specific performance on past cost-plus-fixed-fee contracts related to software systems analysis would provide more granular insights into their ability to deliver within budget and schedule for this particular task order.

How does the $35.3 million contract value compare to similar R&D software analysis contracts awarded by the Army or DoD in the past five years?

Benchmarking the $35.3 million contract value requires comparing it against similar task orders or contracts for specialized software systems analysis, particularly those focused on reprogramming or complex R&D within the Department of Defense. Given the 5-year duration (1825 days), the average annual value is approximately $7.06 million. This figure needs to be assessed against the complexity of the required analysis, the specific technologies involved, and the labor categories proposed. Contracts for advanced software engineering, systems integration, and specialized analytical support for defense programs can range widely, but this value appears to be within a typical mid-to-large range for such specialized R&D efforts, especially considering the potential for high-skilled labor and proprietary software development.

What are the primary risk indicators associated with this cost-plus-fixed-fee contract structure for software development?

The primary risk indicator for a Cost-Plus-Fixed-Fee (CPFF) contract, like this one, is the potential for cost overruns. While the fixed fee provides a ceiling for the contractor's profit, the government bears the risk of increased costs incurred during performance. Effective oversight is crucial to manage this risk, ensuring that all costs are reasonable, allocable, and allowable. Other risks include scope creep, where requirements may expand beyond the initial agreement, potentially increasing costs without a corresponding increase in the fixed fee if not managed through formal change orders. Contractor performance and the ability to deliver the required software capabilities within the defined scope also present inherent risks, which are mitigated by performance monitoring and evaluation.

What is the expected program effectiveness and impact of this contract on the Army's reprogramming analysis capabilities?

The expected program effectiveness hinges on the successful development and implementation of advanced software systems designed to enhance the Army's reprogramming analysis capabilities. Effective reprogramming is critical for adapting budgets to changing operational needs and priorities. This contract aims to provide the ARAT-PO with tools that can improve the accuracy, speed, and comprehensiveness of their analysis. If successful, it could lead to more agile resource allocation, better-informed decision-making regarding budget adjustments, and ultimately, improved mission readiness. The 5-year duration suggests a commitment to developing robust, long-term solutions rather than short-term fixes.

How does the historical spending on similar R&D software analysis contracts by the Department of the Army inform the assessment of this award?

Historical spending patterns on similar R&D software analysis contracts by the Department of the Army provide a crucial context for assessing this award. Analyzing past expenditures on contracts with comparable objectives, such as developing analytical tools, enhancing software systems, or providing specialized R&D support, helps establish a baseline for reasonable costs and expected performance. If historical data shows significant cost overruns or performance issues on similar contracts, it might signal a higher risk for this award. Conversely, a history of successful, cost-effective delivery on comparable projects would lend confidence. This specific contract's value and structure should be evaluated against these historical trends to determine if it aligns with established spending norms and risk profiles for such specialized R&D.

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: 2

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: $319,769,143

Exercised Options: $57,484,515

Current Obligation: $35,283,041

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $48,580,306

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