DoD awards $45.8M for electro-optic technology development, testing, and support services
Contract Overview
Contract Amount: $45,827,167 ($45.8M)
Contractor: CACI Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-22
End Date: 2026-09-30
Contract Duration: 1,196 days
Daily Burn Rate: $38.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TASK ORDER FOR EFFORT TITLED "DEVELOPMENT, TESTING, PROTOTYPING, AND SUPPORT SERVICES FOR ACTIVE AND PASSIVE ELECTRO-OPTIC TECHNOLOGY
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $45.8 million to CACI TECHNOLOGIES, LLC for work described as: TASK ORDER FOR EFFORT TITLED "DEVELOPMENT, TESTING, PROTOTYPING, AND SUPPORT SERVICES FOR ACTIVE AND PASSIVE ELECTRO-OPTIC TECHNOLOGY Key points: 1. Contract focuses on advanced electro-optic technologies, indicating a need for specialized R&D capabilities. 2. The award is a task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting a pre-vetted contractor. 3. Full and open competition was utilized, implying a broad search for qualified offerors. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while allowing for flexibility in research. 5. Performance period spans over three years, indicating a significant, long-term project. 6. The primary agency is the Department of the Army, highlighting a specific military application for the technology.
Value Assessment
Rating: good
The total award amount of $45.8 million for a three-year period for R&D services appears reasonable given the specialized nature of electro-optic technology. Benchmarking against similar R&D contracts for advanced defense technologies would provide a more precise value assessment. The Cost Plus Fixed Fee structure allows for flexibility in research but requires careful monitoring of costs to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple companies had the opportunity to bid. This approach is generally expected to yield competitive pricing and a wider range of technical solutions. The presence of two bidders suggests a moderate level of competition for this specialized R&D requirement.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially leading to lower overall costs for the government.
Public Impact
The Department of the Army benefits from advanced electro-optic technologies to enhance its operational capabilities. Services include development, testing, prototyping, and support, covering the full lifecycle of technology advancement. The contract is geographically located in Virginia, potentially impacting the local workforce and economy. This contract supports the development of cutting-edge defense technologies, contributing to national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- Limited competition (two bidders) might suggest a niche market or high barriers to entry, potentially impacting future pricing.
- The specific applications of the electro-optic technology are not detailed, making it difficult to assess immediate operational impact.
Positive Signals
- Awarded under full and open competition, ensuring a broad search for the best solution.
- The long performance period allows for sustained development and refinement of complex technologies.
- CACI Technologies, LLC has a track record with government contracts, suggesting familiarity with requirements.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences related to electro-optics. This is a critical area for defense modernization, enabling advancements in sensing, targeting, and communication systems. The market for such specialized R&D is often characterized by a few key players with deep technical expertise and significant government contracts.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, CACI Technologies, LLC, may engage small businesses as subcontractors for specialized support, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. As a task order under a larger IDIQ, the parent contract likely has established oversight mechanisms. Transparency is facilitated through contract award databases, and any specific Inspector General investigations would depend on identified issues or performance concerns.
Related Government Programs
- Department of Defense Research and Development
- Army Advanced Technology Development
- Electro-Optic Systems Procurement
- Defense Innovation Unit Initiatives
Risk Flags
- Potential for cost overruns inherent in CPFF contracts.
- Limited number of bidders may indicate a concentrated market.
- Complexity of R&D may lead to unforeseen technical challenges.
Tags
department-of-defense, department-of-the-army, research-and-development, electro-optics, caci-technologies-llc, full-and-open-competition, cost-plus-fixed-fee, task-order, virginia, advanced-technology, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.8 million to CACI TECHNOLOGIES, LLC. TASK ORDER FOR EFFORT TITLED "DEVELOPMENT, TESTING, PROTOTYPING, AND SUPPORT SERVICES FOR ACTIVE AND PASSIVE ELECTRO-OPTIC TECHNOLOGY
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 $45.8 million.
What is the period of performance?
Start: 2023-06-22. End: 2026-09-30.
What is CACI Technologies, LLC's track record with similar electro-optic technology development contracts?
CACI Technologies, LLC has a significant history of performing research and development services for the U.S. government, including contracts related to advanced technologies. While specific details on prior electro-optic development contracts are not provided in this data snippet, their general experience in areas like systems engineering, integration, and testing for defense applications suggests a capability to handle complex R&D projects. A deeper dive into their contract history would reveal the scale and scope of their previous work in electro-optics and related fields, providing further context for their suitability for this task order.
How does the $45.8 million value compare to similar R&D contracts for electro-optic technology?
The $45.8 million award for a three-year task order focused on electro-optic technology development appears to be within a reasonable range for specialized defense R&D. Contracts in this domain often involve significant investment due to the cutting-edge nature of the research and the need for highly skilled personnel and specialized equipment. Without access to a comprehensive database of comparable electro-optic R&D contracts, a precise benchmark is difficult. However, considering the typical costs associated with advanced technology prototyping and testing, this figure suggests a substantial but not necessarily excessive investment for the scope of work.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for electro-optic development?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, is the potential for cost overruns. While the contractor is incentivized by a fixed fee, the government bears the risk of actual costs exceeding estimates. In electro-optic development, unforeseen technical challenges or scope creep can lead to increased costs. Effective oversight, clear definition of milestones, and robust cost tracking are crucial to mitigate these risks and ensure the government receives value. The contractor's incentive is to complete the work within the estimated cost to maximize their profit margin on the fixed fee.
How effective is full and open competition in ensuring optimal outcomes for specialized R&D like electro-optics?
Full and open competition is generally considered the most effective method for ensuring optimal outcomes in government contracting, including specialized R&D. It allows the government to solicit proposals from the widest possible pool of qualified contractors, fostering innovation and driving down prices through market forces. For electro-optic development, this means the Army can access a broader range of technical expertise and potentially discover novel solutions. While only two bidders participated in this specific instance, the initial broad solicitation maximizes the chances of finding the best technical approach and value.
What are the historical spending patterns for electro-optic technology development within the Department of the Army?
Historical spending patterns for electro-optic technology development within the Department of the Army typically show consistent investment in areas critical for maintaining technological superiority. This includes funding for research into advanced sensors, laser systems, and optical countermeasures. Spending often fluctuates based on evolving threats, technological breakthroughs, and strategic priorities. The Army frequently utilizes IDIQ contracts and task orders, like the one awarded to CACI, to procure these specialized R&D services, allowing for flexibility and rapid response to emerging needs. Analyzing past budgets and contract awards would reveal trends in specific electro-optic sub-fields receiving the most investment.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D 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: $88,754,983
Exercised Options: $64,790,821
Current Obligation: $45,827,167
Actual Outlays: $476,009
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $18,933,799
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
Start Date: 2023-06-22
Current End Date: 2026-09-30
Potential End Date: 2028-06-22 00:00:00
Last Modified: 2026-01-08
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