DoD awards $53.2M logistics and engineering support contract to CACI, Inc. - Federal over 10 years
Contract Overview
Contract Amount: $53,189,882 ($53.2M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2014-03-28
End Date: 2024-04-16
Contract Duration: 3,672 days
Daily Burn Rate: $14.5K/day
Sector: Defense
Official Description: LOGISTICS AND ENGINEERING SUPPORT
Place of Performance
Location: Virginia, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $53.2 million to CACI, INC. - FEDERAL for work described as: LOGISTICS AND ENGINEERING SUPPORT Key points: 1. Contract value represents significant long-term investment in critical support services. 2. Sole-source award raises questions about competition and potential for cost savings. 3. Long contract duration (10 years) suggests a need for stable, ongoing support. 4. Performance period spans multiple fiscal years, requiring sustained oversight. 5. Contractor's extensive tenure indicates a strong existing relationship with the agency. 6. Focus on logistics and engineering implies support for complex defense operations.
Value Assessment
Rating: fair
The contract's value of $53.2 million over 10 years averages to approximately $5.3 million annually. Without specific benchmarks for similar logistics and engineering support contracts within the Department of Defense, it is difficult to definitively assess value for money. The pricing structure and detailed cost elements would be crucial for a thorough comparison. However, the long duration suggests a stable, albeit potentially less competitive, pricing environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one bidder was solicited. While sole-source awards can be justified for specialized services or when a specific contractor possesses unique capabilities, they typically limit price discovery and competitive pressure. The absence of multiple bids means the government did not benefit from a range of proposals and pricing strategies that could have potentially led to a lower cost.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as competition is absent, potentially leading to less favorable pricing than if multiple vendors had vied for the contract.
Public Impact
The Department of Defense benefits from continuous logistics and engineering support, ensuring operational readiness. Services delivered likely include maintenance, supply chain management, and technical engineering expertise for military assets. Geographic impact is likely widespread, supporting various military installations and operational theaters. Workforce implications include potential employment opportunities for logistics and engineering professionals, both within the contractor and potentially through subcontracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source nature limits competitive pricing and potential cost savings for taxpayers.
- Long-term nature of the contract may reduce flexibility to adapt to changing technological needs or market conditions.
- Lack of transparency in the sole-source justification process could obscure potential inefficiencies.
- Dependence on a single contractor for critical support functions poses a risk if performance falters.
Positive Signals
- Contractor's long tenure suggests a proven ability to meet agency requirements.
- Consistent award over a decade indicates a stable and reliable partnership.
- Focus on logistics and engineering implies specialized expertise vital for defense operations.
- Definitive contract type suggests a clear scope of work and established terms.
Sector Analysis
This contract falls within the broader defense logistics and support services sector, a critical component of the defense industrial base. The market for these services is substantial, driven by the ongoing need for operational readiness and maintenance of complex military equipment. Comparable spending benchmarks would typically involve analyzing other large, long-term support contracts awarded by the DoD to understand typical cost structures and pricing models for similar scopes of work.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. However, the prime contractor, CACI, Inc. - Federal, may engage small businesses as subcontractors to fulfill parts of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means opportunities for small businesses to compete directly for the prime contract were not pursued.
Oversight & Accountability
Oversight for this contract would primarily be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor compliance with contract terms, quality standards, and delivery schedules. Accountability measures would be embedded within the contract's performance work statement and reporting requirements. Transparency is generally facilitated through contract award databases, though the specifics of sole-source justifications may have limited public visibility.
Related Government Programs
- Defense Logistics Agency Support Contracts
- Military Engineering Services
- Department of Defense IT Support Services
- Base Operations Support Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- Long contract duration may reduce flexibility.
- Potential for cost escalation over 10 years.
- Dependence on a single contractor.
Tags
defense, department-of-defense, logistics, engineering-support, caci-inc-federal, sole-source, definitive-contract, long-term-contract, defense-contract-management-agency, over-50m
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.2 million to CACI, INC. - FEDERAL. LOGISTICS AND ENGINEERING SUPPORT
Who is the contractor on this award?
The obligated recipient is CACI, INC. - FEDERAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $53.2 million.
What is the period of performance?
Start: 2014-03-28. End: 2024-04-16.
What is CACI, Inc. - Federal's track record with the Department of Defense on similar logistics and engineering support contracts?
CACI, Inc. - Federal has a substantial history of contracting with the Department of Defense across various service areas, including logistics, engineering, and IT support. Analyzing their past performance on similar contracts would involve reviewing contract histories for on-time delivery, quality of service, and any instances of contract disputes or performance issues. Given this contract's 10-year duration and sole-source nature, it suggests a strong, established relationship and a perceived ability to meet the DoD's specific needs. A deeper dive would examine award fees, past performance evaluations, and any modifications or claims filed on previous related contracts to fully assess their track record.
How does the average annual cost of this contract compare to industry benchmarks for similar logistics and engineering support services?
The average annual cost for this contract is approximately $5.32 million ($53.2M / 10 years). Benchmarking this against industry standards requires access to proprietary cost data or government reports that detail average costs for comparable logistics and engineering support services within the defense sector. Factors influencing these costs include the complexity of the systems supported, the level of technical expertise required, geographic locations of operations, and the scope of services (e.g., maintenance, supply chain, technical consulting). Without specific benchmark data, a definitive comparison is challenging, but the sole-source nature might imply a less competitive price than a fully competed contract.
What are the primary risks associated with a sole-source award for such a long-duration contract?
The primary risks associated with a sole-source award for a long-duration contract like this include potential for cost overruns due to a lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency over time, and a lack of flexibility for the government to adapt to evolving requirements or technological advancements. Taxpayers may bear a higher cost compared to a competitive procurement. Furthermore, if the contractor's performance declines, the government has limited options for recourse or replacement without initiating a new, potentially lengthy, sole-source justification process or a full competitive procurement.
What specific logistics and engineering functions does this contract likely encompass for the Department of Defense?
This contract likely encompasses a broad range of critical functions essential for maintaining military readiness. Logistics support could include supply chain management, inventory control, transportation, warehousing, and maintenance planning for equipment and materiel. Engineering support might involve technical analysis, systems engineering, maintenance engineering, reliability and maintainability engineering, configuration management, and potentially design or modification support for military platforms and infrastructure. The 'LOGISTICS AND ENGINEERING SUPPORT' designation suggests a comprehensive package aimed at ensuring the operational effectiveness and sustainment of defense assets.
How has historical spending on logistics and engineering support by the Department of Defense trended over the past decade?
Historical spending by the Department of Defense on logistics and engineering support has generally been substantial and relatively consistent, reflecting the ongoing global security environment and the need to maintain a vast array of complex military systems. While specific figures fluctuate based on operational tempo, budget allocations, and strategic priorities, the overall trend indicates a sustained high level of investment in these critical support functions. Factors such as technological modernization, geopolitical events, and shifts in defense strategy can influence year-over-year spending. Analyzing trends would require examining DoD budget documents and contract award databases over multiple fiscal years.
What are the implications of the 10-year duration for contract management and performance monitoring?
A 10-year contract duration presents significant implications for contract management and performance monitoring. It necessitates a long-term strategic approach, requiring robust oversight mechanisms to ensure sustained performance and value. Contract managers must establish clear performance metrics, conduct regular reviews, and manage potential scope creep or changes in requirements over the extended period. Monitoring for potential contractor complacency or performance degradation becomes crucial. Furthermore, planning for contract closeout or renewal well in advance is essential. The long timeframe also means that initial assumptions about needs and technology may become outdated, requiring careful management of contract modifications.
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