DoD's $24M IT contract for ROC Implementation awarded to CACI, Inc. - Federal

Contract Overview

Contract Amount: $23,961,954 ($24.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2015-02-21

Contract Duration: 1,605 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE

Sector: IT

Official Description: BASE YEAR- ROC IMPLEMENTATION

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to CACI, INC. - FEDERAL for work described as: BASE YEAR- ROC IMPLEMENTATION Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Cost-plus incentive contract type may lead to cost overruns if not managed closely. 3. The contract duration of 1605 days indicates a significant, long-term project. 4. Awarded by the Defense Logistics Agency, a key procurement arm for the DoD. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The base year award of $23,961,954.38 for ROC Implementation services is substantial. Without specific benchmarks for similar ROC implementation projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. The cost-plus incentive fee (CPIF) contract type introduces variability, where the final cost depends on performance against targets. This structure can incentivize efficiency but also carries the risk of increased costs if targets are missed or incentives are heavily leveraged.

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 presence of 6 bidders suggests a competitive environment, which typically drives down prices and encourages innovation. The specific number of bids received is a positive indicator of market interest and the effectiveness of the solicitation process in attracting qualified vendors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive landscape that can lead to more favorable pricing and better service quality compared to sole-source or limited competition scenarios.

Public Impact

The Department of Defense benefits from enhanced ROC (Record of Communication) implementation capabilities. Services delivered include computer systems design and related technical support. The geographic impact is primarily within the Department of Defense's operational sphere. Workforce implications include the need for skilled IT professionals to support the implementation and maintenance of the ROC system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus incentive fee contracts can lead to higher final costs than fixed-price contracts if performance targets are not met or if incentives are structured to significantly increase profit.
The long contract duration (1605 days) increases the risk of scope creep or the need for contract modifications over time.
Lack of small business participation may limit the diversity of solutions and potentially higher costs due to reduced competition among smaller, specialized firms.

Positive Signals

Awarded through full and open competition, ensuring a wide pool of potential contractors and promoting market efficiency.
The presence of 6 bidders indicates significant interest and a competitive process, likely leading to better value.
The CPIF contract type, if well-managed, can incentivize contractor performance and cost control towards specific objectives.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with agencies like the Department of Defense being major consumers. Contracts for system implementation and design are crucial for modernizing government operations. Comparable spending benchmarks would typically involve analyzing other large-scale IT system implementation contracts awarded by DoD or other federal agencies for similar functionalities.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This means that large businesses were eligible to compete and potentially win the award without specific requirements for subcontracting to small businesses. The absence of a small business set-aside may limit opportunities for smaller firms to participate directly in this significant IT contract, though they might still be involved as subcontractors if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Logistics Agency. Accountability measures are inherent in the CPIF contract type, linking contractor profit to performance. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense IT Modernization Programs
DoD Enterprise Resource Planning (ERP) Systems
Command and Control Systems Procurement
Logistics Information Systems

Risk Flags

Cost-Plus Incentive Fee contract type carries inherent cost overrun risks.
Long contract duration increases potential for scope creep and contract modifications.
Lack of small business set-aside may limit broader economic participation.
Specific details on performance metrics and incentive structure are not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to CACI, INC. - FEDERAL. BASE YEAR- ROC IMPLEMENTATION

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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2010-09-30. End: 2015-02-21.

What is the historical spending trend for ROC Implementation services by the Department of Defense?

Analyzing historical spending on ROC Implementation requires accessing detailed procurement data over several fiscal years. While this specific contract represents a significant award of approximately $24 million for its base year, understanding the broader trend involves looking at the total obligated amounts for similar services across the DoD. Factors influencing spending include evolving technological needs, strategic priorities, and budget allocations. Without access to a comprehensive historical database filtered for 'ROC Implementation' or closely related service codes (like NAICS 541512 with specific keywords), it's difficult to establish a precise trend. However, federal IT spending, in general, has been on an upward trajectory, driven by modernization efforts and cybersecurity requirements. It's plausible that spending on systems like ROC Implementation has mirrored this trend, potentially increasing as agencies seek to improve communication and data management capabilities.

How does CACI, Inc. - Federal's performance on similar contracts compare to this award?

Assessing CACI, Inc. - Federal's performance on similar contracts requires a review of their past performance evaluations and contract histories. Publicly available data, such as contract award databases, often includes past performance information ratings (e.g., exceptional, very good, satisfactory, unsatisfactory). To provide a comparative analysis, one would need to identify contracts awarded to CACI for 'Computer Systems Design Services' or 'ROC Implementation' with similar scope and value. Examining metrics like on-time delivery, adherence to budget, quality of deliverables, and any contract disputes or terminations would be crucial. Without specific access to CACI's detailed performance records on comparable contracts, it's challenging to definitively state how their performance on this $24M DoD contract aligns with their historical track record. Generally, CACI is a large, established federal contractor with a broad portfolio, suggesting a history of managing complex IT projects.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for IT implementation?

The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for IT implementation revolve around cost control and performance alignment. While CPIF aims to incentivize the contractor to meet or exceed cost and performance targets by adjusting profit, it can lead to cost overruns if targets are poorly defined, unrealistic, or if the incentive structure is overly generous. The government bears the risk of cost increases if the contractor incurs allowable costs exceeding the target cost, although the final profit is adjusted. For IT projects, which are often complex and subject to change, defining precise targets can be difficult, increasing the likelihood of disputes or missed incentives. Furthermore, the contractor might focus on achieving incentive targets at the expense of other critical, non-incentivized aspects of the project, potentially impacting overall quality or long-term maintainability. Effective oversight and clear target setting are crucial to mitigate these risks.

What is the potential impact of this contract on the cybersecurity posture of the Department of Defense?

The potential impact of this ROC Implementation contract on the Department of Defense's cybersecurity posture depends heavily on the specific functionalities and security features integrated into the ROC system. If 'ROC' refers to a system critical for communication or operational data, its successful and secure implementation is paramount. A well-designed and implemented system could enhance the DoD's ability to securely manage and transmit sensitive information, potentially improving threat detection and response capabilities. Conversely, if the implementation introduces vulnerabilities or fails to meet stringent DoD cybersecurity standards, it could create new attack vectors or compromise existing security measures. The contract type (CPIF) and the contractor's cybersecurity expertise are key factors. Robust security requirements, rigorous testing, and ongoing monitoring are essential to ensure the implementation positively impacts, rather than degrades, the DoD's overall cybersecurity posture.

How does the $24M base year award compare to the total contract value over its potential duration?

The provided data indicates a base year award of $23,961,954.38. The contract duration is listed as 1605 days. This duration translates to approximately 4.4 years (1605 days / 365.25 days/year). Without information on the total contract value (TCV) or ceiling price, it's impossible to determine the full potential value over the entire 1605-day period. The base year award typically covers the initial period of performance and may represent a significant portion of the total contract value, or it could be substantially less than the total potential value if multiple option periods or performance incentives are included. To understand the full scope, data on exercised options, total obligated amounts, and the contract ceiling would be necessary.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91QUZ10R0003

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14370 NEWBROOK DRIVE, CHANTILLY, VA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $84,833,729

Exercised Options: $24,628,093

Current Obligation: $23,961,954

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $6,631,659

Contract Characteristics

Cost or Pricing Data: NO

Timeline