DoD's $87.7M Contract for Engineering Services to CACI Technologies Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $87,735,804 ($87.7M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2004-07-29

End Date: 2010-09-30

Contract Duration: 2,254 days

Daily Burn Rate: $38.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200411!044400!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0017804D4026 !A!N! !Y!0002 ! !20040729!20040930!057364507!094107844!045534641!N!CACI TECHNOLOGIES, INC !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000004370791!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!20060331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $87.7 million to CACI TECHNOLOGIES, LLC for work described as: 200411!044400!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0017804D4026 !A!N! !Y!0002 ! !20040729!20040930!057364507!094107844!045534641!N!CACI TECHNOLOGIES, INC !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!82000!810!51!VIRGINIA BEACH !VIRG… Key points: 1. The contract awarded to CACI Technologies, Inc. for engineering services is substantial at $87.7 million. 2. Competition details are unclear, with 'FULL AND OPEN COMPETITION' listed, but the award type is 'DELIVERY ORDER', suggesting a potential task order under a broader contract. 3. Potential risks include the 'COST PLUS FIXED FEE' pricing structure, which can lead to cost overruns if not managed tightly. 4. The sector is 'OTHER PROFESSIONAL SERVICES', specifically engineering services, a critical area for defense operations.

Value Assessment

Rating: questionable

The contract's value of $87.7 million for engineering services needs further benchmarking against similar DoD contracts. The 'COST PLUS FIXED FEE' (CPFF) structure, while common, requires careful oversight to ensure cost-effectiveness and prevent potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract is listed as 'FULL AND OPEN COMPETITION', but the award type is 'DELIVERY ORDER'. This suggests it might be a task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit the scope of competition for this specific order.

Taxpayer Impact: The significant value of this contract means taxpayers are funding a substantial amount for engineering services. Ensuring competitive pricing and efficient service delivery is crucial for maximizing taxpayer value.

Public Impact

Taxpayers are funding a significant contract for engineering services, highlighting the need for transparency and accountability in defense spending. The reliance on 'COST PLUS FIXED FEE' contracts necessitates robust oversight to prevent potential cost escalations. The specific engineering services provided are critical to Naval Sea Systems Command operations, impacting national security readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure
Delivery Order under a potentially broader contract
Lack of specific detail on competition for this delivery order

Positive Signals

Awarded to a known entity (CACI Technologies)
Contract duration is substantial, indicating a long-term need for services

Sector Analysis

This contract falls under 'OTHER PROFESSIONAL SERVICES', specifically engineering services (NAICS 541330), a vital component of the defense sector. Spending in this area is benchmarked against the overall DoD budget for technical and engineering support.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The 'DELIVERY ORDER' nature of this award suggests it may be part of a larger contract vehicle. Oversight should focus on the administration of the parent contract and the specific task order to ensure compliance and value.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Limited visibility into competition for this specific delivery order
Dependence on a single contractor for critical engineering services
Need for robust oversight of contract performance and cost reporting

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $87.7 million to CACI TECHNOLOGIES, LLC. 200411!044400!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0017804D4026 !A!N! !Y!0002 ! !20040729!20040930!057364507!094107844!045534641!N!CACI TECHNOLOGIES, INC !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000004370791!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!200

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 Navy).

What is the total obligated amount?

The obligated amount is $87.7 million.

What is the period of performance?

Start: 2004-07-29. End: 2010-09-30.

What was the competitive landscape for the parent contract under which this delivery order was issued?

The provided data indicates 'FULL AND OPEN COMPETITION' for the contract itself, but the award type is a 'DELIVERY ORDER'. This implies the order was placed against a pre-existing contract, likely an IDIQ. Understanding the competition for that parent contract is crucial to assessing the overall fairness of the procurement process.

How effectively was the 'COST PLUS FIXED FEE' structure managed to control costs and ensure value for money?

The 'COST PLUS FIXED FEE' (CPFF) pricing model carries inherent risks of cost overruns if not rigorously managed. Effective oversight, including detailed cost tracking, performance reviews, and adherence to contract terms, is essential to ensure that the final cost reflects the value delivered and remains within reasonable bounds for the services rendered.

What is the specific impact of these engineering services on the operational effectiveness of the Naval Sea Systems Command?

Engineering services are fundamental to the design, development, maintenance, and modernization of naval systems. The effectiveness of CACI Technologies' services directly influences the readiness, capability, and lifecycle management of critical naval assets, ultimately impacting the Navy's ability to execute its mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14151 PARK MEADOW DRIVE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4026

IDV Type: IDC

Timeline