DoD's $75M R&D contract for rapid development awarded to CACI Technologies, LLC

Contract Overview

Contract Amount: $74,979,083 ($75.0M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2009-07-27

End Date: 2016-09-27

Contract Duration: 2,619 days

Daily Burn Rate: $28.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: TASK ORDER FOR RAPID DEVELOPMENT AND FIELD CAPABILITY FOR I2WD.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $75.0 million to CACI TECHNOLOGIES, LLC for work described as: TASK ORDER FOR RAPID DEVELOPMENT AND FIELD CAPABILITY FOR I2WD. Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Task order for rapid development and field capability indicates a focus on agile solutions. 3. The contract duration of over 7 years suggests a long-term need for these services. 4. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical area for defense innovation. 5. The contract was awarded as a delivery order under a larger contract vehicle. 6. Virginia is a significant hub for defense contracting and R&D activities.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without comparable data for similar rapid development and field capability initiatives. The total value of approximately $75 million over nearly 7 years averages to roughly $10.7 million annually. This figure needs to be assessed against the scope and complexity of the R&D undertaken. Without detailed performance metrics or cost breakdowns, it's difficult to definitively assess value for money. However, the duration suggests sustained investment in this capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to drive better pricing and innovation. The number of bidders is not specified, but the 'full and open' designation implies a significant level of market engagement.

Taxpayer Impact: A competitive award process for this significant R&D investment is beneficial for taxpayers, as it increases the likelihood of obtaining services at a fair market price and encourages contractors to offer their best solutions.

Public Impact

The Department of Defense benefits from enhanced rapid development and field capabilities, crucial for maintaining technological superiority. This contract supports the development of advanced technologies and solutions for military applications. The geographic impact is primarily within Virginia, a known center for defense R&D, potentially creating local employment opportunities. The workforce implications include highly skilled researchers, engineers, and technical personnel involved in cutting-edge defense projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the R&D.
The long duration of the contract could lead to potential cost overruns if not managed tightly.
The 'time and materials' pricing structure can sometimes lead to higher costs compared to fixed-price contracts if not carefully monitored.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially fair pricing.
Focus on 'rapid development and field capability' indicates a commitment to modernizing defense technology.
The contract supports critical R&D in a key technological area for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a vital area for defense innovation, aiming to develop and field new technologies to maintain a strategic advantage. The market for defense R&D is characterized by significant government investment, specialized expertise, and long development cycles. Comparable spending benchmarks would typically involve other large-scale R&D contracts awarded by the DoD or other federal agencies for similar technological advancements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is likely that CACI Technologies, LLC, as the prime contractor, may engage small businesses as subcontractors. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem remains unclear. The focus on R&D might also mean specialized expertise is required, potentially limiting the scope for small business involvement unless they possess niche capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army, under the Department of Defense. Mechanisms likely include contract performance reviews, milestone tracking, and financial audits. Accountability measures would be tied to the delivery of capabilities and adherence to the contract terms. Transparency is generally facilitated through contract award databases and reporting requirements, though specific project details might be classified or sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Army Futures Command Initiatives
Advanced Technology Development Contracts
Rapid Fielding of Military Capabilities

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of detailed performance metrics makes value assessment difficult.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.0 million to CACI TECHNOLOGIES, LLC. TASK ORDER FOR RAPID DEVELOPMENT AND FIELD CAPABILITY FOR I2WD.

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 $75.0 million.

What is the period of performance?

Start: 2009-07-27. End: 2016-09-27.

What is CACI Technologies, LLC's track record with similar Department of Defense R&D contracts?

CACI Technologies, LLC has a substantial history of performing contracts for the Department of Defense, including significant work in research and development, IT services, and intelligence support. Their portfolio often includes complex technological solutions and systems integration. While specific details on past R&D task orders of this exact nature are not provided in this snippet, CACI's general experience suggests a capacity to handle large-scale, technically demanding projects. A deeper dive into their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment of their track record specifically for rapid development and field capability initiatives.

How does the $75 million value compare to other DoD R&D contracts in the physical, engineering, and life sciences sector?

The $75 million value for this task order is a significant but not extraordinary amount for a multi-year R&D effort within the Department of Defense. The DoD invests billions annually in R&D across various scientific and engineering disciplines. Contracts in this sector can range from tens of millions to hundreds of millions, or even billions, depending on the scope, duration, and technological criticality. This particular contract's value suggests a substantial, focused effort on a specific capability. To provide a precise comparison, one would need to analyze the average contract values for similar R&D categories (NAICS 541712) awarded by the DoD over comparable timeframes, considering factors like the specific research area and the maturity of the technology being developed.

What are the primary risks associated with a 'time and materials' contract for R&D?

Time and Materials (T&M) contracts, like the one used here (pt: TIME AND MATERIALS), carry inherent risks, particularly for R&D projects. The primary risk for the government is cost overrun, as the contractor is reimbursed for direct labor hours at specified rates and for the actual cost of materials. Unlike fixed-price contracts, there is less incentive for the contractor to control costs efficiently. For R&D, where the scope and duration can be uncertain, T&M can lead to escalating expenses if not managed with rigorous oversight, clear task definitions, and strict monitoring of labor hours and material usage. The government must ensure that the work is necessary and that the rates are fair and reasonable.

How effective is 'full and open competition' in ensuring value for money in defense R&D?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including defense R&D. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices, encourages innovation, and increases the pool of potential solutions. For R&D, this means a wider range of technical approaches and potentially more cost-effective methods can be explored. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical merit and cost proposals. In complex R&D, where outcomes are uncertain, ensuring that the lowest price technically acceptable (LPTA) or best value trade-off is appropriately applied is crucial for maximizing taxpayer value.

What is the historical spending trend for NAICS code 541712 (R&D in Physical, Engineering, and Life Sciences) by the Department of the Army?

The Department of the Army consistently allocates significant funding towards Research and Development, particularly within NAICS code 541712, which covers R&D in Physical, Engineering, and Life Sciences (except Biotechnology). Historical spending data typically shows a substantial and often increasing trend in this area, reflecting the military's continuous need for technological advancement and modernization. While specific year-over-year figures fluctuate based on strategic priorities, budget allocations, and emerging threats, this sector remains a core investment area. Analyzing trends over the past 5-10 years would reveal the Army's commitment to innovation in areas like materials science, advanced manufacturing, aerospace engineering, and other physical sciences crucial for defense capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14151 PARK MEADOW DR, 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: $74,979,083

Exercised Options: $74,979,083

Current Obligation: $74,979,083

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T09DP013

IDV Type: IDC

Timeline