DoD's $81.4M CACI contract for IT services awarded via sole-source vehicle

Contract Overview

Contract Amount: $81,394,753 ($81.4M)

Contractor: CACI Premier Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-15

End Date: 2012-02-12

Contract Duration: 1,611 days

Daily Burn Rate: $50.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CERTIFICATION & ACCREDITATION SVCS

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $81.4 million to CACI PREMIER TECHNOLOGY, LLC for work described as: CERTIFICATION & ACCREDITATION SVCS Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract was not competed, raising questions about potential price efficiencies and market responsiveness. 3. Performance period spans over 4 years, indicating a long-term need for these services. 4. The contract falls under Computer Facilities Management Services, a critical area for defense operations. 5. The base award amount is substantial, requiring robust oversight to ensure value for money. 6. The contract was awarded as a delivery order against an existing contract, suggesting a pre-existing relationship or framework.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure necessitates close monitoring to control costs. Without a competitive bidding process, it's difficult to benchmark the pricing against market rates or similar contracts. The base award of over $81 million over approximately 4 years suggests a significant investment, and the value for money hinges heavily on effective performance and cost control by the contractor and diligent oversight by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded as a delivery order against an existing contract. The lack of open competition means that potential cost savings from a competitive bidding process were not realized. It is unclear how many other vendors could have potentially bid on this requirement or if alternative solutions were considered.

Taxpayer Impact: The absence of competition limits the government's ability to secure the best possible price, potentially leading to higher costs for taxpayers.

Public Impact

Provides essential computer facilities management services to the Department of Defense. Supports the operational readiness and technological infrastructure of defense agencies. Likely impacts IT personnel and support staff within the DoD. Ensures the continuity and efficiency of critical defense IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competed contract.
Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns.
Sole-source awards can limit innovation and access to a broader range of solutions.

Positive Signals

CACI Premier Technology, LLC is an established government contractor with experience in IT services.
The contract duration suggests a stable and ongoing need for these services, indicating potential for efficient service delivery.
Awarding as a delivery order against an existing contract may streamline the procurement process.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Facilities Management Services. The IT services market for the federal government is vast, with significant spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the DoD's overall IT expenditure, which is crucial for national security. Benchmarking this contract's value is challenging without competitive data, but the scale indicates a significant requirement.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting requirements. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless CACI engages small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting officer within the Department of Defense. Accountability measures would be tied to the contract's performance work statement and cost reporting requirements. Transparency is limited due to the sole-source nature, but contract award data is publicly available.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) contracts
General Services Administration (GSA) IT Schedule contracts
Department of Defense Enterprise IT Services contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing structure
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.4 million to CACI PREMIER TECHNOLOGY, LLC. CERTIFICATION & ACCREDITATION SVCS

Who is the contractor on this award?

The obligated recipient is CACI PREMIER TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $81.4 million.

What is the period of performance?

Start: 2007-09-15. End: 2012-02-12.

What is CACI Premier Technology, LLC's track record with similar sole-source IT service contracts within the Department of Defense?

CACI Premier Technology, LLC has a significant history of contracting with the Department of Defense across various IT service categories. While specific data on sole-source awards for Computer Facilities Management Services is not detailed here, CACI is a large, established contractor frequently awarded significant contracts. Their track record generally indicates experience in delivering complex IT solutions. However, the absence of competition for this specific contract means that direct comparisons of their performance and pricing against other potential bidders in a competitive scenario are not available. Further analysis would require examining past performance reviews and any publicly available data on contract modifications or disputes related to their DoD contracts.

How does the cost-plus-fixed-fee (CPFF) structure of this contract compare to industry standards for similar IT services?

The Cost-Plus-Fixed-Fee (CPFF) contract type is common in government contracting, particularly for services where the scope of work may evolve or is difficult to define precisely at the outset. For IT services, CPFF can be used for research and development, complex system integration, or ongoing support where unforeseen technical challenges might arise. However, it carries inherent risks for the government, as the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to incur costs, making robust oversight and cost control by the government crucial to prevent overspending. Compared to fixed-price contracts, CPFF generally offers less price certainty for the buyer but can be more flexible. Industry benchmarks for CPFF fees vary, but typically range from 7-15% of the estimated cost, depending on the contract's complexity and risk.

What are the primary risks associated with awarding an $81.4 million IT services contract on a sole-source basis?

The primary risks associated with awarding a substantial IT services contract on a sole-source basis include: 1. **Lack of Price Competition:** The government may pay a higher price than if the contract were competed, as there is no market pressure to drive down costs. 2. **Limited Innovation:** Without exposure to multiple vendors, the government might miss out on innovative solutions or more efficient approaches offered by other companies. 3. **Reduced Accountability:** While performance is still monitored, the absence of competitive pressure can sometimes lessen the contractor's incentive to go above and beyond. 4. **Potential for Vendor Lock-in:** Relying on a single vendor for an extended period can create dependency and make future transitions more complex and costly. 5. **Fairness and Transparency Concerns:** Sole-source awards can raise questions about the fairness of the procurement process, even if legally justified.

What specific Computer Facilities Management Services are likely covered under this contract?

Computer Facilities Management Services (CFMS) typically encompass a broad range of activities necessary for the operation and maintenance of IT infrastructure. Under this contract with the DoD, likely services include: data center operations and management, server and storage administration, network infrastructure maintenance, IT systems monitoring and performance tuning, hardware and software installation and configuration, help desk and technical support, cybersecurity monitoring and incident response within the facilities, disaster recovery and business continuity planning for the facilities, and potentially IT asset management and lifecycle support for the managed infrastructure. The exact scope would be detailed in the contract's Performance Work Statement (PWS).

How does this contract's duration and value compare to other federal IT service contracts?

This contract, with a duration of approximately 4 years (1611 days) and a base award of $81.4 million, represents a significant but not extraordinary investment within the federal IT landscape. The federal government spends hundreds of billions annually on IT. Contracts of this magnitude are common for large agencies like the DoD, especially for core operational support services. Many federal IT contracts, particularly those involving enterprise-wide solutions or large-scale infrastructure management, can extend for 5-10 years and reach hundreds of millions or even billions of dollars. The sole-source nature and CPFF structure are key differentiating factors that warrant closer scrutiny compared to competitively awarded, fixed-price contracts, which are often preferred for better price predictability.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $131,820,745

Exercised Options: $81,825,975

Current Obligation: $81,394,753

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W74V8H04D0034

IDV Type: IDC

Timeline