CACI awarded $14.77M for TEWLS software development, a sole-source contract with a 3-year duration

Contract Overview

Contract Amount: $14,771,734 ($14.8M)

Contractor: CACI Premier Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2011-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $13.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TEWLS SOFTWARE DEVELOPMENT BASE PERIOD

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to CACI PREMIER TECHNOLOGY, LLC for work described as: TEWLS SOFTWARE DEVELOPMENT BASE PERIOD Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize higher spending if not carefully managed. 2. Sole-source awards limit competitive pressure, potentially impacting price efficiency. 3. The contract's duration of 1095 days suggests a need for sustained software development support. 4. Performance was awarded via a delivery order, indicating it's part of a larger indefinite-delivery contract. 5. The NAICS code 541513 points to a focus on computer facilities management services. 6. The contract was awarded by the Defense Contract Management Agency, suggesting a defense-related need.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable sole-source awards for TEWLS software development. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex development, can lead to cost overruns if not rigorously overseen. The base period value of $14.77 million for three years suggests an average annual cost of approximately $4.92 million. Without more data on the scope of work and labor rates, a definitive value assessment is difficult, but CPFF contracts generally carry higher risk for the government compared to fixed-price arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning CACI Premier Technology, LLC was the only vendor considered. This approach is typically used when a unique capability or proprietary technology is required, or when only one source is capable of meeting the requirement. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process. This can potentially lead to higher costs for the taxpayer.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competition, potentially resulting in higher expenditures for taxpayers.

Public Impact

The primary beneficiaries are likely the Department of Defense, which receives the TEWLS software development services. The services delivered are focused on computer facilities management, crucial for maintaining defense IT infrastructure. The geographic impact is centered around the Defense Contract Management Agency's operational areas, likely within Virginia. Workforce implications may include the need for specialized software developers and IT professionals employed by CACI.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs.
Cost-plus-fixed-fee structure can incentivize higher spending if not managed effectively.
Lack of transparency in the justification for sole-source award.

Positive Signals

Award to an established contractor (CACI) may indicate reliability and existing expertise.
Contract duration suggests a stable, long-term need for the services.
Award by Defense Contract Management Agency implies adherence to defense procurement standards.

Sector Analysis

The Information Technology sector, specifically within government IT services and software development, is characterized by significant federal spending. Contracts like this, focused on specialized software and facilities management, are common as agencies rely on external expertise for complex IT operations. The market size for government IT services is substantial, with numerous contractors vying for awards. This contract fits within the broader category of IT support and development services procured by defense agencies, which often represent a large portion of federal IT budgets.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. As a sole-source award to a large prime contractor, it is unlikely to directly benefit the small business ecosystem through set-asides. However, CACI may engage small businesses as subcontractors, though this is not explicitly stated in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. The cost-plus-fixed-fee nature of the contract necessitates robust financial oversight to monitor costs and ensure the fixed fee remains appropriate. Transparency regarding the sole-source justification and performance metrics would be key accountability measures.

Related Government Programs

Defense IT Modernization Programs
Software Development Services
Computer Facilities Management
Information Technology Support Services

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to CACI PREMIER TECHNOLOGY, LLC. TEWLS SOFTWARE DEVELOPMENT BASE PERIOD

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 $14.8 million.

What is the period of performance?

Start: 2008-09-30. End: 2011-09-30.

What is the specific nature of the TEWLS software development and its criticality to the Department of Defense?

The provided data abbreviates the contract as 'TEWLS SOFTWARE DEVELOPMENT BASE PERIOD' and classifies the service under NAICS code 541513 (Computer Facilities Management Services). While the exact functionality of 'TEWLS' is not detailed, its classification suggests it relates to the management and operation of computer systems and infrastructure within the Department of Defense. Such systems are critical for command, control, communications, intelligence, and logistics. The criticality stems from ensuring the availability, security, and efficiency of the IT backbone that supports military operations. Without specific details on TEWLS, its criticality can be inferred from its role in supporting defense operations, where IT failures can have significant operational consequences.

What is the justification for awarding this contract as sole-source to CACI Premier Technology, LLC?

The provided data explicitly states the contract type as 'NOT COMPETED', indicating a sole-source award. The specific justification for this sole-source determination is not included in the abbreviated data. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available, or when there is a compelling urgency, or for the acquisition of certain supplies or services from a specified source. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise reasons CACI was the sole awardee. This lack of competition raises questions about potential cost efficiencies missed.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar software development projects?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for research and development or complex services where the scope of work is not well-defined at the outset, making fixed-price contracts difficult. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF shifts more cost risk to the government, as the final cost is not predetermined. However, it offers more flexibility than fixed-price contracts. For software development, fixed-price incentive fee (FPIF) or firm-fixed-price (FFP) contracts are often preferred when requirements are stable, as they provide stronger incentives for cost control. CPFF is generally considered less desirable from a cost-efficiency standpoint for the government than FFP or FPIF, unless the nature of the work truly necessitates it.

What is the historical spending pattern for TEWLS software development or similar services by the Department of Defense?

The provided data only details a single base period award of $14.77 million for TEWLS software development to CACI Premier Technology, LLC, spanning from September 30, 2008, to September 30, 2011. This represents a three-year duration. To understand historical spending patterns, one would need to examine contract awards for 'TEWLS' or similar 'Computer Facilities Management Services' (NAICS 541513) over a longer period and across different defense agencies. This would involve searching federal procurement databases like FPDS or USASpending.gov for prior and subsequent contracts, including any options exercised or modifications. Without this broader data, it's impossible to establish a trend or benchmark this specific award against historical spending.

What are the potential risks associated with a sole-source, CPFF contract for software development?

Sole-source contracts, by definition, eliminate competition, which can lead to inflated prices and reduced innovation. When combined with a Cost Plus Fixed Fee (CPFF) structure, the risks are amplified. For CPFF, the government bears the risk of cost overruns, as the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the final project cost. Effective oversight is crucial to scrutinize costs and ensure they are reasonable and allocable. The lack of competition means the government cannot leverage market forces to ensure the best value, potentially leading to suboptimal resource allocation and higher overall expenditure for the duration of the contract.

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: $14,841,726

Exercised Options: $14,841,726

Current Obligation: $14,771,734

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W74V8H04D0034

IDV Type: IDC

Timeline