CACI Premier Technology awarded $22.2M for IT support services, a sole-source contract with a high per-unit cost

Contract Overview

Contract Amount: $22,220,576 ($22.2M)

Contractor: CACI Premier Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-24

End Date: 2014-09-30

Contract Duration: 1,102 days

Daily Burn Rate: $20.2K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BASE PERIOD TEWLS SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to CACI PREMIER TECHNOLOGY, LLC for work described as: BASE PERIOD TEWLS SUPPORT Key points: 1. The contract's value of $22.2 million over three years suggests a significant investment in IT support. 2. As a sole-source award, the absence of competition may have led to less favorable pricing. 3. The contract's Time and Materials (T&M) pricing structure can present cost control challenges. 4. Performance is managed by the Defense Contract Management Agency, indicating a focus on defense sector needs. 5. The IT services provided fall under Computer Facilities Management, a critical function for operational readiness. 6. The contract's duration of approximately three years allows for sustained support but limits flexibility.

Value Assessment

Rating: questionable

The total contract value of $22.2 million for three years of IT support services appears high, especially given the sole-source nature of the award. Without competitive bidding, it's difficult to benchmark the pricing against market rates or other similar contracts. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not managed tightly. The provided data does not include specific performance metrics or a breakdown of labor categories and rates, making a precise value-for-money assessment challenging. However, the lack of competition and the T&M structure raise concerns about optimal resource utilization.

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 bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally result in less price discovery and potentially higher costs for the government compared to fully competed contracts. The absence of competition here means taxpayers did not benefit from the cost savings that a competitive environment could have fostered.

Taxpayer Impact: The lack of competition means taxpayers likely paid a premium for these services, as there was no pressure on the contractor to offer the lowest possible price.

Public Impact

The Department of Defense benefits from continuous IT support, ensuring the operational readiness of its systems. Services include computer facilities management, crucial for maintaining the infrastructure that supports military operations. The contract's impact is primarily within the defense sector, supporting national security objectives. The workforce implications are tied to the IT professionals employed by CACI Premier Technology to deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and may result in higher costs.
Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Lack of detailed performance metrics in the provided data hinders a comprehensive value assessment.
The contract's duration might not align with evolving IT needs, potentially requiring costly modifications or new contracts.

Positive Signals

CACI Premier Technology is a known entity in government contracting, suggesting a degree of familiarity and established processes.
The contract supports critical IT infrastructure for the Department of Defense, contributing to national security.
The Defense Contract Management Agency's oversight indicates a structured approach to contract administration.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide range of support functions. Computer Facilities Management Services (NAICS 541513) represent a significant portion of this spending, focusing on the maintenance, operation, and support of IT infrastructure. Federal spending in this area is driven by the need to maintain complex and critical systems across various agencies. Comparable spending benchmarks are difficult to establish without more specific details on the scope of services and labor rates, but the $22.2 million over three years for a single contract suggests a substantial, ongoing requirement.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless CACI Premier Technology voluntarily engages small businesses for subcontracting opportunities. Without explicit set-aside provisions or reporting, it's difficult to assess the extent to which small businesses will participate in fulfilling this contract's requirements.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), a key agency responsible for ensuring that contractors meet their contractual obligations. The Time and Materials (T&M) pricing structure necessitates close monitoring of labor hours and material costs to prevent overspending. Transparency regarding specific performance metrics and cost breakdowns would enhance accountability. The Inspector General's office within the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense IT Support Services
Computer Systems Design Services
IT Management Consulting Services
Federal IT Infrastructure Support

Risk Flags

Sole-source award
Time and Materials contract type
Lack of detailed performance metrics
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to CACI PREMIER TECHNOLOGY, LLC. BASE PERIOD TEWLS SUPPORT

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 $22.2 million.

What is the period of performance?

Start: 2011-09-24. End: 2014-09-30.

What is the specific scope of 'BASE PERIOD TEWLS SUPPORT' and how does it align with CACI's core competencies?

The abbreviation 'TEWLS' is not standard and requires clarification. Assuming it refers to a specific set of Technical, Engineering, and Logistics Support services, the contract's focus on 'Computer Facilities Management Services' (NAICS 541513) suggests that the support likely involves the operation, maintenance, and management of IT infrastructure, including hardware, software, networks, and data centers. CACI Premier Technology, LLC has a broad portfolio in IT services, including enterprise IT, cybersecurity, and cloud solutions, which generally aligns with managing complex IT facilities. However, without a clear definition of 'TEWLS', a precise alignment assessment is difficult. The contract's sole-source nature might indicate a specialized or legacy requirement where CACI possesses unique, pre-existing knowledge or capabilities.

How does the per-unit cost of this contract compare to similar IT support contracts within the Department of Defense?

A direct per-unit cost comparison is challenging due to the Time and Materials (T&M) pricing structure and the lack of specific details on labor categories, hours, and material markups. The total contract value of $22.2 million over approximately three years (1102 days) averages to roughly $20,145 per day. However, this daily average doesn't account for variations in workload or service intensity. Without knowing the specific services rendered (e.g., number of users supported, systems managed, hours of specialized support), it's impossible to establish a meaningful per-user or per-system cost benchmark. Furthermore, as a sole-source contract, it is less likely to reflect competitive market rates, making external benchmarking less reliable.

What are the primary risks associated with a sole-source Time and Materials contract for IT support?

The primary risks associated with a sole-source Time and Materials (T&M) contract for IT support are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to optimize efficiency. The government lacks the benefit of comparing multiple proposals to ensure the best value. Secondly, the T&M structure, while offering flexibility, carries inherent risks of cost overruns. Without strict oversight and well-defined ceilings, contractors may bill for excessive hours or unnecessary materials, as their profit is directly tied to the cost incurred. This necessitates robust government monitoring of labor hours, rates, and material costs to control spending and ensure value.

What performance metrics are typically used to evaluate IT support contracts of this nature, and are they present here?

Typical performance metrics for IT support contracts often include response times for service requests, resolution times for incidents, system uptime percentages, user satisfaction ratings, and adherence to security protocols. For Computer Facilities Management Services, metrics might also cover the efficiency of system maintenance, patch management timeliness, and successful completion of scheduled upgrades. The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) used to evaluate CACI Premier Technology's performance under this contract. The absence of such data makes it difficult to assess the contractor's effectiveness and the overall success of the service delivery beyond the basic fulfillment of the contract terms.

How has federal spending on Computer Facilities Management Services (NAICS 541513) trended over the past five years, and where does this contract fit?

Federal spending on Computer Facilities Management Services (NAICS 541513) has generally shown a consistent upward trend over the past five years, driven by the increasing reliance on complex IT infrastructure across all government agencies. While specific aggregate spending figures fluctuate annually based on agency priorities and budget allocations, the overall demand for these services remains robust. This $22.2 million contract, awarded in 2011 and ending in 2014, represents a significant, albeit dated, investment within this category for the Department of Defense during its period of performance. Its sole-source nature and T&M structure might place it as a less cost-efficient example compared to potentially competitively bid, fixed-price contracts within the same sector.

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

Pricing Type: TIME AND MATERIALS (Y)

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: $23,550,729

Exercised Options: $22,371,798

Current Obligation: $22,220,576

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $186,935

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W74V8H04D0034

IDV Type: IDC

Timeline