CACI Premier Technology awarded $18.9M for Army computer facilities management, a sole-source contract

Contract Overview

Contract Amount: $18,901,878 ($18.9M)

Contractor: CACI Premier Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-30

End Date: 2014-09-30

Contract Duration: 1,096 days

Daily Burn Rate: $17.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DEVELOPMENT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to CACI PREMIER TECHNOLOGY, LLC for work described as: DEVELOPMENT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Services provided under a Time and Materials contract type. 3. Contract duration of 1096 days, spanning nearly three years. 4. Focus on computer facilities management services. 5. Awarded by the Department of the Army, a major defense agency. 6. Performance located in Virginia.

Value Assessment

Rating: questionable

The contract's value of $18.9 million for computer facilities management over three years warrants scrutiny, especially given the sole-source award. Without competitive bidding, it's difficult to benchmark the pricing against market rates or similar government contracts. The Time and Materials (T&M) contract type can also lead to cost overruns if not managed closely, as it incentivizes labor hours rather than fixed outcomes. A detailed cost analysis would be necessary to determine if the pricing reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates a direct award. The lack of competition means potential savings from a bidding process were forgone, and the government did not benefit from the price discovery that open competition provides.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The sole-source nature limits the government's ability to negotiate the best possible price.

Public Impact

The Department of the Army benefits from continued computer facilities management services. Ensures the operational readiness of critical IT infrastructure for military operations. Services are geographically concentrated in Virginia, supporting local IT workforce. Maintains the functionality of essential computer systems supporting defense missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential taxpayer savings.
Time and Materials contract type carries inherent risk of cost escalation.
Lack of transparency in pricing due to non-competitive award.
Limited data available to assess performance against benchmarks.

Positive Signals

Contract supports critical IT infrastructure for a major defense agency.
Award ensures continuity of essential computer facilities management services.
Contract duration suggests a stable, ongoing need for these services.

Sector Analysis

The Information Technology sector, specifically computer facilities management, is a critical component of modern government operations. This contract falls under IT services, a broad category encompassing hardware, software, and network management. The market for these services is competitive, but specific niche capabilities or existing infrastructure integration can sometimes lead to sole-source awards. Benchmarking this contract's value is challenging without competitive data, but IT services represent a significant portion of federal IT spending.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary contractor, CACI Premier Technology, is expected to perform the majority of the work, and opportunities for small businesses within the subcontracting ecosystem may be limited for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a sole-source award, scrutiny on the justification and pricing is crucial. Transparency measures would involve reviewing the contract file for the sole-source justification and any cost-plus elements if applicable under the T&M structure. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Operations and Maintenance
Computer Systems Design Services
Information Technology Professional Services
Defense Information Systems Agency Contracts

Risk Flags

Sole-source award
Time and Materials contract type
Lack of competitive bidding
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to CACI PREMIER TECHNOLOGY, LLC. DEVELOPMENT

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

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

What was the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED' and the contract type was 'DELIVERY ORDER' under a larger indefinite-delivery indefinite-quantity (IDIQ) contract, or similar. The specific justification for a sole-source award typically stems from reasons such as: only one responsible source being available or qualified; a compelling urgency; or a specific national defense requirement that only one contractor can meet. For this particular contract, the detailed justification would be found in the contract award file, often citing specific technical capabilities, proprietary knowledge, or a critical need that could not be fulfilled through a competitive process within the required timeframe.

How does the Time and Materials (T&M) contract type compare to other contract types for IT services?

Time and Materials (T&M) contracts are used when the extent or frequency of the work cannot be precisely determined in advance. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but carries a higher risk of cost overruns for the government, as the total cost is not capped upfront. Cost-Plus-Fixed-Fee (CPFF) contracts are another alternative where the contractor is reimbursed for allowable costs plus a fixed fee representing profit. For IT services, FFP is often preferred for well-defined scopes, while T&M or CPFF might be used for research, development, or undefined maintenance tasks. The choice of T&M here suggests the scope of computer facilities management was not fully defined at the time of award or was expected to fluctuate.

What is the typical performance period for computer facilities management contracts of this size?

The performance period for this contract is 1096 days, which is approximately three years. For computer facilities management services, a duration of two to five years is common, often including options for extension. Contracts of this size ($18.9 million) typically require a significant commitment from the contractor and indicate a sustained need for the services. Shorter durations might be used for specific projects or initial setup, while longer periods suggest ongoing operational support, maintenance, and potential upgrades. The three-year term here aligns with standard practice for substantial IT support requirements within federal agencies.

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

Sole-source Time and Materials (T&M) contracts for IT services present several risks. Firstly, the lack of competition means the government may not achieve the best possible price, potentially leading to higher costs for taxpayers. Secondly, T&M contracts can incentivize contractors to increase labor hours rather than improve efficiency, as their profit is tied to the time spent. This can lead to cost escalation if not rigorously monitored. Thirdly, without competitive benchmarks, it's harder to assess if the contractor's rates and material costs are reasonable. Effective oversight, detailed work breakdown structures, and strong performance metrics are essential to mitigate these risks and ensure value for money.

How does CACI Premier Technology's track record influence the assessment of this contract?

CACI Premier Technology is a large, established government contractor with extensive experience in IT services, including facilities management. Their long history and broad portfolio suggest they possess the technical expertise and capacity to perform the required services. However, their size and existing relationship with government agencies do not inherently guarantee optimal value or pricing, especially in a sole-source context. A thorough assessment would involve reviewing CACI's past performance on similar contracts, including client satisfaction, adherence to schedule and budget, and any documented issues or disputes. While their experience is a positive signal for capability, it doesn't negate the need for scrutiny on pricing and competition.

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: 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: $19,136,646

Exercised Options: $19,136,646

Current Obligation: $18,901,878

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $218,235

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W74V8H04D0034

IDV Type: IDC

Timeline