CACI awarded $17.3M for IT services, support, and maintenance to the Department of Defense

Contract Overview

Contract Amount: $17,273,514 ($17.3M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2009-11-29

End Date: 2014-11-30

Contract Duration: 1,827 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SERVICES, SUPPORT AND MAINTENANCE

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to CACI, INC. - FEDERAL for work described as: IT SERVICES, SUPPORT AND MAINTENANCE Key points: 1. Contract value of $17.3M over 5 years indicates a significant investment in IT infrastructure. 2. Full and open competition suggests a robust market for these services. 3. The contract's duration of 1827 days points to a long-term need for sustained IT support. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The award to CACI, Inc. - Federal places it as a key provider for this DoD requirement. 6. The NAICS code 541712 suggests a focus on R&D in physical, engineering, and life sciences, which may be a secondary or related aspect of the IT services provided. 7. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $17.3 million over approximately five years averages to about $3.46 million per year. Without specific benchmarks for similar IT services, support, and maintenance contracts within the Department of Defense, a precise value-for-money assessment is challenging. However, the full and open competition suggests that the pricing was likely competitive. The firm fixed-price nature of the contract provides cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government can select from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, which is beneficial for taxpayers by ensuring they receive the best value for their investment.

Public Impact

The Department of Defense benefits from enhanced IT services, support, and maintenance, crucial for its operational effectiveness. This contract supports the ongoing technological infrastructure and readiness of military operations. The geographic impact is likely focused on the areas where the Defense Information Systems Agency operates, potentially worldwide. Workforce implications include employment opportunities for IT professionals and support staff within CACI, Inc. - Federal and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) appears to be a mismatch with the primary description of 'IT SERVICES, SUPPORT AND MAINTENANCE', raising questions about the precise nature of the services procured or the accuracy of the coding.
The contract duration of 1827 days (approx. 5 years) is substantial, requiring careful ongoing performance monitoring to ensure continued value and alignment with evolving IT needs.
As a delivery order, its performance and cost are tied to a potentially larger, unstated IDIQ contract, which may have its own set of risks and oversight requirements.

Positive Signals

Awarded under full and open competition with 7 bidders indicates a competitive environment that likely drove favorable pricing.
The firm fixed-price contract type provides budget certainty for the government, mitigating the risk of cost overruns.
The contract's long duration suggests a stable, ongoing requirement, allowing for potential economies of scale and relationship building with the contractor.

Sector Analysis

The IT services, support, and maintenance sector is a critical component of government operations, particularly for defense agencies. The Department of Defense is a major consumer of these services, investing billions annually to maintain its complex technological infrastructure. This contract, valued at $17.3 million, represents a segment of this larger spending. Comparable contracts in this space can range from smaller, specialized support tasks to massive enterprise-wide IT modernization efforts. The firm fixed-price nature is common for well-defined IT support services.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, the primary focus of this contract was not on direct small business set-asides. However, CACI, Inc. - Federal, as a large prime contractor, may engage small businesses as subcontractors to fulfill portions of this contract, contributing to the broader small business ecosystem. The extent of subcontracting to small businesses would depend on CACI's internal policies and the specific requirements of the delivery order.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Information Systems Agency (DISA) within the Department of Defense. As a delivery order under a potentially larger IDIQ contract, oversight mechanisms would likely include regular performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract databases and reporting requirements. The Inspector General of the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
IT Services and Support IDIQ Contracts

Risk Flags

Potential NAICS code mismatch
Long contract duration requires sustained performance monitoring
Delivery order implies dependency on a larger IDIQ contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to CACI, INC. - FEDERAL. IT SERVICES, SUPPORT AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2009-11-29. End: 2014-11-30.

What is the specific nature of the IT services, support, and maintenance being provided under this contract, and how does the NAICS code 541712 relate?

The contract is broadly described as 'IT SERVICES, SUPPORT AND MAINTENANCE'. However, the assigned NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)', presents a potential discrepancy. It's possible that the IT services procured are directly in support of R&D activities within these scientific domains, or that the contract encompasses both R&D elements and general IT support. Without further details from the contract's statement of work, the precise alignment remains unclear. Typically, IT services contracts fall under NAICS codes like 541511 (Custom Computer Programming Services), 541512 (Computer Systems Design Services), or 541513 (Computer Facilities Management Services). The use of 541712 suggests a specialized application of IT support tied to scientific research.

How does the $17.3 million contract value compare to similar IT support contracts awarded by the Department of Defense?

Assessing the $17.3 million value requires context within the vast IT spending of the Department of Defense. DoD IT budgets are in the tens of billions annually. This $17.3 million contract, spread over approximately five years, represents a moderate-sized award for specific IT services, support, and maintenance. Larger enterprise-wide contracts or major system procurements can easily reach hundreds of millions or billions of dollars. Smaller, more specialized support contracts might be in the low millions. Therefore, $17.3 million is a substantial but not exceptionally large sum in the DoD's IT landscape, suggesting it likely covers a defined set of services for a particular unit or program.

What are the potential risks associated with a firm fixed-price contract for IT services over a five-year period?

Firm fixed-price (FFP) contracts offer cost certainty to the government, which is a significant advantage. However, for long-duration IT service contracts, FFP can introduce risks. If the scope of work is not perfectly defined or if technology evolves rapidly, the contractor may face challenges in delivering services within the fixed price, potentially leading to reduced quality or contractor financial distress. Conversely, if the contractor significantly underestimates costs or the government's needs change, the contractor might realize unexpectedly high profits. The risk lies in the potential for misalignment between the fixed price and the actual cost of delivering evolving IT services over five years. Careful contract management and potential modification clauses are crucial.

Given the full and open competition with 7 bidders, what does this imply about the contractor's track record and the market for these services?

The fact that 7 bidders participated in the full and open competition suggests a healthy and competitive market for the specific IT services, support, and maintenance required by the Defense Information Systems Agency. It implies that multiple companies possess the capability and are interested in serving this segment of the DoD. For the winning contractor, CACI, Inc. - Federal, it indicates they were able to submit a competitive proposal that met the government's requirements and pricing expectations. While this award doesn't inherently detail CACI's past performance on *this specific type* of service, the competitive nature of the award process suggests they are a recognized player capable of competing effectively in the DoD IT services arena.

How has federal spending on IT services, support, and maintenance evolved, and where does this contract fit in historical patterns?

Federal spending on IT services, support, and maintenance has consistently been a significant portion of agency budgets, often comprising a large percentage of overall IT expenditures. Over the past decade, there has been a trend towards cloud computing, cybersecurity enhancements, and agile development, influencing the types of services procured. This $17.3 million contract, awarded in late 2009 for a five-year period ending in 2014, falls within a period of ongoing IT modernization and sustainment efforts within the DoD. It represents a typical award for maintaining existing systems and providing necessary support, fitting into the historical pattern of agencies outsourcing significant IT functions to manage complex infrastructures and ensure operational readiness.

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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

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

Financial Breakdown

Contract Ceiling: $17,273,514

Exercised Options: $17,273,514

Current Obligation: $17,273,514

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2016

IDV Type: IDC

Timeline