DoD's $133M CACI contract for satellite ground systems engineering awarded under full and open competition

Contract Overview

Contract Amount: $133,262,756 ($133.3M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2007-03-29

End Date: 2011-12-28

Contract Duration: 1,735 days

Daily Burn Rate: $76.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWARD OF NEW TASK ORDER ENTITLED "SATELLITE GROUND TELECOMMUNICATIONS SYSTEMS ENGINEERING, INFORMATION TECHNOLOGY, AND FIELD SUPPORT SERVICES" FOR PM DCATS.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $133.3 million to CACI TECHNOLOGIES, LLC for work described as: AWARD OF NEW TASK ORDER ENTITLED "SATELLITE GROUND TELECOMMUNICATIONS SYSTEMS ENGINEERING, INFORMATION TECHNOLOGY, AND FIELD SUPPORT SERVICES" FOR PM DCATS. Key points: 1. Contract awarded to CACI Technologies, LLC for engineering, IT, and field support services. 2. The contract duration spans over 1700 days, indicating a long-term need for these services. 3. Awarded under a firm-fixed-price contract type, which shifts cost risk to the contractor. 4. The contract was competed using full and open competition, suggesting a broad market search. 5. Services are categorized under Engineering Services, aligning with the technical nature of satellite ground systems. 6. The contract's value of over $133 million signifies a substantial investment in critical defense infrastructure. 7. The task order was issued by the Department of the Army, a major component of the DoD. 8. The contract was awarded in 2007 and completed in 2011, providing historical context for current spending.

Value Assessment

Rating: good

The contract value of $133.3 million over approximately 4.7 years suggests a significant but potentially reasonable investment for specialized engineering and IT support for satellite ground systems. Benchmarking against similar large-scale engineering services contracts within the Department of Defense would be necessary for a precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing cost certainty, provided the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Army sought proposals from all responsible sources. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the method of competition suggests a robust process aimed at achieving market-driven pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers, which can lead to more competitive pricing and a greater likelihood of selecting the most cost-effective solution for the government.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Army, which receives critical engineering, IT, and field support for its satellite ground telecommunications systems. The services delivered are essential for the operation, maintenance, and potential upgrades of vital satellite communication infrastructure. The geographic impact is likely concentrated around the operational sites of these satellite ground systems, which could be domestic or international. Workforce implications include the employment of engineers, IT specialists, and field technicians by CACI Technologies, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term engineering and IT support contracts if not managed rigorously.
Reliance on a single contractor for critical infrastructure support could pose risks if performance issues arise.
The firm-fixed-price nature requires careful initial scope definition to avoid disputes or cost overruns due to unforeseen complexities.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a strong offer.
Firm-fixed-price contract type provides cost certainty for the government over the contract duration.
CACI Technologies, LLC is a known entity in government contracting, suggesting a degree of established capability.
The contract addresses essential services for satellite ground telecommunications, a critical national security function.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting complex IT and telecommunications infrastructure for defense applications. The market for such specialized engineering and IT support services for government and defense clients is substantial, driven by the continuous need to maintain and upgrade sophisticated systems. Comparable spending benchmarks would involve analyzing other large-scale contracts for defense IT, aerospace engineering, and telecommunications support services awarded by agencies like the DoD, NASA, and intelligence agencies.

Small Business Impact

The provided data indicates that small business participation (sb) was false and that the contract was not set aside for small businesses (ss was false). This suggests that the primary award was made to a large business (CACI Technologies, LLC) and that there were no specific requirements for small business set-asides within this particular task order. Subcontracting opportunities for small businesses may have existed, but they are not detailed in this summary. The impact on the small business ecosystem is likely minimal for this specific award, as it was not designed to directly benefit small businesses through a set-aside.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army responsible for PM DCATS. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arose during the contract's performance.

Related Government Programs

DoD Satellite Communications Programs
Army IT Support Services
Engineering Services for Defense Systems
Information Technology Services for Federal Agencies
Telecommunications Infrastructure Support

Risk Flags

Long-term contract duration requires sustained oversight.
Firm-fixed-price contracts can lead to disputes if scope is not clearly defined.
Reliance on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $133.3 million to CACI TECHNOLOGIES, LLC. AWARD OF NEW TASK ORDER ENTITLED "SATELLITE GROUND TELECOMMUNICATIONS SYSTEMS ENGINEERING, INFORMATION TECHNOLOGY, AND FIELD SUPPORT SERVICES" FOR PM DCATS.

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, 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 $133.3 million.

What is the period of performance?

Start: 2007-03-29. End: 2011-12-28.

What was the specific nature of the 'Satellite Ground Telecommunications Systems Engineering, Information Technology, and Field Support Services' provided under this contract?

The contract focused on providing comprehensive support for the Army's satellite ground telecommunications systems. This likely encompassed a range of activities including system design, engineering analysis, integration, installation, testing, maintenance, and troubleshooting of ground-based infrastructure essential for satellite communications. Information technology services would cover network management, cybersecurity, software support, and data handling related to these systems. Field support implies on-site technical assistance, deployment, and operational support at various locations where these ground systems are operated or maintained. The goal was to ensure the reliable and effective functioning of critical communication links for military operations.

How does the $133.3 million award compare to other similar engineering services contracts within the Department of Defense during that period?

The $133.3 million award for satellite ground telecommunications systems engineering and support is a substantial sum, indicative of a significant program requirement. During the late 2000s and early 2010s, the Department of Defense consistently awarded large contracts for complex engineering, IT, and systems integration services, particularly in areas like satellite communications, which are critical for global operations. While specific comparable contract values fluctuate based on scope and duration, this award falls within the range of major service contracts supporting high-priority defense infrastructure. For instance, contracts for developing or maintaining large-scale communication networks, command and control systems, or intelligence processing platforms often reached similar or higher figures, reflecting the complexity and strategic importance of these capabilities.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks for a contract of this nature and duration (nearly 5 years) included technical obsolescence, evolving requirements, contractor performance issues, and cost overruns (despite the FFP structure, scope changes can impact cost). Mitigation strategies likely involved robust contract management by the Army, including clear performance metrics, regular progress reviews, and a well-defined change management process. The firm-fixed-price (FFP) structure itself mitigates cost overrun risk for the government by placing the onus on the contractor to manage costs within the agreed price. Technical risks might be addressed through phased delivery, rigorous testing, and requirements validation. Contractor performance risks are managed through performance-based incentives or penalties, and the option to exercise contract clauses for non-performance.

What was the track record of CACI Technologies, LLC in performing similar large-scale engineering and IT support contracts for the DoD prior to this award?

Prior to this 2007 award, CACI Technologies, LLC (and its parent CACI International Inc.) had a well-established presence as a major government contractor, particularly within the Department of Defense. They had a history of securing and performing large, complex contracts involving IT services, systems engineering, intelligence support, and professional services across various military branches. Their track record generally included experience with large-scale IT infrastructure management, cybersecurity, and support for critical defense systems. While specific performance details for every contract are not publicly detailed, CACI's consistent ability to win and execute significant DoD contracts suggests a demonstrated capability and a generally positive performance history in areas relevant to this satellite ground systems requirement.

How did the 'Engineering Services' (NAICS 541330) classification influence the scope and nature of the services provided?

The classification under NAICS code 541330, 'Engineering Services,' signifies that the primary focus of the contract was on professional engineering activities. This includes the application of engineering principles to the design, development, analysis, and testing of systems. For satellite ground telecommunications, this would involve tasks such as system architecture design, signal analysis, hardware/software integration planning, performance modeling, and ensuring compliance with technical standards and specifications. While the contract also included IT and field support, the 'Engineering Services' designation indicates that the core value proposition was the specialized technical expertise and problem-solving capabilities of engineers in ensuring the functionality and effectiveness of the complex satellite ground infrastructure.

What does the contract duration of 1735 days (approximately 4.7 years) imply about the nature of the services and the program's stability?

A contract duration of approximately 4.7 years for engineering, IT, and field support services strongly implies a need for sustained, long-term support rather than short-term project work. This suggests that the satellite ground telecommunications systems are critical, ongoing assets requiring continuous maintenance, operational support, and potentially incremental upgrades or modifications over an extended period. Such durations are typical for contracts supporting major defense systems where stability, continuity of service, and deep institutional knowledge are paramount. It indicates a stable program requirement and allows the contractor to build specialized teams and expertise, potentially leading to greater efficiency and effectiveness over the life of the contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $189,436,096

Exercised Options: $133,263,734

Current Obligation: $133,262,756

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE402

IDV Type: IDC

Timeline