CACI Technologies awarded $121.9M for Army software engineering support, highlighting a need for specialized technical services
Contract Overview
Contract Amount: $121,933,147 ($121.9M)
Contractor: CACI Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2009-04-24
End Date: 2012-03-22
Contract Duration: 1,063 days
Daily Burn Rate: $114.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: FIRES SOFTWARE ENGINEERING DIVISION, SYSTEM AND SOFTWARE ENGINEERING SUPPORT SERVICES.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $121.9 million to CACI TECHNOLOGIES, LLC for work described as: FIRES SOFTWARE ENGINEERING DIVISION, SYSTEM AND SOFTWARE ENGINEERING SUPPORT SERVICES. Key points: 1. Contract value of $121.9M over approximately 3 years indicates significant investment in system and software engineering. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The Time and Materials pricing structure may pose a risk for cost control if not closely managed. 4. Performance occurred in Maryland, a hub for federal contracting and defense-related activities. 5. This contract addresses critical needs within the FIRES SOFTWARE ENGINEERING DIVISION. 6. The relatively short duration (1063 days) suggests a focus on specific project phases or evolving requirements.
Value Assessment
Rating: fair
The contract's total value of $121.9M for approximately three years of software engineering support appears substantial. Benchmarking against similar contracts for system and software engineering services is challenging without more specific scope details. However, the Time and Materials (T&M) pricing model, while common, can lead to higher costs if not meticulously managed and monitored for efficiency. The absence of a fixed price or cost-plus-fixed-fee structure suggests a potential for cost overruns if the scope of work expands or if labor hours are not optimized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit offers. This suggests a healthy competitive environment for system and software engineering services. The presence of two bidders, while not a large number, still implies some level of competition that likely influenced pricing and service offerings. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions.
Taxpayer Impact: Taxpayers benefit from the competitive process, which generally drives down prices and improves the quality of services received. Full and open competition ensures that the government explores the market broadly, potentially securing better value for taxpayer dollars.
Public Impact
The primary beneficiaries are the Department of the Army and its FIRES SOFTWARE ENGINEERING DIVISION, receiving critical system and software engineering support. Services delivered include system and software engineering expertise, crucial for maintaining and developing defense-related software systems. The geographic impact is concentrated in Maryland, a key region for defense contracting and technological development. Workforce implications include the employment of skilled software engineers and technical professionals by CACI Technologies, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to uncontrolled cost escalation if not closely monitored.
- Limited competition (2 bidders) may not have yielded the most cost-effective outcome.
- The specific scope of 'system and software engineering support' is broad and could encompass a wide range of activities, making precise value assessment difficult.
Positive Signals
- Awarded under full and open competition, indicating a broad market search.
- CACI Technologies, LLC is a known entity in federal contracting, suggesting a degree of reliability.
- The contract addresses a clear need for specialized engineering services within the Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on system and software engineering. This is a critical area for the Department of Defense, supporting the development, maintenance, and modernization of complex technological systems. The market for these services is robust, with numerous firms specializing in defense IT and engineering. Comparable spending benchmarks would typically involve looking at other large-scale software development and engineering support contracts awarded by DoD agencies to understand typical pricing and contract structures.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is unlikely that small businesses would be primary awardees, though they may participate as subcontractors. The impact on the small business ecosystem would depend on CACI's subcontracting plans, which are not detailed here. Without specific subcontracting goals, it's difficult to assess the direct benefit to small businesses.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense IT Services
- Software Development Contracts
- Engineering Services
- Army Systems Engineering
- Federal IT Support
Risk Flags
- Cost Control Risk (T&M Pricing)
- Limited Competition Indicator
Tags
it-services, software-engineering, department-of-defense, department-of-the-army, engineering-services, time-and-materials, full-and-open-competition, maryland, caci-technologies-llc, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.9 million to CACI TECHNOLOGIES, LLC. FIRES SOFTWARE ENGINEERING DIVISION, SYSTEM AND SOFTWARE ENGINEERING SUPPORT SERVICES.
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 $121.9 million.
What is the period of performance?
Start: 2009-04-24. End: 2012-03-22.
What is the specific nature of the 'system and software engineering support services' provided under this contract?
The contract, awarded to CACI Technologies, LLC, for $121.9 million, was for 'FIRES SOFTWARE ENGINEERING DIVISION, SYSTEM AND SOFTWARE ENGINEERING SUPPORT SERVICES.' While the exact deliverables are not detailed in the provided data, such services typically encompass a broad range of activities including software design, development, testing, integration, maintenance, and lifecycle support for complex defense systems. This could involve everything from developing new software modules to updating existing systems, ensuring cybersecurity compliance, and providing technical expertise for system architecture. The 'FIRES' designation likely refers to a specific program or division within the Army focused on fire control systems or related technologies, implying the software supported is critical to military operations.
How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services, and what are the associated risks?
Time and Materials (T&M) contracts are common for services where the scope of work is not clearly defined at the outset or is expected to evolve. Unlike fixed-price contracts, T&M pays the contractor for the actual labor hours expended and the cost of materials used. This offers flexibility but carries significant risk for the government. If not managed rigorously, T&M contracts can lead to cost overruns because the total price is not capped. For system and software engineering, T&M can be appropriate for exploratory phases or when requirements are fluid. However, for more defined projects, cost-plus-fixed-fee (CPFF) or firm-fixed-price (FFP) contracts often provide better cost control and predictability for the government, as they incentivize the contractor to manage costs efficiently within a defined budget.
What does the limited number of bidders (2) suggest about the competition for this specific type of engineering support?
Having only two bidders for a contract valued at over $121 million suggests that the market for this specific type of 'system and software engineering support services' for the Army's FIRES SOFTWARE ENGINEERING DIVISION might be specialized or consolidated. While 'full and open competition' was utilized, indicating the opportunity was broadly advertised, the low number of responsive bids could imply several factors: a limited number of companies possess the required technical expertise and security clearances; the contract's specific requirements or location made it less attractive to a wider pool of contractors; or perhaps the incumbent contractor (if applicable) had a significant advantage. A lower number of bidders generally reduces competitive pressure, potentially leading to higher prices than if more firms had competed.
What is CACI Technologies, LLC's track record with the Department of Defense for similar engineering services?
CACI Technologies, LLC (and its parent company, CACI International Inc.) has a substantial and long-standing track record of providing a wide array of services to the Department of Defense (DoD) and other federal agencies. Their portfolio includes IT modernization, cybersecurity, intelligence support, enterprise resource planning, and various engineering and technical services. They are a significant federal contractor, frequently winning large-scale contracts across different military branches and agencies. For system and software engineering specifically, CACI has consistently been involved in complex projects supporting defense systems. Their extensive experience suggests a familiarity with DoD requirements, processes, and security protocols, which is often a key factor in winning and successfully executing such contracts.
How does the $121.9M contract value compare to historical spending on system and software engineering support within the Department of the Army?
The $121.9 million awarded to CACI Technologies, LLC for system and software engineering support represents a significant, but not necessarily extraordinary, investment within the context of the Department of the Army's overall IT and engineering expenditures. The Army, like other branches of the DoD, relies heavily on contractors for specialized technical expertise in software development and system engineering to maintain and modernize its vast array of platforms and capabilities. Annual spending on such services across the DoD can run into the tens or even hundreds of billions of dollars. A single contract of this magnitude typically supports a specific program, division, or a defined period of work. To assess its relative size, one would need to compare it against the Army's specific budget allocations for engineering services and software development in the fiscal years 2009-2012, and against the average value and duration of similar contracts awarded during that period.
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: 2
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: $169,584,485
Exercised Options: $122,130,139
Current Obligation: $121,933,147
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DE402
IDV Type: IDC
Timeline
Start Date: 2009-04-24
Current End Date: 2012-03-22
Potential End Date: 2012-03-22 00:00:00
Last Modified: 2017-10-27
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