DoD's $70.8M Engineering Services Contract Awarded to CACI Technologies, LLC
Contract Overview
Contract Amount: $70,839,014 ($70.8M)
Contractor: CACI Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2010-12-09
End Date: 2014-08-01
Contract Duration: 1,331 days
Daily Burn Rate: $53.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FUNDING/TASK ORDER AWARD
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $70.8 million to CACI TECHNOLOGIES, LLC for work described as: FUNDING/TASK ORDER AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 3. The duration of the contract is 1331 days, indicating a significant, long-term engagement. 4. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical support function. 6. The contract was awarded to CACI Technologies, LLC, a known entity in the federal contracting space. 7. The base contract value is $53.2M, with this task order adding $70.8M, indicating significant growth or scope expansion.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure value for money, as it allows for cost reimbursement plus a fixed fee. Benchmarking this specific award against similar engineering services contracts awarded by the Department of the Army or other DoD components would be necessary for a comprehensive value assessment. Without comparative data on labor rates, overhead, and profit margins for similar services, it is difficult to definitively assess pricing efficiency. The significant increase from the base contract value to this task order warrants scrutiny to ensure the expanded scope is justified and priced competitively.
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 two bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the actual number of bidders can influence the intensity of competition. A higher number of bidders typically leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it aims to secure the best possible pricing and terms by allowing a wide range of contractors to compete. This process helps prevent price gouging and encourages efficiency among bidders.
Public Impact
The primary beneficiaries are likely elements within the Department of the Army requiring specialized engineering services. The services delivered are engineering-related, potentially encompassing design, analysis, testing, and technical support. The geographic impact is likely concentrated around the Army installations or operational areas where these engineering services are deployed. Workforce implications could include the direct employment of engineers and technical staff by CACI Technologies, LLC, and potentially indirect employment through subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- The significant increase in value from the base contract to this task order requires justification and oversight.
- Limited competition (2 bidders) may not have yielded the most competitive pricing possible.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- CACI Technologies, LLC is an established contractor with experience in federal services.
- The contract addresses a clear need for engineering services within the Department of Defense.
Sector Analysis
Engineering services, classified under NAICS code 541330, represent a significant segment of the federal contracting market, particularly within defense and infrastructure sectors. This contract fits within the broader category of professional services supporting military operations and readiness. Comparable spending benchmarks for engineering services within the DoD can vary widely based on specialization, duration, and complexity, but this award represents a substantial investment in technical expertise.
Small Business Impact
The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business) flag is false and the 'ss' (small business set-aside) flag is also false. This suggests that the contract was not specifically set aside for small businesses, and there is no explicit indication of subcontracting goals for small businesses within the provided data. The impact on the small business ecosystem would depend on whether CACI Technologies, LLC voluntarily engages small businesses as subcontractors for specialized support.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the contracting officer and program managers within the Department of the Army. Accountability measures would be tied to performance metrics outlined in the contract and the CPFF structure, requiring CACI Technologies, LLC to justify costs and demonstrate progress. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.
Related Government Programs
- Department of Defense Engineering Services
- Army Professional Services Contracts
- Cost Plus Fixed Fee Contracts
- Delivery Orders
- Engineering and Technical Services
Risk Flags
- Cost Plus Fixed Fee structure requires diligent oversight to prevent cost overruns.
- Limited number of bidders (2) may indicate potential for improved price competition.
- Significant increase in value from base contract to task order warrants justification.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, professional-services, cost-plus-fixed-fee, delivery-order, full-and-open-competition, caci-technologies-llc, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.8 million to CACI TECHNOLOGIES, LLC. FUNDING/TASK ORDER AWARD
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 $70.8 million.
What is the period of performance?
Start: 2010-12-09. End: 2014-08-01.
What is the track record of CACI Technologies, LLC with the Department of Defense, particularly in engineering services?
CACI Technologies, LLC has a substantial history of contracting with the Department of Defense (DoD) across various service areas, including IT, intelligence, and engineering. Their track record with the DoD is extensive, often involving large-scale, complex projects. For engineering services specifically, CACI has been awarded numerous contracts, demonstrating a capacity to meet the DoD's technical requirements. Performance reviews and past performance information, typically available through government databases or past solicitation documents, would provide a more granular view of their success rates, adherence to schedules, and quality of deliverables on similar engineering contracts. Their longevity and continued awards suggest a generally positive past performance, though specific contract outcomes can vary.
How does the $70.8M award compare to typical engineering services contracts for the Department of the Army?
The $70.8 million award for engineering services represents a significant, but not unprecedented, investment for the Department of the Army. Engineering services contracts within the DoD can range from a few million dollars for specialized, short-term support to hundreds of millions for large, multi-year programs. This particular award falls into the mid-to-large range, suggesting a substantial scope of work, potentially involving complex system design, integration, or long-term technical support. Benchmarking against similar NAICS code 541330 contracts awarded by the Army in recent years would reveal whether this value is typical, high, or low relative to market rates and contract complexity. Factors like the specific engineering discipline, duration, and required expertise heavily influence contract values.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for engineering services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure is the potential for cost overruns, which can impact the government. While the 'fixed fee' component provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the government bears that burden. This structure can sometimes reduce the contractor's incentive to aggressively control costs, as their profit is fixed regardless of the total cost. Effective oversight, detailed cost tracking, and robust auditing are crucial to mitigate these risks and ensure the government receives good value. The government also risks paying more than necessary if cost efficiencies are not actively pursued by the contractor.
How does the duration of 1331 days (approx. 3.6 years) impact the assessment of this contract's value and risk?
A contract duration of 1331 days signifies a long-term commitment, which can offer both benefits and risks. For value assessment, a longer duration can allow for greater economies of scale, deeper integration of services, and more predictable resource planning for both the government and the contractor. It may also indicate a stable, ongoing requirement for critical engineering expertise. However, longer durations also increase the risk of cost escalation due to inflation, changes in technology, or evolving requirements that may not be fully captured in the initial contract. Furthermore, the government's ability to adapt to new solutions or pivot strategies might be constrained. Robust contract management, including provisions for scope adjustments and regular performance reviews, is essential to manage these long-term risks effectively and ensure continued value.
What does the 'DELIVERY ORDER' designation imply about the overall contract vehicle?
The 'DELIVERY ORDER' designation indicates that this $70.8 million award is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. IDIQ contracts establish terms and conditions, including pricing structures and performance standards, under which the government can issue specific orders for goods or services as needed. Delivery orders represent the formal issuance of a specific requirement against that IDIQ. This approach allows the government flexibility and speed in acquiring services while leveraging pre-competed terms. The existence of a larger IDIQ vehicle suggests that this specific engineering service requirement was likely competed at the IDIQ level, with this delivery order representing a specific call against that established 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: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $70,864,588
Exercised Options: $70,864,588
Current Obligation: $70,839,014
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $1,767,439
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: 2010-12-09
Current End Date: 2014-08-01
Potential End Date: 2014-08-01 12:08:00
Last Modified: 2019-09-26
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