DoD's $69M CACI contract for engineering services shows fair value, but limited competition raises concerns
Contract Overview
Contract Amount: $69,069,128 ($69.1M)
Contractor: CACI Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2011-06-17
End Date: 2015-09-04
Contract Duration: 1,540 days
Daily Burn Rate: $44.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ECLIPSE
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $69.1 million to CACI TECHNOLOGIES, LLC for work described as: ECLIPSE Key points: 1. Contract value of $69.1 million over 4 years suggests moderate investment in engineering support. 2. Full and open competition was utilized, indicating an effort to achieve market-driven pricing. 3. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The Cost Plus Fixed Fee (CPFF) pricing structure can incentivize cost control while allowing for profit. 5. The contractor, CACI Technologies, LLC, is a significant player in the federal IT and engineering services market. 6. Performance period of 1540 days (approx. 4.2 years) aligns with typical project durations for complex engineering tasks. 7. The contract's focus on engineering services places it within a critical support function for defense operations.
Value Assessment
Rating: fair
The contract's total value of $69.1 million over approximately 4.2 years averages to about $16.4 million annually. Without specific benchmarks for similar engineering services contracts within the Department of Defense, a precise value-for-money assessment is challenging. However, the CPFF structure, if managed effectively, can lead to reasonable costs. The number of bids received (2) is on the lower side for full and open competition, which might suggest less aggressive pricing than a more crowded field.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit an offer. However, only two bids were received. This limited number of bidders, despite the open competition, could indicate a specialized service area, high barriers to entry, or potentially a lack of active marketing by the agency to a broader range of potential contractors. The limited competition may have impacted the agency's ability to secure the most competitive pricing.
Taxpayer Impact: While open competition was advertised, the low number of bids suggests taxpayers may not have benefited from the full spectrum of potential cost savings that a more robust bidding process could have yielded.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its missions. Services delivered likely include design, analysis, testing, and technical support for defense systems. The contract's geographic impact is centered in Maryland (MD), a hub for defense contracting and operations. Workforce implications include employment for engineers, technicians, and support staff within CACI Technologies, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bidders (2) despite full and open competition may indicate potential issues with market reach or contractor interest.
- The CPFF contract type can sometimes lead to cost overruns if not closely monitored, although the fixed fee component aims to mitigate this.
- Lack of specific performance metrics or outcome data makes it difficult to fully assess the effectiveness and value delivered.
- The contract is a delivery order, implying it's part of a larger IDIQ; understanding the overall IDIQ's competition and pricing is crucial for a complete picture.
Positive Signals
- Awarded under full and open competition, which is generally a positive signal for market fairness.
- CACI Technologies, LLC is an established government contractor with a significant presence in defense and IT services.
- The contract duration of over 4 years suggests a stable, long-term need for these engineering services.
- The fixed fee component of the CPFF contract provides some level of cost certainty for the government.
Sector Analysis
Engineering services are a critical component of the defense industrial base, encompassing a wide range of activities from research and development support to system design, integration, and lifecycle management. The federal government, particularly the Department of Defense, is a major consumer of these services. Market size for federal engineering services is substantial, driven by complex weapon systems, infrastructure projects, and technological advancements. This contract fits within the broader category of professional services supporting defense readiness and modernization efforts. Comparable spending benchmarks would typically be found within specific defense agency budgets for engineering and technical support.
Small Business Impact
This contract does not appear to have a small business set-aside (ss=false, sb=false). There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless CACI Technologies, LLC voluntarily includes small businesses in its subcontracting efforts. The absence of set-aside provisions means that larger, established contractors like CACI are the primary focus for such awards.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger IDIQ, oversight may also be influenced by the terms of the parent contract. Transparency is facilitated by public contract databases, but detailed performance reports and Inspector General (IG) involvement would depend on specific findings or audits. The effectiveness of oversight hinges on robust contract administration and regular performance reviews.
Related Government Programs
- Department of Defense Engineering Services Contracts
- CACI Technologies, LLC Federal Contracts
- Army Professional Services Contracts
- Cost Plus Fixed Fee Contracts
- Indefinite Delivery Indefinite Quantity (IDIQ) Vehicles
Risk Flags
- Limited competition despite open solicitation
- Potential for cost overruns with CPFF contract type
- Lack of detailed performance metrics in public data
Tags
defense, department-of-defense, department-of-the-army, engineering-services, caci-technologies-llc, full-and-open-competition, delivery-order, cost-plus-fixed-fee, maryland, professional-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.1 million to CACI TECHNOLOGIES, LLC. ECLIPSE
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 $69.1 million.
What is the period of performance?
Start: 2011-06-17. End: 2015-09-04.
What is the track record of CACI Technologies, LLC in delivering similar engineering services to the Department of Defense?
CACI Technologies, LLC is a well-established federal contractor with a significant history of providing a wide array of services to the Department of Defense, including IT, intelligence, and engineering support. Their extensive portfolio includes numerous contracts for complex technical services, system integration, and program management across various military branches. While specific performance details for individual contracts are often proprietary or not publicly detailed, CACI's sustained presence and continued awards suggest a generally satisfactory performance history in meeting government requirements. However, a deeper dive into past performance evaluations, any past performance issues, or specific contract terminations would be necessary for a comprehensive assessment of their track record on this particular type of engineering service.
How does the average annual value of this contract compare to similar engineering services contracts awarded by the DoD?
This contract has a total value of approximately $69.1 million over roughly 4.2 years, averaging about $16.4 million per year. Benchmarking this against similar DoD engineering services contracts requires access to a comprehensive database of federal procurements. Generally, engineering services for major defense programs can range significantly in value, from a few million dollars for specialized consulting to hundreds of millions for large-scale system design and integration. An average annual value of $16.4 million appears moderate for complex engineering support within the DoD, suggesting it might be for a specific project or a defined set of services rather than a broad, enterprise-wide engineering support contract. Without more specific contract details (e.g., scope of work, specific systems supported), a precise comparison is difficult.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for engineering services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for engineering services is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a predetermined profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates due to unforeseen complexities, scope creep, or inefficient management, the government bears the financial burden of these increased costs. This can lead to the total contract value exceeding initial projections. To mitigate this risk, robust government oversight, detailed cost tracking, and clear definition of allowable costs are essential. The fixed fee itself incentivizes the contractor to manage costs efficiently to maximize their profit margin relative to the fee.
How effective is the 'full and open competition' strategy when only two bids are received?
The effectiveness of 'full and open competition' is diminished when only two bids are received. While the strategy itself is designed to maximize the pool of potential offerors and encourage robust competition, the outcome of only two bidders suggests potential limitations. These could include a highly specialized service requirement that narrows the field of qualified contractors, high barriers to entry (e.g., security clearances, specific certifications), or insufficient outreach by the agency to the broader market. In such scenarios, the government may not achieve the full benefits of competition, such as the lowest possible price and the widest range of innovative solutions. It raises questions about whether the solicitation effectively reached all capable sources or if the market for this specific service is inherently limited.
What are the historical spending patterns for engineering services within the Department of the Army?
Historical spending patterns for engineering services within the Department of the Army are substantial and reflect the continuous need for technical expertise across a vast array of programs and systems. The Army procures engineering services for everything from research and development of new technologies and weapon systems to the sustainment, modernization, and lifecycle management of existing platforms. Spending is often concentrated in areas such as aerospace engineering, mechanical engineering, systems engineering, civil engineering (for infrastructure), and specialized fields like cybersecurity engineering. Budgets for these services fluctuate based on defense priorities, modernization cycles, and specific operational requirements. Analyzing historical data would reveal trends in contract types, major service providers, and key areas of investment, often showing significant outlays in support of major acquisition programs and readiness initiatives.
What is the significance of the contract being awarded as a 'Delivery Order'?
The significance of this contract being awarded as a 'Delivery Order' is that it is likely a task order issued against a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQs are flexible contracting vehicles that allow agencies to procure supplies or services over a set period, with specific quantities and prices determined by individual delivery or task orders. This approach is common for services that are needed periodically or have fluctuating demand. For the government, it offers flexibility and pre-negotiated terms. For the contractor, it provides a stream of potential work. The overall competition and pricing effectiveness are thus tied to the initial competition for the parent IDIQ contract, as well as the specific terms and competition (if any) for each individual delivery order.
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: $69,069,128
Exercised Options: $69,069,128
Current Obligation: $69,069,128
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $5,890,097
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: 2011-06-17
Current End Date: 2015-09-04
Potential End Date: 2015-09-04 12:09:00
Last Modified: 2018-07-16
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