CACI Technologies awarded $67M engineering services contract under Army's CASPER program

Contract Overview

Contract Amount: $67,060,764 ($67.1M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2012-09-28

End Date: 2015-10-30

Contract Duration: 1,127 days

Daily Burn Rate: $59.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS TASK ORDER PROVIDES SERVICES UNDER THE CREW ACQUISITION SUSTAINMENT PROTOTYPING ENGINEERING RESEARCH (CASPER) PROGRAM.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $67.1 million to CACI TECHNOLOGIES, LLC for work described as: THIS TASK ORDER PROVIDES SERVICES UNDER THE CREW ACQUISITION SUSTAINMENT PROTOTYPING ENGINEERING RESEARCH (CASPER) PROGRAM. Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. Services provided under the CASPER program indicate a focus on acquisition sustainment and prototyping. 3. The contract duration of 1127 days spans over three years, allowing for sustained support. 4. Cost-plus-fixed-fee contract type may lead to cost overruns if not closely managed. 5. The contract was awarded to CACI Technologies, LLC, a known entity in government contracting. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: fair

The contract value of approximately $67 million for over three years of engineering services requires careful benchmarking against similar contracts within the Department of Defense. Without specific performance metrics or detailed cost breakdowns, assessing the value-for-money is challenging. The cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain reasonable and do not escalate beyond initial projections. Comparisons to other CASPER program task orders or similar engineering support contracts would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific task order. While two bidders are better than one, a higher number of competitors typically drives prices down and fosters greater innovation. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value. However, with only two bidders, the potential for significant cost savings may have been limited compared to a more crowded field.

Public Impact

The Department of the Army benefits from sustained engineering and prototyping support. Services are likely to enhance the acquisition and sustainment capabilities of military programs. The contract supports the CASPER program, which aims to improve defense acquisition processes. Workforce implications include employment for engineers and technical specialists at CACI Technologies. Geographic impact is likely concentrated around CACI's operational centers and Army facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit if not adequately monitored.
Limited competition (two bidders) may have resulted in a higher price than if more firms had competed.
The duration of the contract (over three years) requires ongoing performance monitoring to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
The contract supports a specific program (CASPER) aimed at improving defense acquisition.
CACI Technologies is an established government contractor with a track record in relevant services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense acquisition and prototyping initiatives. The market for defense engineering services is substantial, driven by the continuous need for modernization and sustainment of military equipment and systems. The CASPER program itself represents a strategic effort by the Army to streamline and improve its acquisition processes, making contracts like this crucial for its success. Benchmarking against other engineering services contracts awarded by the Department of Defense, particularly those under similar large-scale programs, would provide context for the scale and pricing of this award.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or benefits specifically for small businesses arising from a set-aside provision. The prime contractor, CACI Technologies, LLC, would be responsible for its own small business subcontracting goals if applicable to its overall business, but this specific task order does not mandate it.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers responsible for the CASPER program. As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure compliance with the fixed fee. Transparency would be facilitated through contract reporting mechanisms and potentially through the Defense Contract Audit Agency (DCAA). Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

CASPER Program
Department of the Army Engineering Services
Defense Acquisition Support Contracts
CACI Technologies Contracts

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost escalations.
Limited competition (two bidders) may impact price competitiveness.
Performance metrics and value-for-money assessment require further detailed analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.1 million to CACI TECHNOLOGIES, LLC. THIS TASK ORDER PROVIDES SERVICES UNDER THE CREW ACQUISITION SUSTAINMENT PROTOTYPING ENGINEERING RESEARCH (CASPER) PROGRAM.

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 $67.1 million.

What is the period of performance?

Start: 2012-09-28. End: 2015-10-30.

What is the historical spending pattern for the CASPER program and CACI Technologies under this program?

Analyzing the historical spending for the CASPER program and CACI Technologies under this specific contract requires access to detailed contract databases and financial reports. The provided data indicates a single task order valued at $67,060,764.04, awarded on September 28, 2012, and ending on October 30, 2015, with a duration of 1127 days. To understand the broader spending pattern, one would need to examine all task orders issued under the CASPER program, identify all awarded contractors, and track their cumulative spending over time. Similarly, CACI Technologies' overall contract portfolio with the Department of Defense and specifically within the CASPER program would reveal their historical engagement and the scale of their involvement. Without this broader context, it is difficult to establish a comprehensive spending pattern beyond this single data point.

How does the pricing of this contract compare to similar engineering services contracts awarded by the Department of Defense?

Benchmarking the pricing of this $67 million, three-year engineering services contract against similar Department of Defense (DoD) contracts is essential for assessing value. Key comparison points would include contracts for acquisition sustainment, prototyping, and engineering support services awarded to other large defense contractors. Factors such as the specific technical requirements, labor categories, overhead rates, and the level of competition significantly influence pricing. A cost-plus-fixed-fee (CPFF) contract, like this one, can be more expensive than fixed-price contracts if not managed tightly, as it allows for the reimbursement of allowable costs plus a fixed fee. A thorough analysis would involve comparing the effective hourly rates, total project costs relative to scope, and profit margins against a statistically relevant sample of comparable DoD contracts to determine if CACI's pricing was competitive and represented good value for the services rendered.

What are the key performance indicators (KPIs) used to measure the success of CACI Technologies under this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) used to measure CACI Technologies' success under this specific contract. However, for engineering services contracts, particularly those involving acquisition sustainment and prototyping, typical KPIs often include adherence to project timelines, delivery of technical documentation and prototypes meeting specified requirements, successful integration of systems, cost control within the approved budget, and overall customer satisfaction. For a Cost Plus Fixed Fee (CPFF) contract, KPIs would also focus on the efficient use of resources and the contractor's ability to manage costs effectively while achieving the defined scope of work. The Department of the Army would have established specific metrics within the contract's Statement of Work (SOW) or Performance Work Statement (PWS) to evaluate CACI's performance throughout the contract duration.

What is the track record of CACI Technologies in delivering similar engineering and prototyping services to the federal government?

CACI Technologies, LLC has a substantial track record of delivering a wide range of services to the federal government, including engineering, IT, and professional services. Within the defense sector, they have consistently secured contracts for program management, systems engineering, logistics support, and technical services. Their experience often involves supporting complex acquisition programs, modernization efforts, and sustainment initiatives for various branches of the military, including the Department of the Army. While this specific contract focused on the CASPER program for acquisition sustainment and prototyping, CACI's broader portfolio demonstrates a capacity for handling large-scale, technically demanding projects. A detailed review of their past performance evaluations and contract history would provide a more granular understanding of their success rates and client satisfaction in delivering similar services.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure, such as the one awarded to CACI Technologies for the CASPER program, is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the actual expenses. Consequently, effective government oversight is critical to scrutinize all claimed costs, ensure they are reasonable, allocable, and allowable, and prevent scope creep that could inflate expenses. Without stringent monitoring and control, the total contract cost could significantly exceed initial estimates, potentially leading to reduced value for taxpayers. The fixed fee itself is negotiated upfront, but the total expenditure is variable.

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

Address: 14370 NEWBROOK DRIVE, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,117,836

Exercised Options: $67,117,836

Current Obligation: $67,060,764

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $31,573,525

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE402

IDV Type: IDC

Timeline