DOJ's $7.3M legal services contract with CACI, LLC awarded via purchase order with a long performance period

Contract Overview

Contract Amount: $7,306,696 ($7.3M)

Contractor: CACI, LLC - Commercial

Awarding Agency: Department of Justice

Start Date: 2018-04-05

End Date: 2029-02-01

Contract Duration: 3,955 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: YIO JENRD1804936 DJJ-17W-ENR01-0380 YREGDOC S0147312.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $7.3 million to CACI, LLC - COMMERCIAL for work described as: YIO JENRD1804936 DJJ-17W-ENR01-0380 YREGDOC S0147312. Key points: 1. Value for money is difficult to assess due to the lack of competition and limited public data on performance metrics. 2. The contract was sole-sourced, raising questions about price discovery and potential overpayment. 3. The extended performance period (over 10 years) suggests a long-term need for these legal services. 4. The contract type (Time and Materials) can lead to cost overruns if not closely managed. 5. This contract falls within the broader legal services sector, which is characterized by a mix of large firms and specialized providers. 6. The Department of Justice is a significant consumer of legal services, both internally and externally.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark against similar procurements due to its sole-source nature and the specific legal services provided. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost escalation if not meticulously monitored. Without clear performance metrics or a competitive bidding process, it's challenging to definitively assess whether the government is receiving optimal value for the $7.3 million obligated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning CACI, LLC was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-sourcing can be justified in specific circumstances (e.g., unique capabilities), it significantly limits price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium for these legal services due to the absence of competitive pressure to drive down prices. The lack of transparency in the selection process also hinders the ability to ensure the most cost-effective solution was chosen.

Public Impact

The Department of Justice benefits from the provision of essential legal services, supporting its mission. These services likely contribute to the functioning of various offices, boards, and divisions within the DOJ. The geographic impact is primarily within the operational areas of the Department of Justice, likely concentrated in Washington D.C. and potentially other federal locations. The workforce implications are tied to the legal professionals employed by CACI, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Time and Materials contract type poses a risk of cost overruns without strict oversight.
Lack of publicly available performance metrics makes value assessment difficult.
Extended contract duration (over 10 years) requires sustained vigilance for cost control.

Positive Signals

CACI, LLC is a large, established government contractor with a broad range of services.
The Department of Justice is a major federal agency with a consistent need for legal support.
The contract has a clear start and end date, providing a defined period of performance.

Sector Analysis

The legal services sector for the federal government is substantial, encompassing a wide array of support functions from litigation to regulatory advice. This contract, classified under 'All Other Legal Services,' fits within this broad category. While specific market size data for this niche is scarce, the overall federal spending on legal services is significant, with numerous large and small firms competing for various contract vehicles. This particular award to CACI, LLC represents a portion of the DOJ's internal legal support infrastructure.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to CACI, LLC, a large prime contractor, suggests that the primary focus was on obtaining the necessary legal services directly, rather than leveraging the small business ecosystem for this particular procurement. This means the direct economic benefit to small businesses from this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and program managers. As a purchase order, it is subject to standard federal procurement regulations and internal DOJ oversight mechanisms. Transparency is limited due to the sole-source nature and the lack of detailed public reporting on performance. The Inspector General's office for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Justice - Legal Services
Federal Procurement Data System - Contract Awards
Time and Materials Contracts
Sole Source Procurements

Risk Flags

Sole-source award
Time and Materials contract type
Lack of performance metrics
Extended contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7.3 million to CACI, LLC - COMMERCIAL. YIO JENRD1804936 DJJ-17W-ENR01-0380 YREGDOC S0147312.

Who is the contractor on this award?

The obligated recipient is CACI, LLC - COMMERCIAL.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2018-04-05. End: 2029-02-01.

What is CACI, LLC's track record with the Department of Justice and other federal agencies for similar legal services?

CACI, LLC is a large and established government contractor with a significant presence across various federal agencies, including the Department of Justice. They provide a wide array of services, including IT, intelligence, and business solutions. While their overall contract history with the DOJ is extensive, specific details on their performance for 'All Other Legal Services' under this particular sole-source purchase order are not readily available in the public domain. Benchmarking their performance on similar legal service contracts would require access to internal agency performance evaluations or more granular contract data, which is typically not publicly disclosed. However, their sustained presence as a prime contractor suggests a generally satisfactory performance history across their diverse service offerings.

How does the $7.3 million value compare to similar legal services contracts awarded by the DOJ or other agencies?

Directly comparing the $7.3 million value of this sole-source contract is challenging due to the lack of competitive bidding and the specific nature of 'All Other Legal Services.' Typically, competitive procurements allow for price discovery and benchmarking against multiple offers. For sole-source awards, especially those using Time and Materials (T&M) pricing, the value is often determined by negotiated rates and estimated labor hours. Without knowing the specific tasks, labor categories, and hours involved, it's difficult to establish a precise per-unit cost or compare it to market rates. However, the extended duration (nearly 11 years) suggests that the $7.3 million represents the total estimated cost over the contract's life, averaging around $660,000 annually, which for specialized legal support within a large agency like the DOJ, might be within a reasonable range, albeit unverified by competition.

What are the primary risks associated with a sole-source Time and Materials contract for legal services?

The primary risks associated with this sole-source Time and Materials (T&M) contract are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing as there is no market validation of CACI, LLC's rates. The government relies solely on negotiation and trust. Secondly, the T&M contract type allows the contractor to bill for actual labor hours and material costs incurred. This structure, while offering flexibility, carries a significant risk of cost overruns if the scope of work is not well-defined or if labor hours are not rigorously monitored and justified by the government. Without strong oversight and clear performance metrics, the total cost could exceed the initial $7.3 million estimate, especially over the nearly 11-year performance period.

What does the extended performance period (2018-2029) imply about the nature of the legal services required by the DOJ?

The extended performance period, spanning from April 5, 2018, to February 1, 2029 (nearly 11 years), strongly implies that the legal services procured are of a long-term, ongoing, and potentially mission-critical nature for the Department of Justice. Such extended durations are typically associated with services that are fundamental to an agency's operations and are not easily transitioned or re-competed frequently. This could include support for ongoing litigation, regulatory compliance, policy development, or specialized advisory roles that require deep institutional knowledge and continuity. The longevity suggests a stable, predictable need rather than a short-term project, necessitating a reliable, long-term partnership with the service provider.

How does the classification 'All Other Legal Services' (NAICS 541199) differ from more specific legal service contract categories?

The NAICS code 541199, 'All Other Legal Services,' is a broad residual category used when a firm's legal services do not fit into more specific classifications like legal counsel, litigation support, or patent services. This implies that the services provided under this contract may be diverse or specialized, encompassing a range of activities that don't neatly align with standard legal service sub-sectors. For example, it could include services related to administrative law, compliance consulting, or specialized research that doesn't fall under typical law firm offerings. The ambiguity of this code makes it harder to benchmark against specific industry standards or competitor pricing, as the scope of work can vary significantly from one contract to another within this classification.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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: $7,306,696

Exercised Options: $7,306,696

Current Obligation: $7,306,696

Actual Outlays: $6,715,337

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline