DOJ's $20.5M litigation support contract awarded to CACI, LLC, with 3 bidders, raises value-for-money questions

Contract Overview

Contract Amount: $20,541,490 ($20.5M)

Contractor: CACI, LLC - Commercial

Awarding Agency: Department of Justice

Start Date: 2021-06-01

End Date: 2026-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MEGA5 AUTOMATED LITIGATION SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $20.5 million to CACI, LLC - COMMERCIAL for work described as: MEGA5 AUTOMATED LITIGATION SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Pricing appears to be time and materials, which can pose cost control challenges. 3. The contract duration of 5 years (1825 days) indicates a long-term need for these services. 4. CACI, LLC, has a significant presence in federal contracting, suggesting established capabilities. 5. The NAICS code 541199 (All Other Legal Services) points to a broad scope of support. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value-for-money for this contract is challenging without specific task order details and labor rates. However, the time and materials pricing model, while common, can lead to cost overruns if not managed tightly. Comparing this to similar litigation support contracts across the government would require access to detailed pricing data for comparable services. The total award amount of over $20 million over five years suggests a substantial investment, and ensuring efficient use of funds is paramount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the government sought proposals from all responsible sources. With three bidders, the competition level appears moderate. While more bidders generally lead to better price discovery, three offers can still provide a competitive environment. The specific evaluation criteria and the government's negotiation strategy would determine the extent to which this competition translated into optimal pricing and value.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from contractors.

Public Impact

The Department of Justice benefits from enhanced legal support services, potentially improving case management and outcomes. The contract supports a wide range of legal services, aiding in the administration of justice. Services are likely delivered primarily in Virginia, where CACI, LLC, has a strong presence. The contract may indirectly support legal professionals and administrative staff within the DOJ.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to the time and materials pricing structure.
Scope definition and management are critical to prevent cost overruns.
Ensuring consistent quality of services across all task orders is important.

Positive Signals

Awarded through full and open competition, indicating a healthy market.
CACI, LLC, is an established federal contractor with a track record.
The contract duration suggests a stable, long-term need, allowing for efficient resource planning.

Sector Analysis

The legal services sector within federal contracting is diverse, encompassing a wide array of support functions for government agencies. This contract falls under 'All Other Legal Services,' suggesting it may cover specialized or non-traditional legal support beyond standard representation. The market for these services is competitive, with numerous firms vying for government contracts. Benchmarking spending in this specific sub-sector can be difficult due to its broad definition, but overall federal spending on legal and related services is substantial.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of a small business set-aside (ss: false). Therefore, the primary contractor, CACI, LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether CACI, LLC, actively seeks small business subcontractors for specialized tasks.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Justice's contracting and program offices. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would typically cover investigations into fraud, waste, and abuse related to the contract.

Related Government Programs

Department of Justice Litigation Support
Legal Services Contracts
Professional Services Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Scope creep management is critical for this broad 'All Other Legal Services' contract.
Ensuring consistent quality and performance across a 5-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20.5 million to CACI, LLC - COMMERCIAL. MEGA5 AUTOMATED LITIGATION SUPPORT SERVICES

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 $20.5 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-05-31.

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

CACI, LLC, is a significant federal contractor with a substantial history of performing services for various government agencies, including the Department of Justice. Their portfolio often includes IT, intelligence, and support services. For litigation support specifically, CACI has been awarded numerous contracts across different agencies. Analyzing their past performance on similar DOJ contracts would involve reviewing past performance evaluations, any reported issues or successes, and the overall value and duration of previous awards. A review of publicly available data suggests CACI has experience in areas that could encompass litigation support, such as e-discovery, document management, and case management systems, often leveraging technology solutions. Their extensive experience indicates a capacity to handle complex requirements, but also necessitates scrutiny to ensure consistent delivery and value.

How does the $20.5 million award value compare to similar litigation support contracts awarded by the DOJ or other federal agencies?

The $20.5 million award over five years, averaging approximately $4.1 million annually, places this contract in the mid-to-large tier for specialized support services. To benchmark effectively, one would need to compare it against contracts for similar scope and duration within the 'All Other Legal Services' category (NAICS 541199) or closely related legal support codes. Federal procurement data shows a wide range in litigation support contract values, from smaller, task-specific awards to multi-hundred-million-dollar IDIQ vehicles. Contracts supporting major litigation efforts or large agency components often reach tens of millions of dollars. Without specific details on the tasks performed, it's difficult to make a precise comparison, but the value is consistent with significant, long-term support needs for a major federal agency like the DOJ.

What are the primary risks associated with a Time and Materials (T&M) contract for litigation support, and how are they mitigated?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. This can lead to unpredictable costs if work is not managed efficiently or if the scope expands without proper controls. For litigation support, risks include inflated labor hours, inefficient work processes, and the use of higher-than-necessary labor categories. Mitigation strategies employed by agencies typically include establishing labor hour ceilings, requiring detailed justifications for hours worked, implementing robust oversight and performance monitoring, and defining clear deliverables and milestones. The government also negotiates fixed hourly rates for different labor categories, which provides some predictability, but the total cost remains variable based on effort expended.

What is the typical duration for federal litigation support contracts, and does the 5-year term of this contract align with industry norms?

Federal litigation support contracts can vary significantly in duration, often depending on the nature of the support required and the contracting vehicle used. Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, which often serve as the parent vehicles for Delivery Orders like this one, can have base periods of up to five years, with options to extend further, potentially reaching ten years. Standalone contracts for specific projects or services might have shorter terms. A five-year duration (including potential option periods, though not explicitly stated here beyond the 1825 days) is quite common for significant support services that require continuity and allow contractors to build institutional knowledge. This duration suggests a stable, ongoing requirement for the DOJ's legal operations, aligning with typical government needs for sustained professional services.

How does the NAICS code 541199 ('All Other Legal Services') define the scope of services for this contract, and what are potential implications?

The NAICS code 541199, 'All Other Legal Services,' is a broad category that encompasses legal services not classified under other specific NAICS codes (like legal counsel, patent law, etc.). This typically includes services such as legal research, document management, e-discovery support, litigation support, paralegal services, and other administrative or technical assistance related to legal proceedings. For this contract, it implies a wide potential scope for CACI, LLC. The implication is that the specific tasks performed could vary significantly, requiring strong contract management to ensure services align with the DOJ's needs and remain within budget. It also suggests the DOJ may be leveraging external support for functions that are not core legal representation but are critical to the litigation process.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1100 NORTH GLEBE ROAD, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $28,125,135

Exercised Options: $20,607,009

Current Obligation: $20,541,490

Actual Outlays: $15,788,905

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS20D00000368

IDV Type: IDC

Timeline