CACI awarded $148M engineering services contract by GSA, highlighting potential value and competition dynamics

Contract Overview

Contract Amount: $147,993,171 ($148.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2018-08-20

End Date: 2021-08-19

Contract Duration: 1,095 days

Daily Burn Rate: $135.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $148.0 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF Key points: 1. Contract value of $148M over three years suggests significant demand for engineering services. 2. Full and open competition indicates a healthy market with multiple potential bidders. 3. Cost Plus Award Fee (CPA) structure incentivizes performance but requires careful oversight. 4. Engineering Services (NAICS 541330) is a critical sector supporting various government functions. 5. Delivery Order award type implies this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. Contract duration of 1095 days (3 years) provides a stable period for service delivery.

Value Assessment

Rating: good

The contract value of $147,993,170.56 over three years for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale engineering contracts awarded by GSA or other agencies would provide a more precise value-for-money assessment. The Cost Plus Award Fee (CPA) pricing structure, while common for complex services, necessitates robust performance metrics to ensure fair compensation and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to drive better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive environment.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider range of innovative solutions, ensuring government funds are used efficiently.

Public Impact

Government agencies requiring specialized engineering expertise will benefit from the services delivered under this contract. The contract supports the delivery of essential engineering services, potentially impacting infrastructure, technology, or operational support across various government programs. The geographic impact is likely national, given GSA's role in managing federal procurement, with services potentially supporting projects across the United States. The contract may have implications for the engineering workforce, creating or sustaining jobs for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPA) structure can lead to higher costs if not managed with stringent performance oversight.
Lack of specific details on the number of bidders in the 'full and open' competition makes it difficult to fully assess the competitive intensity.
The nature of 'engineering services' is broad; specific deliverables and their alignment with agency needs require further scrutiny.
Potential for scope creep in complex engineering projects, which could increase costs beyond initial projections.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive marketplace and fair pricing.
The significant contract value suggests CACI, INC. - FEDERAL has a strong track record and capability in delivering engineering services.
The three-year duration provides stability for project execution and service continuity.
GSA's involvement suggests adherence to established procurement processes and oversight standards.

Sector Analysis

The engineering services sector (NAICS 541330) is a substantial part of the federal procurement landscape, encompassing a wide range of technical and design expertise. This contract fits within the broader category of professional services, supporting government needs for specialized technical knowledge. Comparable spending benchmarks for engineering services contracts can vary widely based on the specific discipline (e.g., civil, mechanical, electrical, software) and project complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements mandated by a small business set-aside. However, the prime contractor, CACI, INC. - FEDERAL, may still engage small businesses as subcontractors to fulfill portions of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. The Cost Plus Award Fee (CPA) structure necessitates rigorous performance monitoring and evaluation to ensure award fees are justified. Transparency is facilitated through federal procurement databases, and accountability measures are embedded in the contract terms and conditions, potentially including Inspector General oversight if issues arise.

Related Government Programs

Professional Services Schedule (PSS)
Architectural and Engineering Services
Defense Engineering Services
IT Engineering Services
Research and Development Support Services

Risk Flags

Cost Plus Award Fee (CPA) structure requires diligent performance monitoring.
Broad 'Engineering Services' category may obscure specific risks or requirements.
Delivery Order implies potential for follow-on orders or task complexity.
No small business set-aside noted; potential impact on SMB participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $148.0 million to CACI, INC. - FEDERAL. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $148.0 million.

What is the period of performance?

Start: 2018-08-20. End: 2021-08-19.

What is CACI, INC. - FEDERAL's past performance record with the federal government, particularly in delivering engineering services?

CACI, INC. - FEDERAL is a large, established government contractor with a extensive history of performance across various federal agencies. Their portfolio includes a wide range of services, including IT, intelligence, and engineering support. While specific details on past performance metrics for this exact type of engineering service are not provided in the summary data, their consistent presence and numerous contract awards suggest a generally positive track record. A deeper dive into contract databases like FPDS or SAM.gov would reveal specific past performance ratings, past issues, and the types of engineering projects they have successfully completed for the government. Their size and scope indicate they are likely capable of handling complex, large-value contracts like this one.

How does the $148 million contract value compare to similar engineering services contracts awarded by GSA or other agencies?

The $148 million contract value over three years for engineering services is substantial, placing it in the upper tier of individual contract awards. To benchmark effectively, one would compare it against contracts with similar NAICS codes (541330 - Engineering Services) and contract types (Cost Plus Award Fee) awarded by agencies like the Department of Defense, Department of Transportation, or other large civilian agencies. GSA itself awards numerous contracts under its Professional Services Schedule (PSS) and other vehicles that could serve as comparators. Without specific details on the exact nature of the engineering services (e.g., software engineering, civil engineering, systems engineering), a precise comparison is difficult. However, a value of approximately $49 million per year is significant and suggests a large-scale, potentially complex set of requirements.

What are the primary risks associated with a Cost Plus Award Fee (CPA) contract structure for engineering services?

The primary risks associated with a Cost Plus Award Fee (CPA) contract structure revolve around cost control and the potential for contractor inefficiency. In a CPA contract, the contractor is reimbursed for allowable costs plus a fee that is composed of a fixed base amount and an award amount tied to meeting or exceeding performance objectives. The risk for the government is that the contractor may not be sufficiently incentivized to control costs if the award fee criteria are not stringent or if oversight is lax, potentially leading to costs exceeding what might be achieved under a fixed-price contract. Conversely, the contractor bears less risk related to cost overruns compared to fixed-price contracts. Effective management requires clear, measurable performance standards and diligent oversight to ensure award fees are earned appropriately.

What is the typical duration and value range for engineering services contracts awarded by the General Services Administration (GSA)?

The General Services Administration (GSA) awards a wide range of engineering services contracts, with durations and values varying significantly based on the specific needs of federal agencies and the scope of work. Contracts can range from short-term, project-specific engagements valued in the hundreds of thousands of dollars to multi-year, large-scale IDIQ (Indefinite Delivery/Indefinite Quantity) vehicles potentially worth billions. The three-year duration (1095 days) of this particular contract is fairly standard for significant service requirements. The $148 million total value is substantial, indicating a major program or a consolidated set of engineering needs. GSA often uses its Multiple Award Schedules (MAS) and other contract vehicles to procure these services efficiently for the government.

How does the 'full and open competition' designation impact the potential for innovation and cost savings in this contract?

The 'full and open competition' designation is a cornerstone of federal procurement policy designed to maximize innovation and cost savings. By allowing all responsible sources to submit offers, the government broadens the pool of potential solutions and encourages vendors to propose their most competitive pricing and innovative approaches to win the contract. This competitive pressure typically drives down prices compared to sole-source or limited competition scenarios. Furthermore, a wider range of bidders can bring diverse perspectives and technologies, fostering innovation. The government benefits from a more robust marketplace, increased transparency, and a higher likelihood of obtaining the best value for taxpayer dollars.

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

Solicitation ID: GSCQF0B1833198

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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: $413,141,765

Exercised Options: $237,950,696

Current Obligation: $147,993,171

Actual Outlays: $-181,821

Subaward Activity

Number of Subawards: 220

Total Subaward Amount: $61,616,181

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU309

IDV Type: IDC

Timeline