CACI awarded $299M for R&D services, with 2 prior awards and a 5-year duration

Contract Overview

Contract Amount: $299,148,702 ($299.1M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2019-03-04

End Date: 2024-09-03

Contract Duration: 2,010 days

Daily Burn Rate: $148.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: TENCAP E3I AWARD

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $299.1 million to CACI, INC. - FEDERAL for work described as: TENCAP E3I AWARD Key points: 1. The contract value of $299 million over five years suggests a significant investment in research and development capabilities. 2. Competition dynamics for this contract are not detailed, but the award type indicates a competitive process. 3. Potential risks include the cost-plus award fee structure, which can incentivize cost overruns if not managed tightly. 4. The contract's performance period spans from March 2019 to September 2024, indicating a medium-term engagement. 5. This award falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. 6. The contractor, CACI, Inc. - Federal, has a substantial presence in the federal contracting space.

Value Assessment

Rating: good

The total award amount of $299 million over five years averages to approximately $60 million per year. Benchmarking this against similar large-scale R&D contracts is challenging without more specific service details. However, the Cost Plus Award Fee (CPAF) structure suggests that performance incentives are tied to cost and other metrics, which can be a reasonable approach for complex R&D where outcomes are uncertain. The pricing will depend heavily on the specific research tasks and personnel involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which should theoretically lead to better pricing and value for the government. The General Services Administration (GSA) utilizing this approach suggests a commitment to maximizing competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, thereby optimizing the use of public funds.

Public Impact

The primary beneficiaries are likely government agencies requiring advanced research and development in physical, engineering, and life sciences. Services delivered include research and development activities, potentially leading to technological advancements and improved capabilities for federal programs. The geographic impact is primarily within Virginia, where the contract is managed, but the R&D outcomes could have national implications. Workforce implications include the creation or sustainment of high-skilled jobs in research, engineering, and scientific fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can lead to higher costs if not rigorously managed and monitored.
The broad R&D scope may present challenges in defining clear performance metrics and ensuring accountability.
Reliance on a single contractor for a significant R&D effort could limit access to diverse perspectives and innovations.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contractor, CACI, Inc. - Federal, is a well-established entity with significant federal contracting experience.
The five-year duration allows for sustained focus and development on complex R&D objectives.

Sector Analysis

This contract falls under the Research and Development (R&D) sector, specifically within the NAICS code 541712 for Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). This sector is critical for innovation and technological advancement within the government. Comparable spending benchmarks would require analysis of other large-scale R&D contracts awarded by agencies like GSA, DoD, or other science-focused bodies, looking at contract values, durations, and specific research areas.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, CACI, Inc. - Federal, may still engage small businesses as subcontractors to fulfill specific aspects of the R&D work, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the General Services Administration (GSA) Federal Acquisition Service. Accountability measures are embedded within the Cost Plus Award Fee (CPAF) structure, which links contractor compensation to performance. Transparency is generally facilitated through contract award databases and reporting requirements, though specific project details may be sensitive.

Related Government Programs

General Services Administration (GSA) IT Schedule
Department of Defense Research and Development Contracts
National Science Foundation Grants
NASA Research and Technology Contracts

Risk Flags

Cost-plus award fee structure requires diligent oversight to manage costs and ensure value.
Broad R&D scope may present challenges in defining clear performance metrics and ensuring accountability.
Potential for cost overruns if performance incentives are not well-aligned with research objectives.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $299.1 million to CACI, INC. - FEDERAL. TENCAP E3I AWARD

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 $299.1 million.

What is the period of performance?

Start: 2019-03-04. End: 2024-09-03.

What is CACI, Inc. - Federal's track record with Cost Plus Award Fee (CPAF) contracts?

CACI, Inc. - Federal has a substantial history of performing on government contracts, including those utilizing Cost Plus Award Fee (CPAF) structures. CPAF contracts are common for research and development or services where performance outcomes are not easily defined upfront, allowing for incentives based on achieving specific cost, schedule, and performance targets. Analyzing CACI's past performance on similar CPAF contracts would involve reviewing contract performance reports (CPARs), any documented disputes or claims, and the overall success rate in meeting award fee criteria. Their extensive experience suggests a familiarity with the requirements and potential challenges of managing such contracts effectively, though rigorous oversight remains crucial to ensure value for taxpayer money.

How does the $299 million value compare to other R&D contracts in the physical, engineering, and life sciences sector?

The $299 million total award value over five years places this contract in the category of significant R&D investments. To benchmark effectively, one would compare it against other large-scale R&D contracts awarded by agencies like the Department of Defense (DoD), National Institutes of Health (NIH), or Department of Energy (DOE) within the same NAICS code (541712) or similar scientific domains. For instance, major defense R&D programs or advanced technology development initiatives can easily reach hundreds of millions or even billions of dollars over their lifecycles. The average annual value of approximately $60 million is substantial but not extraordinary for complex, multi-year federal R&D efforts, especially those involving cutting-edge research or system development.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for R&D?

The primary risk with a CPAF contract for R&D is the potential for cost escalation if the award fee criteria are not tightly defined or if contractor performance is not rigorously monitored. While CPAF aims to incentivize performance by offering additional profit (the award fee) for exceeding expectations, it also includes a base fee plus cost reimbursement. This means the government pays the incurred costs regardless of performance, and the award fee is an incentive on top. For R&D, where outcomes can be uncertain, defining objective award criteria can be challenging. Poorly defined criteria could lead to the contractor receiving higher fees without commensurate improvements in research outcomes, or conversely, overly stringent criteria might stifle innovation. Effective oversight is paramount to ensure costs are reasonable and award fees are justified.

What does the 'TENCAP E3I AWARD' designation imply about the nature of the R&D?

The 'TENCAP E3I AWARD' designation likely refers to a specific program or initiative within the intelligence community or a related defense/security sector. TENCAP often stands for 'Tactical Exploitation of National Capabilities,' suggesting a focus on leveraging national-level intelligence assets for tactical advantage. E3I could be an acronym for a specific project, technology, or capability enhancement. Therefore, this R&D contract is probably geared towards developing or enhancing technologies that support intelligence gathering, analysis, or dissemination for tactical operational use, potentially involving advanced sensors, data fusion, or secure communication systems.

How has federal spending in R&D (NAICS 541712) trended in recent years?

Federal spending in R&D, particularly within NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences, except Biotechnology), has generally seen fluctuations driven by national priorities, budget cycles, and specific agency needs. Historically, defense and health research have been significant drivers. In recent years, there has been an increasing emphasis on areas like artificial intelligence, cybersecurity, advanced materials, and biotechnology, although this specific NAICS code excludes biotech. Overall trends often reflect a commitment to maintaining technological superiority and addressing complex societal challenges through scientific advancement. Detailed analysis would require examining historical spending data from agencies like DoD, NSF, NIH, and DOE.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $531,737,435

Exercised Options: $529,281,036

Current Obligation: $299,148,702

Actual Outlays: $-1,011,111

Subaward Activity

Number of Subawards: 62

Total Subaward Amount: $20,594,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU407

IDV Type: IDC

Timeline