DHS awards $43M IT management contract to CACI, Inc. for computer systems design services

Contract Overview

Contract Amount: $43,022,967 ($43.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-27

End Date: 2026-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT MANAGEMENT SERVICES

Place of Performance

Location: MARCH ARB, RIVERSIDE County, CALIFORNIA, 92518

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.0 million to CACI, INC. - FEDERAL for work described as: IT MANAGEMENT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1825 days (5 years) indicates a long-term need for these services. 3. Fixed-price contract type may offer cost certainty for the government. 4. The award is for IT management services, specifically computer systems design. 5. CACI, Inc. - Federal is the prime contractor for this significant award. 6. The contract is managed by U.S. Customs and Border Protection within DHS.

Value Assessment

Rating: good

The contract value of $43,022,966.56 over five years averages to approximately $8.6 million annually. Benchmarking this against similar IT management and computer systems design contracts within federal agencies is crucial for a precise value assessment. However, given the scope and duration, the pricing appears within a reasonable range for specialized IT services. The firm fixed-price structure provides a degree of predictability for government expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought a broad range of potential contractors to ensure they received the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages a wider pool of contractors to offer their best pricing and innovative solutions.

Public Impact

This contract directly supports U.S. Customs and Border Protection's mission by providing essential IT management and computer systems design services. The services delivered are critical for maintaining and enhancing the technological infrastructure that underpins border security operations. The geographic impact is primarily focused on the operational needs of CBP, which has nationwide responsibilities. The contract likely supports a workforce of IT professionals and systems designers, contributing to employment in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary systems are implemented.
Reliance on a single large contractor for critical IT infrastructure could pose risks.
Ensuring ongoing innovation and adaptation to evolving technological landscapes.

Positive Signals

Award to an established contractor with a track record in federal IT services.
Firm fixed-price contract provides budget certainty.
Long-term contract allows for sustained support and development of IT systems.

Sector Analysis

The IT management and computer systems design sector is a critical component of federal operations, encompassing a vast array of services from software development to network infrastructure. Federal spending in this area is substantial, driven by the need for secure, efficient, and modern technological capabilities across all agencies. This contract fits within the broader category of IT services procurement, where agencies often seek specialized expertise to manage complex systems. Comparable spending benchmarks would involve looking at other large-scale IT service contracts awarded by agencies like DHS, DoD, or GSA.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, CACI, Inc. - Federal, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside or specific subcontracting goals means that the direct impact on the small business ecosystem for this particular award is likely minimal, unless CACI voluntarily engages small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within U.S. Customs and Border Protection. Performance monitoring, adherence to contract terms, and quality assurance are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Services
Computer Systems Design
Department of Homeland Security IT Procurement
Customs and Border Protection Technology Modernization
Federal IT Management Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of vendor lock-in.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.0 million to CACI, INC. - FEDERAL. IT MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $43.0 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-09-26.

What is CACI, Inc. - Federal's track record with similar IT management contracts within the federal government, particularly with DHS?

CACI, Inc. - Federal has a substantial track record of performing IT management and computer systems design services for various federal agencies, including the Department of Homeland Security. They have been awarded numerous contracts for similar services, ranging in value and scope. Their history often includes support for mission-critical systems, cybersecurity, and enterprise IT infrastructure. A detailed review of their past performance ratings and any past performance issues on comparable contracts would provide further insight into their reliability and capability for this specific award. Their extensive experience suggests a strong understanding of federal IT requirements and procurement processes.

How does the $43 million contract value compare to other IT management contracts awarded by CBP or DHS in recent years?

The $43 million contract value for IT management services over five years represents a significant but not unprecedented investment for a component agency like U.S. Customs and Border Protection within DHS. CBP, responsible for extensive border security operations, requires robust IT infrastructure and management. Annual spending for IT services within DHS can reach billions of dollars. This specific contract's value should be benchmarked against other large-scale IT support and systems design contracts awarded by CBP or similar agencies to understand if it falls within the typical range for the scope of work and duration. Factors like the complexity of systems supported and the level of service required will influence its relative size.

What are the primary risks associated with this contract, considering it's a firm fixed-price award for IT systems design?

A primary risk with firm fixed-price contracts for IT systems design is the potential for scope creep, where the requirements expand beyond the initial agreement without corresponding adjustments to price or schedule. If the contractor underestimates the complexity or effort required, they may incur losses. Conversely, if the government's needs evolve significantly, the fixed-price nature could make it difficult or costly to incorporate necessary changes. Another risk involves the contractor's ability to deliver on evolving technological demands within the fixed budget, potentially leading to compromises in quality or innovation if not managed carefully. Ensuring clear initial requirements and a flexible change order process is crucial.

How effective is the 'full and open competition' approach in ensuring value for money for this type of IT service contract?

The 'full and open competition' approach is generally considered highly effective in ensuring value for money for IT service contracts. By allowing all responsible sources to compete, it broadens the pool of potential offerors, increasing the likelihood of receiving competitive bids that drive down prices and encourage innovation. This method fosters a market where contractors must differentiate themselves on price, technical approach, and past performance. For complex IT services like systems design, where solutions can vary widely, open competition allows the government to select the offer that best balances cost, technical merit, and risk, thereby maximizing the value received for taxpayer dollars.

What are the historical spending patterns for IT management services by U.S. Customs and Border Protection over the last five fiscal years?

Analyzing historical spending patterns for IT management services by U.S. Customs and Border Protection (CBP) over the last five fiscal years would reveal trends in their investment in technology infrastructure and support. This data would likely show fluctuations based on agency priorities, modernization initiatives, and specific project needs. Understanding these patterns helps contextualize the current $43 million award, indicating whether it represents an increase, decrease, or steady investment in IT management. It also highlights the agency's reliance on external contractors for these critical functions and the types of IT services most frequently procured.

What are the potential implications for cybersecurity if CACI, Inc. - Federal manages critical IT systems for CBP?

The implications for cybersecurity are significant, as CACI, Inc. - Federal will be managing critical IT systems for CBP. This necessitates stringent security protocols, adherence to government cybersecurity standards (like NIST frameworks), and robust access controls. The contractor must demonstrate a strong security posture, including measures to prevent data breaches, protect sensitive information, and ensure system resilience against cyber threats. Any security lapse by the contractor could have severe consequences for national security and border operations. Therefore, rigorous vetting, ongoing monitoring, and clear contractual cybersecurity requirements are paramount.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B02C21Q00000191

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $52,871,161

Exercised Options: $43,022,967

Current Obligation: $43,022,967

Actual Outlays: $29,710,647

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,267,425

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0009

IDV Type: GWAC

Timeline