DoD's $282.9M contract for engineering services awarded to CACI, Inc. - Federal shows strong competition
Contract Overview
Contract Amount: $282,901,599 ($282.9M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2003-08-29
End Date: 2005-09-30
Contract Duration: 763 days
Daily Burn Rate: $370.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST NO FEE
Sector: Other
Official Description: 200412!043301!2100!W911W4!HQ USAINSCOM, DIR OF CONTRACTING!DASC0103C0003 !A!N! !Y! !P00015!20040723!20080930!114896066!094107844!045534641!N!CACI, INC - FEDERAL !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!29008!059!51!FORT BELVOIR !FAIRFAX !VIRGINIA !+000002480020!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541330!A!A!3!A!S!C! !D!20040930!B!F!N!A! !A!U!S!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $282.9 million to CACI, INC. - FEDERAL for work described as: 200412!043301!2100!W911W4!HQ USAINSCOM, DIR OF CONTRACTING!DASC0103C0003 !A!N! !Y! !P00015!20040723!20080930!114896066!094107844!045534641!N!CACI, INC - FEDERAL !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!29008!059!51!FORT BELVOIR !FAIR… Key points: 1. Contract awarded to a single, large business prime contractor. 2. Significant contract value suggests a need for specialized engineering expertise. 3. Contract duration of over two years indicates a sustained requirement. 4. Award type suggests a focus on cost control and performance. 5. Engineering services are critical for defense infrastructure and operations. 6. Contracting agency is the Department of the Army, a major DoD component.
Value Assessment
Rating: good
The contract value of $282.9 million over approximately two years represents a substantial investment in engineering services. Benchmarking this against similar large-scale engineering contracts within the Department of Defense is challenging without more specific service details. However, the 'COST NO FEE' award type suggests the government aimed to control costs while ensuring the contractor bore the financial risk of performance overruns. This award type, while potentially beneficial for cost control, can sometimes limit the pool of eligible contractors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a reasonably competitive environment for this significant engineering services requirement. A moderate number of bidders can lead to price discovery and potentially better value, though a higher number often indicates more robust competition.
Taxpayer Impact: A full and open competition with multiple bidders is generally favorable for taxpayers, as it encourages competitive pricing and allows the government to select the best value solution.
Public Impact
The Department of the Army benefits from specialized engineering expertise to support its operations and infrastructure. Services delivered likely include design, analysis, and technical support for various Army projects. The geographic impact is primarily within Virginia, where the contractor is located, but services may extend to Army installations nationwide. The contract supports a workforce of engineers and technical professionals employed by CACI, Inc. - Federal.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the 'COST NO FEE' structure is not managed effectively by the contractor.
- Dependence on a single prime contractor for critical engineering services.
- Limited visibility into the specific sub-contracting opportunities for small businesses.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent process.
- The 'COST NO FEE' award type incentivizes contractor efficiency and performance.
- Contractor CACI, Inc. - Federal is a known entity in the federal contracting space.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government and private sector needs, from infrastructure design to complex system development. The federal government is a significant consumer of engineering services, particularly within defense and infrastructure agencies. Spending in this sector is often driven by modernization efforts, new construction, and ongoing maintenance requirements.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is a large business. There is no explicit information on subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often include subcontracting provisions.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the 'COST NO FEE' contract type, placing performance risk on the contractor. Transparency is facilitated by the contract award being made under full and open competition, with public data available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services
- Army Corps of Engineers Contracts
- Professional, Scientific, and Technical Services Contracts
- Information Technology and Telecommunications Support Services
Risk Flags
- Contract Value
- Contract Duration
- Award Type
- Competition Level
Tags
department-of-defense, department-of-the-army, engineering-services, cost-plus-fixed-fee, full-and-open-competition, large-business, virginia, professional-services, technical-services, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $282.9 million to CACI, INC. - FEDERAL. 200412!043301!2100!W911W4!HQ USAINSCOM, DIR OF CONTRACTING!DASC0103C0003 !A!N! !Y! !P00015!20040723!20080930!114896066!094107844!045534641!N!CACI, INC - FEDERAL !14151 PARK MEADOW DRIVE !CHANTILLY !VA!20151!29008!059!51!FORT BELVOIR !FAIRFAX !VIRGINIA !+000002480020!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541330!A!A!3!A!S!C! !D!200
Who is the contractor on this award?
The obligated recipient is CACI, INC. - FEDERAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $282.9 million.
What is the period of performance?
Start: 2003-08-29. End: 2005-09-30.
What specific types of engineering services were procured under this contract?
The contract falls under NAICS code 541330, which is defined as 'Engineering Services.' This broad category typically encompasses services such as architectural, engineering, and related design services. For a Department of the Army contract of this magnitude, it could include a wide array of specialized engineering disciplines such as civil, mechanical, electrical, aerospace, or systems engineering. These services are often crucial for the design, development, testing, and sustainment of military platforms, infrastructure, and operational systems. Without further details on the specific Statement of Work (SOW), the precise nature of the engineering tasks remains general.
How does the 'COST NO FEE' award type impact contractor incentives and government risk?
The 'COST NO FEE' (Cost Plus Fixed Fee - CPFF) award type means the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee. The 'NO FEE' part of the description in the provided data might be a simplification or a specific variant. In a standard CPFF, the fee is fixed, meaning it does not change even if costs increase. This incentivizes the contractor to control costs, as any savings below the estimated cost would increase their profit margin (the fixed fee as a percentage of actual cost). Conversely, if costs exceed the estimate, the contractor's profit is reduced, but the government is still obligated to pay allowable costs. The government bears the risk of cost overruns beyond the initial estimate, but the fixed fee provides a ceiling on the profit earned by the contractor.
What is the historical spending trend for engineering services by the Department of the Army?
Historical spending data for engineering services by the Department of the Army is extensive and fluctuates based on defense priorities, modernization programs, and infrastructure needs. The Army, through entities like the Army Corps of Engineers, is a major procurer of engineering services for construction, facility management, environmental remediation, and military project design. Annual spending can range from billions to tens of billions of dollars across various contract types and durations. Factors influencing spending include geopolitical events, budget allocations, and the lifecycle of major weapon systems and installations. Analyzing specific historical trends would require access to detailed federal procurement databases and filtering for the relevant NAICS codes and agency.
What is CACI, Inc. - Federal's track record with similar large-scale engineering contracts?
CACI, Inc. - Federal is a well-established government contractor with a significant history of performing IT, intelligence, and engineering services for various federal agencies, including the Department of Defense. They have a track record of managing large, complex contracts. While this specific $282.9 million contract is substantial, CACI has experience with contracts of similar or even larger magnitudes across different service areas. Their performance history on previous contracts, available through federal procurement databases like FPDS or SAM.gov, would provide a more detailed assessment of their reliability, quality of service, and past performance ratings on engineering and related technical services.
How does the competition level (3 bidders) for this contract compare to typical DoD engineering service procurements?
The competition level of 3 bidders for this $282.9 million engineering services contract is moderately competitive for a large-value DoD procurement. While 'full and open competition' theoretically allows for numerous bidders, the specialized nature of advanced engineering services, stringent qualification requirements, and the significant cost and effort involved in preparing a proposal often limit the number of serious contenders. For highly technical or niche engineering requirements, 3 to 5 bidders might be considered a reasonable level of competition. However, for more common or less specialized services, a higher number of bidders would be expected. The DoD often sees a wide range of competition, from sole-source awards to dozens of bidders on large, broadly defined service contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc (UEI: 045534641)
Address: 14151 PARK MEADOW DRIVE, CHANTILLY, VA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $282,901,599
Exercised Options: $282,901,599
Current Obligation: $282,901,599
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-08-29
Current End Date: 2005-09-30
Potential End Date: 2005-09-30 00:00:00
Last Modified: 2013-09-30
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