Navy awards $391M in ship design services to CACI, Inc. over 10 years

Contract Overview

Contract Amount: $391,197,225 ($391.2M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2008-12-19

End Date: 2018-09-01

Contract Duration: 3,543 days

Daily Burn Rate: $110.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SHIP DESIGN SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $391.2 million to CACI, INC. - FEDERAL for work described as: SHIP DESIGN SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract spans a decade, indicating a long-term need for these services. 3. Services are classified under Engineering Services, a broad category with potential for varied applications. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The significant duration and value suggest a critical role in naval operations or development. 6. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of 'ship design services' and comparable contracts. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While CPFF can be appropriate for research and development or when costs are uncertain, it requires robust oversight to ensure value for money. Without more granular data on the specific deliverables and the contractor's performance history on similar projects, a definitive value assessment is difficult.

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 bids. The fact that it resulted in a single delivery order suggests that while the initial competition was broad, the subsequent award was made to a specific entity. The number of bidders is not specified, but full and open competition generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and better value for services rendered.

Public Impact

The U.S. Navy benefits from specialized ship design expertise to maintain and modernize its fleet. Services delivered likely include conceptual design, preliminary design, and potentially detailed design for various naval vessels. The geographic impact is primarily within the District of Columbia, where the contractor is located, but the services support naval operations nationwide and globally. The contract supports a workforce of engineers, naval architects, and technical specialists within CACI, Inc. - Federal and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Long contract duration (10 years) increases the risk of scope creep or evolving requirements not being adequately addressed.
Lack of specific performance metrics or outcome-based measures makes it difficult to assess efficiency.
The broad nature of 'ship design services' could lead to ambiguity in deliverables and potential disputes.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Contractor CACI, Inc. - Federal is a large, established entity with significant experience in government contracting.
The long-term nature of the contract indicates a sustained and critical need for these services by the Navy.
The contract is a delivery order, implying it falls under a potentially pre-competed IDIQ vehicle, which can streamline acquisition.

Sector Analysis

The engineering services sector supporting the defense industry is substantial, with significant government spending allocated to naval design and development. This contract fits within the broader category of professional, scientific, and technical services, specifically focusing on engineering and design for maritime assets. Comparable spending benchmarks would typically involve analyzing other large-scale design contracts for naval vessels or other complex defense platforms, considering factors like vessel type, complexity, and technological requirements.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. As this is a large contract awarded to a major federal contractor, it is possible that subcontracting opportunities may exist for small businesses, but this would depend on the specific terms negotiated and the contractor's subcontracting plan. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Given the CPFF structure, rigorous oversight of costs, performance, and adherence to the contract statement of work is crucial. Transparency is facilitated through contract award databases, but detailed operational oversight and accountability measures are internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Ship Design
Naval Engineering Services
Defense Contract Management
Shipbuilding and Repair Services
Department of Defense IT and Engineering Support

Risk Flags

Cost Plus Fixed Fee contract type requires careful cost monitoring.
Long contract duration may present challenges in adapting to evolving requirements.
Scope of 'ship design services' is broad and requires clear definition.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $391.2 million to CACI, INC. - FEDERAL. SHIP DESIGN SERVICES

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 Navy).

What is the total obligated amount?

The obligated amount is $391.2 million.

What is the period of performance?

Start: 2008-12-19. End: 2018-09-01.

What is the specific breakdown of services provided under this $391 million contract?

The provided data categorizes the contract under 'Engineering Services' (NAICS 541330) and specifies 'SHIP DESIGN SERVICES'. However, a detailed breakdown of the specific services is not available. This could range from conceptual and preliminary design for new vessels to modernization plans for existing ships, including hull design, propulsion systems, combat systems integration, and habitability. The Cost Plus Fixed Fee (CPFF) structure suggests that the exact scope might have evolved or had inherent uncertainties at the time of award, requiring flexibility in service delivery. Further details would likely be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

How does the $391 million value compare to similar ship design contracts awarded by the Navy?

Direct comparison of the $391 million total value is difficult without knowing the specific types and quantities of vessels or systems being designed. However, for large naval platforms (e.g., aircraft carriers, submarines, destroyers), design and engineering contracts can easily run into hundreds of millions of dollars over their lifecycle. The 10-year duration (from 2008 to 2018) means the average annual spending was approximately $39 million. This figure is substantial but must be contextualized against the scale and complexity of modern naval shipbuilding programs. Benchmarking would require analyzing contracts for similar vessel classes or major system designs awarded around the same period.

What are the key risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor's fee is fixed, they are reimbursed for all allowable costs incurred. This structure can reduce the contractor's incentive to control costs rigorously, as higher costs do not reduce their profit margin (the fixed fee). Effective management requires stringent oversight of allowable costs, detailed progress tracking, and proactive identification of potential inefficiencies. The government bears the risk of cost increases beyond initial estimates, although the fixed fee provides some predictability regarding contractor profit.

What is CACI, Inc. - Federal's track record with similar large-scale engineering or design contracts for the Department of Defense?

CACI, Inc. - Federal is a large and established government contractor with extensive experience across various defense and civilian agencies. They have a significant portfolio of contracts involving IT, intelligence, and engineering services. While specific details on their past ship design performance are not provided here, their overall track record suggests they possess the capacity and experience to manage complex projects. Performance evaluations and past performance questionnaires (PPQs) submitted during the bidding process would offer more insight into their specific capabilities and reliability for this type of work.

How has spending on ship design services by the Navy trended over the past decade, and where does this contract fit?

The provided data covers a contract awarded in 2008 and ending in 2018. Analyzing broader Navy spending trends would require access to historical budget data and contract databases. However, it's reasonable to assume that spending on ship design services fluctuates based on shipbuilding priorities, fleet modernization programs, and the development of new naval technologies. This $391 million contract represents a significant, long-term investment in maintaining the Navy's design capabilities during that specific period. Its placement within the overall spending landscape depends on the Navy's total budget allocation for research, development, and acquisition during those years.

What are the implications of this contract being a 'Delivery Order' under a potentially larger IDIQ contract?

A 'Delivery Order' indicates that this specific award is one task order issued against a broader Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQ contracts establish terms and conditions for services over a period, allowing the agency to issue multiple orders up to a ceiling amount. This approach streamlines the acquisition process for recurring needs. The initial competition likely occurred when the IDIQ contract was awarded. This specific delivery order represents the Navy exercising its option to procure a defined set of ship design services from CACI, Inc. - Federal under the pre-established IDIQ terms.

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: N0002409R3013

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

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: $669,013,587

Exercised Options: $665,391,782

Current Obligation: $391,197,225

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline