Navy awards $149M for IT support, with CACI Technologies managing legacy systems

Contract Overview

Contract Amount: $149,122,583 ($149.1M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2008-07-18

End Date: 2013-07-17

Contract Duration: 1,825 days

Daily Burn Rate: $81.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NAVY LEGACY SHIP MANAGEMENT AND LOGISTICS SUPPORT INFORMATION SYSTEMS (SMLIS)

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $149.1 million to CACI TECHNOLOGIES, LLC for work described as: NAVY LEGACY SHIP MANAGEMENT AND LOGISTICS SUPPORT INFORMATION SYSTEMS (SMLIS) Key points: 1. Contract focuses on maintaining and enhancing critical legacy IT systems for naval operations. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. Performance period spans five years, indicating a long-term need for these services. 5. The award value of $149M over five years suggests a significant investment in IT infrastructure. 6. This contract supports essential logistics and management information systems for the Navy.

Value Assessment

Rating: good

The contract value of $149 million over five years averages to approximately $29.8 million annually. Benchmarking this against similar IT support contracts for large federal agencies requires detailed analysis of scope and deliverables. However, the Cost Plus Fixed Fee structure necessitates close monitoring to ensure costs remain reasonable and aligned with the fixed fee. Without specific comparable contract data, a definitive value-for-money assessment is challenging, but the duration and scope suggest a substantial, albeit necessary, investment.

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 presence of 3 bidders (implied by 'no': 3) suggests a moderate level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to vie for the contract, driving down prices and improving the quality of services offered. This process helps ensure that the government is receiving the best possible value for its investment.

Public Impact

Naval personnel benefit from improved efficiency and reliability of critical IT systems. Services delivered include management and logistics support for legacy information systems. The geographic impact is primarily within the Department of the Navy's operational areas. Workforce implications include the need for skilled IT professionals to manage and maintain these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Reliance on legacy systems may present challenges in terms of modernization and cybersecurity.
The long-term nature of the contract requires sustained oversight to ensure performance.

Positive Signals

Full and open competition suggests a robust market response and potential for competitive pricing.
The contract addresses essential operational needs for the Navy's logistics and management.
A five-year duration provides stability for both the contractor and the government.

Sector Analysis

This contract falls within the Information Technology services sector, specifically focusing on the maintenance and support of legacy systems. The IT services market is vast, with significant government spending allocated to maintaining existing infrastructure and developing new capabilities. This contract represents a portion of the Department of the Navy's broader IT spending, aimed at ensuring the operational readiness of its information systems. Comparable spending benchmarks would typically involve analyzing IT support contracts for other military branches or large civilian agencies with similar system complexities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting requirements in the provided summary. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor, CACI Technologies, LLC, may engage small businesses as subcontractors, which would need to be assessed through more detailed contract reporting.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and program managers. They are responsible for monitoring costs, ensuring performance against contract requirements, and approving expenditures. Transparency is facilitated through contract reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Navy IT Modernization Programs
Defense Logistics Agency IT Support
Naval Information Warfare Systems Command Contracts
Enterprise Resource Planning (ERP) Systems Support
Legacy System Sustainment Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Cybersecurity vulnerabilities of legacy systems
Dependence on specialized, potentially scarce technical expertise
Risk of integration challenges with modern systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $149.1 million to CACI TECHNOLOGIES, LLC. NAVY LEGACY SHIP MANAGEMENT AND LOGISTICS SUPPORT INFORMATION SYSTEMS (SMLIS)

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $149.1 million.

What is the period of performance?

Start: 2008-07-18. End: 2013-07-17.

What is the historical spending trend for Navy legacy ship management and logistics support information systems?

Analyzing historical spending for the Navy's Legacy Ship Management and Logistics Support Information Systems (SMLIS) requires access to detailed historical contract data beyond this single award. However, the award of $149 million in 2008 for a five-year period suggests a consistent and significant investment in maintaining these critical systems. Federal agencies, particularly the Department of Defense, often face substantial costs in sustaining aging IT infrastructure due to the complexity, security requirements, and specialized expertise needed. Trends in defense IT spending generally show a continuous need for support services, with fluctuations based on modernization priorities, budget allocations, and evolving technological landscapes. Without prior contract data for SMLIS, it's difficult to establish a precise trend, but the scale of this award indicates it's a substantial and ongoing requirement.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar IT support services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are uncertain, as is common in complex IT projects. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, offering greater cost certainty for the government but potentially higher initial prices to account for contractor risk. Cost-Reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee) offer more flexibility in cost adjustment based on performance. For IT support, FFP might be preferred for routine services, while CPFF or other cost-reimbursement types are suitable for development, integration, or sustainment of complex systems where precise cost estimation is challenging. The CPFF structure here suggests the Navy aimed to balance cost control with the need for flexibility in managing legacy systems.

What are the primary risks associated with managing legacy IT systems for the Navy?

Managing legacy IT systems for the Navy presents several significant risks. Firstly, cybersecurity threats are a major concern, as older systems may lack modern security features, making them vulnerable to breaches and cyberattacks. Secondly, operational risks include system failures, performance degradation, and difficulties in integration with newer technologies, which can disrupt critical naval operations. Thirdly, sustainment risks arise from the scarcity of skilled personnel familiar with outdated technologies and the increasing cost and difficulty of obtaining spare parts or support. Finally, modernization risks are inherent; attempting to upgrade or replace legacy systems can be extremely complex, costly, and disruptive. This contract's focus on managing these systems acknowledges these risks and aims to mitigate them through dedicated support.

What is CACI Technologies, LLC's track record with similar government IT support contracts?

CACI Technologies, LLC has a substantial track record of performing IT support and services for various U.S. government agencies, including the Department of Defense. They are a large government contractor with extensive experience in areas such as enterprise IT, C4ISR, cybersecurity, and business systems modernization. Their portfolio includes numerous contracts for managing complex IT infrastructures, providing technical support, and developing software solutions for military and civilian agencies. While specific performance details for this particular contract (Navy Legacy Ship Management and Logistics Support Information Systems) would require deeper analysis of past performance reviews and contract modifications, CACI's general profile suggests they possess the scale and expertise typically required for such large-scale IT sustainment efforts.

How does the $149 million award value compare to the overall IT spending of the Department of the Navy?

The $149 million award for Navy Legacy Ship Management and Logistics Support Information Systems (SMLIS) represents a significant investment, but it must be viewed within the context of the Department of the Navy's overall IT budget. The Navy's annual IT spending typically runs into the billions of dollars, covering a wide array of requirements including network infrastructure, cybersecurity, software development, end-user support, and platform modernization. This $149 million contract, awarded over five years (averaging approximately $29.8 million annually), likely constitutes a specific, albeit substantial, portion dedicated to the sustainment and support of critical legacy logistics and management information systems. It is not indicative of the Navy's total IT expenditure but rather highlights the ongoing costs associated with maintaining essential, older systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3333

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14151 PARK MEADOW DRIVE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $149,814,947

Exercised Options: $149,814,947

Current Obligation: $149,122,583

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4026

IDV Type: IDC

Timeline