CACI, INC. - FEDERAL awarded $180.5M for DoD engineering services, spanning multiple locations and task areas

Contract Overview

Contract Amount: $180,491,042 ($180.5M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2016-07-27

End Date: 2023-07-26

Contract Duration: 2,555 days

Daily Burn Rate: $70.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF SOLICITATION SEEKS A CONTRACTOR ABLE TO PROVIDE EXPERTISE IN THE AREAS OF PROGRAM MANAGEMENT, BUSINESS AND FINANCIAL MANAGEMENT PLANNING AND EXECUTION, SYSTEMS ENGINEERING, MISSION SYSTEMS ENGINEERING, PRODUCTION PLANNING AND ENGINEERING, TEST AND EVALUATION ENGINEERING, LIFE CYCLE ENGINEERING AND SUPPORT AND FLEET INTRODUCTION AND OPERATIONAL READINESS. TASKS SHALL BE EXECUTED IN WASHINGTON DC; MARINETTE, WS; MOBILE, AL; SAN DIEGO, CA; MAYPORT, FL AND BATH, ME AS REQUIRED.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $180.5 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF SOLICITATION SEEKS A CONTRACTOR ABLE TO PROVIDE EXPERTISE IN THE AREAS OF PROGRAM MANAGEMENT, BUSINESS AND FINANCIAL MANAGEMENT PLANNING AND EXECUTION, SYSTEMS ENGINEERING, MISSION SYSTEMS ENGINEERING, PRODUCTION PLANNING AND ENGINEERING, TEST AND EVALUATION ENGINEER… Key points: 1. Contract provides broad engineering and program management support across various naval platforms. 2. Performance spans multiple geographic locations, indicating a wide operational reach. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed tightly. 4. Multiple task areas suggest a complex and multifaceted support requirement. 5. The duration of the contract (over 7 years) indicates a long-term need for these services. 6. The awardee has a significant presence in federal contracting, suggesting established capabilities.

Value Assessment

Rating: good

The total award amount of $180.5 million over approximately 7 years for comprehensive engineering and program management services appears reasonable given the scope. Benchmarking against similar large-scale engineering support contracts for naval programs suggests this falls within expected spending ranges. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, requires diligent oversight to ensure cost control and prevent scope creep, which is a common risk factor in such arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple offerors had the opportunity to bid. The presence of 5 bids suggests a competitive environment, which generally benefits price discovery and value for the government. The specific number of bidders is a positive indicator of market interest and the availability of qualified contractors for this type of complex engineering support.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive bidding process among qualified contractors.

Public Impact

The Department of the Navy benefits from specialized expertise in program management, systems engineering, and fleet readiness. Services delivered are critical for the development, production, and operational support of naval assets. Geographic impact includes major naval hubs like Washington D.C., Marinette, WI, Mobile, AL, San Diego, CA, Mayport, FL, and Bath, ME. Workforce implications include skilled engineering and program management jobs in these key locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type necessitates robust oversight to manage potential cost escalations.
The broad scope of services could lead to challenges in performance monitoring and integration.
Multiple performance locations increase logistical complexity and oversight requirements.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Long contract duration suggests a stable and ongoing need for critical services.
The awardee, CACI, Inc. - Federal, is a large and established government contractor with extensive experience.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense and naval programs. The market for defense engineering services is substantial, driven by ongoing modernization and maintenance needs of military assets. This contract represents a significant investment in ensuring the operational readiness and technological advancement of the U.S. Navy's fleet, aligning with broader defense spending trends.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While CACI, Inc. - Federal is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses will depend on CACI's teaming arrangements and the specific requirements of the task orders issued under this contract.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy's contracting and program management officials. The Cost Plus Fixed Fee structure requires diligent financial oversight to ensure costs are reasonable and allocable to the contract. Transparency is facilitated through contract reporting mechanisms, and the Inspector General for the Department of Defense would have jurisdiction for audits and investigations into fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Program Management Support Contracts
Systems Engineering Support
Fleet Readiness Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Complexity of managing services across multiple geographic locations
Ensuring consistent quality and performance across diverse task areas

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $180.5 million to CACI, INC. - FEDERAL. IGF::OT::IGF SOLICITATION SEEKS A CONTRACTOR ABLE TO PROVIDE EXPERTISE IN THE AREAS OF PROGRAM MANAGEMENT, BUSINESS AND FINANCIAL MANAGEMENT PLANNING AND EXECUTION, SYSTEMS ENGINEERING, MISSION SYSTEMS ENGINEERING, PRODUCTION PLANNING AND ENGINEERING, TEST AND EVALUATION ENGINEERING, LIFE CYCLE ENGINEERING AND SUPPORT AND FLEET INTRODUCTION AND OPERATIONAL READINESS. TASKS SHALL BE EXECUTED IN WASHINGTON DC; MARINETTE, WS; MOBILE, AL; SAN DIEGO, CA; MAYPORT, FL AND BATH, ME AS REQUIRED.

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 $180.5 million.

What is the period of performance?

Start: 2016-07-27. End: 2023-07-26.

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

CACI, Inc. - Federal has a substantial track record of performing large-scale engineering and program management contracts for the Department of Defense and other federal agencies. They are a well-established prime contractor known for providing a wide array of IT, systems engineering, and professional services. Their past performance often includes complex projects involving naval systems, C4ISR, and enterprise IT modernization. Reviewing their specific contract history with NAVSEA and other naval commands would provide further insight into their capabilities and success rates in delivering similar services, including their ability to manage costs and meet performance metrics on long-term, high-value agreements.

How does the $180.5 million total contract value compare to similar engineering support contracts awarded by the Navy?

The $180.5 million total contract value, awarded over approximately 7 years, positions this as a significant but not unprecedented contract for comprehensive engineering and program management support within the Department of the Navy. Large naval platforms and complex systems development often require multi-year support contracts in the tens to hundreds of millions of dollars. For instance, contracts for ship design, combat systems integration, and lifecycle support can easily reach or exceed this value. Benchmarking against contracts for similar services, such as systems engineering for new ship classes or major modernization programs, suggests this award is in line with market rates for extensive, long-term support.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and scope?

The primary risks associated with a CPFF contract of this magnitude and scope revolve around cost control and potential for contractor profit inflation. While the fixed fee provides a ceiling for the contractor's profit, the 'cost' portion is reimbursable. This structure can incentivize contractors to incur higher costs, as their fee is a percentage of or fixed amount regardless of the actual costs incurred (depending on the specific CPFF structure). For the government, risks include potential cost overruns if the contractor's cost estimating or management is poor, and the need for rigorous oversight to ensure costs are reasonable, allocable, and allowable. Scope creep is another significant risk, where requirements expand without adequate adjustments to the fee or schedule, leading to increased costs.

How effective are the multiple geographic locations in ensuring comprehensive support for naval readiness across different fleet concentrations?

The inclusion of multiple geographic locations (Washington D.C., Marinette, WI; Mobile, AL; San Diego, CA; Mayport, FL; and Bath, ME) is strategically designed to ensure comprehensive support for naval readiness across diverse fleet concentrations and shipbuilding/maintenance hubs. This distributed presence allows the contractor to provide timely, on-site expertise closer to the operational units and facilities they support. For example, presence in San Diego and Mayport directly supports major fleet commands on the West and East Coasts, respectively, while locations like Marinette and Bath are crucial for shipbuilding and major repair activities. This geographic spread enhances responsiveness and reduces travel time/costs for critical engineering and program management tasks.

What are the implications of 'Engineering Services' (NAICS 541330) for the types of tasks performed under this contract?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' signifies that the core of this contract involves providing professional engineering expertise. This encompasses a wide range of activities, including design, development, analysis, and consultation related to physical infrastructure, systems, and processes. For this specific contract, it means the contractor will be engaged in tasks such as systems engineering for naval platforms, production planning, test and evaluation engineering, lifecycle support, and program management that requires deep technical understanding. It implies a focus on technical problem-solving, innovation, and ensuring the functional integrity and performance of complex naval systems throughout their lifecycle.

What is the historical spending trend for engineering and program management services by the Department of the Navy?

The Department of the Navy consistently allocates substantial funding towards engineering and program management services, reflecting the complexity and scale of its platforms and operations. Historical spending trends show a significant and often increasing investment in these areas, driven by modernization efforts, new platform development (e.g., aircraft carriers, submarines, destroyers), and the sustainment of existing fleets. Annual expenditures for such services typically run into the billions of dollars across the Navy. Factors influencing these trends include geopolitical conditions, technological advancements, shipbuilding schedules, and readiness requirements. This $180.5M contract is a component of that larger, ongoing investment.

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: N0002414R3030

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

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: $189,775,235

Exercised Options: $183,992,464

Current Obligation: $180,491,042

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $104,101,095

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline