DoD's $130.7M Navy Acquisition Support Contract with CACI Technologies Faces Scrutiny
Contract Overview
Contract Amount: $130,767,636 ($130.8M)
Contractor: CACI Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2014-09-30
End Date: 2021-09-30
Contract Duration: 2,557 days
Daily Burn Rate: $51.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST NO FEE
Sector: Other
Official Description: IGF::OT::IGF IWS CONSOLIDATED UNRESTRICTED - ACQUISITION SUPPORT&ILS
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $130.8 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF IWS CONSOLIDATED UNRESTRICTED - ACQUISITION SUPPORT&ILS Key points: 1. The contract awarded to CACI Technologies, LLC for acquisition support and ILS is substantial at $130.7 million. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of 2557 days (approx. 7 years) indicates a long-term commitment. 4. The sector is Engineering Services, a critical area for defense operations. 5. The contract type is Cost No Fee, which can present oversight challenges.
Value Assessment
Rating: questionable
The Cost No Fee (CNF) contract type is often used when cost estimating is difficult. Without fee, the contractor has less incentive to control costs, potentially leading to higher overall spending than a fixed-price contract. Benchmarking is difficult without fee data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost No Fee structure may limit the price discovery benefits typically seen in competitive procurements.
Taxpayer Impact: The Cost No Fee structure raises concerns about cost control and potential overspending, impacting taxpayer value.
Public Impact
Significant taxpayer investment in acquisition support services for the Navy. Potential for cost overruns due to the Cost No Fee contract type. Impact on Navy's operational readiness and efficiency through acquisition support. Long-term nature of the contract suggests ongoing reliance on CACI Technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type
- Long contract duration
- Lack of performance fee incentive
Positive Signals
- Full and open competition
- Essential acquisition support services
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting acquisition and logistics for the Department of the Navy. Spending in this area is crucial for defense readiness, but efficiency and cost control are paramount.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Cost No Fee structure necessitates robust oversight to ensure contractor performance and prevent cost escalation. The long duration also requires sustained monitoring.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost No Fee contract type may lead to cost overruns.
- Long contract duration limits flexibility and future competition.
- Lack of performance fee incentive for cost control.
- Potential for vendor lock-in.
- Insufficient data on specific performance metrics and outcomes.
Tags
engineering-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $130.8 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF IWS CONSOLIDATED UNRESTRICTED - ACQUISITION SUPPORT&ILS
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 $130.8 million.
What is the period of performance?
Start: 2014-09-30. End: 2021-09-30.
What specific acquisition support and ILS functions are covered under this contract, and how do they align with current Navy needs?
The contract covers acquisition support and Integrated Logistics Support (ILS). These functions are critical for ensuring the Navy's platforms and systems are acquired efficiently and maintained effectively throughout their lifecycle. Understanding the specific deliverables and performance metrics is key to assessing alignment with evolving naval requirements and technological advancements.
How effectively has CACI Technologies managed costs and performance under this Cost No Fee contract, given the lack of a direct profit incentive?
The Cost No Fee structure inherently shifts cost control responsibility heavily onto the government's oversight. Without a performance fee, CACI's primary motivation is contract completion rather than cost efficiency. Assessing performance requires examining detailed cost reports, delivery schedules, and quality metrics to ensure taxpayer funds are used judiciously and objectives are met.
What is the long-term strategic value of consolidating these acquisition support services with a single vendor for nearly seven years?
Consolidating services can lead to efficiencies and deeper institutional knowledge. However, a long-term sole-source or limited competition arrangement, even if initially competed, can reduce future competitive pressure and potentially lead to complacency or higher prices upon renewal. Evaluating the strategic value requires balancing these potential benefits against the risks of reduced market dynamism.
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: N0002413R3036
Offers Received: 5
Pricing Type: COST NO FEE (S)
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: $170,239,085
Exercised Options: $131,123,445
Current Obligation: $130,767,636
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4026
IDV Type: IDC
Timeline
Start Date: 2014-09-30
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2021-05-13
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