CACI awarded $97.1M for engineering services, continuing a long-standing task order for defense needs

Contract Overview

Contract Amount: $97,137,254 ($97.1M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2016-09-01

End Date: 2021-09-09

Contract Duration: 1,834 days

Daily Burn Rate: $53.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF SHIP DESIGN SERVICES THIS IS A CONTINUATION OF TASK ORDER N00178-04-D-4030-EH02 NECESSARY FOR ADMINISTRATIVE PURPOSES.

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 $97.1 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF SHIP DESIGN SERVICES THIS IS A CONTINUATION OF TASK ORDER N00178-04-D-4030-EH02 NECESSARY FOR ADMINISTRATIVE PURPOSES. Key points: 1. Contract value represents a significant investment in specialized engineering expertise. 2. The award is a continuation, suggesting established performance and ongoing requirements. 3. Competition dynamics for this specific task order are not detailed, but the overall contract was fully competed. 4. Risk indicators are moderate, given the cost-plus-fixed-fee structure which can lead to cost overruns if not managed closely. 5. Performance context is tied to a larger, multi-year contract, indicating a sustained relationship. 6. Sector positioning is within defense engineering services, a critical area for national security. 7. The contract duration of 1834 days highlights the long-term nature of the services required.

Value Assessment

Rating: fair

The total award of $97.1M over approximately five years for engineering services appears substantial. Benchmarking this specific task order against similar, highly specialized defense engineering contracts is challenging without more granular data on the scope of work. The cost-plus-fixed-fee (CPFF) contract type, while common for R&D and complex services, carries inherent risks of cost escalation if not meticulously managed. The fixed fee component provides some cost certainty for the contractor's profit, but the overall cost to the government can fluctuate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The underlying contract (N00178-04-D-4030) was awarded under full and open competition, indicating a broad solicitation for potential offerors. However, this specific task order is a continuation, suggesting that CACI, INC. - FEDERAL was likely the incumbent or a selected awardee from the original competitive process. The level of competition for this specific continuation task order is not explicitly detailed, but the initial award under full and open competition suggests a robust market was considered.

Taxpayer Impact: A fully competed initial contract provides a strong foundation for taxpayer value by ensuring a wide range of potential providers were considered, driving competitive pricing. While the specifics of this continuation's competition are less clear, the initial process likely benefited taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense, receiving critical engineering and design services. Services delivered likely support naval platforms or related defense systems, given the contract's history. Geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications include employment for engineers and technical specialists at CACI, INC. - FEDERAL.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not tightly controlled.
The continuation nature of the task order might limit new competitive pressures for this specific work.
Lack of detailed scope for this task order makes precise value assessment difficult.

Positive Signals

Awarded under a contract that underwent full and open competition.
CACI, INC. - FEDERAL is an established contractor with a significant federal presence.
The continuation suggests a stable requirement and potentially satisfactory performance.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of military platforms and systems. Spending in this sector is often characterized by long-term relationships, specialized expertise, and significant government oversight. Comparable spending benchmarks would typically be found within large-scale defense procurement vehicles and service contracts.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. As a continuation task order under a larger contract, the subcontracting opportunities for small businesses would depend on the original contract's structure and CACI's subcontracting plan. Without further details on subcontracting requirements, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), a key component of the Department of Defense responsible for ensuring contractors meet contractual requirements. The cost-plus-fixed-fee nature of the award necessitates robust financial oversight to monitor expenditures and ensure the fixed fee remains appropriate. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed cost breakdowns may not always be publicly accessible.

Related Government Programs

Naval Ship Design Services
Defense Engineering Support Contracts
CACI Federal Contracts
Cost-Plus-Fixed-Fee Contracts
Department of Defense IT and Engineering Services

Risk Flags

Cost-plus-fixed-fee contract type carries inherent risk of cost escalation.
Lack of detailed scope for this specific task order limits granular performance assessment.
Continuation status may indicate reduced competitive pressure for this specific work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.1 million to CACI, INC. - FEDERAL. IGF::OT::IGF SHIP DESIGN SERVICES THIS IS A CONTINUATION OF TASK ORDER N00178-04-D-4030-EH02 NECESSARY FOR ADMINISTRATIVE PURPOSES.

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $97.1 million.

What is the period of performance?

Start: 2016-09-01. End: 2021-09-09.

What is the specific scope of work covered by this continuation task order?

The provided data indicates this is a continuation of Task Order N00178-04-D-4030-EH02, necessary for administrative purposes. However, the specific technical or engineering services rendered under this particular task order are not detailed. Given the contractor (CACI, INC. - FEDERAL) and the agency (Department of Defense), it is highly probable that the work relates to engineering, design, technical support, or program management for defense systems, potentially naval platforms, as suggested by the PSC code often associated with ship design services. Further details would require accessing the full contract documentation.

How does the $97.1M award compare to CACI's historical spending in similar defense engineering contracts?

CACI, INC. - FEDERAL is a large federal contractor with a substantial portfolio across various defense and civilian agencies. A single task order of $97.1M represents a significant but not necessarily extraordinary award for a company of CACI's size, especially within the defense sector where large, multi-year contracts are common. To provide a precise comparison, one would need to analyze CACI's historical contract awards for engineering services, particularly those with the Department of Defense, over similar timeframes. This would involve looking at the total value of similar contracts, their duration, and the specific services provided to establish a benchmark for this particular award's magnitude within CACI's overall business.

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

The primary risk with a CPFF contract, especially one valued at $97.1M, is cost overrun. While the 'fixed fee' component ensures a predetermined profit margin for the contractor, the 'cost plus' element means the government reimburses the contractor's allowable costs. If the contractor's costs exceed initial estimates due to unforeseen complexities, scope creep, or inefficient performance, the total expenditure by the government can increase significantly beyond initial projections. Effective oversight, detailed cost tracking, and robust contract management are crucial to mitigate these risks and ensure the government receives good value.

What does the 'continuation' status of this task order imply about the contractor's performance and the program's stability?

The fact that this is a continuation task order strongly suggests that the contractor, CACI, INC. - FEDERAL, has been performing satisfactorily under the parent contract (N00178-04-D-4030) and that the services provided are still required by the Department of Defense. Continuations typically indicate a stable requirement and a successful working relationship between the government and the contractor. It implies that the initial selection process was effective and that the program or project supported by this task order is ongoing and has not been terminated or significantly altered in a way that would necessitate a new competitive procurement for these specific services.

How does the $97.1M award fit into the broader landscape of federal spending on engineering services?

Federal spending on engineering services, particularly within the Department of Defense, is substantial, often running into billions of dollars annually. This $97.1M award, while significant for a single task order, represents a portion of that larger spending. It falls within the category of specialized professional services essential for defense readiness and modernization. Benchmarking requires comparing it to the total federal budget allocated for engineering and technical services across all agencies, as well as specific defense procurement budgets. This award likely supports a critical, long-term defense capability.

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: N0002416R3235

Offers Received: 4

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: $100,976,242

Exercised Options: $100,976,242

Current Obligation: $97,137,254

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $4,345,644

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