DoD's $50.3M IT Support Contract with CACI Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $50,354,572 ($50.4M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2019-06-21
End Date: 2024-10-22
Contract Duration: 1,950 days
Daily Burn Rate: $25.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FINANCIAL INFORMATION SYSTEMS MAINTENANCE SUPPORT SERVICES FOR SAF/FM AND THE ARMY. FUNDED USING PURCHASE REQUESTS AND ARMY MIPRS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330
Plain-Language Summary
Department of Defense obligated $50.4 million to CACI, INC. - FEDERAL for work described as: FINANCIAL INFORMATION SYSTEMS MAINTENANCE SUPPORT SERVICES FOR SAF/FM AND THE ARMY. FUNDED USING PURCHASE REQUESTS AND ARMY MIPRS. Key points: 1. The contract for financial information systems maintenance is substantial, representing significant IT spending. 2. CACI, Inc. - Federal is the sole awardee, raising questions about competition. 3. The fixed-price contract type aims to control costs, but the overall value needs further assessment. 4. This falls within the Computer Systems Design Services sector, a critical area for government operations.
Value Assessment
Rating: fair
The contract value of $50.3M over approximately 5 years appears high for IT maintenance support. Benchmarking against similar contracts for computer systems design services is crucial to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, the contract utilized a delivery order mechanism. While competition was present, the specific price discovery process and its effectiveness in securing optimal pricing require further examination.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT support services. Ensuring competitive pricing and efficient service delivery is paramount to maximizing the value of this investment.
Public Impact
Ensures the operational continuity of critical financial information systems for the Air Force and Army. Supports the modernization and maintenance of complex IT infrastructure. Potential for cost savings or overspending depending on the efficiency of service delivery and contract management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for vendor lock-in despite initial competition.
- Limited transparency on the breakdown of costs for services rendered.
Positive Signals
- Contract awarded under full and open competition.
- Firm fixed-price contract type helps manage cost uncertainty.
- Long-term support ensures system stability and reduces disruption.
Sector Analysis
This contract falls under the IT sector, specifically Computer Systems Design Services. Spending in this area is consistently high across federal agencies, reflecting the increasing reliance on digital infrastructure and specialized technical expertise.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award, as CACI, Inc. - Federal is a large business. Opportunities for small business subcontracting were not explicitly detailed.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Robust contract management and performance monitoring are essential to ensure CACI delivers on its obligations and that taxpayer funds are used efficiently.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns if not managed tightly.
- Risk of vendor lock-in impacting future flexibility.
- Dependence on a single large contractor for critical systems.
- Limited visibility into subcontractor performance if applicable.
Tags
computer-systems-design-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.4 million to CACI, INC. - FEDERAL. FINANCIAL INFORMATION SYSTEMS MAINTENANCE SUPPORT SERVICES FOR SAF/FM AND THE ARMY. FUNDED USING PURCHASE REQUESTS AND ARMY MIPRS.
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 Air Force).
What is the total obligated amount?
The obligated amount is $50.4 million.
What is the period of performance?
Start: 2019-06-21. End: 2024-10-22.
What specific performance metrics are being used to evaluate CACI's service delivery and ensure the $50.3M contract provides good value?
The provided data does not detail specific performance metrics. A thorough review would require access to the contract's statement of work and any associated performance work statements. Effective oversight necessitates clearly defined KPIs related to system uptime, response times, issue resolution, and adherence to security protocols to ensure value for money.
How effectively did the full and open competition process ensure competitive pricing for these IT maintenance services, given the long duration?
While the contract was awarded under full and open competition, the effectiveness of price discovery over a nearly five-year period warrants scrutiny. Factors such as the specific evaluation criteria used, the number of bids received, and post-award adjustments could impact the final price competitiveness. Periodic market research and price analysis would be beneficial.
What is the potential risk of vendor lock-in with CACI, Inc. - Federal for these critical financial systems, and how is it being mitigated?
There is a potential risk of vendor lock-in, especially if CACI's proprietary systems or deep integration into the agency's infrastructure are involved. Mitigation strategies could include ensuring clear contract exit clauses, requiring knowledge transfer, and maintaining flexibility to transition to other vendors or solutions in the future.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $105,581,846
Exercised Options: $90,384,433
Current Obligation: $50,354,572
Actual Outlays: $1,617,954
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $138,584
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0009
IDV Type: GWAC
Timeline
Start Date: 2019-06-21
Current End Date: 2024-10-22
Potential End Date: 2024-10-22 00:00:00
Last Modified: 2024-08-01
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