DoD awards $78M for counter-UAS R&D, with CACI, Inc. leading sustainment efforts

Contract Overview

Contract Amount: $78,123,889 ($78.1M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2021-09-27

End Date: 2026-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $42.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COUNTER UNMANNED AIRCRAFT SYSTEMS RESEARCH, DEVELOPMENT, AND SUSTAINMENT FOR THE DIGITAL INTEGRATION SUPPORT CELL AND NAVAL SURFACE WARFARE CENTER, CRANE DIVISION

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $78.1 million to CACI, INC. - FEDERAL for work described as: COUNTER UNMANNED AIRCRAFT SYSTEMS RESEARCH, DEVELOPMENT, AND SUSTAINMENT FOR THE DIGITAL INTEGRATION SUPPORT CELL AND NAVAL SURFACE WARFARE CENTER, CRANE DIVISION Key points: 1. Contract focuses on critical counter-unmanned aircraft systems (C-UAS) research and development. 2. Sustainment services for the Digital Integration Support Cell and NSWC Crane Division are included. 3. The contract duration extends over five years, indicating a long-term need for these services. 4. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code. 5. This award represents a significant investment in advanced defense technology capabilities. 6. The contract type is Cost Plus Fixed Fee, allowing for flexibility in R&D projects.

Value Assessment

Rating: good

The total award of $78.1 million over five years for C-UAS R&D and sustainment appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in advanced defense technologies is challenging due to unique requirements, but the cost structure (Cost Plus Fixed Fee) is typical for research-intensive efforts where final costs are not fully predictable. The value proposition lies in developing and maintaining critical capabilities against evolving threats.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders suggests a competitive environment, which generally helps in achieving fair market prices and innovative solutions. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of companies to compete, potentially leading to lower prices and better value for the government's investment.

Public Impact

The Department of Defense, specifically the Naval Surface Warfare Center, Crane Division, benefits from enhanced C-UAS capabilities. Services delivered include research, development, and sustainment of critical counter-drone technologies. The geographic impact is primarily within Indiana, where the Naval Surface Warfare Center, Crane Division is located. Workforce implications include specialized R&D roles and sustainment technicians within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts, requiring diligent oversight.
The evolving nature of C-UAS technology may necessitate contract modifications and scope adjustments.
Dependence on a single contractor for critical sustainment could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long-term contract duration indicates a sustained commitment to addressing C-UAS threats.
Focus on R&D and sustainment ensures continuous improvement and operational readiness of defense systems.

Sector Analysis

The defense sector is heavily invested in countering unmanned aerial systems (UAS) due to their increasing proliferation and diverse threat applications. This contract falls under the Research and Development category, specifically focusing on advanced physical, engineering, and life sciences related to C-UAS. The market for C-UAS solutions is rapidly growing, encompassing hardware, software, and integrated systems. Comparable spending benchmarks are difficult to establish precisely due to the bespoke nature of R&D, but significant government investment in this area is a consistent trend.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless CACI, Inc. - Federal actively engages small businesses as subcontractors. Further analysis of subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Naval Surface Warfare Center, Crane Division, and potentially the Department of Defense's Inspector General. Accountability measures will involve regular performance reviews, cost tracking, and adherence to research milestones. Transparency is facilitated through contract award data, but detailed project progress and spending reports are typically internal.

Related Government Programs

Counter-UAS Systems
Naval Surface Warfare Center Research and Development
Defense Advanced Research Projects Agency (DARPA) Programs
Air Force Research Laboratory Contracts
Department of Homeland Security C-UAS Initiatives

Risk Flags

Cost Overrun Risk
Technological Obsolescence
Performance Dependency
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.1 million to CACI, INC. - FEDERAL. COUNTER UNMANNED AIRCRAFT SYSTEMS RESEARCH, DEVELOPMENT, AND SUSTAINMENT FOR THE DIGITAL INTEGRATION SUPPORT CELL AND NAVAL SURFACE WARFARE CENTER, CRANE DIVISION

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 $78.1 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-09-26.

What is CACI, Inc. - Federal's track record with similar Department of Defense R&D contracts, particularly in C-UAS?

CACI, Inc. - Federal has a substantial history of supporting the Department of Defense across various domains, including IT, intelligence, and engineering services. While specific details on their C-UAS R&D track record require deeper analysis of past contracts, their broad capabilities suggest they possess the foundational expertise. Their performance on previous complex R&D and sustainment contracts would be a key indicator of their ability to successfully execute this award. Reviewing past performance evaluations and contract modifications for similar projects would provide a clearer picture of their reliability and technical proficiency in this specialized area.

How does the $78.1 million award compare to other government investments in counter-UAS research and development?

The $78.1 million award for C-UAS R&D and sustainment is a significant but not unprecedented investment within the broader context of defense spending on emerging threats. The Department of Defense, along with agencies like the Department of Homeland Security, allocates substantial funds annually towards countering UAS. This figure should be viewed relative to the total R&D budget for defense and specifically for counter-threat technologies. While precise comparative figures fluctuate year-to-year and across different branches, this contract represents a notable commitment to advancing C-UAS capabilities, reflecting the growing strategic importance of this technology area.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in a rapidly evolving field like C-UAS?

The primary risks associated with a CPFF contract for C-UAS R&D revolve around cost control and scope creep. In a rapidly evolving field, research objectives can shift, leading to unforeseen technical challenges and increased costs. The 'cost plus' element means the government reimburses the contractor's allowable costs, plus a fixed fee representing profit. If not managed diligently, this can lead to cost overruns if the contractor's cost estimation or management is inadequate. The 'fixed fee' component provides some incentive for the contractor to control costs, but the government bears the majority of the cost risk. Effective oversight, clear milestone definitions, and robust change management processes are crucial to mitigate these risks.

What is the expected program effectiveness and impact of this contract on the Navy's C-UAS capabilities?

The expected program effectiveness hinges on the successful research, development, and sustainment of advanced C-UAS technologies. This contract aims to enhance the Navy's ability to detect, track, identify, and defeat unmanned aerial threats across various operational environments. The sustainment component ensures that existing and newly developed systems remain operational and effective. The ultimate impact should be a strengthened defensive posture against the growing threat posed by drones, contributing to the safety of naval assets and personnel. The success will be measured by the delivered technological advancements and their integration into operational C-UAS frameworks.

How has federal spending on counter-UAS technologies evolved over the past five years, and where does this contract fit in?

Federal spending on counter-UAS technologies has seen a significant upward trend over the past five years, driven by the increasing threat posed by UAS to military and civilian infrastructure. Budgets have expanded to fund research, development, procurement, and training related to C-UAS. This $78.1 million contract fits within this trend as a substantial investment in the R&D and sustainment phase, indicating a strategic focus on developing and maintaining cutting-edge capabilities rather than just acquiring off-the-shelf solutions. It reflects a maturing understanding of the C-UAS challenge and a commitment to long-term technological superiority in this domain.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $82,710,668

Exercised Options: $82,710,668

Current Obligation: $78,123,889

Actual Outlays: $6,838,377

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $30,329,634

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0006

IDV Type: IDC

Timeline