Navy awards $117M R&D contract for ship design and maintenance, with CACI Inc. as prime

Contract Overview

Contract Amount: $117,168,169 ($117.2M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2022-08-24

End Date: 2027-08-23

Contract Duration: 1,825 days

Daily Burn Rate: $64.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DESIGN, MAINTENANCE, QUALITY, EXTENSION ENGINEERING, AND SHIPYARD QUALITY ASSURANCE RESEARCH AND DEVELOPMENT FOR THE UNITED STATES NAVY MILITARY SEALIFT COMMAND

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $117.2 million to CACI, INC. - FEDERAL for work described as: DESIGN, MAINTENANCE, QUALITY, EXTENSION ENGINEERING, AND SHIPYARD QUALITY ASSURANCE RESEARCH AND DEVELOPMENT FOR THE UNITED STATES NAVY MILITARY SEALIFT COMMAND Key points: 1. Contract focuses on research and development for ship design, maintenance, and quality assurance. 2. The award represents a significant investment in naval engineering capabilities. 3. Competition was full and open, suggesting a robust market for these specialized services. 4. The contract duration of five years indicates a long-term need for these R&D efforts. 5. Performance is expected to enhance the operational readiness and lifecycle of Navy vessels. 6. The primary contractor, CACI Inc. - Federal, has a substantial presence in government contracting.

Value Assessment

Rating: good

The contract value of $117 million over five years for R&D in ship design and maintenance appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale R&D contracts for naval systems is challenging due to unique requirements, but the cost-plus-fixed-fee structure allows for flexibility while incentivizing contractor efficiency. The specific R&D tasks will determine the ultimate value-for-money, but the initial award suggests a considered investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. The specific number of bidders is not provided, but the competitive process is expected to drive fair pricing and innovation. A competitive environment generally benefits the government by ensuring a wider range of technical solutions and potentially lower costs compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for their investment in critical naval R&D. It helps ensure that public funds are used efficiently by fostering a market where contractors must offer compelling technical solutions and competitive pricing.

Public Impact

The U.S. Navy Military Sealift Command is the primary beneficiary, receiving advanced R&D for its fleet. Services delivered include design, maintenance, quality assurance, and extension engineering for naval vessels. The geographic impact is national, supporting naval operations and technological advancement across the U.S. fleet. Workforce implications include opportunities for engineers, researchers, and technical specialists in the maritime R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee contracts if not closely managed.
Ensuring the R&D directly translates into tangible improvements in ship design and maintenance effectiveness.
Managing the scope of work to prevent 'scope creep' over the five-year contract period.

Positive Signals

Full and open competition suggests a healthy market and potential for innovative solutions.
The long-term nature of the contract allows for sustained focus on critical R&D objectives.
CACI's established presence in federal contracting may indicate a reliable performance history.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The North American Industry Classification System (NAICS) code 541715 covers R&D in these areas. The defense sector heavily relies on such R&D to maintain technological superiority and operational readiness. Comparable spending benchmarks are difficult to pinpoint precisely due to the specialized nature of naval R&D, but significant investments are common in defense modernization efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, CACI Inc. - Federal, will likely manage the majority of the work. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting opportunities if CACI chooses to engage them, or through competition for future, smaller R&D contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense, specifically the Naval Sea Systems Command (NAVSEA) or equivalent, given the nature of the work. Accountability measures are typically embedded within the contract's performance work statement (PWS) and reporting requirements. Transparency is facilitated through contract award announcements and potential public reporting on R&D milestones, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Ship Design and Engineering Services
Maritime Research and Development Programs
Defense Logistics and Maintenance Contracts
Shipbuilding and Repair Industry Support
Military Sealift Command Operations

Risk Flags

Cost Overrun Risk (CPFF Structure)
Scope Creep Potential
Measuring R&D ROI
Long-term Technology Integration Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $117.2 million to CACI, INC. - FEDERAL. DESIGN, MAINTENANCE, QUALITY, EXTENSION ENGINEERING, AND SHIPYARD QUALITY ASSURANCE RESEARCH AND DEVELOPMENT FOR THE UNITED STATES NAVY MILITARY SEALIFT COMMAND

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 $117.2 million.

What is the period of performance?

Start: 2022-08-24. End: 2027-08-23.

What is CACI Inc. - Federal's track record with similar R&D contracts for the Department of Defense?

CACI Inc. - Federal has a substantial history of performing R&D and technical services for the Department of Defense across various branches. While specific details on past naval ship design R&D contracts are not provided here, CACI's portfolio includes significant work in areas such as IT modernization, intelligence analysis, and engineering support. Their experience suggests a capacity to manage complex R&D projects. A deeper dive into their contract history, particularly with NAVSEA or MSC, would reveal specific performance metrics, past challenges, and successes relevant to this award. Their overall performance ratings on federal contracts can be accessed through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS).

How does the $117 million value compare to historical spending on similar naval R&D initiatives?

Comparing the $117 million value requires context on the specific scope and duration of 'similar' R&D initiatives. Naval R&D spending can fluctuate significantly based on modernization priorities, technological advancements, and geopolitical factors. Large-scale R&D programs for new ship classes or advanced propulsion systems can easily run into hundreds of millions or even billions of dollars over their lifecycle. This $117 million award, spread over five years, suggests a focused effort on specific aspects of ship design, maintenance, and quality assurance research rather than a complete platform development. Historical data from defense budget reports and contract databases would be needed to establish a precise benchmark, but this figure appears to be within the range for significant, targeted R&D efforts within the defense sector.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for the Navy?

The primary risk for the Navy with a CPFF contract structure is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a defined profit margin, the 'cost-plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the government pays these higher costs, potentially leading to the total contract value exceeding the initial $117 million projection. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. The contractor is incentivized to control costs to protect their fee, but the government bears the ultimate financial risk if costs escalate significantly.

How will the success of this R&D contract be measured in terms of program effectiveness?

The success of this R&D contract will be measured against specific performance metrics outlined in the Performance Work Statement (PWS). These metrics likely include the successful development and validation of new design methodologies, improved maintenance procedures, enhanced quality assurance protocols, and the successful extension of engineering capabilities. Key performance indicators (KPIs) could involve quantifiable improvements in ship lifecycle costs, reduced maintenance downtime, enhanced structural integrity, or the successful integration of new technologies into naval platforms. Regular technical reviews, prototype testing, and final reports demonstrating the achievement of R&D objectives will be critical for assessing program effectiveness and ensuring the Navy receives tangible benefits from the investment.

What is the historical spending trend for R&D related to naval engineering and maintenance within the Department of Defense?

Historical spending trends for R&D related to naval engineering and maintenance within the Department of Defense show a consistent, albeit fluctuating, investment. The Navy, in particular, dedicates substantial resources to maintaining its technological edge and ensuring the longevity and effectiveness of its fleet. Spending often increases during periods of strategic reorientation, the introduction of new platforms, or in response to evolving threats. While specific figures for 'ship design, maintenance, and quality assurance R&D' are aggregated within broader R&D categories, overall naval R&D budgets have historically ranged from billions to tens of billions of dollars annually. Factors influencing these trends include shipbuilding programs, technological obsolescence, and the drive for greater operational efficiency and reduced lifecycle costs.

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: 1

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: $174,090,694

Exercised Options: $174,090,694

Current Obligation: $117,168,169

Actual Outlays: $2,530,158

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $41,924,100

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