DoD's $214M NavalX R&D contract awarded to CACI, Inc. for advanced product innovation

Contract Overview

Contract Amount: $213,972,936 ($214.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2029-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $117.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: REQUIREMENT FOR ADVANCED PRODUCT INNOVATION AND DELIVERY FOR NAVALX.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $214.0 million to CACI, INC. - FEDERAL for work described as: REQUIREMENT FOR ADVANCED PRODUCT INNOVATION AND DELIVERY FOR NAVALX. Key points: 1. Contract focuses on research and development, indicating investment in future capabilities. 2. Awarded under full and open competition, suggesting a broad market search. 3. The contract duration of five years allows for sustained innovation efforts. 4. CACI, Inc. - Federal is the prime contractor, with potential for significant subcontracting. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility in R&D but requires careful oversight. 6. The North American Industry Classification System (NAICS) code 541715 points to specialized physical and engineering sciences research.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging due to its specialized R&D nature. However, the award to CACI, Inc. - Federal, a known entity in government contracting, suggests a competitive selection process. The fixed fee component, while allowing for R&D flexibility, necessitates robust oversight to ensure cost-effectiveness. The total value of over $213 million over five years indicates a significant investment in naval innovation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. This approach typically fosters a competitive environment, potentially leading to better pricing and innovative solutions. The presence of multiple bidders, though not explicitly detailed here, is implied by the 'full and open' designation, which is a positive sign for price discovery and value for taxpayer money.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of solutions and potentially driving down costs through market forces. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining the best value.

Public Impact

The primary beneficiaries are the U.S. Navy and its operational capabilities, through the development of advanced products and innovations. Services delivered include cutting-edge research and development in physical, engineering, and life sciences relevant to naval applications. The geographic impact is primarily national, supporting U.S. defense initiatives, with potential for deployment and use across naval bases and fleets. Workforce implications include opportunities for scientists, engineers, and technical personnel within CACI, Inc. - Federal and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The specialized nature of R&D may present inherent risks in achieving desired outcomes within budget and timeline.
Reliance on a single prime contractor for such a broad innovation mandate could limit diverse perspectives.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The five-year duration allows for sustained focus and development of complex innovations.
CACI, Inc. - Federal has a significant track record in supporting government R&D efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve other large-scale R&D contracts awarded by the DoD or other federal agencies for similar advanced technology development, often in the hundreds of millions of dollars over multiple years.

Small Business Impact

While this contract does not explicitly mention small business set-asides, the prime contractor, CACI, Inc. - Federal, is likely to engage small businesses as subcontractors to fulfill specialized R&D needs. The extent of subcontracting to small businesses will be a key factor in assessing the impact on the small business ecosystem. A robust subcontracting plan could provide significant opportunities for innovative small firms.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve regular performance reviews, financial audits, and technical progress reports to ensure adherence to scope, budget, and timelines. The Department of the Air Force, as the servicing agency, will be responsible for monitoring contractor performance. Transparency will be maintained through contract reporting mechanisms and potential public disclosures related to program milestones.

Related Government Programs

Naval Research and Development Programs
Advanced Technology Development Contracts
Department of Defense Research and Engineering
Naval Systems Development
Defense Innovation Unit (DIU) Initiatives

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Uncertainty in R&D Outcomes
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $214.0 million to CACI, INC. - FEDERAL. REQUIREMENT FOR ADVANCED PRODUCT INNOVATION AND DELIVERY FOR NAVALX.

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 $214.0 million.

What is the period of performance?

Start: 2024-09-27. End: 2029-09-26.

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

CACI, Inc. - Federal has a substantial history of performing large-scale R&D and IT services for the Department of Defense and other federal agencies. They are known for their expertise in areas such as C5ISR, cyber, intelligence, and enterprise IT. While specific details on R&D contracts of this exact nature are proprietary, their extensive portfolio suggests a proven capability to manage complex, long-term research and development projects. Their past performance on similar contracts would be a key factor in the DoD's decision-making process, indicating their ability to deliver on innovation and advanced product development within the specified parameters and budget.

How does the $213.9 million value compare to other Naval R&D contracts awarded in the last five years?

The $213.9 million value for this five-year NavalX contract is significant but falls within the range of major R&D investments made by the Department of Defense. Large-scale R&D contracts, especially those focused on advanced technologies and long-term innovation, frequently span multiple years and reach hundreds of millions of dollars. For instance, contracts for developing new naval platforms, advanced materials, or sophisticated electronic warfare systems can easily exceed this amount. This contract's value suggests a substantial commitment to advancing naval capabilities through dedicated research and development efforts, aligning with typical DoD spending patterns for strategic technological advancement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced product innovation?

The primary risks with a CPFF contract for advanced product innovation revolve around cost control and scope creep. While the fixed fee provides the contractor with an incentive to manage costs efficiently, the 'cost-plus' element means that the government reimburses the contractor for allowable costs incurred. In R&D, where outcomes can be uncertain and requirements may evolve, there's a risk that costs could escalate beyond initial projections if not rigorously monitored. Scope creep, where the project's objectives expand beyond the original agreement, can also drive up costs. Effective oversight, clear definition of milestones, and strong change management are crucial to mitigate these risks and ensure value for taxpayer money.

How does the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) inform the scope of this contract?

The NAICS code 541715 signifies that this contract is focused on fundamental and applied research and development in the physical, engineering, and life sciences, excluding nanotechnology and biotechnology. This implies that the work under this contract will involve scientific inquiry and experimentation to advance knowledge and create new products or processes within these broad scientific domains. For NavalX, this could translate to innovations in areas such as advanced materials for shipbuilding, new propulsion systems, sophisticated sensor technologies, improved navigation systems, or novel methods for underwater operations. The code ensures that the contract's objectives align with specialized scientific and engineering expertise.

What are the potential implications of awarding this contract to CACI, Inc. - Federal for the broader defense innovation ecosystem?

Awarding this significant R&D contract to CACI, Inc. - Federal has several implications for the defense innovation ecosystem. Firstly, it validates CACI's position as a key player in advanced defense technology development. Secondly, it signals the Department of the Navy's commitment to leveraging established contractors for complex innovation projects. This could encourage other large contractors to invest further in their R&D capabilities. However, it also highlights the importance of ensuring that such large awards do not stifle innovation from smaller, more agile companies. CACI's potential subcontracting strategy will be crucial in determining how effectively this contract integrates and benefits the broader ecosystem, including small businesses and research institutions.

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: 2

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: $805,762,801

Exercised Options: $805,762,801

Current Obligation: $213,972,936

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $116,929,169

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