CACI awarded $45.2M for Air Force test equipment modernization, impacting Utah's tech sector

Contract Overview

Contract Amount: $45,246,632 ($45.2M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2025-12-18

End Date: 2030-05-05

Contract Duration: 1,599 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUTOMATED TEST EQUIPMENT MODERNIZATION IN SUPPORT OF 309TH ELECTRONICS MAINTENANCE GROUP AT HILL AIR FORCE BASE.

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $45.2 million to CACI, INC. - FEDERAL for work described as: AUTOMATED TEST EQUIPMENT MODERNIZATION IN SUPPORT OF 309TH ELECTRONICS MAINTENANCE GROUP AT HILL AIR FORCE BASE. Key points: 1. Contract focuses on modernizing automated test equipment, crucial for maintaining complex electronic systems. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity contract, suggesting ongoing needs. 3. Competition was full and open, indicating a broad market search and potential for competitive pricing. 4. The contract duration of nearly 5 years suggests a significant, long-term requirement for these services. 5. Services are categorized under Computer Systems Design, a key area within the IT sector. 6. The primary location of performance is Utah, potentially boosting the local technology workforce and economy.

Value Assessment

Rating: good

The contract value of $45.2 million over approximately 5 years represents a substantial investment in maintaining critical Air Force capabilities. Benchmarking this against similar IT modernization contracts for defense agencies requires detailed analysis of scope and duration. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The specific nature of 'automated test equipment modernization' implies specialized services, making direct cost comparisons challenging without understanding the underlying technology and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was sought, which can lead to better pricing and innovative solutions for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field, driving down costs through competitive bidding, and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of the Air Force's 309th Electronics Maintenance Group, ensuring operational readiness of critical systems. The services delivered will modernize automated test equipment, enhancing the efficiency and effectiveness of electronic system maintenance. The geographic impact is concentrated in Utah, where the work will be performed, potentially creating or sustaining high-tech jobs. Workforce implications include the need for skilled technicians and engineers in computer systems design and electronic maintenance within the Utah region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if modernization requirements are not clearly defined and managed.
Dependence on CACI, Inc. - Federal for specialized technical expertise in test equipment.
Risk of obsolescence if modernization efforts do not anticipate future technological advancements.

Positive Signals

Firm fixed-price contract structure shifts cost overrun risk to the contractor.
Full and open competition suggests a competitive market and potential for value.
Long contract duration allows for sustained support and potential for economies of scale.
Modernization efforts aim to improve efficiency and reduce long-term maintenance costs.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration. The market for defense IT modernization is substantial, driven by the need to maintain aging infrastructure and adapt to evolving technological threats. Comparable spending benchmarks would involve analyzing other contracts for similar automated test equipment or electronic maintenance support services across various defense branches. The $45.2 million value positions this as a significant, though not exceptionally large, contract within this specialized niche.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. While there is no explicit small business set-aside, the prime contractor, CACI, Inc. - Federal, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will depend on CACI's procurement practices and the availability of specialized services required for this project. Analysis of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract type, which requires the contractor to deliver specified outcomes within the agreed budget. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense IT Modernization Programs
Automated Test Equipment Services
Air Force Logistics and Maintenance Contracts
Computer Systems Design Services
Federal IT Services Procurement

Risk Flags

Potential for cost overruns (mitigated by FFP)
Risk of technological obsolescence
Integration complexity with legacy systems
Dependence on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.2 million to CACI, INC. - FEDERAL. AUTOMATED TEST EQUIPMENT MODERNIZATION IN SUPPORT OF 309TH ELECTRONICS MAINTENANCE GROUP AT HILL AIR FORCE BASE.

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 $45.2 million.

What is the period of performance?

Start: 2025-12-18. End: 2030-05-05.

What is CACI, Inc. - Federal's track record with similar automated test equipment modernization contracts for the Department of Defense?

CACI, Inc. - Federal has a significant history of providing IT and engineering services to the Department of Defense. While specific details on their past performance with automated test equipment (ATE) modernization contracts are not provided in this data snippet, their broad capabilities in systems integration, software development, and technical support suggest they are well-positioned for such work. A deeper dive into their contract history, including past performance evaluations and any awards related to ATE or similar complex electronic maintenance systems, would be necessary for a comprehensive assessment. Reviewing their portfolio for similar projects within the Air Force or other branches could reveal their expertise and success rates in delivering comparable modernization solutions.

How does the $45.2 million contract value compare to other federal spending on automated test equipment modernization?

The $45.2 million contract value for automated test equipment (ATE) modernization is a substantial figure, indicating a significant investment by the Air Force. To benchmark this value, one would need to compare it against historical spending data for similar ATE modernization efforts across the Department of Defense and other federal agencies. Factors such as the scope of modernization (e.g., number of systems, complexity of technology), contract duration (nearly 5 years), and specific requirements (e.g., software, hardware, integration) are crucial for a meaningful comparison. Without access to a broader dataset of ATE modernization contracts, it's difficult to definitively state whether this represents high, low, or average spending. However, given the critical nature of maintaining advanced military electronics, such investments are often substantial and necessary for operational readiness.

What are the primary risks associated with modernizing automated test equipment for the Air Force, and how are they mitigated in this contract?

Key risks in modernizing automated test equipment (ATE) include technological obsolescence, integration challenges with existing systems, potential cost overruns, and the need for specialized workforce skills. For this contract, the firm fixed-price (FFP) structure is a primary mitigation strategy, placing the financial risk of cost overruns on the contractor, CACI, Inc. - Federal. The full and open competition aims to ensure that a capable contractor is selected, potentially reducing technical risks. However, risks related to the pace of technological change and the complexity of integrating new ATE with legacy systems remain. Clear performance work statements, robust project management, and potentially phased implementation could further mitigate these risks. The long duration also allows for iterative development and adaptation, but requires diligent oversight.

What is the expected impact of this contract on the operational effectiveness of the 309th Electronics Maintenance Group?

The modernization of automated test equipment is expected to significantly enhance the operational effectiveness of the 309th Electronics Maintenance Group. Outdated test equipment can lead to longer diagnostic times, increased downtime for critical aircraft and electronic systems, and higher maintenance costs. By upgrading to modern ATE, the group should experience faster and more accurate fault detection and diagnosis, leading to quicker repair cycles and improved system availability. This modernization is crucial for maintaining the readiness of complex electronic warfare systems, communication equipment, and other vital components, ultimately supporting the Air Force's mission readiness and reducing the risk of mission failure due to equipment malfunction.

How has federal spending on computer systems design services, like those provided under this contract, trended over the past five years?

Federal spending on computer systems design services (NAICS code 541512) has generally shown a consistent upward trend over the past five years, driven by the ongoing digital transformation initiatives across government agencies. The Department of Defense, in particular, has been a major investor in modernizing its IT infrastructure, cybersecurity capabilities, and data management systems. This includes significant spending on system design, integration, and modernization projects. Factors such as increased cybersecurity threats, the adoption of cloud computing, and the need for advanced data analytics have fueled this demand. While specific year-over-year figures fluctuate based on agency budgets and priorities, the overall trajectory indicates sustained and growing federal investment in this service category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $45,246,632

Exercised Options: $45,246,632

Current Obligation: $45,246,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA822721D0004

IDV Type: IDC

Timeline