DoD's $303M CACI Contract for ISR Innovation and Integration Faces Scrutiny

Contract Overview

Contract Amount: $303,638,721 ($303.6M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2023-08-17

End Date: 2028-08-17

Contract Duration: 1,827 days

Daily Burn Rate: $166.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FULL-SPECTRUM INTELLIGENCE, SURVEILLANCE & RECONNAISSANCE (ISR), INNOVATION AND INTEGRATION-3 (F3I-3)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $303.6 million to CACI, INC. - FEDERAL for work described as: FULL-SPECTRUM INTELLIGENCE, SURVEILLANCE & RECONNAISSANCE (ISR), INNOVATION AND INTEGRATION-3 (F3I-3) Key points: 1. The contract focuses on critical intelligence, surveillance, and reconnaissance capabilities. 2. CACI, Inc. - Federal is the sole awardee, raising questions about competition. 3. The 'Cost Plus Fixed Fee' structure can lead to cost overruns. 4. This spending falls within the Engineering Services sector, a common area for large federal contracts.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type offers less price certainty than fixed-price contracts. Without detailed cost breakdowns and robust oversight, it's difficult to assess if the $303.6M is competitive against similar ISR integration services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as 'Full and Open Competition,' the award is a Delivery Order to CACI, Inc. - Federal. This suggests a potential pre-existing contract or a limited competition scenario, impacting price discovery and potentially leading to higher costs.

Taxpayer Impact: The CPFF structure and limited visibility into the competitive process raise concerns about taxpayer value for money in this significant defense spending.

Public Impact

Enhances national security through advanced ISR capabilities. Supports technological advancements in intelligence gathering and analysis. Potential for cost overruns due to the CPFF contract type. Impacts the defense industrial base and CACI's market position.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Sole awardee for a significant contract
Lack of detailed cost transparency

Positive Signals

Addresses critical national security needs
Focus on innovation and integration
Long-term contract provides stability

Sector Analysis

This contract falls under Engineering Services, a broad category often encompassing complex system integration and development for defense applications. Benchmarks for ISR innovation contracts can vary widely based on scope and technology.

Small Business Impact

The data indicates this contract was not set aside for small businesses, suggesting large prime contractors are likely involved. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

The 'Cost Plus Fixed Fee' structure necessitates strong oversight from the Department of the Air Force to manage costs and ensure performance. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited visibility into competitive pricing
Sole awardee raises competition concerns
Requires significant oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $303.6 million to CACI, INC. - FEDERAL. FULL-SPECTRUM INTELLIGENCE, SURVEILLANCE & RECONNAISSANCE (ISR), INNOVATION AND INTEGRATION-3 (F3I-3)

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 $303.6 million.

What is the period of performance?

Start: 2023-08-17. End: 2028-08-17.

What specific ISR technologies and integration services are included in this $303M contract, and how do they align with current defense priorities?

The contract, F3I-3, focuses on Full-Spectrum Intelligence, Surveillance & Reconnaissance (ISR) Innovation and Integration. This likely encompasses advanced sensor technologies, data fusion, analytics platforms, and secure communication systems tailored to evolving threats. Alignment with defense priorities would involve supporting joint all-domain command and control (JADC2) initiatives and enhancing situational awareness across various operational environments.

Given the CPFF structure and sole awardee status, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing?

The Cost Plus Fixed Fee (CPFF) structure inherently carries cost overrun risk. Mitigation relies heavily on the Air Force's robust oversight, including detailed cost accounting standards, regular audits, and performance metrics tied to fee achievement. While 'Full and Open Competition' is stated, the single delivery order to CACI suggests a pre-competed vehicle or limited competition, necessitating strong negotiation and baseline cost validation by the agency.

How will the successful execution of this contract contribute to the Department of Defense's overall intelligence gathering effectiveness and technological advantage?

Successful execution will directly enhance the DoD's ability to collect, process, and disseminate critical ISR data. By integrating innovative technologies, the contract aims to improve sensor fusion, accelerate data analysis, and provide commanders with more timely and actionable intelligence. This ultimately strengthens situational awareness, improves decision-making speed, and maintains a technological edge against adversaries in complex operating environments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA875023R0080

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: $648,043,253

Exercised Options: $648,043,253

Current Obligation: $303,638,721

Actual Outlays: $212,701

Subaward Activity

Number of Subawards: 131

Total Subaward Amount: $404,652,115

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU309

IDV Type: IDC

Timeline