DoD Awards $173.7M for Data Transport Product Support to CACI, Inc. - Federal
Contract Overview
Contract Amount: $173,741,584 ($173.7M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2024-03-22
End Date: 2028-08-03
Contract Duration: 1,595 days
Daily Burn Rate: $108.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DATA TRANSPORT PRODUCT SUPPORT SUSTAINMENT LOGISTICS MAINTENANCE
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $173.7 million to CACI, INC. - FEDERAL for work described as: DATA TRANSPORT PRODUCT SUPPORT SUSTAINMENT LOGISTICS MAINTENANCE Key points: 1. Significant contract value of $173.7 million for essential data transport product support. 2. CACI, Inc. - Federal secured this award, indicating strong performance or competitive positioning. 3. The contract falls under Computer Systems Design Services, a critical IT sector. 4. Risk is moderate, given the long-term nature and complexity of sustainment logistics.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring to ensure cost efficiency. Benchmarking against similar IT sustainment contracts is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded via full and open competition, suggesting a robust price discovery process. The Delivery Order structure indicates it's part of a larger IDIQ, but the specific competition for this order is key.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense IT infrastructure, with competition aiming for best value.
Public Impact
Ensures continued operational readiness for Air Force data transport systems. Supports critical logistics and maintenance functions for advanced technology. Impacts the efficiency and security of military communication networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPFF contract type.
- Long-term sustainment can lead to vendor lock-in if not managed.
- Dependency on a single vendor for critical IT support.
Positive Signals
- Awarded through full and open competition.
- Supports essential defense operations.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract is within the IT sector, specifically Computer Systems Design Services. Spending benchmarks for similar sustainment and logistics contracts for defense agencies are typically in the millions to billions, depending on scope.
Small Business Impact
The contract was awarded to CACI, Inc. - Federal, a large business. There is no explicit indication of small business participation in this specific award, which warrants further review for subcontracting opportunities.
Oversight & Accountability
The Department of the Air Force is the procuring agency. Oversight will be crucial to manage the CPFF contract, track performance metrics, and ensure adherence to the scope of work for sustainment and logistics.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration (over 4 years).
- Potential for vendor lock-in.
- Lack of explicit small business subcontracting noted.
- Dependency on a single large business for critical IT support.
Tags
computer-systems-design-services, department-of-defense, co, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $173.7 million to CACI, INC. - FEDERAL. DATA TRANSPORT PRODUCT SUPPORT SUSTAINMENT LOGISTICS MAINTENANCE
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 $173.7 million.
What is the period of performance?
Start: 2024-03-22. End: 2028-08-03.
How does the fixed fee component of this CPFF contract compare to industry standards for similar IT sustainment services, and what mechanisms are in place to ensure it remains competitive?
The fixed fee in a CPFF contract is negotiated at the outset and represents the contractor's profit. To ensure competitiveness, the government should benchmark this fee against historical data for similar services and consider the complexity and risk involved. Robust performance metrics and potential for award fees or penalties tied to outcomes can also incentivize efficiency and value.
What are the specific risks associated with the long duration (nearly 5 years) of this sustainment contract, and what mitigation strategies are being employed by the Air Force?
Long-term sustainment contracts carry risks such as technological obsolescence, potential for cost creep if not closely managed, and reduced flexibility to adopt newer, more efficient solutions. Mitigation strategies may include incorporating periodic reviews, performance-based incentives, clear exit clauses, and contingency plans for technology refreshes or alternative support providers.
To what extent does this contract contribute to the overall modernization and efficiency goals of the Air Force's data transport infrastructure, beyond basic maintenance and support?
The contract's contribution to modernization depends on its specific scope and deliverables. While focused on sustainment and logistics, it could indirectly support modernization by ensuring a stable, reliable baseline infrastructure. However, explicit provisions for technology insertion, upgrades, or integration with newer systems would be necessary for direct modernization impact.
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: 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: $439,506,004
Exercised Options: $197,144,677
Current Obligation: $173,741,584
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0009
IDV Type: GWAC
Timeline
Start Date: 2024-03-22
Current End Date: 2028-08-03
Potential End Date: 2029-09-22 00:00:00
Last Modified: 2026-01-15
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