CACI Technologies awarded $19.9M for engineering services, with a significant portion spent on time and materials

Contract Overview

Contract Amount: $19,932,677 ($19.9M)

Contractor: CACI Technologies, LLC

Awarding Agency: General Services Administration

Start Date: 2014-01-22

End Date: 2018-01-20

Contract Duration: 1,459 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF RPTIS WO12 SYSTEM ENGINEERING ANALYSIS AND INTEGRATION

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $19.9 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF RPTIS WO12 SYSTEM ENGINEERING ANALYSIS AND INTEGRATION Key points: 1. Contract value represents a moderate investment in engineering support. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Risk indicators include the use of time and materials pricing. 4. Performance context is tied to engineering analysis and integration. 5. Sector positioning is within professional services for government agencies.

Value Assessment

Rating: fair

The contract's value of $19.9 million over its duration is moderate for engineering services. The use of Time and Materials (T&M) pricing, however, raises concerns about cost control and predictability compared to fixed-price contracts. Benchmarking T&M rates against industry standards and similar government contracts would be crucial to assess value for money. Without detailed breakdowns of labor categories and hours, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of only one award (no: 1) suggests that while competition was open, CACI Technologies, LLC was selected as the most advantageous offer.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiary is the General Services Administration (GSA), receiving engineering analysis and integration support. Services delivered include system engineering, analysis, and integration. The geographic impact is concentrated in Maryland (MD). Workforce implications involve skilled engineers and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely monitored.
Lack of detailed performance metrics makes it difficult to assess efficiency.
The duration of the contract (1459 days) requires sustained oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contractor CACI Technologies, LLC has a track record in government contracting.
The contract addresses critical engineering and integration needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is vital for government operations, providing specialized expertise. The market for government engineering services is substantial, with numerous firms competing for contracts across various agencies. This particular award contributes to the broader landscape of federal IT and engineering support spending.

Small Business Impact

The contract data indicates that small business participation (sb: false) was not a specific set-aside requirement for this award. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, unless CACI Technologies, LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms likely include contract performance reviews, financial audits, and adherence to the terms of the delivery order. Transparency is generally facilitated through contract databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA IT Schedule Contracts
Engineering and Technical Services Contracts
System Engineering Support
Federal IT Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust oversight to manage T&M labor hours and rates.
Limited transparency on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.9 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF RPTIS WO12 SYSTEM ENGINEERING ANALYSIS AND INTEGRATION

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2014-01-22. End: 2018-01-20.

What is CACI Technologies, LLC's track record with similar government contracts?

CACI Technologies, LLC is a well-established government contractor with a significant history of performance across various federal agencies. They frequently secure contracts related to IT services, engineering, intelligence, and defense. Their track record often includes complex system integration, cybersecurity, and data analytics projects. While specific performance metrics for individual contracts are not always public, their consistent presence and award of substantial contracts suggest a generally reliable performance history. However, like any large contractor, they may have faced past performance issues or disputes on specific projects, which would typically be documented in past performance evaluations during recompetes.

How does the $19.9 million value compare to similar engineering services contracts awarded by GSA?

The $19.9 million value for this engineering services contract is within a moderate range for GSA awards. GSA procures a wide spectrum of services, with engineering and technical support contracts varying significantly in value. Larger, multi-year programs or those involving extensive research and development can reach hundreds of millions or even billions. Conversely, smaller, specialized task orders might be in the low millions. This contract's value suggests a significant, but not exceptionally large, engagement for system engineering analysis and integration, likely supporting a specific program or initiative within GSA or its client agencies.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns and a lack of cost certainty for the government. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This can incentivize longer project durations or less efficient work if not rigorously managed. For the government, it shifts much of the cost risk to the buyer. Effective oversight, detailed tracking of labor hours, and clear definition of 'materials' are crucial to mitigate these risks and ensure fair pricing.

How effective is GSA's oversight for contracts utilizing Time and Materials pricing?

GSA employs various oversight mechanisms for contracts, including those using Time and Materials (T&M) pricing. These typically involve contract officers, contracting specialists, and technical points of contact who monitor contractor performance, review invoices, and ensure compliance with contract terms. For T&M contracts, oversight is particularly critical, focusing on verifying labor hours, ensuring rates are fair and reasonable, and scrutinizing material costs. GSA's effectiveness can vary depending on the resources allocated to oversight, the clarity of the contract's requirements, and the contractor's cooperation. Robust auditing and performance metrics are key to ensuring value and preventing potential abuses inherent in T&M structures.

What is the historical spending trend for engineering services under GSA's Federal Acquisition Service?

Historical spending trends for engineering services under GSA's Federal Acquisition Service (FAS) generally show a consistent demand, reflecting the government's ongoing need for specialized technical expertise. While specific figures fluctuate year-to-year based on agency needs and budget allocations, the overall market for these services remains robust. GSA, through its various contract vehicles like MAS (Multiple Award Schedule) and GWACs (Government-Wide Acquisition Contracts), facilitates significant procurement in this area. Spending is influenced by factors such as technological advancements, infrastructure projects, and national security requirements, often seeing increases during periods of heightened government investment in R&D or modernization efforts.

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: ID07140001

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

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: $20,348,240

Exercised Options: $20,348,240

Current Obligation: $19,932,677

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $966,918,959

Contract Characteristics

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07T12BGD0012

IDV Type: IDC

Timeline