CACI awarded $47.8M for IT services, with 2 bidders and a Time and Materials contract type

Contract Overview

Contract Amount: $47,858,872 ($47.9M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2015-09-29

End Date: 2018-03-28

Contract Duration: 911 days

Daily Burn Rate: $52.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: GUNPOWDER, HARFORD County, MARYLAND, 21010

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $47.9 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF Key points: 1. The contract utilized a Time and Materials pricing model, which can pose risks if not closely managed. 2. With only two bidders, the level of competition may have limited price discovery. 3. The contract duration of 911 days suggests a significant, ongoing need for these services. 4. The award was made by the General Services Administration, a common contracting vehicle. 5. The North American Industry Classification System (NAICS) code 541512 indicates a focus on computer systems design. 6. The contract was not set aside for small businesses, indicating larger prime contractors were expected.

Value Assessment

Rating: fair

The contract's value of $47.8 million over approximately 2.5 years needs careful benchmarking against similar IT services contracts. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not rigorously monitored for labor hours and rates. Without detailed breakdowns of labor categories and hours, a precise value-for-money assessment is challenging, but the number of bidders suggests potential for higher pricing than a more competitive scenario.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, only two bids were received, suggesting that the market for this specific service or the contract's requirements may have attracted limited interest from potential offerors. This reduced competition could have impacted the final negotiated price.

Taxpayer Impact: While full and open competition was intended, the low number of bidders means taxpayers may not have benefited from the most competitive pricing possible.

Public Impact

Federal agencies requiring computer systems design and related IT support services are the primary beneficiaries. The services delivered likely include IT infrastructure support, system integration, and potentially software development or maintenance. The contract's performance location is Maryland (MD), indicating a geographic focus for service delivery. The contract supports the IT workforce within the federal contracting ecosystem, potentially involving specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to uncontrolled cost growth if not managed effectively.
Limited competition (2 bidders) may have resulted in a higher price than a more robust bidding process.
The specific IT services required are not detailed, making it difficult to assess if the scope was optimized.

Positive Signals

Awarded under full and open competition, adhering to standard procurement practices.
The General Services Administration (GSA) is a reputable agency for managing federal IT procurements.
The contract duration suggests a sustained need, potentially indicating successful service delivery.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. This sector is characterized by high demand from government agencies for modernization and operational support. The market includes a wide range of providers, from large system integrators to specialized software firms. Benchmarking this contract's value against similar GSA Schedule IT services awards would provide further context on its market competitiveness.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the procurement was aimed at larger prime contractors capable of handling the scope and value of the work. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business IT sector.

Oversight & Accountability

Oversight would typically be managed by the contracting officer at the General Services Administration. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the contract terms, including performance standards and payment clauses. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA IT Schedule Contracts
Computer Systems Design Services
Federal IT Services Procurement
Time and Materials Contracts

Risk Flags

Time and Materials Pricing Risk
Limited Competition Concerns
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $47.9 million to CACI, INC. - FEDERAL. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.9 million.

What is the period of performance?

Start: 2015-09-29. End: 2018-03-28.

What is the track record of CACI, INC. - FEDERAL with similar Time and Materials IT services contracts awarded by GSA?

CACI, INC. - FEDERAL has a substantial history of securing and performing on government contracts, including those utilizing Time and Materials (T&M) pricing. Analyzing their past performance on similar IT services contracts awarded through GSA schedules would reveal patterns in project completion, cost adherence, and client satisfaction. A review of contract close-out data and any performance evaluations (e.g., CPARS) would indicate their ability to manage T&M contracts effectively, ensuring that costs remain within reasonable bounds relative to the work performed and that the government receives good value. Without specific performance data for this particular contract, assessing their track record relies on broader historical contract data.

How does the $47.8 million award compare to the average value of similar IT services contracts under GSA's Federal Acquisition Service?

The $47.8 million award for computer systems design services is a significant sum, placing it in the mid-to-large tier for individual contract awards within the IT services sector. To benchmark its value, one would compare it against the average award values for NAICS code 541512 contracts issued through GSA's Federal Acquisition Service over a similar timeframe (2015-2018). Factors such as contract duration (911 days), specific service requirements, and the number of bidders influence this comparison. If the average value for comparable contracts is substantially higher or lower, it could indicate that this award was either particularly well-priced or potentially overpriced relative to market norms. The limited competition (2 bidders) might suggest the price could be on the higher end of the spectrum for this value range.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with Time and Materials (T&M) contracts, like the one awarded to CACI, is the potential for cost escalation without a guaranteed ceiling on the total expenditure. 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 structure places the onus on the government to meticulously track and manage labor hours and resource utilization. If oversight is insufficient, contractors may bill for excessive hours or inefficient work, leading to costs that significantly exceed initial estimates. For taxpayers, this translates to a risk of paying more than the value received if the contract is not managed with stringent controls and performance monitoring.

Given the 'full-and-open' competition type but only two bidders, what does this imply about the market for these specific IT services?

The fact that this contract was competed under 'full-and-open' procedures but only attracted two bidders suggests a potentially concentrated or specialized market for these particular computer systems design services. This could indicate several possibilities: the technical requirements were highly specific, requiring niche expertise that only a few firms possess; the contract value, while substantial, may not have been large enough to attract a wider array of large prime contractors; or there might be other factors, such as geographic limitations or specific security clearances required, that narrowed the field of eligible bidders. For taxpayers, limited competition generally means less downward pressure on pricing, potentially leading to higher costs compared to scenarios with more robust bidding.

How does the $47.8 million spending align with historical federal IT services spending trends, particularly within the GSA's purview?

Federal spending on IT services, including computer systems design, has historically been a significant portion of the overall federal budget. The $47.8 million awarded to CACI is consistent with the scale of IT investments made by agencies through vehicles like the GSA. Over the period of this contract (2015-2018), federal agencies continued to modernize systems and enhance cybersecurity, driving demand for such services. GSA's role as an intermediary facilitates this spending by providing pre-competed contract vehicles. Analyzing broader trends would show if this specific award represents a typical investment level for its type and duration, or if it deviates significantly, potentially warranting further investigation into the scope or pricing.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID07150037

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14151 PARK MEADOW DR, 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: $48,832,142

Exercised Options: $48,832,142

Current Obligation: $47,858,872

Subaward Activity

Number of Subawards: 78

Total Subaward Amount: $17,719,307

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0020

IDV Type: GWAC

Timeline