GSA awards $81.2M IT services contract to CACI, Inc. for NexGen solutions

Contract Overview

Contract Amount: $81,203,673 ($81.2M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2012-02-13

End Date: 2017-08-12

Contract Duration: 2,007 days

Daily Burn Rate: $40.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE PURPOSE OF THIS ORDER IS TO ACQUIRE THE NEXGEN INFORMATION TECHNOLOGY (IT) SERVICE PROVIDER WHO WILL MANAGE, CONFIGURE, DEPLOY, SUSTAIN AND ENHANCE NEXGEN IT SOLUTIONS

Place of Performance

Location: ANDREWS AFB, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $81.2 million to CACI, INC. - FEDERAL for work described as: THE PURPOSE OF THIS ORDER IS TO ACQUIRE THE NEXGEN INFORMATION TECHNOLOGY (IT) SERVICE PROVIDER WHO WILL MANAGE, CONFIGURE, DEPLOY, SUSTAIN AND ENHANCE NEXGEN IT SOLUTIONS Key points: 1. Contract focuses on managing, configuring, deploying, sustaining, and enhancing IT solutions. 2. Awarded under full and open competition, indicating broad market participation. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. Performance period spans over five years, suggesting a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded as a Delivery Order, a common method for tasking existing indefinite-delivery indefinite-quantity (IDIQ) vehicles.

Value Assessment

Rating: good

The contract value of $81.2 million over five years for comprehensive IT services appears reasonable, especially given the scope of managing and enhancing complex NexGen IT solutions. Benchmarking against similar large-scale IT service contracts managed by GSA would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, requires careful monitoring to ensure costs remain within reasonable bounds and that the fixed fee is justified by the complexity and risk involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bidders indicates a competitive environment, which typically leads to better pricing and service offerings for the government. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where providers compete on price and performance, leading to more cost-effective solutions and a wider array of innovative services.

Public Impact

Federal agencies utilizing NexGen IT solutions will benefit from enhanced IT management and support. The contract ensures the continued operation and improvement of critical IT infrastructure. The services delivered are essential for modernizing government IT systems. The primary geographic impact is likely within the United States, supporting federal operations. The contract supports a workforce skilled in computer systems design and IT service management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The long-term nature of the contract requires ongoing performance monitoring to ensure sustained quality.
Dependence on a single contractor for critical IT services can pose risks if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract addresses a critical need for IT service management and enhancement.
CACI, Inc. - Federal is an established contractor with experience in government IT services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry. This sector is characterized by a high degree of specialization and innovation, with companies offering a wide range of services from custom software development to IT infrastructure management. The total IT spending by the federal government is in the hundreds of billions annually, with a substantial portion allocated to IT services and systems integration. This contract represents a component of that larger spending, focusing on the operational and enhancement aspects of IT solutions.

Small Business Impact

The contract was awarded to CACI, Inc. - Federal and does not indicate any specific small business set-aside. However, as a large prime contractor, CACI may be required to subcontract a portion of the work to small businesses, contributing to the small business ecosystem. Further analysis of subcontracting plans would be necessary to determine the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms likely include regular performance reviews, financial audits, and adherence to contract terms and conditions. Transparency is generally maintained through contract databases and reporting requirements, with potential oversight from the Government Accountability Office (GAO) and agency Inspectors General.

Related Government Programs

IT Services
Computer Systems Design
NexGen IT Solutions
Federal IT Modernization
GSA IT Contracts

Risk Flags

Potential for cost overruns in CPFF contracts.
Risk of scope creep in evolving IT environments.
Need for diligent performance monitoring over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $81.2 million to CACI, INC. - FEDERAL. THE PURPOSE OF THIS ORDER IS TO ACQUIRE THE NEXGEN INFORMATION TECHNOLOGY (IT) SERVICE PROVIDER WHO WILL MANAGE, CONFIGURE, DEPLOY, SUSTAIN AND ENHANCE NEXGEN IT SOLUTIONS

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 $81.2 million.

What is the period of performance?

Start: 2012-02-13. End: 2017-08-12.

What is CACI, Inc. - Federal's track record with similar IT service contracts for the federal government?

CACI, Inc. - Federal has a substantial track record of performing IT service contracts for various federal agencies. They are known for providing a wide range of services including IT modernization, cybersecurity, enterprise IT, and C5ISR (Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance, and Reconnaissance). Their experience often includes managing complex systems, developing software solutions, and providing technical support. Analyzing their past performance on similar-sized and scoped contracts, particularly those involving system design, integration, and sustainment, would provide insight into their capability to execute this NexGen IT service contract effectively. Past performance reviews and contract award data from sources like the Federal Procurement Data System (FPDS) can offer details on their delivery history, any performance issues, and their overall success rate in meeting government requirements.

How does the $81.2 million contract value compare to similar IT service contracts awarded by GSA?

The $81.2 million contract value for a five-year period (approximately $16.24 million per year) for comprehensive IT services, including management, configuration, deployment, sustainment, and enhancement of NexGen IT solutions, is within a common range for large-scale federal IT service contracts. GSA, as a major procurer of IT services, awards numerous contracts of similar or larger magnitudes. For instance, contracts under IT Schedule 70 (now IT Professional Services) often range from tens to hundreds of millions of dollars. To benchmark effectively, one would compare this contract's value against others awarded for similar NAICS codes (like 541512) and service scopes (e.g., IT system design, integration, and support) to agencies of comparable size and complexity. Factors such as the specific technologies involved (NexGen IT solutions), the level of customization required, and the duration of the contract significantly influence pricing, making direct comparisons require careful consideration of these variables.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services revolve around cost control and potential for scope creep. In a CPFF arrangement, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fixed fee incentivizes the contractor to control costs to maximize profit, there's a risk that the government may not fully benefit from cost savings if the contractor's initial cost estimates are high or if unforeseen complexities arise. The government bears the risk of cost overruns beyond the estimated cost, although the fee remains fixed. For IT services, especially those involving evolving technologies like 'NexGen IT solutions,' scope creep is a significant risk. If requirements are not clearly defined or if changes are introduced without proper change control, costs can escalate. Effective oversight, detailed work breakdown structures, and robust change management processes are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money for this type of IT service contract?

Full and open competition is generally considered the most effective method for ensuring value for money in federal IT service contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and most innovative solutions to win the contract. This process typically leads to lower prices, higher quality services, and a wider selection of qualified vendors compared to limited or sole-source procurements. For a contract like this, focused on complex IT services, the competitive bidding process allows the government to evaluate technical approaches, past performance, and price from multiple vendors, enabling a more informed decision that maximizes taxpayer value. The presence of multiple bidders, as indicated in the data (no: 2), suggests a degree of competition, though the ideal scenario involves a robust number of proposals to truly drive down costs and spur innovation.

What are the historical spending patterns for similar computer systems design services by the General Services Administration?

The General Services Administration (GSA) is a significant spender on computer systems design services, consistently awarding contracts within the NAICS code 541512. Historical spending patterns reveal a strong and growing demand for these services as federal agencies continue to modernize their IT infrastructure, migrate to cloud-based solutions, and implement new digital services. GSA's Federal Acquisition Service, in particular, manages numerous large IDIQ contracts and delivery orders for IT services, including systems design, integration, and support. Spending in this category often fluctuates based on agency-specific modernization initiatives, cybersecurity requirements, and the adoption of new technologies. Analyzing GSA's historical data for NAICS 541512 would show a trend of substantial investment, often in the billions of dollars annually across all its IT-related contract vehicles, reflecting the critical role these services play in supporting federal operations.

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

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $87,296,437

Exercised Options: $87,296,437

Current Obligation: $81,203,673

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,333,822

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0020

IDV Type: GWAC

Timeline