GSA awards $47M IT services contract to CACI, Inc. for enterprise systems support

Contract Overview

Contract Amount: $47,064,698 ($47.1M)

Contractor: CACI, Inc. - Federal

Awarding Agency: General Services Administration

Start Date: 2012-05-26

End Date: 2017-11-25

Contract Duration: 2,009 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CPD EGRANTS ENTERPRISE SYSTEMS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $47.1 million to CACI, INC. - FEDERAL for work described as: CPD EGRANTS ENTERPRISE SYSTEMS Key points: 1. Contract provides computer systems design services, a critical component of federal IT infrastructure. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. CACI, Inc. - Federal, a large federal contractor, secured this award. 4. The contract duration spans over five years, indicating a long-term need for these services. 5. The services are categorized under IT, a significant area of federal spending. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of approximately $47 million over five years for IT enterprise systems support appears reasonable when benchmarked against similar large-scale IT service contracts awarded by the GSA. While specific per-unit cost data is not provided, the overall award suggests competitive pricing was achieved through the full and open competition. The scope of services, including computer systems design, aligns with market rates for specialized IT support in the federal sector. Further analysis would require detailed task order data to assess value for money at a granular level.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this IT services requirement. A higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government. However, the specific details of the bidding process and the nature of the requirement would influence the ultimate impact of this competition level on pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The government can leverage this competition to secure the best value for its IT investments.

Public Impact

Federal agencies utilizing GSA enterprise systems benefit from enhanced IT infrastructure and support. The contract supports the delivery of computer systems design services, crucial for maintaining and improving federal IT operations. The geographic impact is primarily within the District of Columbia, where the contract is managed. The contract supports the IT workforce, likely involving skilled professionals in systems design and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task orders are not tightly managed.
Reliance on a single large contractor for critical enterprise systems could pose a risk if performance falters.
The duration of the contract may not fully align with rapidly evolving IT needs, requiring potential modifications or new procurements.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
CACI, Inc. - Federal is an established contractor with a track record in federal IT services.
The contract duration suggests a stable, long-term need being met efficiently.
The contract is managed by the General Services Administration, a key agency for federal IT procurement oversight.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is vast, with agencies consistently investing in modernizing and maintaining their digital infrastructure. Contracts like this are essential for supporting the complex enterprise systems that underpin government operations. Benchmarks for similar IT services contracts often range from tens to hundreds of millions of dollars, depending on scope and duration. The GSA plays a pivotal role in facilitating IT procurement for various agencies, often through IDIQ vehicles.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, CACI, Inc. - Federal, is a large business. There is no explicit indication of small business subcontracting requirements within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, larger prime contractors are often encouraged or required to subcontract portions of their work to small businesses on other contracts, which could indirectly benefit the small business sector.

Oversight & Accountability

The General Services Administration (GSA) typically provides oversight for contracts awarded through its Federal Acquisition Service. Oversight mechanisms would likely include performance monitoring, contract closeout procedures, and adherence to the terms and conditions of the delivery order. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

GSA IT Schedule 70
Enterprise Resource Planning (ERP) Systems Support
IT Systems Integration Services
Computer Systems Design Services

Risk Flags

Contract duration exceeds 5 years, potentially leading to technology obsolescence.
Awardee is a large business, with no explicit small business set-aside.
Limited number of bidders (3) may indicate potential for reduced price competition.
Delivery Order award type suggests it's part of a larger IDIQ, requiring review of the base contract.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $47.1 million to CACI, INC. - FEDERAL. CPD EGRANTS ENTERPRISE SYSTEMS

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 $47.1 million.

What is the period of performance?

Start: 2012-05-26. End: 2017-11-25.

What is CACI, Inc. - Federal's track record with the General Services Administration and similar IT contracts?

CACI, Inc. - Federal is a significant federal contractor with a substantial history of awards across various agencies, including the GSA. They frequently win contracts related to IT services, including systems design, integration, and support. Their performance history with the GSA on similar enterprise systems contracts would typically be available through contract performance assessment reporting systems (CPARS). Generally, CACI has a broad portfolio of IT services, indicating experience relevant to this contract. However, a detailed review of their specific performance on past GSA enterprise systems contracts would be necessary to fully assess their track record for this particular award.

How does the awarded price compare to market rates for similar computer systems design services?

Without specific details on the labor categories, hours, and rates billed under this contract, a precise comparison to market rates is challenging. However, the contract was awarded under full and open competition with 3 bids, suggesting that the pricing was likely competitive. The General Services Administration (GSA) often uses its IT Schedule contracts, which are pre-competed and have established pricing, as a benchmark. If this delivery order was placed against an IDIQ vehicle, the underlying pricing structure would have been negotiated and vetted. Generally, federal IT services pricing is influenced by factors such as security clearances, specialized skills, and geographic location. The $47 million total value over five years averages to about $9.4 million per year, which is a moderate amount for enterprise-level IT support.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential performance issues from the contractor, changes in technology rendering the systems obsolete, and budget fluctuations affecting future funding. Mitigation strategies typically involve robust contract management by the GSA, including performance monitoring through CPARS, regular progress reviews, and clear performance standards. The contract's duration (over five years) also presents a risk of technological obsolescence; however, this can be managed through contract modifications or by ensuring the underlying IDIQ vehicle allows for flexibility. The use of full and open competition helps mitigate the risk of poor contractor performance by selecting a vendor with a demonstrated capability.

How effective has CACI, Inc. - Federal been in delivering enterprise systems support for the federal government?

Assessing the overall effectiveness of CACI, Inc. - Federal in delivering enterprise systems support requires a review of their performance on specific contracts, often documented in Contractor Performance Assessment Reporting System (CPARS) reports. Generally, CACI is a large, established contractor that holds numerous IT contracts across the federal government. Their continued success in winning significant awards suggests a generally positive performance record. However, effectiveness can vary by contract and program. For this specific contract, the effectiveness would be measured by the successful design, implementation, and maintenance of the enterprise systems as defined by the task orders issued under the award.

What are the historical spending patterns for computer systems design services by the GSA?

The General Services Administration (GSA) is a major procurer of IT services, including computer systems design. Historical spending data from sources like the Federal Procurement Data System (FPDS) shows consistent and significant investment in this category. GSA's IT Schedule contracts, in particular, facilitate billions of dollars in IT spending annually. Spending on computer systems design services has generally trended upwards over the past decade, reflecting the increasing reliance on digital infrastructure across federal agencies. The GSA's role as an aggregator of demand and provider of acquisition solutions means their spending patterns are indicative of broader federal IT needs.

What is the potential impact of this contract on federal IT modernization efforts?

This contract directly supports the maintenance and potential enhancement of existing enterprise systems. While it may not represent a 'new' modernization initiative, the effective support and design services provided by CACI are crucial for ensuring that current systems remain functional, secure, and capable of supporting agency missions. Modernization often involves upgrading or replacing legacy systems, and contracts like this can provide the foundational IT expertise needed to manage these transitions. The stability offered by a five-year contract can allow for planned upgrades and integration efforts, contributing indirectly to modernization goals by ensuring the underlying infrastructure is well-supported.

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: ID11120009

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

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: $70,061,785

Exercised Options: $47,064,698

Current Obligation: $47,064,698

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $197,995

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0020

IDV Type: GWAC

Timeline