DoD's $65M PEO-C3T SETA Support Contract Awarded to CACI, Inc
Contract Overview
Contract Amount: $65,172,858 ($65.2M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2024-02-21
End Date: 2026-02-20
Contract Duration: 730 days
Daily Burn Rate: $89.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: PEO-C3T SETA SUPPORT
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $65.2 million to CACI, INC. - FEDERAL for work described as: PEO-C3T SETA SUPPORT Key points: 1. Contract value of $65.17M over 2 years. 2. Awarded via full and open competition. 3. Potential risks include cost overruns and contractor performance. 4. IT and Engineering Services sector.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee (CPFF) type, which allows for cost reimbursement plus a fixed fee. This structure can incentivize efficiency but also carries risk if costs escalate significantly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the CPFF structure requires ongoing oversight to manage costs effectively.
Public Impact
Ensures critical C3T systems development and integration for the DoD. Supports advanced command, control, communications, and intelligence capabilities. Impacts national security through modernization of defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 89 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires careful monitoring.
- Potential for scope creep in SETA support.
Positive Signals
- Awarded under full and open competition.
- Long-term contract duration provides stability.
- Experienced contractor (CACI).
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting IT and C3T systems for the Department of Defense. Benchmarks for similar SETA support contracts vary widely based on scope and complexity.
Small Business Impact
The contract was awarded to CACI, Inc., a large business. There is no indication of small business participation in this specific award, which is common for large prime contracts.
Oversight & Accountability
The CPFF contract type necessitates robust oversight from the Defense Information Systems Agency (DISA) to ensure costs are reasonable and the fixed fee is justified. Performance metrics and regular reporting are crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost overrun risk due to CPFF structure.
- Potential for contractor performance issues impacting critical systems.
- Dependency on a single large contractor.
- Ensuring effective technical oversight for complex C3T systems.
Tags
engineering-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.2 million to CACI, INC. - FEDERAL. PEO-C3T SETA SUPPORT
Who is the contractor on this award?
The obligated recipient is CACI, INC. - FEDERAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $65.2 million.
What is the period of performance?
Start: 2024-02-21. End: 2026-02-20.
What is the estimated total cost if the contractor significantly exceeds the base cost estimate?
Under a Cost Plus Fixed Fee (CPFF) contract, the government reimburses the contractor's allowable costs plus a predetermined fixed fee. If costs exceed estimates, the government pays the actual allowable costs. The fixed fee remains constant, incentivizing the contractor to control costs. However, significant cost overruns still represent a higher total expenditure for the government, requiring diligent oversight to manage.
How will the government ensure the contractor's technical performance meets evolving C3T system requirements?
The contracting agency, DISA, will likely employ a combination of performance metrics, regular progress reviews, and technical evaluations. Key performance indicators (KPIs) tied to system development, integration, and support will be monitored. The fixed fee structure also provides an incentive for the contractor to meet or exceed performance expectations to secure future work and maintain profitability.
What mechanisms are in place to prevent scope creep and manage contract modifications?
Contract modifications require formal approval and justification. The government will likely have a dedicated contract officer and technical team to scrutinize any proposed changes to the scope of work. Change control boards and strict adherence to the original contract statement of work, with formal processes for any deviations, are essential to prevent uncontrolled scope creep.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC108423R0003
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc
Address: 14370 NEWBROOK 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: $179,264,052
Exercised Options: $70,508,326
Current Obligation: $65,172,858
Actual Outlays: $8,480,549
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-21
Current End Date: 2026-02-20
Potential End Date: 2029-02-20 00:00:00
Last Modified: 2026-01-13
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