CACI awarded $24.3M for administrative management consulting by DHS, highlighting a competitive procurement

Contract Overview

Contract Amount: $24,308,832 ($24.3M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-29

End Date: 2015-11-24

Contract Duration: 1,882 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CACI COMPETITIVE ACTION BASE AWARD

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.3 million to CACI, INC. - FEDERAL for work described as: CACI COMPETITIVE ACTION BASE AWARD Key points: 1. The contract was awarded under full and open competition, suggesting a robust bidding process. 2. CACI, Inc. - Federal secured this award, indicating their established presence in federal contracting. 3. The contract duration of 1882 days (approx. 5 years) suggests a long-term need for these services. 4. The administrative management and general management consulting services are broad, potentially impacting various operational aspects of CBP. 5. The Cost Plus Fixed Fee (CPFF) contract type can introduce cost variability, requiring close oversight. 6. The award was a delivery order against a larger contract vehicle, common for task-specific needs.

Value Assessment

Rating: good

Benchmarking the value of this specific delivery order is challenging without knowing the scope of services. However, the total award amount of $24.3 million over approximately five years averages to about $4.86 million annually. This figure needs to be compared against similar consulting contracts for administrative management within DHS or other agencies to assess value for money. The CPFF structure necessitates careful monitoring to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders (no is 3) suggests a moderate level of competition for this specific delivery order. While not an exceptionally high number, it demonstrates that multiple firms were interested and capable of performing the required services, which generally aids in price discovery and achieving a fair market price.

Taxpayer Impact: A competitive procurement process like this generally benefits taxpayers by fostering price competition among vendors, potentially leading to lower overall costs compared to sole-source or limited competition awards.

Public Impact

U.S. Customs and Border Protection (CBP) benefits from enhanced administrative management and general management consulting services. The services delivered are expected to improve operational efficiency and management practices within CBP. The geographic impact is primarily within the operational areas of CBP, likely across the United States. The contract supports the federal workforce by potentially augmenting existing management capabilities or providing specialized expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined and monitored.
Reliance on external consultants may not build internal capacity within CBP for long-term management needs.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contractor, CACI, Inc. - Federal, is an established federal contractor with a track record, suggesting reliability.
The contract duration of nearly five years implies a stable and predictable need for these services, allowing for strategic planning.
The award was a delivery order, suggesting it was part of a pre-competed contract vehicle, potentially streamlining acquisition.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks would involve analyzing other contracts for management consulting services awarded to large federal contractors by agencies like DHS, DoD, or GSA, looking at both total contract values and annual spending rates.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, CACI, as a large prime contractor, may engage small businesses as subcontractors on other contracts, contributing indirectly to the small business economy.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) contracting officer and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains appropriate. Transparency is facilitated by the contract being publicly awarded and reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

DHS Management and Program Analysis Support
Federal Consulting Services
Government Administrative Support Contracts
CBP Operational Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad service description may lead to scope creep if not tightly managed.
Moderate competition (3 bidders) may not yield the lowest possible price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.3 million to CACI, INC. - FEDERAL. CACI COMPETITIVE ACTION BASE AWARD

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2010-09-29. End: 2015-11-24.

What is CACI's track record with the Department of Homeland Security and specifically U.S. Customs and Border Protection?

CACI, Inc. - Federal has a substantial history of contracting with the Department of Homeland Security (DHS) and its various components, including U.S. Customs and Border Protection (CBP). Their awards span a wide range of services, including IT, intelligence analysis, program management, and administrative support. For CBP, CACI has been a frequent recipient of contracts aimed at enhancing border security operations, improving data management, and providing professional services. This specific $24.3 million contract for administrative management consulting is one of many engagements, reflecting a long-standing relationship and demonstrated capability to meet CBP's complex needs. Analyzing their past performance on similar contracts would provide further insight into their reliability and effectiveness in delivering on scope and budget.

How does the $24.3 million award compare to other administrative management consulting contracts within DHS?

The $24.3 million award to CACI for administrative management consulting by CBP is a significant, but not extraordinary, figure within the context of DHS spending. DHS, being one of the largest federal agencies, procures a vast array of professional services, including management consulting, to support its diverse missions. Annual spending on such services can range from tens of millions to hundreds of millions across the agency. To benchmark this contract's value, one would compare its average annual value (approximately $4.86 million) against similar contracts awarded by other DHS components (e.g., FEMA, TSA, ICE) or even other large civilian agencies for comparable services. Factors like contract duration, specific deliverables, and the number of bidders also influence value assessment. Without more granular data on the specific services rendered and market rates for those services, a precise value-for-money assessment remains challenging.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($24.3 million over ~5 years) revolve around cost control and potential for scope creep. For the government, the risk is that the contractor's incurred costs could exceed initial estimates, even though the fee is fixed. This necessitates robust oversight to ensure all costs claimed are allowable, reasonable, and allocable to the contract. The contractor bears some risk if costs escalate beyond what they anticipated for the fixed fee, but this is often mitigated by the 'cost-plus' nature. For the government, the risk of scope creep is significant; if the definition of 'administrative management and general management consulting services' is not tightly controlled, the contractor may perform additional work, increasing costs without a corresponding increase in the fixed fee, or requiring contract modifications. Effective project management and clear performance metrics are crucial to mitigate these risks.

How effective is 'full and open competition' in ensuring competitive pricing for management consulting services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for management consulting services, as it allows any responsible source to submit an offer. This broadens the potential bidder pool, increasing the likelihood of receiving multiple competitive bids. When several qualified firms vie for a contract, they are incentivized to offer their best pricing and most innovative solutions to win the award. This process fosters price discovery and helps the government ascertain a fair market price. While this contract had 3 bidders, which indicates some competition, the effectiveness is maximized when the number of bidders is higher and the competition is robust. The specific nature of management consulting, where value can be subjective, means that while competition drives price down, the government must also carefully evaluate the technical approach and past performance to ensure the lowest price doesn't compromise quality.

What is the historical spending trend for administrative management and general management consulting services at CBP?

Historical spending trends for administrative management and general management consulting services at U.S. Customs and Border Protection (CBP) indicate a consistent reliance on external expertise to support its vast operational and administrative functions. Over the years, CBP has awarded numerous contracts in this category, reflecting the complexity of managing a large, multi-faceted agency responsible for border security, trade, and travel facilitation. Spending in this area often fluctuates based on specific program needs, modernization efforts, and shifts in policy or operational priorities. While this $24.3 million award represents a significant investment, it should be viewed within the broader context of CBP's overall contracting portfolio. Analyzing year-over-year spending on similar services would reveal whether this award is part of an increasing, decreasing, or stable trend in CBP's utilization of management consulting.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14151 PARK MEADOW DRIVE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,308,832

Exercised Options: $24,308,832

Current Obligation: $24,308,832

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00020

IDV Type: IDC

Timeline