DoD's $58.2M Engineering Services Contract with CACI Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $58,225,306 ($58.2M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2015-09-02
End Date: 2019-09-01
Contract Duration: 1,460 days
Daily Burn Rate: $39.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF PA,QA, RA ASSESSEMENT SUPPORT
Place of Performance
Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860
Plain-Language Summary
Department of Defense obligated $58.2 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF PA,QA, RA ASSESSEMENT SUPPORT Key points: 1. Contract awarded to CACI, Inc. - Federal for engineering services. 2. Full and open competition was utilized. 3. Concerns may arise regarding the cost-plus-fixed-fee structure and its impact on price discovery. 4. The sector is Engineering Services, a critical component of defense procurement.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar CPFF contracts for engineering services is crucial to assess if the final price reflects fair value.
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, the CPFF pricing type may limit the effectiveness of competition in controlling final costs.
Taxpayer Impact: Taxpayer funds are utilized for engineering services. The CPFF structure necessitates robust oversight to ensure costs remain reasonable and avoid unnecessary expenditure.
Public Impact
Ensures critical engineering support for the Department of the Navy. Competition potentially drives efficiency, but CPFF pricing needs careful monitoring. Supports a major federal contractor, impacting the broader defense industrial base. Long-term contract duration (2015-2019) suggests ongoing service needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee pricing can incentivize higher costs.
- Potential for cost overruns without stringent oversight.
- Limited transparency on specific cost drivers within the fixed fee.
Positive Signals
- Awarded under full and open competition.
- Provides essential engineering services to a key agency.
- Contract duration indicates sustained demand and potential for stable support.
Sector Analysis
Engineering services are vital for defense projects, encompassing design, analysis, and technical support. Spending benchmarks vary widely based on project complexity and scope, making direct comparisons challenging without detailed project information.
Small Business Impact
The data does not indicate any specific subcontracting goals or awards to small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's CPFF structure requires diligent oversight from the Department of Defense to ensure costs are controlled and the fixed fee is justified. Regular audits and performance reviews are essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus-fixed-fee pricing model.
- Potential for cost overruns.
- Lack of detailed service description.
- Limited information on small business participation.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.2 million to CACI, INC. - FEDERAL. IGF::OT::IGF PA,QA, RA ASSESSEMENT 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $58.2 million.
What is the period of performance?
Start: 2015-09-02. End: 2019-09-01.
What specific engineering services were provided, and how did their complexity justify the CPFF structure?
The provided data lacks specifics on the exact engineering services rendered. A Cost Plus Fixed Fee (CPFF) structure is typically used for research and development or complex projects where costs are difficult to estimate upfront. Understanding the nature of the services is key to assessing if CPFF was the most appropriate pricing model and if the fixed fee adequately compensated the contractor for the risks assumed.
How effectively did the 'full and open competition' process translate into cost savings given the CPFF pricing?
While 'full and open competition' is a strong indicator of potential cost savings, the CPFF pricing model can mitigate these benefits. The competition likely focused on the contractor's ability to perform and the proposed fixed fee, rather than a strictly lowest-price scenario. Effective price discovery would depend on the government's ability to negotiate a fair fixed fee and rigorously monitor costs throughout the contract lifecycle.
What is the estimated taxpayer impact of the $58.2 million contract, considering potential cost underruns or overruns?
The total contract value is $58.2 million. With a CPFF structure, the primary taxpayer risk lies in potential cost overruns if the contractor's actual costs exceed estimates significantly, even with a fixed fee. Conversely, if costs are well-managed and below estimates, the taxpayer benefits from the fixed fee representing a smaller proportion of the total expenditure. Robust oversight is critical to minimize overruns.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002415R3033
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc
Address: 14370 NEWBROOK DRIVE, 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: $62,274,321
Exercised Options: $61,075,888
Current Obligation: $58,225,306
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4030
IDV Type: IDC
Timeline
Start Date: 2015-09-02
Current End Date: 2019-09-01
Potential End Date: 2020-08-30 00:00:00
Last Modified: 2023-01-27
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