DoD Awards $64M CPFF Contract to CACI for CERDEC Engineering Support

Contract Overview

Contract Amount: $64,147,602 ($64.1M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2021-09-28

Contract Duration: 1,461 days

Daily Burn Rate: $43.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF THIS IS A COST-PLUS-FIXED-FEE - TERM (CPFF - TERM) AWARD IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RAPID RESPONSE THIRD GENERATION (R23G) TO SUPPORT COMMUNICATIONS ELECTRONICS RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (CERDEC), INTELLIGENCE INFORMATION WARFARE DIRECTORATE (I2WD) CERDEC FLIGHT ACTIVITY (CFA) ENGINEERING SUPPORT CONTRACT.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $64.1 million to CACI TECHNOLOGIES, LLC for work described as: IGF::OT::IGF THIS IS A COST-PLUS-FIXED-FEE - TERM (CPFF - TERM) AWARD IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RAPID RESPONSE THIRD GENERATION (R23G) TO SUPPORT COMMUNICATIONS ELECTRONICS RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (CERDEC), INTELLIGENCE INFORMATION WARFAR… Key points: 1. Significant award for engineering services supporting critical Army intelligence and warfare directorates. 2. Contract value of $64.1M over 4 years indicates substantial investment in R&D support. 3. Full and open competition suggests a competitive bidding process. 4. Focus on electronics research, development, and engineering highlights a specialized sector.

Value Assessment

Rating: fair

The contract is a Cost-Plus-Fixed-Fee (CPFF) type, which can lead to cost overruns if not managed carefully. The fixed fee component provides some predictability, but the cost-plus nature requires diligent oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for essential engineering and development services.

Public Impact

Supports advanced communications and intelligence capabilities for the U.S. Army. Impacts the defense technology sector by funding research and development. Ensures continued engineering support for critical military intelligence and warfare systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost uncertainty.
Long duration (4 years) requires sustained oversight.
No specific small business set-aside noted.

Positive Signals

Full and open competition.
Supports critical defense research and development.
Experienced contractor (CACI).

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced electronics research, development, and engineering for intelligence and warfare applications. Spending in this area is crucial for maintaining technological superiority.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this specific award, though they may participate as subcontractors.

Oversight & Accountability

The CPFF contract type necessitates robust oversight from the Department of Defense to monitor costs, ensure performance, and prevent potential overruns. Regular audits and performance reviews are critical for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost-plus-fixed-fee structure carries inherent cost risk.
Long contract duration may lead to technology obsolescence.
Lack of specific small business participation noted.
Requires strong government oversight to manage performance and costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.1 million to CACI TECHNOLOGIES, LLC. IGF::OT::IGF THIS IS A COST-PLUS-FIXED-FEE - TERM (CPFF - TERM) AWARD IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RAPID RESPONSE THIRD GENERATION (R23G) TO SUPPORT COMMUNICATIONS ELECTRONICS RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (CERDEC), INTELLIGENCE INFORMATION WARFARE DIRECTORATE (I2WD) CERDEC FLIGHT ACTIVITY (CFA) ENGINEERING SUPPORT CONTRACT.

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $64.1 million.

What is the period of performance?

Start: 2017-09-28. End: 2021-09-28.

What is the typical profit margin for CPFF contracts in the defense engineering sector, and how does CACI's fixed fee compare?

Profit margins for CPFF contracts in defense engineering can vary, but are often capped by regulations. The fixed fee is negotiated upfront and represents the contractor's profit. Without knowing the specific negotiated fee percentage or the total estimated cost, a direct comparison is difficult. However, agencies typically aim for a reasonable fee that incentivizes performance while protecting taxpayer interests.

How will the long contract duration impact the government's ability to adapt to rapidly changing technology in electronics and intelligence warfare?

The four-year duration presents a risk of technological obsolescence if not managed proactively. The government must ensure contract flexibility through mechanisms like phased development, regular technical reviews, and clear performance metrics that allow for adaptation. CACI's role in R&D should ideally include staying ahead of technological curves.

What specific metrics are used to evaluate the effectiveness of CACI's engineering support for CERDEC's I2WD and CFA?

Effectiveness is likely measured through key performance indicators (KPIs) related to project milestones, technical performance, delivery timelines, and adherence to specifications. For R&D contracts, success might also be gauged by successful prototypes, innovative solutions developed, and the transition of technologies into operational systems.

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

Offers Received: 1

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: $135,869,366

Exercised Options: $66,725,074

Current Obligation: $64,147,602

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $36,299,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD413

IDV Type: IDC

Timeline