CACI Technologies awarded $75.8M for Army RDECOM systems integration, spanning over three years

Contract Overview

Contract Amount: $75,781,980 ($75.8M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2017-10-26

End Date: 2021-03-25

Contract Duration: 1,246 days

Daily Burn Rate: $60.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TASK ORDER KY16 IS A HYBRID COST NO FEE AND COST-PLUS-FIXED-FEE - TERM CONTRACT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RAPID RESPONSE THIRD GENERATION (R2-3G) CONTRACT W15P7T-10-D-D413. 2. ALL WORK SHALL BE PERFORMED IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, "MULTI-CAPABLE SYSTEMS INTEGRATION SUPPORT FOR SIGNALS INTELLIGENCE/QUICK REACTION TO SUPPORT THE MISSION OF THE THE U.S ARMY RESEARCH, DEVELOPMENT AND ENGINEERING COMMAND (RDECOM), COMMUNICATIONS- ELECTRONICS RESEARCH&DEVELOPMENT ENGINEERING CENTER (CERDEC), INTELLIGENCE AND INFORMATION WARFARE DIRECTORATES (I2WD) SIGNALS INTELLIGENCE/QUICK REACTION CAPABILITY (S/QRC) DIVISION. THE PWS HAS BEEN INCORPORATED INTO SECTION C OF THIS TASK ORDER. 3. THE PERIOD OF PERFORMANCE (POP) FOR THE BASE PERIOD IS ONE 12-MONTH BASE PERIOD WITH TWO 12-MONTH OPTION PERIODS. SHOULD THE OPTION PERIOD BE EXERCISED, THE TOTAL PERIOD OF PERFORMANCE FOR THIS CONTRACT WILL BE 36 MONTHS.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $75.8 million to CACI TECHNOLOGIES, LLC for work described as: TASK ORDER KY16 IS A HYBRID COST NO FEE AND COST-PLUS-FIXED-FEE - TERM CONTRACT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RAPID RESPONSE THIRD GENERATION (R2-3G) CONTRACT W15P7T-10-D-D413. 2. ALL WORK SHALL BE PERFORMED IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT (PWS)… Key points: 1. Contract value of $75.8M for systems integration support indicates significant investment in Army RDECOM capabilities. 2. The hybrid cost-plus-fixed-fee and cost-no-fee structure suggests a need for flexibility in managing research and development efforts. 3. Performance period of 1246 days (approx. 3.4 years) points to a long-term need for specialized engineering services. 4. The contract supports critical intelligence and information warfare directorates, highlighting its strategic importance. 5. Focus on Signals Intelligence/Quick Reaction capabilities suggests a role in rapidly evolving defense technology. 6. The contract's origin under the R2-3G IDIQ vehicle implies a pre-established framework for rapid acquisition of specialized services.

Value Assessment

Rating: good

The contract value of $75.8 million for a period of over three years for systems integration support appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale engineering and R&D support contracts for defense agencies suggests this is within expected parameters. The hybrid cost-plus-fixed-fee structure allows for cost control while incentivizing performance, which is a common and generally effective approach for complex projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided in the data, but the 'full-and-open' designation suggests a competitive process was utilized. This approach is designed to foster price discovery and ensure the government receives competitive pricing and the best value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the most capable and cost-effective solutions are considered.

Public Impact

The U.S. Army Research, Development and Engineering Command (RDECOM) benefits from enhanced systems integration support. Services delivered are critical for the Communications-Electronics Research, Development and Engineering Center (CERDEC) and its Intelligence and Information Warfare Directorates (I2WD). The contract supports the development of Signals Intelligence/Quick Reaction capabilities, crucial for modern military operations. Workforce implications include the need for specialized engineers and technical personnel within CACI Technologies, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee contracts if not managed diligently.
Reliance on a single task order under a larger IDIQ could concentrate risk if the prime contractor faces performance issues.
The specialized nature of the work may limit the pool of qualified subcontractors, potentially impacting small business participation.

Positive Signals

Awarded under a pre-existing IDIQ (R2-3G) suggests a streamlined acquisition process and potentially pre-vetted capabilities.
The hybrid contract type balances cost reimbursement with fixed fees, providing some incentive for efficient performance.
Long performance period indicates a sustained need and potential for stable support to critical Army functions.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on systems integration for defense applications. The market for defense engineering and technical services is substantial, driven by the continuous need for modernization and technological advancement within military branches. Contracts like this are typical for supporting complex R&D efforts within agencies like the Army RDECOM, which require specialized expertise in areas like signals intelligence and information warfare.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the contract itself is not set aside, the prime contractor, CACI Technologies, LLC, may engage small businesses as subcontractors. The extent of subcontracting to small businesses is not detailed, but it represents a potential avenue for small business involvement in supporting these critical defense systems integration efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and potentially the RDECOM's internal oversight mechanisms. As a task order under an IDIQ, the overarching contract (R2-3G) likely has its own oversight framework. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and financial reporting are usually internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Research, Development and Engineering Command (RDECOM) Support
Communications-Electronics Research, Development and Engineering Center (CERDEC) Programs
Intelligence and Information Warfare Directorate (I2WD) Initiatives
Signals Intelligence (SIGINT) Systems
Quick Reaction Capabilities (QRC)
Rapid Response Third Generation (R2-3G) IDIQ Contracts

Risk Flags

Potential for cost growth in CPFF elements
Complexity of integrating diverse SIGINT systems
Long performance period requires sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.8 million to CACI TECHNOLOGIES, LLC. TASK ORDER KY16 IS A HYBRID COST NO FEE AND COST-PLUS-FIXED-FEE - TERM CONTRACT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF RAPID RESPONSE THIRD GENERATION (R2-3G) CONTRACT W15P7T-10-D-D413. 2. ALL WORK SHALL BE PERFORMED IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, "MULTI-CAPABLE SYSTEMS INTEGRATION SUPPORT FOR SIGNALS INTELLIGENCE/QUICK REACTION TO SUPPORT THE MISSION OF THE THE U.S ARMY RESEARCH, DEVELOPMENT AND ENGINEERING COMMAND (RDECOM), COMMUNICATIONS- ELECTRONICS

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 $75.8 million.

What is the period of performance?

Start: 2017-10-26. End: 2021-03-25.

What is the historical spending trend for similar systems integration contracts within the Army RDECOM over the past five years?

Analyzing historical spending for similar systems integration contracts within the Army RDECOM requires access to detailed federal procurement databases. However, general trends indicate a consistent and often increasing investment in advanced engineering and integration services to support evolving defense technologies, particularly in areas like signals intelligence and cyber warfare. The RDECOM, as a major research and development hub, typically awards numerous contracts annually, ranging from millions to hundreds of millions of dollars, for specialized support. Factors influencing spending include technological advancements, geopolitical threats, and budget allocations. Without specific data on comparable contracts, it's difficult to provide precise figures, but the $75.8 million awarded to CACI Technologies, LLC for this task order aligns with the scale of significant, long-term R&D support contracts common within this sector.

How does the pricing structure (hybrid cost-plus-fixed-fee and cost-no-fee) compare to industry benchmarks for similar defense R&D services?

The hybrid cost-plus-fixed-fee (CPFF) and cost-no-fee (CNF) structure is a common approach in defense R&D, particularly for complex, evolving projects where the full scope and associated costs may not be precisely defined at the outset. CPFF allows the contractor to recover allowable costs plus a fixed fee, providing an incentive for efficient performance. CNF is typically used for research efforts where the outcome is uncertain, and the focus is on exploration rather than profit. Benchmarking this specific pricing against industry standards is challenging without detailed cost breakdowns. However, the combination suggests a balanced approach: CPFF for core integration tasks where performance can be measured and incentivized, and CNF for more exploratory R&D elements. This structure is generally considered fair when properly negotiated and overseen, aiming to balance contractor risk and reward with government cost control.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has CACI Technologies, LLC performed against them?

The specific Key Performance Indicators (KPIs) for this task order are not publicly detailed in the provided contract abstract. Typically, for systems integration and R&D support contracts, KPIs would focus on aspects such as meeting technical performance specifications, adherence to project timelines, successful integration of systems, quality of deliverables, and effective management of resources. Performance against these KPIs would be assessed through regular reporting, technical reviews, and potentially user feedback from the supported directorates (CERDEC, I2WD). CACI Technologies, LLC's performance history on other contracts, particularly those with similar agencies or technical requirements, would provide indirect insight into their capability to meet such KPIs. A thorough assessment would require access to contract performance reports and quality assurance evaluations.

What is the potential impact of this contract on the development and deployment of future Signals Intelligence capabilities for the U.S. Army?

This contract is directly aimed at providing "Multi-Capable Systems Integration Support for Signals Intelligence/Quick Reaction to Support the Mission of the U.S. Army Research, Development and Engineering Command (RDECOM), Communications-Electronics Research&Development Engineering Center (CERDEC), Intelligence and Information Warfare Directorates (I2WD) Signals Intelligence/Quick Reaction Capability (S/QRC) Division." Therefore, its impact is significant and direct. The systems integration and R&D support provided by CACI Technologies, LLC are crucial for enhancing the Army's ability to collect, process, and act upon signals intelligence. The 'Quick Reaction' aspect implies a focus on developing and fielding capabilities rapidly to meet emerging threats. Successful execution of this contract should lead to improved SIGINT platforms, more effective integration of diverse intelligence systems, and a faster response time in deploying new SIGINT technologies, ultimately bolstering the Army's overall intelligence advantage.

Are there any known risks associated with CACI Technologies, LLC's performance on this specific contract or similar government contracts?

While the provided data does not explicitly list risks associated with CACI Technologies, LLC's performance on this specific contract, general risks in large-scale government IT and engineering services contracts can include schedule delays, cost overruns (especially in CPFF contracts), technical challenges in integrating complex systems, and potential issues with personnel retention or security clearances. CACI Technologies, LLC is a large, established government contractor with a broad portfolio. A comprehensive risk assessment would involve reviewing their past performance ratings, any past performance issues or disputes on similar contracts, and the specific technical complexities of the systems being integrated. However, the award under a full and open competition and the long-term nature of the contract suggest that initial risk assessments by the Army deemed CACI capable of meeting the requirements.

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: 2

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: $99,044,398

Exercised Options: $99,044,398

Current Obligation: $75,781,980

Subaward Activity

Number of Subawards: 46

Total Subaward Amount: $25,872,576

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