CACI awarded $84.8M contract for PEO Aircraft Carriers professional support services

Contract Overview

Contract Amount: $84,821,273 ($84.8M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2017-02-02

End Date: 2022-05-20

Contract Duration: 1,933 days

Daily Burn Rate: $43.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL SUPPLY A FULL RANGE OF PROFESSIONAL SUPPORT SERVICES ACROSS ALL OF PEO AIRCRAFT CARRIERS HIGHLY INTERRELATED PRODUCT LINES IN THE AREAS OF PROGRAM MANAGEMENT SUPPORT, LIFE CYCLE SUPPORT, FINANCIAL&BUSINESS SUPPORT, OPERATIONAL SUPPORT AND PEO AIRCRAFT CARRIERS INTEGRATED DIGITAL ENVIRONMENT (IDE) SUPPORT. PEO AIRCRAFT CARRIERS MANAGES THE DESIGN, DEVELOPMENT, CONSTRUCTION, MODERNIZATION AND LIFE CYCLE MANAGEMENT OF AIRCRAFT CARRIERS FOR THE NAVY.

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $84.8 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF THE CONTRACTOR SHALL SUPPLY A FULL RANGE OF PROFESSIONAL SUPPORT SERVICES ACROSS ALL OF PEO AIRCRAFT CARRIERS HIGHLY INTERRELATED PRODUCT LINES IN THE AREAS OF PROGRAM MANAGEMENT SUPPORT, LIFE CYCLE SUPPORT, FINANCIAL&BUSINESS SUPPORT, OPERATIONAL SUPPORT AND PEO AIR… Key points: 1. Contract provides comprehensive support across program management, life cycle, financial, operational, and digital environment areas. 2. Services are critical for the Navy's aircraft carrier design, development, construction, modernization, and life cycle management. 3. The contract spans over five years, indicating a long-term need for these specialized services. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The contractor, CACI, Inc. - Federal, has a significant presence in providing professional support services to government agencies. 6. The contract's scope is broad, encompassing multiple interrelated product lines for PEO Aircraft Carriers.

Value Assessment

Rating: good

The contract value of $84.8 million over approximately five years suggests a substantial investment in professional support services for a critical naval program. Benchmarking against similar large-scale support contracts for major defense acquisition programs would provide a clearer picture of value for money. However, the duration and breadth of services indicate a potentially competitive pricing structure to secure a long-term partner.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of three bids suggests a reasonable level of competition for this significant contract. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the significant investment in aircraft carrier support services.

Public Impact

The primary beneficiaries are the U.S. Navy's Program Executive Office (PEO) Aircraft Carriers, ensuring the effective management and sustainment of its fleet. Services delivered include program management, life cycle support, financial and business support, operational support, and integrated digital environment support. The geographic impact is primarily within the Department of Defense's operational and acquisition infrastructure, supporting naval readiness. Workforce implications include the potential for employment of skilled professionals in program management, engineering, financial analysis, and IT support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly due to the cost-plus-fixed-fee structure.
Reliance on a single contractor for a broad range of critical support services could pose a risk if performance falters.
Scope creep could increase the overall cost beyond initial projections if not carefully controlled.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Contractor has a demonstrated track record in providing professional support services to the federal government.
Long contract duration suggests a stable and predictable need for these services, allowing for efficient resource planning.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense acquisition and program management. The market for such services is substantial within the defense industry, with numerous firms competing for large-scale government contracts. This award to CACI, Inc. - Federal aligns with the company's established position in providing professional support to defense agencies, particularly in areas related to naval systems and program execution.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). While CACI, Inc. - Federal is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting will depend on CACI's strategy and the specific requirements of the support services outlined in the contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Inspector General for the Department of Defense would also have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is generally maintained through contract reporting mechanisms and performance reviews, though specific details of internal oversight are not provided.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Professional Services Contracts
Aircraft Carrier Modernization Programs
Defense Program Management Support
Integrated Digital Environment (IDE) Support Contracts

Risk Flags

Cost Control Risk (CPFF)
Performance Monitoring Complexity (Broad Scope)
Contractor Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.8 million to CACI, INC. - FEDERAL. IGF::OT::IGF THE CONTRACTOR SHALL SUPPLY A FULL RANGE OF PROFESSIONAL SUPPORT SERVICES ACROSS ALL OF PEO AIRCRAFT CARRIERS HIGHLY INTERRELATED PRODUCT LINES IN THE AREAS OF PROGRAM MANAGEMENT SUPPORT, LIFE CYCLE SUPPORT, FINANCIAL&BUSINESS SUPPORT, OPERATIONAL SUPPORT AND PEO AIRCRAFT CARRIERS INTEGRATED DIGITAL ENVIRONMENT (IDE) SUPPORT. PEO AIRCRAFT CARRIERS MANAGES THE DESIGN, DEVELOPMENT, CONSTRUCTION, MODERNIZATION AND LIFE CYCLE MANAGEMENT OF AIRCRAFT CARRIERS FOR THE NAVY.

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 $84.8 million.

What is the period of performance?

Start: 2017-02-02. End: 2022-05-20.

What is CACI, Inc. - Federal's track record with similar large-scale defense support contracts?

CACI, Inc. - Federal has a substantial track record of securing and performing large-scale contracts with various U.S. federal agencies, including significant awards within the Department of Defense. They are known for providing a wide array of professional services, including IT, intelligence, and mission support. Their experience often involves complex program management, systems engineering, and operational support for major defense platforms and initiatives. This history suggests a capacity to handle the scope and complexity of the PEO Aircraft Carriers contract, though specific performance metrics on past contracts would offer a more granular assessment of their reliability and effectiveness.

How does the awarded value compare to similar professional support contracts for major naval programs?

The $84.8 million contract value for PEO Aircraft Carriers professional support services is significant, reflecting the complexity and scale of managing aircraft carrier programs. Benchmarking this against similar contracts for other major naval platforms (e.g., submarines, destroyers) or large-scale defense program management offices would be necessary for a precise comparison. Generally, contracts of this magnitude are awarded to large, established defense contractors capable of providing comprehensive support over extended periods. The value appears commensurate with the broad range of services (program management, life cycle, financial, operational, digital) and the critical nature of supporting the Navy's capital ships.

What are the primary risks associated with this type of cost-plus-fixed-fee contract?

Cost-Plus-Fixed-Fee (CPFF) contracts, like this one, carry inherent risks for the government. The primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns if the contractor's cost estimation is inaccurate or if they do not diligently manage expenses. Effective oversight, detailed cost tracking, and robust performance metrics are crucial to mitigate these risks and ensure the government receives good value. The fixed fee provides some incentive for completion, but cost control remains a key area for government vigilance.

How effective is the 'full and open competition' approach for ensuring value in defense support services?

Full and open competition is generally considered the most effective method for ensuring value in defense support services. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The presence of three bidders for this PEO Aircraft Carriers contract suggests a healthy level of competition, which should have helped the Navy secure favorable pricing and terms. While competition is a strong indicator of potential value, the ultimate effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess proposals beyond just price.

What is the historical spending trend for professional support services for PEO Aircraft Carriers?

Analyzing historical spending trends for PEO Aircraft Carriers' professional support services would require access to detailed contract databases and budget information over multiple fiscal years. Without specific historical data, it's difficult to provide precise figures. However, it is reasonable to assume that spending in this area has been substantial and likely fluctuates based on the lifecycle stage of various carrier programs (e.g., new construction, modernization, sustainment). The consistent need for program management, technical, and logistical support suggests a sustained level of investment. The current $84.8M award over five years should be viewed in the context of these ongoing, long-term requirements.

What are the implications of the contract's broad scope on contractor performance and oversight?

The broad scope of this contract, encompassing program management, life cycle support, financial, operational, and digital environment services, presents both opportunities and challenges. On one hand, it allows for integrated support and potential efficiencies by consolidating multiple service needs under one contract. On the other hand, it increases the complexity for the contractor to manage diverse functions effectively and for the government to oversee performance across all areas. Robust oversight mechanisms, clear performance metrics for each service area, and strong communication channels are essential to ensure the contractor meets all requirements and delivers consistent value across the entire scope.

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: N0002415R3109

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: $92,077,210

Exercised Options: $92,077,210

Current Obligation: $84,821,273

Actual Outlays: $9,695,231

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $19,943,556

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