CACI, INC. - FEDERAL awarded $190.3M for program management and engineering support for PMS325 programs

Contract Overview

Contract Amount: $190,318,151 ($190.3M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2017-09-14

End Date: 2023-07-31

Contract Duration: 2,146 days

Daily Burn Rate: $88.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE PROGRAM MANAGEMENT, ENGINEERING, LOGISTICS MANAGEMENT&INTEGRATED SUPPORT, AND ON-SITE SUPPORT AT SHIPBUILDER FACILITIES DURING DETAIL DESIGN, CONSTRUCTION AND POST DELIVERY FOR ALL PMS325 PROGRAMS.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $190.3 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE PROGRAM MANAGEMENT, ENGINEERING, LOGISTICS MANAGEMENT&INTEGRATED SUPPORT, AND ON-SITE SUPPORT AT SHIPBUILDER FACILITIES DURING DETAIL DESIGN, CONSTRUCTION AND POST DELIVERY FOR ALL PMS325 PROGRAMS. Key points: 1. Contract provides comprehensive support including program management, engineering, logistics, and on-site assistance. 2. Services are critical for the detail design, construction, and post-delivery phases of PMS325 programs. 3. The contract spans over 6 years, indicating a long-term need for these specialized services. 4. Performance is situated at shipbuilder facilities, requiring close integration with construction activities. 5. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not managed closely. 6. This award represents a significant investment in naval shipbuilding program oversight and execution.

Value Assessment

Rating: good

The contract value of $190.3 million over approximately 6 years suggests a substantial but potentially reasonable investment for comprehensive program management and engineering support for complex naval programs. Benchmarking against similar large-scale defense contracts for program management and engineering services is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain aligned with the fixed fee and do not escalate excessively.

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 two bids suggests a competitive environment, which typically aids in price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors strive to offer competitive pricing and innovative solutions to win contracts.

Public Impact

The primary beneficiaries are the PMS325 programs, ensuring their successful execution through expert management and engineering. Services delivered include program management, engineering, logistics, and on-site support at shipbuilder facilities. The geographic impact is concentrated at shipbuilder facilities, crucial for the construction and delivery of naval assets. Workforce implications include the need for skilled program managers, engineers, and logistics specialists, potentially supporting a specialized segment of the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, requiring robust government oversight to manage expenditures effectively.
The long duration of the contract (over 6 years) necessitates continuous performance monitoring to ensure sustained quality and value.
On-site support at shipbuilder facilities requires close coordination and potential for integration challenges between the contractor and the shipbuilder's workforce.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract covers a broad spectrum of critical support services essential for complex naval programs.
The contractor, CACI, Inc. - Federal, is a known entity in the federal contracting space, implying a level of established capability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's complex shipbuilding programs. The market for such specialized program management and engineering support is substantial within the Department of Defense, driven by the need for expertise in managing large-scale, technologically advanced projects like naval vessels. Comparable spending benchmarks would involve analyzing other contracts for program management and engineering support on major defense acquisition programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, as a large prime contractor, CACI, Inc. - Federal may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract awards databases and reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Shipbuilding Programs
Defense Program Management
Engineering Services Contracts
Logistics Support Services
Department of Defense Acquisition

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.
On-site support integration with shipbuilder facilities may present coordination challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $190.3 million to CACI, INC. - FEDERAL. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE PROGRAM MANAGEMENT, ENGINEERING, LOGISTICS MANAGEMENT&INTEGRATED SUPPORT, AND ON-SITE SUPPORT AT SHIPBUILDER FACILITIES DURING DETAIL DESIGN, CONSTRUCTION AND POST DELIVERY FOR ALL PMS325 PROGRAMS.

Who is the contractor on this award?

The obligated recipient is CACI, INC. - FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $190.3 million.

What is the period of performance?

Start: 2017-09-14. End: 2023-07-31.

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

CACI, Inc. - Federal has a significant history of performing large-scale contracts for the Department of Defense and other federal agencies, often in areas such as IT solutions, intelligence analysis, and program management. Their experience typically includes supporting complex acquisition programs, logistics, and engineering services. While specific details of past performance on PMS325 programs are not provided here, their general profile suggests they are a capable contractor for this type of work. A deeper dive into their contract history, including past performance evaluations and any disputes or challenges, would be necessary for a comprehensive assessment of their track record on similar projects.

How does the awarded amount compare to similar program management and engineering support contracts in the defense sector?

The awarded amount of approximately $190.3 million over roughly 6 years for program management, engineering, and logistics support for naval shipbuilding programs is substantial. To benchmark this value, one would compare it to other contracts awarded by the Department of Defense or Navy for similar services on major defense acquisition programs, particularly those involving shipbuilding or complex weapon systems. Factors such as the scope of services, duration, contract type (e.g., CPFF, FFP), and the specific program's complexity would influence comparability. Without direct comparative data, it's difficult to definitively state if this represents excellent or fair value, but the scale aligns with the significant resources required for such critical defense initiatives.

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 CPFF contract of this magnitude and duration revolve around cost control and contractor incentives. CPFF contracts reimburse the contractor for allowable costs plus a fixed fee, which is the contractor's profit. The risk for the government is that contractors may have less incentive to control costs compared to fixed-price contracts, as cost overruns are generally reimbursed. This can lead to the total contract cost exceeding initial estimates. For the government, effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate these risks. The long duration also increases the potential for unforeseen cost escalations due to market changes or program complexities.

How effective is the current oversight mechanism for ensuring program success and taxpayer value?

The effectiveness of oversight for this contract hinges on the diligence of the Defense Contract Management Agency (DCMA) and the program executive office responsible for PMS325. Standard oversight mechanisms include regular progress reviews, audits of contractor expenditures, performance metrics tracking, and adherence to contract milestones. The CPFF structure necessitates particularly stringent financial oversight to ensure costs are reasonable and allocable. Taxpayer value is maximized when these oversight functions are robust, proactive, and identify potential issues early, allowing for corrective actions before significant cost overruns or performance degradations occur. The presence of an Inspector General also provides an additional layer of accountability.

What are the historical spending patterns for program management and engineering support for PMS325 programs?

Historical spending patterns for program management and engineering support for PMS325 programs would reveal the trend of investment in these critical functions over time. Analyzing past contracts for these specific programs, including their values, durations, and contract types, can indicate whether spending has been consistent, increasing, or decreasing. This context is vital for understanding if the current $190.3 million award is an anomaly or part of a sustained investment strategy. It also helps in identifying any significant shifts in the government's approach to procuring such support services for naval shipbuilding.

What is the potential impact of this contract on the broader defense industrial base and workforce?

This contract has a notable impact on the defense industrial base by supporting critical naval shipbuilding programs, which are foundational to national security. It sustains demand for specialized engineering, program management, and logistics expertise, potentially bolstering the workforce in these areas. The contract's duration and scale can provide stability for CACI, Inc. - Federal and any subcontractors involved, contributing to the overall health of the defense sector. Furthermore, the successful execution of PMS325 programs, facilitated by this contract, directly influences the readiness and capability of the U.S. Navy.

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: N0002416R3014

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: $196,470,337

Exercised Options: $196,470,337

Current Obligation: $190,318,151

Actual Outlays: $10,891,017

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