CACI, INC. awarded $152M for engineering and support services to the Navy's PEO USC program

Contract Overview

Contract Amount: $152,192,126 ($152.2M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2020-11-12

End Date: 2025-11-11

Contract Duration: 1,825 days

Daily Burn Rate: $83.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SUPPORT SERVICES IN ENGINEERING PROGRAM, FINANCIAL PRODUCTION, DATA, CONFIGURATION, FMS POLICY AND CASE MANAGEMENT, LOGISTICS, MANPOWER, PERSONNEL AND TRAINING, POST-DELIVERY AND TEST AND EVALUATION FOR PMS 525, WITHIN PEO USC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $152.2 million to CACI, INC. - FEDERAL for work described as: SUPPORT SERVICES IN ENGINEERING PROGRAM, FINANCIAL PRODUCTION, DATA, CONFIGURATION, FMS POLICY AND CASE MANAGEMENT, LOGISTICS, MANPOWER, PERSONNEL AND TRAINING, POST-DELIVERY AND TEST AND EVALUATION FOR PMS 525, WITHIN PEO USC. Key points: 1. Contract provides comprehensive engineering, financial, logistics, and training support. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Long contract duration (5 years) may indicate a need for sustained support. 4. Cost-plus-fixed-fee contract type requires careful monitoring of costs. 5. Services support Program Executive Office, Unmanned and Small Combatants (PEO USC). 6. Contractor CACI, INC. - FEDERAL has a significant presence in federal IT and support services.

Value Assessment

Rating: good

The contract value of $152 million over five years for comprehensive engineering and support services appears reasonable given the scope. Benchmarking against similar large-scale engineering support contracts for naval programs suggests this falls within expected ranges. The cost-plus-fixed-fee structure, while common for complex services, necessitates diligent oversight to ensure value for money and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bidders suggests a healthy level of competition for this significant contract. This competitive process is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market that drives down costs and improves service quality through competitive pressures.

Public Impact

Naval program managers and engineers benefit from specialized support for PEO USC. Services include critical functions like financial management, logistics, and training. The contract supports the development and sustainment of unmanned and small combatants. Workforce implications include potential employment opportunities within CACI and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher costs if not managed tightly.
Long-term nature of the contract requires ongoing performance monitoring.
Reliance on a single contractor for diverse support functions could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contractor CACI has extensive experience in government support services.
Services directly support critical naval modernization efforts.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense programs. The market for defense engineering and program management support is substantial, with significant annual spending by the Department of Defense. This contract represents a portion of the broader investment in naval modernization and platform development, particularly for unmanned and smaller combatant vessels.

Small Business Impact

While the contract was awarded to CACI, INC. - FEDERAL, there is no explicit indication of a small business set-aside. However, large prime contractors often utilize small business subcontractors to fulfill specific requirements. Further analysis would be needed to determine the extent of small business participation through subcontracting opportunities on this contract.

Oversight & Accountability

Oversight is likely managed by the Department of the Navy's Program Executive Office for Unmanned and Small Combatants (PEO USC). The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction over potential fraud or mismanagement.

Related Government Programs

Naval Sea Systems Command (NAVSEA) contracts
Defense Engineering Services
Program Management Support Contracts
Unmanned Systems Development

Risk Flags

Cost-plus-fixed-fee contract type requires diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for cost overruns inherent in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $152.2 million to CACI, INC. - FEDERAL. SUPPORT SERVICES IN ENGINEERING PROGRAM, FINANCIAL PRODUCTION, DATA, CONFIGURATION, FMS POLICY AND CASE MANAGEMENT, LOGISTICS, MANPOWER, PERSONNEL AND TRAINING, POST-DELIVERY AND TEST AND EVALUATION FOR PMS 525, WITHIN PEO USC.

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 $152.2 million.

What is the period of performance?

Start: 2020-11-12. End: 2025-11-11.

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

CACI, INC. - FEDERAL has a long and extensive history of performing large-scale support services for various branches of the U.S. military, including the Department of the Navy. They frequently secure contracts for IT services, engineering support, logistics, and program management. Their track record includes managing complex programs and delivering a wide range of technical and professional services. While specific performance metrics for past contracts are not detailed here, CACI is generally considered an experienced incumbent in this space, often winning recompetes and new awards due to their established capabilities and past performance.

How does the $152 million value compare to similar engineering support contracts for naval programs?

The $152 million contract value over five years, averaging approximately $30.4 million annually, is within the typical range for comprehensive engineering and support services for major naval programs. Large Program Executive Offices (PEOs) like PEO USC often require substantial support to manage complex acquisition and sustainment efforts. Comparable contracts for program management, systems engineering, and technical support for naval platforms can range from tens to hundreds of millions of dollars, depending on the specific scope, duration, and criticality of the systems involved. This contract appears to be a significant but not unusually large award for the scope of services described.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than anticipated if the contractor's costs are higher than projected, even though the fee remains fixed. While the fixed fee provides an incentive for the contractor to control costs to maximize their profit margin, it doesn't eliminate the risk of cost overruns. For the government, effective oversight is crucial to ensure that all costs incurred are reasonable, allocable, and allowable. Without stringent monitoring and auditing of expenditures, there's a risk of paying for inefficient practices or unnecessary expenses, thus diminishing the overall value for money.

How does this contract contribute to the Navy's modernization goals, particularly in unmanned systems?

This contract directly supports the Navy's strategic objective of modernizing its fleet, with a specific focus on the development and integration of unmanned and small combatant platforms under PEO USC. The engineering, financial, data, configuration, policy, logistics, and training services provided are essential for the lifecycle management of these advanced systems. By ensuring robust program support, the contract helps accelerate the acquisition process, improve system readiness, and facilitate the integration of new technologies, thereby contributing significantly to the Navy's future operational capabilities and maintaining a technological edge.

What is the historical spending trend for engineering and support services within PEO USC or similar naval programs?

Historical spending trends for engineering and support services within naval programs, particularly those managed by Program Executive Offices (PEOs) like PEO USC, generally show consistent and significant investment. These offices are responsible for acquiring and modernizing major naval platforms, which inherently requires substantial engineering, technical, and program management support. Spending in this category typically fluctuates based on program milestones, acquisition cycles, and strategic priorities, but it remains a core component of the Navy's budget. Over the past decade, there has been a notable increase in investment related to unmanned systems, aligning with the focus of PEO USC.

What are the implications of having 3 bidders for this contract, given it was full and open competition?

Having three bidders for a full and open competition indicates a moderate level of competition. While more bidders generally lead to greater price discovery and potentially lower prices, three bidders suggest that the market is sufficiently interested and capable of performing the work. This number implies that the barriers to entry were not insurmountable, and that the government had a reasonable selection of qualified offerors. It strikes a balance between having enough competition to drive value and ensuring that the bidders possess the specialized expertise required for complex naval engineering and support services.

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: N0016420R3002

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: $160,116,331

Exercised Options: $160,116,331

Current Obligation: $152,192,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7295

IDV Type: IDC

Timeline