CACI awarded $85.8M for PEO CVN professional support services by the Department of the Navy
Contract Overview
Contract Amount: $85,827,806 ($85.8M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2021-12-02
End Date: 2026-12-01
Contract Duration: 1,825 days
Daily Burn Rate: $47.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE CONTRACTOR SHALL SUPPLY A FULL RANGE OF PROFESSIONAL SUPPORT SERVICES ACROSS ALL OF PEO CVN HIGHLY INTERRELATED PRODUCT LINES IN THE AREAS OF PROGRAM MANAGEMENT SUPPORT, LIFE CYCLE SUPPORT, FINANCIAL & BUSINESS SUPPORT, AND OPERATIONAL SUPPORT.
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376
Plain-Language Summary
Department of Defense obligated $85.8 million to CACI, INC. - FEDERAL for work described as: THE CONTRACTOR SHALL SUPPLY A FULL RANGE OF PROFESSIONAL SUPPORT SERVICES ACROSS ALL OF PEO CVN HIGHLY INTERRELATED PRODUCT LINES IN THE AREAS OF PROGRAM MANAGEMENT SUPPORT, LIFE CYCLE SUPPORT, FINANCIAL & BUSINESS SUPPORT, AND OPERATIONAL SUPPORT. Key points: 1. Contract provides comprehensive professional support across program management, life cycle, financial, and operational areas. 2. Services are critical for PEO CVN's highly interrelated product lines. 3. The contract duration of 5 years indicates a long-term need for these services. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight. 6. Contractor CACI, Inc. - Federal has a significant presence in providing professional services to the government.
Value Assessment
Rating: good
The contract value of $85.8 million over five years for comprehensive professional support services appears reasonable given the scope. Benchmarking against similar large-scale support contracts for program management and life cycle services within the Department of Defense suggests this award is within expected parameters. The cost-plus-fixed-fee structure, while common for complex services, necessitates diligent monitoring of costs 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 qualified bidders had the opportunity to submit proposals. The presence of 3 bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. This level of competition is a positive sign for price discovery and ensures the government is likely receiving a fair market price for the services rendered.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that drives down costs and ensures the selection of the most capable contractor at a reasonable price.
Public Impact
Naval program executive offices benefit from enhanced program management, life cycle support, financial, and operational capabilities. Services support the development and sustainment of critical naval product lines. The contract's impact is primarily within the Department of the Navy's operational and acquisition functions. Workforce implications include potential employment opportunities for professionals in program management, engineering, and financial analysis.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit if not adequately monitored.
- The broad scope of services requires robust performance metrics and oversight to ensure all areas are adequately addressed.
- Reliance on a single contractor for such a wide range of critical support functions could pose a risk if performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a competitive selection process.
- Contractor CACI, Inc. - Federal has extensive experience in providing similar professional support services to government agencies.
- The long contract duration suggests a stable and reliable partnership for essential services.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is a significant component of federal spending, supporting a wide array of government functions from R&D to operational support. The Department of the Navy, as a major defense agency, consistently procures such services to manage complex acquisition programs and maintain readiness. Comparable spending benchmarks for large-scale professional support contracts within the DoD often run into tens or hundreds of millions of dollars annually.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside requirement (SB: false). While CACI, Inc. - Federal is a large business, there may be opportunities for subcontracting to small businesses within the scope of the professional support services. The extent of small business involvement will depend on CACI's subcontracting plan and the specific needs of the services required. Further analysis of subcontracting reports would be needed to assess the actual impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. Performance will be monitored against the terms and conditions of the contract, including service level agreements and deliverables. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office may conduct audits or investigations as deemed necessary.
Related Government Programs
- Department of Defense Professional Services Contracts
- Naval Sea Systems Command (NAVSEA) Support Services
- Program Management Support Services
- Life Cycle Management Contracts
- Engineering Services Contracts
Risk Flags
- Potential for cost overruns in CPFF contract
- Need for robust performance monitoring across diverse service areas
- Contractor dependency for critical support functions
Tags
defense, department-of-the-navy, professional-services, engineering-services, program-management, life-cycle-support, full-and-open-competition, cost-plus-fixed-fee, large-contract, district-of-columbia, caci-inc-federal
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.8 million to CACI, INC. - FEDERAL. THE CONTRACTOR SHALL SUPPLY A FULL RANGE OF PROFESSIONAL SUPPORT SERVICES ACROSS ALL OF PEO CVN HIGHLY INTERRELATED PRODUCT LINES IN THE AREAS OF PROGRAM MANAGEMENT SUPPORT, LIFE CYCLE SUPPORT, FINANCIAL & BUSINESS SUPPORT, AND OPERATIONAL SUPPORT.
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 $85.8 million.
What is the period of performance?
Start: 2021-12-02. End: 2026-12-01.
What is CACI, Inc. - Federal's track record with similar large-scale professional support contracts within the Department of Defense?
CACI, Inc. - Federal has a substantial history of securing and performing large-scale professional support contracts across various branches of the U.S. military, including the Department of the Navy. Their portfolio often includes services related to program management, IT support, intelligence analysis, and logistics. They are a well-established government contractor known for its broad capabilities. Past performance reviews and contract awards data would provide a more granular understanding of their success rates, any past performance issues, and their ability to manage complex, multi-year engagements like the PEO CVN contract. Their consistent presence in winning significant contracts suggests a generally positive track record, though specific contract performance can vary.
How does the $85.8 million contract value compare to similar professional support services awarded by the Navy or other DoD branches?
The $85.8 million contract value over five years, averaging approximately $17.16 million per year, is within the typical range for comprehensive professional support services for major program executive offices within the Department of Defense. Large-scale contracts for program management, engineering, and operational support can easily reach these figures, especially when encompassing multiple interrelated product lines as described. For instance, similar contracts supporting fleet readiness, acquisition programs, or major system development within the Navy or Air Force often fall within this multi-million dollar annual spending bracket. The specific nature of PEO CVN's product lines and the breadth of services required will dictate the precise benchmarking, but the overall value appears commensurate with the scope.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and scope?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract of this magnitude is the potential for cost overruns if not managed diligently. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government bears the risk of actual project costs. If the contractor's costs escalate due to inefficiencies, unforeseen challenges, or scope creep that isn't properly controlled, the total expenditure for the government can exceed initial estimates. Effective oversight, robust cost accounting standards, and clear performance metrics are crucial to mitigate these risks. Another risk is ensuring the contractor remains motivated to control costs once the fee is fixed, which requires strong performance management and potential incentives or penalties tied to cost efficiency where applicable.
How effective are the current oversight mechanisms for ensuring contractor performance and value for money on this contract?
The effectiveness of oversight mechanisms for this contract hinges on the Department of the Navy's implementation and enforcement. Standard oversight includes contract officer representatives (CORs) monitoring performance, regular progress reports from the contractor, and financial audits. For a CPFF contract, rigorous financial oversight is paramount to validate incurred costs and ensure they align with contract requirements and are reasonable. The Program Executive Office for Conventional Weapons (PEO CVN) likely has established internal processes for performance evaluation. The transparency of these mechanisms, the frequency of reviews, and the responsiveness to identified issues will determine their effectiveness in ensuring both contractor performance and value for money.
What are the historical spending patterns for professional support services by PEO CVN or similar Navy acquisition programs?
Historical spending patterns for professional support services by PEO CVN and similar Navy acquisition programs typically show a consistent and significant allocation of funds. These programs often require extensive support in areas like program management, systems engineering, financial analysis, and logistics to manage complex weapon system development and sustainment. Spending can fluctuate based on program lifecycles, modernization efforts, and budget priorities. However, multi-million dollar annual expenditures on professional support are common for major acquisition commands within the Navy. Analyzing past contract awards for PEO CVN and comparable entities would reveal trends in contract types, durations, and average annual values, providing context for the current $85.8 million award.
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: N0016421R3007
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: $102,230,840
Exercised Options: $98,709,326
Current Obligation: $85,827,806
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $28,132,438
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
Start Date: 2021-12-02
Current End Date: 2026-12-01
Potential End Date: 2026-12-01 00:00:00
Last Modified: 2025-11-25
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