CACI Technologies awarded $107M for Naval Sea Systems Command SETA support, impacting shipyard operations

Contract Overview

Contract Amount: $107,278,072 ($107.3M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2018-07-20

End Date: 2024-09-15

Contract Duration: 2,249 days

Daily Burn Rate: $47.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SCIENTIFIC, ENGINEERING, TECHNICAL, AND ANALYTICAL (SETA) SUPPORT FOR: NAVAL SEA SYSTEMS COMMAND (NAVSEA), NAVAL SHIPYARD AND NAVAL INDUSTRIAL BASE EFFORTS RELATED TO WORKFORCE, WORKLOAD, INTEGRATED PROJECT TEAM DEVELOPMENT (IPTD), LOGISTIC SERVICES, PERFORMANCE IMPROVEMENT INITIATIVES, BUSINESS OPERATIONS, ENVIRONMENT, SAFETY AND HEALTH, AND TOTAL FORCE SHIP MAINTENANCE EXECUTION INITIATIVES IN SUPPORT OF PROJECT EXECUTION AND DECK PLATE EFFECTIVENESS.

Place of Performance

Location: INDIAN HEAD, CHARLES County, MARYLAND, 20640

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $107.3 million to CACI TECHNOLOGIES, LLC for work described as: SCIENTIFIC, ENGINEERING, TECHNICAL, AND ANALYTICAL (SETA) SUPPORT FOR: NAVAL SEA SYSTEMS COMMAND (NAVSEA), NAVAL SHIPYARD AND NAVAL INDUSTRIAL BASE EFFORTS RELATED TO WORKFORCE, WORKLOAD, INTEGRATED PROJECT TEAM DEVELOPMENT (IPTD), LOGISTIC SERVICES, PERFORMANCE IMPROVEMENT INITI… Key points: 1. Contract focuses on critical support for naval shipyard workforce, workload, and maintenance execution. 2. Significant investment in improving business operations, safety, and logistics for naval industrial base. 3. Performance period spans over six years, indicating a long-term need for these services. 4. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not managed closely. 5. This award is part of broader Department of Defense efforts to enhance fleet readiness and efficiency. 6. The scope includes workforce development and integrated project team initiatives, crucial for complex naval projects.

Value Assessment

Rating: good

The contract value of approximately $107 million over six years suggests a substantial but potentially reasonable investment for comprehensive SETA support to the Naval Sea Systems Command. Benchmarking against similar large-scale engineering and technical support contracts within the Department of Defense is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, requires diligent oversight to ensure costs remain aligned with the fixed fee and overall project objectives. Without specific comparable contract data, it's difficult to definitively state if this represents excellent value, but the duration and scope indicate a significant need.

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 vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, though the exact number of proposals received is not detailed. Full and open competition generally promotes price discovery and encourages contractors to offer competitive pricing to win the award. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and quality for essential naval support services. Full and open competition increases the likelihood that the government is not overpaying for these critical technical and analytical functions.

Public Impact

Naval Sea Systems Command (NAVSEA) and its associated naval shipyards and industrial base operations are the primary beneficiaries, receiving essential support services. Services delivered include workforce development, workload management, logistics, performance improvement, and safety initiatives. The geographic impact is concentrated within naval shipyards and industrial facilities, primarily in Maryland, supporting fleet readiness. Workforce implications include the potential for direct employment by CACI Technologies, LLC, and indirectly through the skilled labor required for naval maintenance and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize contractors to increase costs to maximize profit, necessitating robust oversight.
Long contract duration (over 6 years) may lead to scope creep or evolving requirements that are not fully captured in initial pricing.
Dependence on a single contractor for critical SETA support could pose a risk if performance issues arise.
The specific breakdown of costs within the CPFF structure is not publicly available, making detailed cost-efficiency analysis challenging.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contractor, CACI Technologies, LLC, has a significant presence and experience in providing similar services to the government.
The contract addresses critical areas like workforce development and performance improvement, vital for naval readiness.
The extended performance period indicates a stable, long-term need for these essential support functions.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting government defense operations. The market for Scientific, Engineering, and Technical Assistance (SETA) services to the Department of Defense is substantial, with numerous large and small businesses competing for these specialized roles. This contract with NAVSEA represents a significant portion of spending dedicated to ensuring the operational readiness and efficiency of naval shipyards and the broader naval industrial base. Comparable spending benchmarks would involve analyzing other large SETA contracts awarded to support major defense acquisition programs or fleet readiness initiatives.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The award to CACI Technologies, LLC, a large business, suggests that the primary focus was on securing specialized expertise. Further analysis would be needed to determine if CACI has a subcontracting plan in place to engage small businesses for specific components of the SETA support, which could impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of costs and adherence to the fixed fee. Transparency regarding specific performance metrics and cost breakdowns would enhance accountability, but such details are often proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense SETA Support
Naval Shipyard Operations Support
Defense Industrial Base Modernization
Fleet Readiness Programs
Engineering and Technical Services Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Contractor Performance Monitoring
Scope Creep Potential
Long-Term Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $107.3 million to CACI TECHNOLOGIES, LLC. SCIENTIFIC, ENGINEERING, TECHNICAL, AND ANALYTICAL (SETA) SUPPORT FOR: NAVAL SEA SYSTEMS COMMAND (NAVSEA), NAVAL SHIPYARD AND NAVAL INDUSTRIAL BASE EFFORTS RELATED TO WORKFORCE, WORKLOAD, INTEGRATED PROJECT TEAM DEVELOPMENT (IPTD), LOGISTIC SERVICES, PERFORMANCE IMPROVEMENT INITIATIVES, BUSINESS OPERATIONS, ENVIRONMENT, SAFETY AND HEALTH, AND TOTAL FORCE SHIP MAINTENANCE EXECUTION INITIATIVES IN SUPPORT OF PROJECT EXECUTION AND DECK PLATE EFFECTIVENESS.

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $107.3 million.

What is the period of performance?

Start: 2018-07-20. End: 2024-09-15.

What is CACI Technologies, LLC's track record in providing SETA support to the Department of Defense, particularly NAVSEA?

CACI Technologies, LLC has a substantial history of providing a wide range of technical, professional, and IT services to the Department of Defense and other federal agencies. Their experience often includes areas such as command and control, intelligence, logistics, engineering, and cybersecurity. For NAVSEA specifically, CACI has been involved in various support roles, including systems engineering, program management, and technical assistance, contributing to the development, maintenance, and modernization of naval platforms and systems. Their extensive portfolio suggests a strong capability to fulfill the requirements of this SETA support contract, encompassing workforce, workload, and operational efficiency initiatives within naval shipyards and the industrial base.

How does the $107 million contract value compare to similar SETA support contracts for naval operations?

The $107 million contract value for SETA support to NAVSEA over approximately six years is substantial, reflecting the complexity and critical nature of naval shipyard operations and fleet readiness. To benchmark this value, one would typically compare it against other large-scale engineering, technical, and analytical support contracts awarded to entities like NAVSEA, Naval Air Systems Command (NAVAIR), or other major defense organizations. Contracts supporting shipbuilding, maintenance, modernization programs, or extensive R&D efforts often fall within this range or higher. The specific scope, duration, and the number of bidders in comparable contracts are key factors. Without direct access to a database of all such contracts, it's challenging to provide an exact comparison, but the figure aligns with significant, long-term government support requirements in the defense sector.

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 ($107 million over six years) revolve around cost control and potential for contractor inefficiency. While the fixed fee provides a ceiling on the contractor's profit, the 'cost plus' element means the government reimburses allowable costs. This structure can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total cost. This necessitates rigorous government oversight to scrutinize all incurred costs, ensure they are reasonable, allocable, and allowable, and prevent scope creep that inflates the overall expenditure. Additionally, the long duration increases the risk of evolving requirements and potential for the fixed fee to become disproportionate to the actual effort over time if not managed proactively.

How effective is full and open competition in ensuring value for money for this type of specialized support?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for specialized support services like SETA. By allowing all responsible sources to submit bids, it fosters a competitive environment where multiple companies vie for the contract. This competition drives down prices, encourages innovation, and ensures that the government selects the offer that provides the best overall value, considering both technical merit and cost. In this case, with two bidders identified, the competition likely contributed to achieving a reasonable price point. However, the effectiveness is also dependent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess proposals to select the truly best value offer, rather than simply the lowest price.

What are the potential performance implications of awarding this contract to CACI Technologies, LLC?

Awarding this significant SETA support contract to CACI Technologies, LLC carries several potential performance implications, largely influenced by the company's extensive experience and established presence in the defense sector. On the positive side, CACI's track record suggests they possess the necessary technical expertise, skilled personnel, and program management capabilities to effectively deliver the required services, potentially leading to improved workforce development, workload management, and operational efficiencies for NAVSEA. However, potential challenges could arise from managing a contract of this scale and duration, ensuring consistent quality across all support functions, and adapting to evolving naval requirements. Effective communication, robust performance metrics, and proactive issue resolution will be crucial for maximizing positive performance outcomes and mitigating risks.

What is the historical spending pattern for SETA support at NAVSEA or similar naval commands?

Historical spending patterns for SETA support at NAVSEA and similar naval commands typically show a consistent and significant investment in technical, engineering, and analytical services. These services are fundamental to the complex operations of naval shipbuilding, maintenance, modernization, and overall fleet readiness. Spending in this category often fluctuates based on major program milestones, fleet modernization cycles, and shifts in defense priorities. Large, multi-year contracts like this one are common, reflecting the long-term nature of naval requirements. Analyzing historical data would likely reveal a sustained demand for SETA support, with annual expenditures potentially ranging from tens to hundreds of millions of dollars across various commands, depending on the scope and scale of ongoing projects and operational needs.

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: N0017417R3018

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: $107,533,796

Exercised Options: $107,533,796

Current Obligation: $107,278,072

Actual Outlays: $35,276,342

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $19,875,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4026

IDV Type: IDC

Timeline