CACI awarded $113.5M for Naval Forces Logistics Support, facing strong competition

Contract Overview

Contract Amount: $113,502,149 ($113.5M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2023-05-21

End Date: 2026-06-30

Contract Duration: 1,136 days

Daily Burn Rate: $99.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAVAL FORCES LOGISTICS SUPPORT SERVICES

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $113.5 million to CACI, INC. - FEDERAL for work described as: NAVAL FORCES LOGISTICS SUPPORT SERVICES Key points: 1. Contract value of $113.5M over approximately 3 years suggests significant investment in logistics capabilities. 2. Full and open competition indicates a healthy market with multiple potential providers. 3. The contract's duration and scope may present performance risks if not managed effectively. 4. Engineering services (NAICS 541330) are critical for modern naval operations and supply chain efficiency. 5. Award to CACI, INC. - FEDERAL places a key logistics provider within the Department of Defense. 6. The contract's cost-plus-fixed-fee structure requires careful oversight to manage expenses and ensure value.

Value Assessment

Rating: good

The $113.5M award for logistics support services appears reasonable given the contract's duration and scope. Benchmarking against similar large-scale defense logistics contracts would provide further insight into its value-for-money. The cost-plus-fixed-fee (CPFF) pricing structure necessitates diligent oversight to ensure costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for performance without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was broadly advertised and multiple qualified bidders were encouraged to submit proposals. The presence of four bidders suggests a competitive environment where price and technical merit were likely key evaluation factors. This level of competition is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that typically drives down costs and encourages innovation among contractors vying for the award.

Public Impact

Naval forces worldwide will benefit from enhanced logistics support, improving operational readiness and efficiency. Services delivered include critical engineering and support functions essential for maintaining naval supply chains. The primary geographic impact is likely within naval operating areas and supporting shore installations, with a focus on Virginia. Workforce implications include potential job creation within CACI and its subcontractors, particularly in engineering and logistics fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not closely monitored.
The long duration of the contract (over 3 years) increases the risk of scope creep or performance degradation.
Reliance on a single prime contractor for critical logistics functions can create single points of failure.
Ensuring effective performance management and quality control will be crucial for success.

Positive Signals

Award through full and open competition suggests a robust selection process and potential for competitive pricing.
The contractor, CACI, INC. - FEDERAL, has a significant presence and experience in defense contracting.
The contract aims to provide essential logistics support, directly contributing to naval operational effectiveness.
The defined period of performance provides a clear framework for service delivery and evaluation.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The defense logistics market is substantial, with significant government spending allocated to ensuring the efficient movement and support of military assets. This contract represents a portion of that spending, focusing on specialized support for naval forces. Comparable spending benchmarks would involve analyzing other large-scale logistics and engineering support contracts awarded by the Department of Defense and its various branches.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor is CACI, INC. - FEDERAL, a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on CACI's subcontracting plan and the specific requirements of the logistics support services. Further analysis of subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific contracting officers and program managers responsible for monitoring performance, costs, and adherence to contract terms. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to ensure that costs are reasonable and allocable. Transparency will be facilitated through contract reporting mechanisms and potentially through Inspector General reviews if any irregularities arise. Accountability measures will be tied to performance metrics and delivery schedules outlined in the contract.

Related Government Programs

Naval Logistics Command Support
Defense Logistics Agency Services
Military Sealift Command Contracts
Department of Defense Engineering Services
Fleet Readiness Support Contracts

Risk Flags

Cost Overrun Risk (CPFF Structure)
Performance Degradation Over Time
Dependency on Single Prime Contractor
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $113.5 million to CACI, INC. - FEDERAL. NAVAL FORCES LOGISTICS SUPPORT SERVICES

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 $113.5 million.

What is the period of performance?

Start: 2023-05-21. End: 2026-06-30.

What is CACI, INC. - FEDERAL's track record with similar large-scale defense logistics contracts?

CACI, INC. - FEDERAL has a substantial history of performing large-scale IT and professional services contracts for the Department of Defense and other federal agencies. Their portfolio often includes complex logistics, intelligence, and engineering support services. While specific details on past naval logistics contracts of this exact scale would require deeper data mining, CACI's extensive experience in the defense sector suggests a familiarity with the operational demands and contracting requirements inherent in such awards. Their performance on previous contracts, particularly those involving similar service areas and contract types (like CPFF), would be a key indicator of their capability to execute this current award successfully. Reviewing past performance evaluations and contract close-out data would provide a more granular assessment.

How does the $113.5M value compare to similar naval logistics support contracts awarded in the past three years?

The $113.5M contract value for approximately three years of naval forces logistics support services appears to be within the typical range for significant defense support contracts. To provide a precise comparison, one would need to analyze contracts with similar scopes (logistics, engineering support) and durations awarded by the Department of the Navy or other branches of the DoD. For instance, contracts for fleet readiness, supply chain management, or base operations support often fall into this multi-million dollar category. The number of bidders (four) in this instance suggests a competitive market, which can influence pricing. Without direct comparative contract data, it's difficult to definitively state if this award represents exceptional value, but its scale is consistent with substantial defense service procurements.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses allowable costs. This structure can potentially incentivize the contractor to incur higher costs, as their fee remains constant regardless of the total expenditure, unless specific cost ceilings or controls are rigorously enforced. For the government, the risk lies in potential cost overruns exceeding initial estimates. Effective oversight, detailed cost accounting, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value for its investment. The contractor's own financial health and management practices also play a significant role in risk mitigation.

How effective are the current oversight mechanisms for ensuring performance and value in this contract?

The effectiveness of oversight mechanisms for this contract hinges on the diligence of the contracting officer, program managers, and any designated quality assurance representatives within the Department of the Navy. The CPFF structure necessitates robust financial oversight to scrutinize allowable costs and prevent unnecessary expenditures. Performance oversight will rely on clearly defined metrics, key performance indicators (KPIs), and regular reporting from CACI, INC. - FEDERAL. The contract's duration (over three years) requires sustained oversight to ensure consistent quality and adapt to any evolving operational needs. Transparency is typically maintained through contract reporting systems and potential audits. The ultimate effectiveness depends on the resources allocated to oversight and the expertise of the personnel involved.

What are the historical spending patterns for naval logistics support services by the Department of the Navy?

Historical spending patterns for naval logistics support services by the Department of the Navy are substantial and have generally trended upwards, reflecting the increasing complexity of global operations and the need for efficient supply chains. The Navy consistently allocates significant portions of its budget to sustainment, readiness, and operational support, which includes logistics. Spending in this area can fluctuate based on geopolitical events, fleet modernization programs, and strategic priorities. Analyzing historical data reveals a consistent demand for services ranging from supply chain management and transportation to maintenance and engineering support. Contracts like this one, awarded through competitive processes, represent a portion of this ongoing investment aimed at ensuring the Navy's operational capabilities.

What is the potential impact of this contract on small business participation in the defense logistics sector?

As this contract was awarded under full and open competition and does not appear to have a small business set-aside component, its direct impact on small business participation is likely indirect. The prime contractor, CACI, INC. - FEDERAL, is a large business. However, large defense contracts often include subcontracting goals designed to ensure small businesses have opportunities to participate. The specific impact will depend on CACI's subcontracting plan, the nature of the services required, and whether CACI actively seeks out and partners with qualified small businesses. If CACI meets or exceeds its small business subcontracting targets, this contract could provide valuable work and revenue streams for small businesses in the logistics and engineering support sectors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018920R3071

Offers Received: 4

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: $232,523,744

Exercised Options: $123,268,155

Current Obligation: $113,502,149

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $26,786,418

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