DoD's $214M IT Business Support Services Contract with CACI Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $213,903,448 ($213.9M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2010-02-18
End Date: 2011-02-18
Contract Duration: 365 days
Daily Burn Rate: $586.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IT BUSINESS SUPPORT SERVICES
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $213.9 million to CACI, INC. - FEDERAL for work described as: IT BUSINESS SUPPORT SERVICES Key points: 1. The contract awarded to CACI, Inc. - Federal for IT Business Support Services represents a significant investment by the Department of Defense. 2. Competition for this contract was full and open, suggesting a potentially competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not managed tightly. 4. The sector is IT Business Support Services, a critical area for government operations.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar IT support contracts is crucial to assess if the $214 million price tag represents good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing outcomes and the effectiveness of the price discovery mechanism require further analysis.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT business support services. Ensuring competitive pricing and efficient service delivery is key to maximizing the value of this expenditure.
Public Impact
Ensures critical IT business support functions are maintained within the Department of the Navy. Supports CACI, Inc. - Federal, a major government contractor, contributing to jobs and economic activity. The large contract value highlights the significant reliance on external vendors for specialized IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of specific performance metrics makes value assessment difficult.
- Limited transparency on sub-contracting and its cost implications.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential IT functions for the Navy.
- Established contractor with a track record.
Sector Analysis
This contract falls within the IT Business Support Services sector, which is vital for the operational efficiency of government agencies. Spending benchmarks in this area vary widely based on scope and complexity, but $214 million indicates a substantial, long-term engagement.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation is needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
Oversight of this Cost Plus Fixed Fee contract is critical to ensure costs remain reasonable and aligned with performance objectives. Regular audits and performance reviews by the Department of the Navy are essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure may lead to higher costs.
- Lack of detailed performance metrics hinders value assessment.
- Potential for scope creep without stringent oversight.
- Limited information on small business participation.
Tags
engineering-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $213.9 million to CACI, INC. - FEDERAL. IT BUSINESS 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 $213.9 million.
What is the period of performance?
Start: 2010-02-18. End: 2011-02-18.
What specific IT business support services are included in this contract, and how do they align with the Department of the Navy's strategic IT goals?
The contract details are limited, but 'IT Business Support Services' typically encompass a broad range of functions such as help desk support, system administration, network management, cybersecurity, and IT project management. Understanding the precise scope is crucial to assess if these services directly contribute to the Navy's overarching IT modernization and operational objectives, ensuring taxpayer funds are allocated effectively towards mission-critical needs.
How effectively did the 'full and open competition' process ensure competitive pricing and prevent potential cost overruns, given the Cost Plus Fixed Fee structure?
While 'full and open competition' is a positive indicator for price discovery, the Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost escalation. The effectiveness of the competition in mitigating this risk depends on the rigor of the initial bid evaluation, the clarity of the fixed fee negotiation, and the robustness of ongoing oversight to manage allowable costs and prevent contractor inefficiencies from driving up the total price.
What are the key performance indicators (KPIs) used to measure the effectiveness and value delivered by CACI, Inc. - Federal under this contract?
The provided data does not specify the KPIs. Effective measurement of value in IT support services relies on clearly defined metrics such as system uptime, response times for issue resolution, user satisfaction rates, and successful project completion within budget and schedule. Without these KPIs, assessing the true effectiveness and value for money of the $214 million expenditure is challenging.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6523607R0014
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: $218,988,869
Exercised Options: $218,988,869
Current Obligation: $213,903,448
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-02-18
Current End Date: 2011-02-18
Potential End Date: 2011-02-18 00:00:00
Last Modified: 2022-08-24
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