Navy awards $28.6M for CACI's lifecycle support and communication installation, extending a 2016 contract

Contract Overview

Contract Amount: $28,581,461 ($28.6M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2016-06-22

End Date: 2021-12-21

Contract Duration: 2,008 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF TAIWAN SYUN AN-EXTENSION LIFE CYCLE SUPPORT AND SHIPBOARD COMMUNICATION INSTALLATION

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.6 million to CACI, INC. - FEDERAL for work described as: IGF::OT::IGF TAIWAN SYUN AN-EXTENSION LIFE CYCLE SUPPORT AND SHIPBOARD COMMUNICATION INSTALLATION Key points: 1. Contract value represents a significant investment in naval communication systems. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration and scope indicate a need for specialized engineering expertise. 4. Performance context is tied to ongoing naval operations and modernization efforts. 5. Sector positioning places this within the broader defense IT and engineering services market.

Value Assessment

Rating: good

The contract's value of $28.6 million for lifecycle support and installation appears reasonable given the specialized nature of shipboard communication systems and engineering services. Benchmarking against similar defense contracts for complex system integration and maintenance suggests this falls within expected cost ranges. The fixed-fee structure, while not detailed here, generally provides a degree of cost control for the government, though the 'cost plus' element requires careful monitoring of expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, two bidders still provide a basis for price discovery and comparison, preventing a sole-source situation.

Taxpayer Impact: Full and open competition, even with two bidders, is generally favorable for taxpayers as it encourages competitive pricing and allows the government to select the best value offer.

Public Impact

Naval personnel will benefit from enhanced communication capabilities, improving operational effectiveness. The services delivered include critical lifecycle support and installation of communication systems. Geographic impact is likely concentrated around naval bases and deployed fleet locations. Workforce implications include the need for skilled engineers and technicians for installation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus contracts if not closely managed.
Dependence on a single contractor for critical communication system support could pose a risk.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contractor has existing experience with this type of system, suggesting continuity.
Clear definition of services (lifecycle support and installation) aids in performance tracking.

Sector Analysis

This contract falls within the Defense Information Technology (IT) and Engineering Services sector, a critical area for national security. The market for specialized naval communication systems is relatively niche, dominated by a few key defense contractors. Spending in this area is driven by the need to maintain and modernize aging naval fleets and integrate new communication technologies, with comparable contracts often running into tens or hundreds of millions of dollars for complex system overhauls.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor is CACI, Inc. - Federal, a large business. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether CACI utilizes small business subcontractors for specialized components or services, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract award databases, though detailed performance metrics and cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Communication Systems Modernization
Shipboard IT Infrastructure Support
Defense Engineering Services
C4ISR Systems Support

Risk Flags

Potential for cost creep in Cost Plus Fixed Fee contracts.
Dependence on contractor for critical system support.
Technological obsolescence risk for communication systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.6 million to CACI, INC. - FEDERAL. IGF::OT::IGF TAIWAN SYUN AN-EXTENSION LIFE CYCLE SUPPORT AND SHIPBOARD COMMUNICATION INSTALLATION

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 $28.6 million.

What is the period of performance?

Start: 2016-06-22. End: 2021-12-21.

What is CACI, Inc. - Federal's track record with the Department of the Navy for similar communication system contracts?

CACI, Inc. - Federal has a substantial history of contracting with the Department of the Navy and other defense agencies, often in areas related to IT, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and engineering services. Their track record typically involves providing a range of support, from system integration and installation to lifecycle management and sustainment. For the Navy specifically, CACI has been involved in numerous projects supporting fleet readiness and modernization. Analyzing past performance reviews, contract modifications, and any reported issues on similar, large-scale communication system contracts would provide a more granular understanding of their reliability and effectiveness in delivering complex naval technology solutions.

How does the $28.6 million value compare to similar naval communication installation and support contracts awarded in the last five years?

The $28.6 million award for lifecycle support and installation of shipboard communication systems appears to be within a moderate range for such specialized defense contracts. Larger, more comprehensive fleet-wide modernization programs or contracts involving the development of entirely new communication suites could easily exceed hundreds of millions of dollars. Conversely, smaller, more localized upgrades or maintenance contracts might fall below the $10 million mark. Given the duration (extension of a 2016 contract) and the scope implied by 'lifecycle support and installation,' this value suggests a significant, but not unprecedented, investment in maintaining and upgrading critical naval communication infrastructure for a specific set of platforms or capabilities.

What are the primary risks associated with extending a contract for shipboard communication systems, and how are they mitigated?

Primary risks in extending contracts for shipboard communication systems include technological obsolescence, integration challenges with newer systems, potential cost increases due to unforeseen technical issues, and contractor performance degradation over time. Mitigation strategies often involve robust contract oversight, performance metrics, phased delivery schedules, and clear change management processes. For this specific contract, the extension implies a continued need for the existing systems, suggesting that immediate obsolescence is not a critical concern. However, the 'cost plus fixed fee' structure necessitates vigilant monitoring of expenditures to prevent cost overruns. The Navy likely has technical representatives and contracting officers actively managing the contractor's performance and ensuring adherence to specifications.

What is the expected impact of this contract on the operational readiness and effectiveness of the naval assets it supports?

This contract is expected to have a positive impact on operational readiness and effectiveness by ensuring that critical shipboard communication systems are maintained, functional, and potentially upgraded. Reliable and secure communication is fundamental to naval operations, enabling command and control, intelligence sharing, and coordination among units. Lifecycle support ensures that systems remain operational throughout their intended lifespan, reducing downtime and the need for emergency repairs. Installation of updated components or configurations can enhance capabilities, improve bandwidth, or increase security, thereby directly contributing to the Navy's ability to execute its missions effectively in diverse operational environments.

How has federal spending on engineering services for the Department of the Navy evolved over the past decade, and where does this contract fit?

Federal spending on engineering services for the Department of the Navy has generally remained substantial, driven by the continuous need for platform modernization, new system development, maintenance, and lifecycle support. While specific figures fluctuate based on budget priorities and geopolitical events, the Navy consistently represents a significant portion of the Department of Defense's overall engineering service expenditures. This $28.6 million contract for communication systems fits within the broader category of specialized engineering services, focusing on a critical IT and C4ISR-related domain. It represents a component of the Navy's ongoing investment in maintaining its technological edge and operational capabilities, rather than a massive, standalone program.

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: N0002415R3486

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

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: $82,654,961

Exercised Options: $32,530,731

Current Obligation: $28,581,461

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $600,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline