DoD's DISA awards $53.8M for C2 IT support, raising questions on R&D classification and competition
Contract Overview
Contract Amount: $53,849,618 ($53.8M)
Contractor: CACI, Inc. - Federal
Awarding Agency: Department of Defense
Start Date: 2013-08-16
End Date: 2019-02-15
Contract Duration: 2,009 days
Daily Burn Rate: $26.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DEFENSE INFORMATION SYSTEMS AGENCY / PROGRAM EXECUTIVE OFFICE FOR COMMAND AND CONTROL / MULTINATIONAL INFORMATION SHARING PROGRAM MANAGEMENT OFFICE DESIGN, TRANSITION AND OPERATION SUPPORT SERVICES
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $53.8 million to CACI, INC. - FEDERAL for work described as: DEFENSE INFORMATION SYSTEMS AGENCY / PROGRAM EXECUTIVE OFFICE FOR COMMAND AND CONTROL / MULTINATIONAL INFORMATION SHARING PROGRAM MANAGEMENT OFFICE DESIGN, TRANSITION AND OPERATION SUPPORT SERVICES Key points: 1. The contract's value of $53.8M over six years for IT support services is significant. 2. CACI, INC. - FEDERAL secured the award under full and open competition. 3. The classification under NAICS 541712 (R&D) for IT support services warrants scrutiny. 4. The contract spans a considerable duration, impacting long-term IT infrastructure.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar IT support contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process. However, the specific nature of the services and the R&D classification might limit true competition.
Taxpayer Impact: Taxpayer funds are utilized for essential command and control IT support services, with the effectiveness of competition impacting overall value for money.
Public Impact
Ensures continuity of critical command and control systems for the Department of Defense. Supports advanced IT infrastructure, potentially impacting military operational effectiveness. The use of taxpayer funds for R&D-classified IT services requires transparency. Potential for innovation in defense IT through research and development activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- R&D classification for IT support services
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Full and open competition
- Supports critical defense infrastructure
Sector Analysis
This contract falls within the IT sector, specifically supporting command and control systems. Defense IT spending is substantial, and this contract represents a portion of that investment. Benchmarks for similar R&D-focused IT support services are scarce.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight is crucial given the Cost Plus Fixed Fee structure and the R&D classification. The Defense Information Systems Agency (DISA) is responsible for managing this contract, requiring diligent monitoring of costs and performance.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential misclassification of IT support services under R&D NAICS code.
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Long contract duration may reduce flexibility and increase long-term costs.
- Lack of small business participation.
- Limited transparency on specific R&D activities within IT support.
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.8 million to CACI, INC. - FEDERAL. DEFENSE INFORMATION SYSTEMS AGENCY / PROGRAM EXECUTIVE OFFICE FOR COMMAND AND CONTROL / MULTINATIONAL INFORMATION SHARING PROGRAM MANAGEMENT OFFICE DESIGN, TRANSITION AND OPERATION 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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $53.8 million.
What is the period of performance?
Start: 2013-08-16. End: 2019-02-15.
What specific research and development activities are encompassed within these IT support services, and how do they align with NAICS 541712?
The classification under NAICS 541712 (Research and Development in the Physical, Engineering, and Life Sciences) for IT support services is unusual. Typically, IT support falls under different categories. Clarification is needed on whether this contract involves novel technological development or advanced research integrated into the IT infrastructure, justifying the R&D classification. Without this, it may represent a misclassification impacting procurement and oversight.
How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and value for money in this R&D-focused IT support contract?
The CPFF structure allows for cost reimbursement plus a fixed fee, which can be beneficial for R&D where costs are uncertain. However, it inherently carries a risk of cost overruns if the contractor's costs exceed projections. Effective oversight is critical to ensure the fixed fee remains reasonable and that costs are allowable, allocable, and reasonable, maximizing taxpayer value despite the inherent uncertainties of R&D.
What measures are in place to ensure the effectiveness and efficiency of IT support services classified under R&D, and how is performance tracked?
Effectiveness is likely measured through performance metrics related to system uptime, response times, and successful implementation of any R&D-driven enhancements. The agency must have robust quality assurance surveillance plans (QASPs) to monitor contractor performance against contract requirements. Regular reviews and audits are essential to ensure the services meet the evolving needs of the command and control systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc
Address: 14151 PARK MEADOW DR, 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: $53,849,618
Exercised Options: $53,849,618
Current Obligation: $53,849,618
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $7,081,366
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2016
IDV Type: IDC
Timeline
Start Date: 2013-08-16
Current End Date: 2019-02-15
Potential End Date: 2019-02-15 00:00:00
Last Modified: 2025-03-24
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