DoD's C5ISR HQ Support contract awarded to CACI for over $26.9M, spanning 5 years

Contract Overview

Contract Amount: $26,975,059 ($27.0M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2019-10-23

End Date: 2024-10-22

Contract Duration: 1,826 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RS3 TASK ORDER FOR C5ISR HQ OPERATIONS SUPPORT

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to CACI, INC. - FEDERAL for work described as: RS3 TASK ORDER FOR C5ISR HQ OPERATIONS SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period of 1826 days indicates a long-term need for these C5ISR support services. 4. The North American Industry Classification System (NAICS) code 541712 points to research and development in physical, engineering, and life sciences. 5. This contract is a delivery order under a larger Task Order contract (RS3), implying it's part of a broader framework. 6. The contract is managed by the Department of the Army within the Department of Defense. 7. The contract value of approximately $27 million over five years suggests significant investment in C5ISR capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the total value of over $26.9 million for five years of C5ISR HQ operations support indicates a substantial investment. Comparisons to similar contracts for R&D and specialized support services within the DoD would be necessary for a more precise value-for-money assessment. The fixed fee component provides some cost certainty, but the cost-plus nature requires diligent oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of a broad task order contract (RS3) likely means that many companies were eligible to compete for this specific delivery order.

Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a wider range of proposals and potentially driving down costs through competitive pressures, leading to a more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of the Army and the broader Department of Defense, receiving critical C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) support. Services delivered include research and development related to C5ISR operations, crucial for modern military effectiveness. The geographic impact is likely centered around DoD headquarters and relevant operational commands, with potential reach across various military installations. Workforce implications include the employment of specialized personnel in R&D, engineering, and technical support roles within CACI and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously managed and monitored.
Lack of specific bidder numbers makes it difficult to fully assess the intensity of competition and its impact on price.
The nature of R&D can involve uncertainties, potentially impacting project timelines and final deliverables.
Reliance on a single delivery order under a larger IDIQ contract might limit flexibility if requirements evolve significantly beyond the original scope.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract is for a significant duration (5 years), indicating a stable and ongoing requirement for these critical C5ISR services.
CACI, Inc. - Federal is a known entity in the federal contracting space, suggesting a degree of established capability.
The contract falls under NAICS code 541712, aligning with specialized R&D services, indicating a focus on advanced technological support.

Sector Analysis

The C5ISR sector is a critical and rapidly evolving area within the defense industry, encompassing a wide range of technologies and services essential for military operations. This contract, focused on R&D for HQ operations support, fits within the broader defense technology and services market. Spending in this area is substantial across government agencies, particularly the DoD, as advancements in cyber, communications, and intelligence are paramount. Comparable spending benchmarks would typically be found within broader DoD R&D budgets and specific C5ISR modernization initiatives.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside benefits associated with this specific award. However, as a large prime contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to CACI, Inc. - Federal, depending on the subcontracting plan requirements and the nature of the services needed.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers within the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned appropriately. Transparency is typically managed through contract reporting mechanisms and performance reviews. The Inspector General's office within the DoD would have jurisdiction for investigating fraud, waste, or abuse related to this contract.

Related Government Programs

DoD C5ISR Modernization Programs
Army Research and Development Contracts
RS3 (Responsive Strategic Sourcing for Services) Task Orders
Command and Control Systems Support
Intelligence, Surveillance, and Reconnaissance (ISR) Technology Development

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Limited information on the number of bidders makes it difficult to fully assess competitive intensity.
R&D contracts inherently carry risks related to technical feasibility and project timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to CACI, INC. - FEDERAL. RS3 TASK ORDER FOR C5ISR HQ OPERATIONS SUPPORT

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 Army).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2019-10-23. End: 2024-10-22.

What is CACI, Inc. - Federal's track record with similar DoD C5ISR contracts?

CACI, Inc. - Federal has a substantial history of performing C5ISR-related services for the Department of Defense and other federal agencies. They are a large government contractor with extensive experience in IT, intelligence, and support services. Analyzing their past performance on similar Cost Plus Fixed Fee contracts, particularly those involving R&D and operational support for command and control systems, would provide insight into their ability to manage costs, deliver on technical requirements, and meet performance expectations. Reviewing past performance evaluations and any contract disputes or awards would offer a clearer picture of their reliability and effectiveness in this domain.

How does the $26.9M contract value compare to other C5ISR R&D support contracts?

The $26.9 million contract value for five years of C5ISR HQ operations support, awarded to CACI, Inc. - Federal, represents a significant but not extraordinary investment within the context of large-scale defense R&D. The DoD's annual budget for research, development, testing, and evaluation (RDT&E) runs into the tens of billions of dollars. Contracts for specialized C5ISR support, especially those involving advanced research and development, can range from a few million to hundreds of millions of dollars depending on scope, duration, and technological complexity. This specific contract's value appears to be in the mid-range for a multi-year, specialized R&D support effort within a major command like Army HQ.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, like this one, revolve around cost control and potential for scope creep. For the government, the risk is that the actual costs incurred by the contractor could significantly exceed initial estimates, even though the fee is fixed. This necessitates robust oversight to ensure costs are reasonable, allocable, and allowable. For the contractor, the risk is that the fixed fee may not adequately compensate them if unforeseen technical challenges or cost increases arise during the R&D process, potentially leading to disputes or reduced profit margins. Effective management requires clear definition of R&D objectives and rigorous monitoring of expenditures.

How effective is 'full and open competition' in ensuring value for taxpayer money in specialized R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, especially in specialized R&D contracts. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, increasing the likelihood of receiving innovative solutions and competitive pricing. This broad competition drives down costs and improves the quality of services or products. For R&D, it can also lead to a wider array of technical approaches being considered. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to properly assess the technical merit and cost proposals submitted by diverse bidders.

What is the historical spending trend for C5ISR support services within the Department of the Army?

Historical spending trends for C5ISR support services within the Department of the Army have generally shown a consistent and often increasing investment over the past decade. This is driven by the increasing reliance on networked systems, cyber capabilities, and advanced intelligence, surveillance, and reconnaissance platforms to maintain military superiority. Budgets allocated to C5ISR modernization and support are substantial, reflecting its critical role in all aspects of military operations. While specific figures fluctuate year-to-year based on strategic priorities and technological advancements, the overall trajectory indicates a sustained commitment to enhancing these capabilities, making contracts like this a recurring necessity.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $29,950,778

Exercised Options: $29,950,778

Current Obligation: $26,975,059

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $8,403,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T17D0138

IDV Type: IDC

Timeline