DoD awards CACI $79M for Cyber and Ground Electronic Warfare Support, spanning R&D and IT services

Contract Overview

Contract Amount: $79,148,685 ($79.1M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-02

End Date: 2026-02-27

Contract Duration: 2,096 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PURPOSE OF THIS ACTION IS TO AWARD A BASE YEAR, WITH 3 OPTION YEARS TASK ORDER CYBER AND GROUND ELECTRONIC WARGARE SUPPORT (CAGES).

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $79.1 million to CACI TECHNOLOGIES, LLC for work described as: THE PURPOSE OF THIS ACTION IS TO AWARD A BASE YEAR, WITH 3 OPTION YEARS TASK ORDER CYBER AND GROUND ELECTRONIC WARGARE SUPPORT (CAGES). Key points: 1. Contract focuses on critical cyber and electronic warfare capabilities, aligning with national security priorities. 2. The award utilizes a Cost Plus Fixed Fee (CPFF) pricing structure, common for complex R&D efforts. 3. A relatively long period of performance (2020-2026) suggests a need for sustained support. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 5. While specific performance metrics are not detailed, the nature of the work implies a focus on technological advancement and operational readiness. 6. The contract's R&D classification (NAICS 541715) points to innovation and development rather than routine service provision.

Value Assessment

Rating: good

The total contract value of approximately $79 million over its potential duration is substantial for R&D in cyber and electronic warfare. Benchmarking this against similar contracts is challenging without more specific details on the scope of work. However, the CPFF structure suggests that costs are closely monitored, and the fixed fee provides a level of predictability for the contractor's profit. The government's ability to manage costs under this structure will be key to ensuring value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders (no=2) suggests a competitive environment, though the exact level of competition could be higher. Full and open competition generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more favorable pricing and a wider selection of innovative solutions.

Public Impact

The Department of the Army benefits from enhanced cyber and ground electronic warfare capabilities. The contract supports research and development in advanced technologies crucial for national defense. Personnel with specialized skills in cybersecurity and electronic warfare will be engaged in critical national security work. The geographic impact is primarily within Virginia, where CACI Technologies, LLC is located, but the services support national defense operations globally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
The long performance period could lead to scope creep if not carefully controlled.
Reliance on a single contractor for critical cyber and EW support may pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
CACI Technologies, LLC is a known entity in defense contracting, implying a degree of established capability.
The contract supports critical national security functions, indicating high strategic importance.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, with a strong emphasis on cyber and electronic warfare technologies. This is a highly specialized and rapidly evolving area within the broader defense IT and R&D market. Spending in this sector is driven by the need for technological superiority and adaptation to emerging threats. Comparable spending benchmarks would typically involve other R&D contracts for advanced defense systems and cybersecurity solutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb=false) and there is no explicit mention of small business subcontracting requirements in the provided snippet. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless CACI Technologies, LLC actively engages small businesses as subcontractors for specialized components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order under an IDIQ, the parent contract likely has established oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Cybersecurity Support Services
Electronic Warfare Systems
Defense Research and Development
Information Technology Services
Department of the Army Contracts
CACI Technologies Contracts

Risk Flags

Potential for cost overruns in CPFF structure
Risk of technological obsolescence due to long performance period
Scope creep management challenges
Dependence on contractor performance for critical capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.1 million to CACI TECHNOLOGIES, LLC. THE PURPOSE OF THIS ACTION IS TO AWARD A BASE YEAR, WITH 3 OPTION YEARS TASK ORDER CYBER AND GROUND ELECTRONIC WARGARE SUPPORT (CAGES).

Who is the contractor on this award?

The obligated recipient is CACI TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $79.1 million.

What is the period of performance?

Start: 2020-06-02. End: 2026-02-27.

What is CACI Technologies, LLC's track record with the Department of Defense, particularly in cyber and electronic warfare contracts?

CACI Technologies, LLC has a significant and long-standing track record with the Department of Defense (DoD) across various service areas, including IT, intelligence, and advanced capabilities. They are a major prime contractor for numerous DoD programs. Their experience in cyber and electronic warfare (EW) is substantial, often involving research, development, integration, and sustainment of complex systems. Historical data shows CACI has been awarded numerous contracts, including IDIQ vehicles and specific task orders, related to cyber operations, EW systems development, signals intelligence, and network defense. This specific contract, awarded under full and open competition, suggests the DoD found CACI's proposal to be competitive and aligned with their requirements for cyber and ground EW support. Their performance on previous, similar contracts would have been a key factor in the evaluation process.

How does the $79 million contract value compare to similar R&D efforts in cyber and electronic warfare within the DoD?

The $79 million value for this 2020-2026 contract (approximately $13 million per year on average) is a significant but not extraordinary figure for specialized R&D in cyber and electronic warfare (EW). The DoD invests heavily in these areas due to evolving threats. Contracts for developing advanced EW systems, cyber defense platforms, or offensive cyber capabilities can range from tens of millions to billions of dollars, depending on the scope, technology maturity, and duration. This particular contract, classified under NAICS 541715 (Research and Development in the Physical, Engineering, and Life Sciences), suggests a focus on innovation and development rather than large-scale procurement or sustainment. Its value is consistent with contracts aimed at advancing technology prototypes, conducting feasibility studies, or developing next-generation capabilities in these critical domains.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D in rapidly evolving fields like cyber and electronic warfare (EW), revolve around cost control and scope definition. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government ultimately reimburses allowable costs. This can lead to cost overruns if the R&D effort proves more complex or expensive than initially anticipated. For the contractor, the fixed fee means their profit is capped, creating a risk if costs escalate beyond projections. Effective management by the government, including rigorous oversight of allowable costs, clear definition of milestones, and proactive change management, is crucial to mitigate these risks and ensure the contract delivers value. The inherent uncertainty in R&D also poses a risk of technical challenges or the technology not maturing as expected.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification imply for the contract's objectives?

The classification 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541715) indicates that the primary objective of this contract is to conduct scientific research and experimental development. This means the work is likely focused on discovering new knowledge, developing new technologies, or improving existing ones in areas related to physics, engineering principles, and potentially biological systems, as they apply to cyber and electronic warfare. It implies a forward-looking effort, aiming to create innovative solutions, prototypes, or advanced concepts rather than simply procuring off-the-shelf equipment or providing routine operational support. The contract's success will be measured by the advancement of technology, the feasibility of developed concepts, and the potential for future application in defense systems.

How does the contract's duration (2020-2026) impact the assessment of its value and potential risks?

The contract's duration, spanning from June 2020 to February 2026 (over five years), suggests a long-term commitment to developing or refining cyber and electronic warfare capabilities. This extended period is typical for R&D projects that require significant time for research, experimentation, prototyping, and testing. From a value perspective, a longer duration can allow for deeper technological advancements and a more thorough exploration of solutions. However, it also introduces risks. The rapidly evolving nature of cyber and EW threats means that technologies developed early in the contract might become outdated before the performance period ends. Furthermore, the extended timeline increases the potential for scope creep, cost escalation, and shifts in strategic priorities. Effective program management and flexibility within the contract are essential to ensure continued relevance and value throughout its lifecycle.

What is the significance of this contract being a 'Delivery Order' under a larger IDIQ vehicle?

This contract being a 'Delivery Order' signifies that it is a specific task awarded under a broader Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQ contracts establish terms and conditions for services or supplies over a period, allowing the government to issue multiple delivery or task orders as needed. This approach provides flexibility for the agency, enabling them to procure specific services or products efficiently without needing to re-compete the basic contract each time. For this specific cyber and ground electronic warfare support, it means the Department of the Army identified a need that fit within the scope of an existing IDIQ contract, likely held by CACI Technologies, LLC. The 'Delivery Order' specifies the exact scope, quantity, and delivery schedule for this particular requirement, with a total value of approximately $79 million.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: 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: $88,293,289

Exercised Options: $86,383,601

Current Obligation: $79,148,685

Actual Outlays: $404,114

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $606,294

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0157

IDV Type: IDC

Timeline