CACI Technologies awarded $12.5M for Army experimentation and risk reduction, focusing on R&D

Contract Overview

Contract Amount: $12,481,899 ($12.5M)

Contractor: CACI Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-22

End Date: 2026-09-21

Contract Duration: 364 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SERVICES TO SUPPORT ARMY FIELD EXPERIMENTATION, LAB-BASED RISK REDUCTION, AIR-BASED INTEGRATION AND RISK REDUCTION, TACTICAL MISSION COMMAND APPLICATION INTEGRATION, STRATEGIC INITIATIVES AND RELATED ACTIVITIES

Place of Performance

Location: FORT DIX, BURLINGTON County, NEW JERSEY, 08640

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $12.5 million to CACI TECHNOLOGIES, LLC for work described as: SERVICES TO SUPPORT ARMY FIELD EXPERIMENTATION, LAB-BASED RISK REDUCTION, AIR-BASED INTEGRATION AND RISK REDUCTION, TACTICAL MISSION COMMAND APPLICATION INTEGRATION, STRATEGIC INITIATIVES AND RELATED ACTIVITIES Key points: 1. Contract focuses on advanced research and development for Army operational capabilities. 2. Significant portion allocated to lab-based risk reduction and air-based integration. 3. Performance period spans one year, indicating a focused, short-term objective. 4. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns. 5. Awarded via full and open competition, implying a competitive bidding process. 6. Geographic focus on New Jersey for service delivery.

Value Assessment

Rating: fair

The contract's value of $12.5 million for a one-year period appears reasonable for specialized R&D services. However, the Cost Plus Fixed Fee (CPFF) contract type introduces a degree of uncertainty regarding the final cost, as it allows for reimbursement of allowable costs plus a fixed fee. Benchmarking against similar R&D contracts for defense experimentation is necessary for a more precise value assessment. The provided data does not include specific unit costs for comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method is generally preferred for ensuring fair pricing and access to a broad range of capabilities. The number of bidders is not specified, but the open competition suggests a healthy market for these specialized R&D services.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives the best value for its investment in advanced military research.

Public Impact

The U.S. Army benefits directly through enhanced experimentation and risk reduction capabilities. Services support the integration of air-based systems and tactical mission command applications. Geographic impact is primarily centered in New Jersey where services will be performed. Workforce implications include specialized R&D personnel in engineering and scientific fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher final costs than fixed-price contracts.
Limited duration of one year may not fully capture long-term R&D benefits or risks.
Specific performance metrics and deliverables are not detailed in the provided data.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potential for value.
Focus on critical areas like risk reduction and integration of advanced technologies.
Contractor CACI Technologies, LLC has a significant presence in government contracting.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, driven by the need for technological superiority. Comparable spending benchmarks would involve analyzing other contracts for similar defense experimentation, simulation, and advanced technology integration services, which often represent significant investments in innovation.

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 subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, CACI Technologies, LLC, may engage small businesses as subcontractors depending on their internal procurement strategies and the specific needs of the project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with specific program managers responsible for monitoring performance and expenditures. Accountability measures would be tied to the contract's deliverables and milestones. Transparency is generally facilitated through contract award databases, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Futures Command Initiatives
Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Military Simulation and Experimentation Services

Risk Flags

Potential for cost overruns due to CPFF contract type.
Scope definition challenges inherent in R&D contracts.
Dependence on contractor's technical expertise and innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to CACI TECHNOLOGIES, LLC. SERVICES TO SUPPORT ARMY FIELD EXPERIMENTATION, LAB-BASED RISK REDUCTION, AIR-BASED INTEGRATION AND RISK REDUCTION, TACTICAL MISSION COMMAND APPLICATION INTEGRATION, STRATEGIC INITIATIVES AND RELATED ACTIVITIES

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 $12.5 million.

What is the period of performance?

Start: 2025-09-22. End: 2026-09-21.

What is CACI Technologies, LLC's track record with similar Department of the Army R&D contracts?

CACI Technologies, LLC has a substantial history of performing research and development services for the Department of Defense, including the Army. Their portfolio often includes work related to command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, as well as simulation and training technologies. Analyzing past performance on similar contracts would involve reviewing their successful delivery of complex R&D projects, adherence to timelines, and management of budgets. Specific details on past Army R&D contracts, including their value, duration, and outcomes, would provide a clearer picture of their capabilities and reliability in this domain. Publicly available contract databases and CACI's own corporate reporting can offer insights into their experience.

How does the $12.5 million value compare to similar Army R&D contracts for experimentation and risk reduction?

The $12.5 million contract value for a one-year period for Army experimentation and risk reduction appears to be within a typical range for specialized R&D services. However, a precise comparison requires benchmarking against contracts with similar scopes of work, technical requirements, and contractor capabilities. Factors such as the complexity of the research, the level of technological innovation required, and the specific domains (e.g., air integration, tactical command) influence pricing. Contracts for basic research might be smaller, while those involving extensive prototype development or large-scale field testing could be significantly larger. Without access to detailed cost breakdowns or a broader dataset of comparable contracts, it is difficult to definitively assess if this award represents exceptional value, good value, or is on the higher end.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for the government?

The primary risk for the government with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the 'fixed fee' component provides some predictability for the contractor's profit, the 'cost' portion allows for the reimbursement of allowable expenses. If the contractor's costs exceed initial estimates, the government will bear those additional expenses, potentially leading to a final contract price higher than initially anticipated. This risk is amplified in R&D environments where the scope and challenges are often not fully defined at the outset, increasing the likelihood of unforeseen costs. Effective oversight, clear definition of allowable costs, and robust cost monitoring are crucial to mitigate this risk.

What are the expected outcomes or program effectiveness indicators for this contract?

The expected outcomes for this contract revolve around enhancing the U.S. Army's capabilities in experimentation, lab-based risk reduction, and air-based integration. Program effectiveness will likely be measured by the successful development and testing of new concepts, technologies, or processes that improve tactical mission command and strategic initiatives. Key indicators could include the validation of risk reduction strategies, the successful integration of air assets into experimental scenarios, the performance of new command applications under simulated conditions, and the generation of actionable insights for future Army modernization efforts. The tangible outputs might include technical reports, prototype demonstrations, and recommendations for operational implementation.

How has spending on Army R&D for experimentation and integration evolved over the past five years?

Spending on Army R&D for experimentation and integration has generally seen fluctuations driven by evolving threat landscapes, technological advancements, and budgetary priorities. In recent years, there has been a significant push towards modernizing the Army's capabilities, with increased investment in areas like artificial intelligence, autonomous systems, network modernization, and multi-domain operations. Contracts supporting experimentation and risk reduction are critical components of this modernization strategy. While specific figures for 'experimentation and integration' within R&D require detailed analysis of budget documents and contract databases, the overall trend indicates a sustained, and in some areas, increasing allocation of resources to ensure the Army maintains a technological edge. This particular contract aligns with those broader modernization objectives.

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: 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: 3

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: $548,438,783

Exercised Options: $98,470,005

Current Obligation: $12,481,899

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