CACI's $110.6M Army contract for contingency support awarded without competition, raising value concerns

Contract Overview

Contract Amount: $110,649,208 ($110.6M)

Contractor: CACI, Inc. - Federal

Awarding Agency: Department of Defense

Start Date: 2015-05-01

End Date: 2017-03-27

Contract Duration: 696 days

Daily Burn Rate: $159.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF; GENESIS V CONUS / OCONUS SUPPORT 52.217-9 CONUS / OCONUS&CONTINGENCY

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $110.6 million to CACI, INC. - FEDERAL for work described as: IGF::CT::IGF; GENESIS V CONUS / OCONUS SUPPORT 52.217-9 CONUS / OCONUS&CONTINGENCY Key points: 1. The contract's value for money is questionable due to the lack of competition and cost-plus-fixed-fee structure. 2. Limited competition dynamics suggest potential for inflated pricing and reduced contractor incentive for efficiency. 3. Risk indicators include the cost-plus-fixed-fee pricing model, which can incentivize cost overruns. 4. Performance context is broad, covering contingency support across CONUS/OCONUS, making direct performance comparison difficult. 5. This contract falls within the Engineering Services sector, supporting broad operational needs. 6. The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive bids.

Value Assessment

Rating: questionable

The $110.6 million awarded to CACI, Inc. - Federal for contingency support lacks a clear benchmark for value due to its sole-source nature and cost-plus-fixed-fee (CPFF) structure. CPFF contracts can lead to higher costs as the contractor is reimbursed for all allowable costs plus a fixed fee, potentially reducing the incentive to control expenses. Without competitive bids, it is difficult to assess if the pricing is fair and reasonable compared to market rates or similar services procured through competition. The duration of the contract (696 days) also needs to be considered in relation to the services provided to determine overall cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Army did not solicit offers from multiple potential contractors. The justification for this approach is not detailed in the provided data, but sole-source awards typically occur when only one contractor possesses the unique capability or when urgent needs preclude a competitive process. The absence of competition means there was no price discovery through bidding, potentially leading to less favorable pricing for the government.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the lack of competitive pressure. Without competing the requirement, the government missed an opportunity to leverage market forces to secure the best possible price and value.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel requiring logistical and operational support in contingency environments. Services delivered include engineering and general support functions essential for maintaining operational readiness. The geographic impact is broad, covering both Continental United States (CONUS) and Outside Continental United States (OCONUS) locations, indicating support for global military operations. Workforce implications involve the deployment of skilled personnel to support military missions, potentially including engineers, technicians, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee structure can incentivize cost growth.
Sole-source award raises questions about justification and potential for better pricing.
Broad scope of contingency support makes performance and cost oversight challenging.

Positive Signals

CACI, Inc. - Federal is an established contractor with experience in government support services.
The contract addresses critical needs for contingency operations, ensuring mission readiness.
The fixed fee component of the CPFF contract provides some cost predictability for the government.

Sector Analysis

This contract falls under the Engineering Services sector (NAICS code 541330), which encompasses firms providing engineering, research, and development services. The market for these services is substantial, driven by government and private sector demand for specialized technical expertise. This particular award supports the Department of Defense's need for flexible and responsive support in complex operational environments, often characterized by evolving requirements and the need for rapid deployment of capabilities. Comparable spending benchmarks in this sector are difficult to establish precisely due to the unique nature of contingency support and the sole-source award.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, CACI, Inc. - Federal, is a large business, and any subcontracting opportunities would be at their discretion, not mandated by a set-aside requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Given the cost-plus-fixed-fee structure and the broad scope of contingency support, robust oversight is crucial to monitor costs, ensure performance standards are met, and prevent potential fraud or abuse. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any allegations of waste, fraud, or abuse related to this contract. Transparency regarding the justification for the sole-source award and ongoing performance reports would be key accountability measures.

Related Government Programs

Department of Defense Logistics Support Contracts
Contingency Operations Support Services
Engineering and Technical Services Contracts
Army Operational Support Programs
Federal Sole-Source Contract Awards

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Lack of competitive bidding
Broad scope of services
Contingency operations environment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $110.6 million to CACI, INC. - FEDERAL. IGF::CT::IGF; GENESIS V CONUS / OCONUS SUPPORT 52.217-9 CONUS / OCONUS&CONTINGENCY

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 $110.6 million.

What is the period of performance?

Start: 2015-05-01. End: 2017-03-27.

What specific engineering and support services were provided under this contract, and how were they critical to contingency operations?

The contract, "GENESIS V CONUS / OCONUS SUPPORT," awarded to CACI, Inc. - Federal, was for general support services in contingency environments. While the specific breakdown of engineering tasks is not detailed, such contracts typically encompass a wide range of support functions essential for military operations. This can include logistical planning, facility maintenance, technical support for equipment, IT services, base operations support, and potentially specialized engineering services required for deploying or maintaining infrastructure in austere or rapidly changing environments. These services are critical for ensuring that military personnel have the necessary infrastructure, resources, and technical assistance to execute their missions effectively, particularly in regions experiencing conflict or natural disasters where standard support mechanisms may be unavailable or insufficient.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data indicates the contract was awarded as 'NOT COMPETED,' signifying a sole-source or limited competition procurement. The specific justification for this sole-source award is not detailed in the data snippet. However, common reasons for sole-source procurements include situations where only one responsible source can provide the required service or supply, urgent and compelling needs that preclude competition, or when the contract is a follow-on to a previous competitive award where the original contractor possesses unique knowledge or capabilities. Without further documentation from the Department of the Army, the precise rationale remains unknown, but it implies that a competitive process was deemed impractical or impossible under the circumstances of the requirement.

How does the Cost Plus Fixed Fee (CPFF) pricing structure potentially impact the overall cost and contractor's incentive for efficiency?

The Cost Plus Fixed Fee (CPFF) pricing structure means that the contractor, CACI, Inc. - Federal, is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee. This structure offers the government some predictability regarding the contractor's profit margin (the fixed fee). However, it can diminish the contractor's incentive to control costs, as they are guaranteed to be reimbursed for all legitimate expenses. Unlike fixed-price contracts where the contractor bears the risk of cost overruns, in a CPFF arrangement, the government assumes most of the cost risk. This can potentially lead to higher overall contract costs compared to competitively bid fixed-price contracts, as the contractor may not be as motivated to find the most cost-effective solutions.

What are the potential risks associated with a broad, multi-year contingency support contract awarded without competition?

Awarding a broad, multi-year contingency support contract without competition presents several risks. Firstly, the lack of competition means the government may not have secured the most competitive pricing, potentially leading to overpayment. Secondly, the CPFF structure, as mentioned, can reduce the contractor's incentive to manage costs efficiently. Thirdly, the broad scope (CONUS/OCONUS contingency support) makes oversight more complex; ensuring that all services are necessary, performed effectively, and billed accurately requires significant government resources and expertise. Finally, without a competitive baseline, it is harder to assess whether the contractor's performance is truly meeting expectations or if alternative, more cost-effective solutions exist in the market.

How does CACI, Inc. - Federal's track record and experience influence the assessment of this contract's performance and risk?

CACI, Inc. - Federal is a large, established government contractor with extensive experience providing IT, C4ISR, and engineering solutions to defense and civilian agencies. Their track record suggests they possess the organizational capacity and technical expertise to manage complex contracts like GENESIS V. However, past performance alone does not mitigate the risks inherent in a sole-source, CPFF contract. While their experience may indicate a higher likelihood of successful technical execution, it does not guarantee cost efficiency or optimal value for money. The assessment of this contract's performance and risk must therefore consider both CACI's capabilities and the structural elements of the contract itself, particularly the absence of competition and the CPFF pricing model.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911W415R0001

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: $125,722,484

Exercised Options: $125,722,484

Current Obligation: $110,649,208

Subaward Activity

Number of Subawards: 77

Total Subaward Amount: $8,735,670

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline