DoD's $103M IT Hardware Catalog contract awarded to CACI IDT, LLC for electronic computer manufacturing

Contract Overview

Contract Amount: $102,953,128 ($103.0M)

Contractor: CACI IDT, LLC

Awarding Agency: Department of Defense

Start Date: 2020-03-20

End Date: 2022-09-23

Contract Duration: 917 days

Daily Burn Rate: $112.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: S19-0002 INFORMATION TECHNOLOGY HARDWARE CATALOG 3 (ITHC3)(BASE YEAR + 1 YEAR OPTION FOR IT SUPPLIES AND ACCESSORIES)

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $103.0 million to CACI IDT, LLC for work described as: S19-0002 INFORMATION TECHNOLOGY HARDWARE CATALOG 3 (ITHC3)(BASE YEAR + 1 YEAR OPTION FOR IT SUPPLIES AND ACCESSORIES) Key points: 1. The contract's value of over $100 million suggests a significant need for IT hardware within the Department of Defense. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process, potentially leading to better pricing. 3. The duration of the contract, spanning over two years with options, indicates a sustained requirement for these IT supplies. 4. The primary focus on electronic computer manufacturing (NAICS 334111) positions this contract within a critical segment of the IT supply chain. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor and provides budget certainty for the government. 6. The award to CACI IDT, LLC, a known entity in government contracting, suggests a level of trust in their ability to deliver.

Value Assessment

Rating: good

The contract value of $102,953,128 for IT hardware over approximately two years appears reasonable given the scale and nature of Department of Defense requirements. Benchmarking against similar large-scale IT hardware procurements for defense agencies would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government in managing costs for predictable supply needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, though not explicitly stated in the provided data, is implied by this competition type. A robust competition level generally fosters price discovery and encourages contractors to offer competitive pricing to secure the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible pricing and value for the IT hardware procured by the Department of Defense.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential IT hardware supplies and accessories. This contract supports the operational readiness and technological infrastructure of the Army. The geographic impact is likely widespread, as the DoD operates globally, though the contract is managed from Virginia. The contract supports jobs within the electronic computer manufacturing sector and potentially within CACI IDT, LLC's IT support and logistics operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of hardware given the two-year duration and rapid technological advancements in IT.
Dependence on a single contractor for a significant volume of IT hardware could create supply chain vulnerabilities.
Ensuring the delivered hardware meets stringent DoD cybersecurity and interoperability standards requires diligent oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these IT supplies.
Firm Fixed Price contract type provides cost certainty and limits the government's exposure to price fluctuations.
The contractor, CACI IDT, LLC, has experience in government contracting, implying a degree of reliability.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on the manufacturing and supply of IT hardware. The NAICS code 334111 (Electronic Computer Manufacturing) indicates a focus on computer systems and related devices. The Department of Defense is a major consumer of IT hardware, with significant spending across various categories to maintain its vast technological infrastructure and operational capabilities. Comparable spending benchmarks would involve analyzing other large-scale IT hardware procurement vehicles used by defense agencies or other federal entities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this specific award. The primary focus is on larger prime contractors capable of fulfilling the extensive IT hardware needs of the Department of Defense. This means small businesses in this space would likely participate as subcontractors to the prime, if at all, or compete for smaller, separate contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army, a component of the Department of Defense. Accountability measures are embedded in the Firm Fixed Price contract type, requiring the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

IT Hardware Procurement
Department of Defense IT Spending
Electronic Computer Manufacturing Contracts
Federal IT Supply Chain
Army IT Modernization

Risk Flags

Potential for supply chain disruption
Risk of hardware obsolescence
Cybersecurity vulnerabilities in delivered hardware
Contractor performance issues
Budgetary constraints impacting future options

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $103.0 million to CACI IDT, LLC. S19-0002 INFORMATION TECHNOLOGY HARDWARE CATALOG 3 (ITHC3)(BASE YEAR + 1 YEAR OPTION FOR IT SUPPLIES AND ACCESSORIES)

Who is the contractor on this award?

The obligated recipient is CACI IDT, 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 $103.0 million.

What is the period of performance?

Start: 2020-03-20. End: 2022-09-23.

What is the track record of CACI IDT, LLC with the Department of Defense for similar IT hardware contracts?

CACI IDT, LLC has a history of performing contracts with the Department of Defense. While specific details on past IT hardware catalog contracts are not provided here, CACI as a parent company is a significant government contractor with extensive experience across various IT services and solutions for defense agencies. Their past performance on similar large-scale procurements, including hardware, software, and IT services, would be a key factor in their selection for this contract. A review of their performance ratings on previous DoD contracts would offer further insight into their reliability and capability in delivering IT hardware solutions that meet stringent military requirements.

How does the per-unit cost of hardware procured under this contract compare to market rates or other government contracts?

The provided data does not include specific per-unit costs for the hardware procured under this contract, making a direct comparison to market rates or other government contracts impossible without further analysis of the delivery orders issued against the IDIQ. However, the contract was awarded under full and open competition, which typically drives prices towards market competitiveness. The firm fixed-price nature also means the government has a defined cost. To assess value, one would need to examine the pricing of specific items purchased through this catalog against GSA schedules, other agency-specific IT hardware contracts, or commercial price lists, considering factors like volume discounts and specific configurations required by the DoD.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential hardware obsolescence due to rapid technological advancements, supply chain disruptions affecting delivery timelines, and ensuring delivered hardware meets the DoD's rigorous cybersecurity and interoperability standards. Mitigation strategies likely involve careful contract management by the Army, including monitoring delivery schedules, verifying product specifications, and potentially incorporating clauses for updated technology where feasible. The firm fixed-price structure mitigates financial risk for the government, but performance risk remains with the contractor. Robust quality assurance and acceptance testing processes are crucial for mitigating risks related to hardware performance and security.

How effective has the Department of the Army been in leveraging this contract vehicle for its IT hardware needs?

The effectiveness of the Army's utilization of this contract vehicle can be assessed by examining the total value of orders placed against the base and option periods, the timeliness of deliveries, and user satisfaction with the procured hardware. The contract's duration (base year plus option) and the significant award value suggest it has been a utilized resource. However, without access to specific delivery order data and performance metrics, a definitive statement on its effectiveness is challenging. Factors like the range of IT hardware available through the catalog and the ease of placing orders also contribute to its overall utility for the Army.

What are the historical spending patterns for IT hardware within the Department of the Army, and how does this contract fit?

The Department of the Army historically spends billions of dollars annually on IT hardware to support its global operations, ranging from basic computing devices to specialized equipment. This $103 million contract represents a portion of that overall spending, likely focused on a catalog of standard IT supplies and accessories. It fits into the broader strategy of procuring necessary hardware through competitive vehicles to ensure availability and manage costs. Analyzing historical spending trends would reveal if this contract's value is consistent with, or deviates from, previous procurement approaches for similar IT hardware categories.

What is the potential impact of this contract on the broader IT hardware market, particularly concerning competition and pricing?

As a large-value contract awarded through full and open competition, this award signals a healthy competitive environment for IT hardware suppliers seeking to serve the Department of Defense. It encourages participation from multiple vendors, potentially driving down prices through competitive bidding. The existence of such a contract vehicle can also influence market pricing by setting benchmarks for quality, specifications, and cost. For the IT hardware market, it represents a significant opportunity for awarded vendors and potentially for their subcontractors, while also highlighting the DoD's substantial and consistent demand for these types of products.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Acacia Investment Holdings LLC

Address: 19980 HIGHLAND VISTA DR STE 175, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,953,128

Exercised Options: $102,953,128

Current Obligation: $102,953,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J16D0020

IDV Type: IDC

Timeline