CACI-ISS, LLC awarded $33.5M for Engineering and Sustainment services to the Department of the Army

Contract Overview

Contract Amount: $33,475,763 ($33.5M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2009-06-08

End Date: 2014-07-14

Contract Duration: 1,862 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: ENGINEERING AND SUSTAINMENT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.5 million to CACI-ISS, LLC for work described as: ENGINEERING AND SUSTAINMENT Key points: 1. Contract value represents a significant investment in critical engineering and sustainment capabilities. 2. Full and open competition suggests a robust market for these services. 3. The contract duration of over 5 years indicates a long-term need and commitment. 4. Performance-based contract type (Cost Plus Incentive Fee) aims to align contractor incentives with government objectives. 5. The specific NAICS code (517110) points to services within the telecommunications infrastructure sector. 6. The award was a delivery order under a larger contract vehicle, common for phased or ongoing needs.

Value Assessment

Rating: good

The total award amount of $33.5 million over approximately five years for engineering and sustainment services appears reasonable given the scope. Benchmarking against similar large-scale engineering and IT sustainment contracts within the Department of Defense suggests this falls within expected spending ranges for complex, long-term support. The Cost Plus Incentive Fee (CPIF) structure, while potentially leading to higher final costs than fixed-price contracts, allows for flexibility and incentivizes performance, which can be valuable for evolving technical requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation process details would provide a clearer picture of the competition's intensity. Full and open competition generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value from the market.

Public Impact

The Department of the Army benefits from enhanced engineering and sustainment capabilities, ensuring operational readiness. Services delivered likely include technical support, maintenance, and upgrades for critical systems. The geographic impact is primarily within the operational areas of the Department of the Army, potentially global. Workforce implications include the potential for skilled engineering and technical jobs, both within the contractor and potentially government oversight roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not managed tightly.
Dependence on a single contractor for critical sustainment functions could pose long-term risks.
The duration of the contract may not fully account for rapid technological advancements in the telecommunications sector.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potential for value.
The CPIF contract type incentivizes contractor performance and efficiency.
The contract addresses a clear need for engineering and sustainment, indicating strategic alignment.

Sector Analysis

This contract falls within the broader Information Technology and Telecommunications sector, specifically related to wired telecommunications carriers and infrastructure sustainment. The market for such services is substantial, driven by the ongoing need for robust and reliable communication networks for government and commercial entities. Comparable spending benchmarks for large-scale engineering and sustainment contracts within the defense sector often run into tens or hundreds of millions of dollars, making this award significant but not extraordinary in scale.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded to CACI-ISS, LLC, a significant defense contractor, the primary focus is likely on prime contractor performance. However, large prime contractors often engage small businesses for specialized services or components, so there may be indirect subcontracting opportunities, though not mandated by this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, financial audits, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases and reporting requirements, though specific operational details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services
Army Communications Infrastructure
Engineering and Technical Services
Telecommunications Network Sustainment
Cost Plus Incentive Fee Contracts

Risk Flags

Potential for cost overruns
Long-term contractor dependency
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to CACI-ISS, LLC. ENGINEERING AND SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is CACI-ISS, 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 $33.5 million.

What is the period of performance?

Start: 2009-06-08. End: 2014-07-14.

What is the track record of CACI-ISS, LLC with the Department of Defense for similar engineering and sustainment contracts?

CACI-ISS, LLC has a substantial history of contracting with the Department of Defense across various service areas, including IT, engineering, and sustainment. Their track record often involves large-scale, complex projects requiring significant technical expertise and program management capabilities. While specific performance metrics for past contracts are not detailed here, their continued awards suggest a generally satisfactory performance history. However, a deeper dive into past performance reviews, any contract disputes, or awards/penalties associated with previous similar contracts would provide a more comprehensive understanding of their reliability and effectiveness in delivering engineering and sustainment services to the DoD.

How does the $33.5 million award compare to the total spending on engineering and sustainment services by the Department of the Army in recent years?

The $33.5 million award to CACI-ISS, LLC represents a specific investment in engineering and sustainment services for a particular need or program within the Department of the Army. The Department of the Army's total annual spending on engineering and sustainment services is significantly larger, often in the billions of dollars, encompassing a vast array of contracts for different systems, platforms, and infrastructure. This $33.5 million contract is a component of that larger spending picture. To contextualize its significance, one would need to compare it against the Army's overall budget allocation for sustainment and engineering, as well as the average size and frequency of similar contracts awarded over the past several fiscal years.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for engineering and sustainment services?

The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract revolve around cost control and potential for overruns. While CPIF aims to incentivize efficiency by sharing cost savings or penalties between the government and contractor based on performance targets, it inherently allows for costs to exceed initial estimates. If the targets are poorly defined, or if unforeseen technical challenges arise, the final cost can escalate significantly. For engineering and sustainment services, which can involve complex and evolving requirements, there's a risk that the contractor may incur higher-than-expected costs in achieving the desired performance outcomes, potentially leading to a higher final price for the government than anticipated under a fixed-price arrangement.

What specific types of engineering and sustainment services are typically covered under NAICS code 517110 (Wired Telecommunications Carriers)?

NAICS code 517110, 'Wired Telecommunications Carriers,' primarily covers establishments primarily engaged in operating and/or providing access to telecommunications infrastructure and infrastructure services. For engineering and sustainment contracts under this code, this typically translates to services related to the installation, maintenance, repair, and upgrading of wired telecommunications networks. This can include physical infrastructure like fiber optic cables, copper lines, and associated equipment, as well as the network management systems that support them. Services might encompass network design, deployment, troubleshooting, preventative maintenance, and ensuring the operational integrity and performance of the wired communication systems.

How does the duration of this contract (1862 days, approx. 5 years) impact the assessment of value for money?

The contract duration of approximately five years (1862 days) suggests a long-term need for the engineering and sustainment services being provided. For value for money, a longer duration can be beneficial if it allows for economies of scale, reduced contractor transition costs, and the development of specialized expertise by the contractor over time. It implies a stable requirement that the government intends to fulfill consistently. However, it also carries the risk of technological obsolescence or changing requirements, which could make the services less valuable or require costly modifications. Assessing value for money requires considering whether the extended period justifies the investment and if the pricing structure remains competitive throughout the contract's life, especially in a rapidly evolving sector like telecommunications.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91QUZ05R0004

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14370 NEWBROOK DRIVE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,197,175

Exercised Options: $34,454,931

Current Obligation: $33,475,763

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0020

IDV Type: IDC

Timeline