DoD's $43.7M CACI contract for enterprise support services shows fair value with 5 bidders

Contract Overview

Contract Amount: $43,674,247 ($43.7M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2009-04-01

End Date: 2010-03-31

Contract Duration: 364 days

Daily Burn Rate: $120.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Official Description: ENTERPRISE SUPPORT SERVICES FOR LOCAL AREA NETWORK

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $43.7 million to CACI NSS, LLC for work described as: ENTERPRISE SUPPORT SERVICES FOR LOCAL AREA NETWORK Key points: 1. Contract awarded to CACI NSS, LLC for enterprise support services. 2. The contract duration was 364 days, indicating a short-term need. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract was awarded in Florida, potentially impacting local IT support jobs. 5. The NAICS code 541519 points to 'Other Computer Related Services'. 6. The contract value of approximately $43.7 million for one year suggests a significant investment in IT infrastructure.

Value Assessment

Rating: fair

The contract value of $43.7 million for a one-year period for enterprise support services appears to be within a reasonable range for a Department of Defense contract of this scope. Benchmarking against similar contracts for network enterprise support services would provide a more precise value-for-money assessment. The absence of detailed performance metrics makes it difficult to definitively assess the contractor's efficiency and effectiveness in delivering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bidders participating. This level of competition is generally positive as it allows for a wider range of potential contractors to submit proposals, theoretically leading to better pricing and service offerings. The presence of multiple bidders suggests that the market for these services is robust and that the government had a good selection of qualified vendors.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are U.S. Special Operations Command (SOCOM) personnel who rely on robust local area network (LAN) services. The services delivered include enterprise support for the local area network, ensuring operational continuity. The contract's geographic impact is focused on Florida, where the services were performed. The contract likely supported a workforce of IT professionals, both directly employed by CACI and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single contractor for critical network infrastructure could pose risks if performance falters.
The short duration of the contract might indicate a temporary need or a gap-filling measure, raising questions about long-term IT strategy.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for good value.
The contractor, CACI NSS, LLC, is a known entity in government contracting, suggesting a level of established capability.
The contract was awarded to support a critical command (USSOCOM), highlighting its importance to national security operations.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under the 'Other Computer Related Services' category, which encompasses a broad range of IT support functions. The market for enterprise IT support is substantial, with agencies like the Department of Defense being major consumers. Spending benchmarks for similar LAN support contracts can vary widely based on scope, duration, and specific service requirements.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary focus was on full and open competition, which may or may not have involved small business prime contractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command's contracting and program management offices. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, though detailed performance reports are often not publicly available.

Related Government Programs

Department of Defense IT Enterprise Services
Special Operations Command Support Contracts
Local Area Network (LAN) Support Services
IT Services for Federal Agencies

Risk Flags

Short contract duration may indicate a temporary need or gap-filling.
Lack of detailed performance metrics makes value assessment challenging.
Potential for vendor lock-in if future contracts are not competitively bid.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.7 million to CACI NSS, LLC. ENTERPRISE SUPPORT SERVICES FOR LOCAL AREA NETWORK

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $43.7 million.

What is the period of performance?

Start: 2009-04-01. End: 2010-03-31.

What is CACI NSS, LLC's track record with similar Department of Defense contracts?

CACI NSS, LLC, as a subsidiary of CACI International Inc., has a significant history of performing IT and support services for the Department of Defense and other federal agencies. Their portfolio often includes network engineering, cybersecurity, enterprise IT infrastructure management, and systems integration. Reviewing past performance evaluations and contract awards for CACI within the DoD would reveal their consistency in meeting performance requirements, managing budgets, and adhering to timelines across various IT service contracts. Specific details on their performance on similar LAN support contracts would be crucial for a comprehensive assessment.

How does the $43.7 million value compare to similar enterprise support contracts for LAN services?

The $43.7 million contract value for one year of enterprise support services for a local area network is substantial. To benchmark its value, one would need to compare it against contracts of similar scope, duration, and complexity awarded by the DoD or other federal agencies to different contractors. Factors such as the number of users supported, the geographic spread of the network, the specific technologies involved (e.g., hardware, software, security protocols), and the level of service required (e.g., 24/7 support, response times) significantly influence pricing. Without these specific details, a precise comparison is difficult, but the amount suggests a significant operational requirement.

What are the primary risks associated with this type of enterprise support contract?

Key risks include performance failures that could disrupt critical operations, cybersecurity vulnerabilities introduced or not adequately mitigated by the contractor, cost overruns if the scope expands or is poorly defined, and potential vendor lock-in if follow-on contracts are not competitively procured. Dependence on a single provider for essential network services also presents a risk if the contractor experiences financial instability or strategic shifts. Furthermore, ensuring the contractor's personnel have the appropriate security clearances and adhere to strict protocols is paramount, especially for sensitive operations like those of USSOCOM.

How effective was the 'full and open competition' in ensuring optimal value for this contract?

The 'full and open competition' with five bidders is a strong indicator that the government sought a competitive environment to achieve optimal value. This process allows multiple qualified vendors to propose solutions and pricing, theoretically driving down costs and encouraging innovation. The effectiveness is further measured by the final award price relative to the independent government cost estimate and the contractor's subsequent performance. A competitive process generally leads to better price discovery and a higher likelihood of selecting a vendor that offers both quality services and reasonable costs for the taxpayer.

What is the historical spending trend for enterprise support services by U.S. Special Operations Command?

Historical spending data for enterprise support services by U.S. Special Operations Command (USSOCOM) would reveal trends in IT infrastructure investment and outsourcing. Analyzing past contracts for LAN support, network management, and related IT services would indicate whether spending in this area has been consistent, increasing, or decreasing. Such analysis could also highlight shifts in technology adoption, changes in contracting strategies (e.g., moving towards larger, consolidated contracts or smaller, specialized ones), and the prevalence of specific contractors supporting USSOCOM's IT needs over time.

What are the implications of the contract being performed in Florida (ST: FL, SN: FLORIDA)?

The performance location in Florida has several implications. It suggests that the IT infrastructure and personnel supporting the local area network are physically based in that state. This could mean job creation for IT professionals in Florida, both directly by the contractor and potentially through local subcontractors. It also implies that the physical security and accessibility of network hardware and data centers within Florida are key considerations for the contract. Furthermore, state-specific regulations or business environments might indirectly influence contract execution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 5

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 5100 W KENNEDY BLVD STE 500, TAMPA, FL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $43,674,247

Exercised Options: $43,674,247

Current Obligation: $43,674,247

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: USZA2202D0017

IDV Type: IDC

Timeline