DoD's $45.6M CACI contract for enterprise support services shows fair value, but limited competition data

Contract Overview

Contract Amount: $45,559,593 ($45.6M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2010-03-31

End Date: 2011-03-31

Contract Duration: 365 days

Daily Burn Rate: $124.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

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 $45.6 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 365 days, with a total value of $45.6 million. 3. Awarded under full and open competition, indicating a broad search for qualified bidders. 4. The contract was for IT services, specifically 'Other Computer Related Services'. 5. The contract was awarded in Florida, indicating a specific geographic focus. 6. The contract was not set aside for small businesses. 7. The contract was awarded as a Labor Hours type. 8. The contract had 5 bids received.

Value Assessment

Rating: fair

The contract's value of $45.6 million for a one-year period of enterprise support services appears to be within a reasonable range for large-scale IT support. Benchmarking against similar contracts for enterprise-wide network support reveals that costs can vary significantly based on scope, complexity, and geographic reach. Without more granular data on the specific services rendered and the labor mix, a precise value-for-money assessment is challenging. However, the number of bids received (5) suggests a degree of market interest that can help ensure competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The receipt of 5 bids indicates a moderate level of competition for this requirement. While 5 bidders is a healthy number, it is not exceptionally high for a contract of this magnitude, suggesting that the market for such specialized enterprise support services might be concentrated among a few key players.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential contractors to bid, which can drive down prices and improve service quality. The presence of multiple bidders helps ensure that the government is receiving a fair market price.

Public Impact

The primary beneficiaries of this contract are the U.S. Special Operations Command (SOCOM) and its personnel, who receive enhanced local area network (LAN) support. The services delivered include enterprise support for local area networks, crucial for maintaining operational readiness and communication. The contract's geographic impact is focused on Florida, where the services were performed. The contract supports a workforce of IT professionals employed by CACI NSS, LLC, contributing to the IT services sector employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed efficiently.
Risk of vendor lock-in if follow-on contracts are not competed effectively.
Dependence on a single contractor for critical IT infrastructure support.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Multiple bids received (5), indicating market interest and potential for competitive pricing.
Contract awarded to a known entity (CACI NSS, LLC) with a track record in government contracting.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer network support and maintenance. The market for enterprise IT support services is substantial, with significant government spending allocated annually to maintain and upgrade complex network infrastructures. Contracts like this are essential for agencies to ensure the seamless operation of their IT systems, which underpin all modern military and governmental functions. Comparable spending benchmarks for similar enterprise-wide network support contracts can range widely depending on the scope and duration, but typically represent a significant investment for agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that the primary contract was competed broadly, and CACI NSS, LLC, as the prime contractor, would have had the flexibility to manage subcontracting as they saw fit, potentially limiting opportunities for small businesses unless they were directly engaged by CACI. The absence of a small business set-aside suggests that the requirement was likely deemed too specialized or large for a small business to fulfill as the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command (SOCOM) contracting officers and program managers. Accountability measures would include performance reviews, adherence to service level agreements, and financial audits. Transparency is generally maintained through contract award databases and public reporting, although specific performance metrics and detailed spending breakdowns may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Enterprise Support Services
Network Infrastructure Support
Department of Defense IT Contracts
U.S. Special Operations Command Support
Computer Related Services

Risk Flags

Potential for cost creep due to Labor Hours contract type.
Limited visibility into specific performance metrics and value-for-money beyond award data.
Concentration of IT support services within a single contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 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 $45.6 million.

What is the period of performance?

Start: 2010-03-31. End: 2011-03-31.

What was the specific nature of the 'enterprise support services for local area network' provided under this contract?

The contract data indicates 'ENTERPRISE SUPPORT SERVICES FOR LOCAL AREA NETWORK' (contract number not provided, but identified by description and awardee). This typically encompasses a range of IT services aimed at ensuring the reliable and efficient operation of an organization's local area network (LAN). These services can include network design, installation, configuration, maintenance, troubleshooting, security management, and performance monitoring. For a large organization like the Department of Defense, specifically U.S. Special Operations Command (SOCOM), this would involve supporting the complex network infrastructure that enables communication, data sharing, and command and control operations across various facilities and deployed units. The 'Labor Hours' contract type suggests that the contractor was paid based on the time spent by their personnel performing these services, rather than a fixed price for specific deliverables.

How does the $45.6 million contract value compare to similar IT support contracts awarded by the DoD or SOCOM?

Comparing the $45.6 million value for a one-year contract requires context regarding the scope and complexity of the services. For enterprise-level IT support, especially for a specialized command like SOCOM, this figure is not unusually high. Large-scale network support contracts can easily reach tens or hundreds of millions of dollars annually, depending on the number of users, geographic spread, and criticality of the systems supported. For instance, broader IT services contracts for major commands often exceed this amount. However, without knowing the exact number of personnel supported, the specific technologies involved, and the geographic footprint, a precise comparison is difficult. The fact that it was awarded under full and open competition with 5 bids suggests the market found the pricing and scope to be competitive.

What are the potential risks associated with a 'Labor Hours' contract type for IT support services?

The primary risk associated with a 'Labor Hours' contract type is the potential for cost overruns if not managed diligently. Since the contractor is paid based on the hours worked by their personnel, there is an inherent incentive to bill for more hours, potentially leading to inflated costs if oversight is insufficient. This necessitates robust monitoring of timesheets, verification of work performed, and strong program management to ensure efficiency. For the government, it requires careful estimation of the labor hours needed and effective surveillance to ensure that the billed hours align with actual work performed and are necessary for completing the contracted tasks. Without adequate controls, this contract type can be less cost-predictable than fixed-price contracts.

What does the 'Other Computer Related Services' NAICS code (541519) imply about the scope of this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specifically covered by other, more specialized codes. This includes services such as IT consulting and disaster recovery services, computer facilities management, and IT support services that don't fit neatly into categories like custom software development (541511) or computer systems design (541512). For this contract, it suggests that the 'enterprise support services for local area network' likely involved a combination of IT support, network management, and potentially consulting or advisory services related to the LAN infrastructure, rather than purely hardware provision or software development.

What is the significance of the contract being awarded in Florida (ST: FL, SN: FLORIDA)?

The indication that the contract was performed in Florida (ST: FL, SN: FLORIDA) suggests a specific geographic concentration for the delivery of these enterprise support services. This could mean that the U.S. Special Operations Command (SOCOM) facilities or personnel requiring this LAN support are primarily located in Florida. For IT support contracts, geographic location is crucial as it dictates the logistical requirements, the need for on-site personnel, and the specific operational environment. It also implies that the contractor, CACI NSS, LLC, had the capability to provide services in that region, potentially through local staff or established presence. This focus can streamline service delivery but also means that the benefits of the contract spending are localized to that state.

How does the contract's award date (2010-03-31) and end date (2011-03-31) reflect the typical lifecycle of such IT support contracts?

The contract was awarded in late March 2010 and ran for exactly one year, concluding in March 2011. This one-year duration is quite common for IT support and services contracts, especially those that are either new requirements, pilot programs, or part of a larger, multi-year strategy where individual task orders or contracts are re-competed periodically. For enterprise-level IT support, a one-year term allows the government to assess contractor performance and market conditions before committing to longer-term engagements. It also provides flexibility to adapt to changing technological needs or organizational priorities. The fact that it was awarded under full and open competition suggests that SOCOM likely re-competed this requirement or similar requirements thereafter, rather than extending this specific contract indefinitely.

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: LABOR HOURS (Z)

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: $45,559,593

Exercised Options: $45,559,593

Current Obligation: $45,559,593

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: USZA2202D0017

IDV Type: IDC

Timeline