DoD's $56.3M Wired Telecom Contract with CACI-ISS Raises Questions on Value and Competition

Contract Overview

Contract Amount: $56,317,229 ($56.3M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-09

End Date: 2015-09-08

Contract Duration: 1,460 days

Daily Burn Rate: $38.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ISS SERVICES

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $56.3 million to CACI-ISS, LLC for work described as: ISS SERVICES Key points: 1. Significant spending on wired telecommunications services by the Department of the Navy. 2. CACI-ISS, LLC holds the contract, raising questions about potential vendor lock-in. 3. The contract's Cost Plus Fixed Fee structure may incentivize cost overruns. 4. Lack of small business participation noted. 5. The 'SC' status code requires further investigation for its implications.

Value Assessment

Rating: questionable

The $56.3 million award for wired telecommunications carriers is substantial. Without comparable contract data or detailed performance metrics, assessing its value against industry benchmarks is difficult. The Cost Plus Fixed Fee (CPFF) pricing structure can lead to higher costs compared to fixed-price contracts if not managed rigorously.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of this competition and how it ensured the best price discovery are not provided. The single award nature warrants scrutiny to ensure no opportunities for further competition were missed.

Taxpayer Impact: Taxpayer funds are being utilized for essential telecommunications infrastructure. The effectiveness of the competition and the CPFF structure will ultimately determine the efficiency of this spending.

Public Impact

Ensures critical wired telecommunications infrastructure for the Department of the Navy. Potential for cost overruns due to the CPFF contract type. Limited visibility into the specific services provided and their direct impact on naval operations. Lack of small business involvement may limit broader economic benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing structure
Lack of small business participation
Single award delivery order
Unclear performance metrics

Positive Signals

Awarded under full and open competition
Addresses essential telecommunications needs

Sector Analysis

This contract falls within the IT and telecommunications sector, specifically wired telecommunications carriers. Spending in this area is crucial for government operations, but benchmarks vary widely based on service type and duration. The $56.3M over four years suggests a significant, ongoing requirement.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests a missed opportunity to leverage small business capabilities and potentially foster innovation within the sector. Further analysis could explore if set-aside opportunities were considered.

Oversight & Accountability

The contract was awarded as a delivery order under a larger contract, implying some level of pre-existing oversight. However, the CPFF structure necessitates robust oversight to control costs and ensure performance. Details on specific oversight mechanisms and accountability measures are not provided.

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing model may lead to higher costs.
Lack of small business participation.
Single award delivery order raises potential competition concerns.
Unclear performance metrics and value assessment.
The 'SC' status code requires further investigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.3 million to CACI-ISS, LLC. ISS SERVICES

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 Navy).

What is the total obligated amount?

The obligated amount is $56.3 million.

What is the period of performance?

Start: 2011-09-09. End: 2015-09-08.

What specific telecommunications services are covered under this contract, and how do their costs compare to industry standards for similar government or commercial contracts?

The contract specifies 'Wired Telecommunications Carriers' (NAICS 517110). Without a detailed breakdown of services (e.g., bandwidth, circuit types, maintenance) and specific performance metrics, a direct cost comparison is challenging. However, the CPFF structure inherently carries a risk of higher costs than fixed-price agreements if not meticulously managed and audited.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient resource utilization?

The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, necessitates stringent oversight to prevent cost escalation. Key mitigation strategies typically include detailed cost accounting standards, regular audits of incurred costs, clear performance metrics tied to fee realization, and robust change control processes to manage scope creep effectively.

How does the performance of CACI-ISS, LLC on this contract align with the Department of the Navy's operational requirements and expectations for wired telecommunications services?

Performance data is not provided in the dataset. Evaluating alignment requires access to key performance indicators (KPIs), service level agreements (SLAs), and user feedback. Without this information, it's impossible to definitively assess whether the services delivered meet the Navy's needs effectively or if the fixed fee adequately reflects the value provided.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $64,084,379

Exercised Options: $64,084,379

Current Obligation: $56,317,229

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0020

IDV Type: IDC

Timeline