DoD's $46M Wired Telecom Contract with CACI-ISS Raises Questions on Value and Competition

Contract Overview

Contract Amount: $46,034,748 ($46.0M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-15

End Date: 2015-03-22

Contract Duration: 1,284 days

Daily Burn Rate: $35.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MFOM ENGINEERING SUPPORT ISS

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $46.0 million to CACI-ISS, LLC for work described as: MFOM ENGINEERING SUPPORT ISS Key points: 1. Significant spending on wired telecommunications support. 2. CACI-ISS, LLC is the incumbent contractor. 3. Potential risks associated with cost-plus fixed fee contracts. 4. The contract falls under the IT sector.

Value Assessment

Rating: questionable

The contract utilized a Cost Plus Fixed Fee (CPFF) pricing structure, which can lead to cost overruns if not managed tightly. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.

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 CPFF structure may not always yield the most cost-effective outcome for the government.

Taxpayer Impact: Taxpayer funds were used for this contract. The effectiveness of the competition and pricing structure will determine the ultimate value for taxpayers.

Public Impact

Ensures critical wired telecommunications infrastructure support for the Department of the Navy. Supports CACI-ISS, LLC, a significant defense contractor. The duration and cost of the contract impact overall defense spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing can incentivize higher costs.
Lack of detailed cost transparency.
Long contract duration.

Positive Signals

Awarded under full and open competition.
Provides essential telecommunications services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on wired telecommunications carriers. Spending in this area is crucial for maintaining operational capabilities for defense agencies.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. This suggests larger, established contractors dominated this procurement.

Oversight & Accountability

Oversight is crucial for CPFF contracts to ensure costs remain reasonable and deliverables meet requirements. The Department of the Navy is responsible for monitoring this contract's performance.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited transparency on cost breakdown.
Long contract duration increases exposure to cost escalation.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.0 million to CACI-ISS, LLC. MFOM ENGINEERING SUPPORT ISS

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 $46.0 million.

What is the period of performance?

Start: 2011-09-15. End: 2015-03-22.

What was the specific justification for using a Cost Plus Fixed Fee contract structure for this telecommunications support, and were alternative pricing models considered?

The justification for a Cost Plus Fixed Fee (CPFF) contract typically lies in situations where the scope of work is not precisely defined or is expected to evolve. For telecommunications support, this might be due to the dynamic nature of network requirements or the need for flexibility in service delivery. However, CPFF contracts carry inherent risks of cost escalation, making it imperative that the contracting agency has robust oversight mechanisms in place to manage and control expenditures effectively. Alternative pricing models, such as Firm Fixed Price (FFP) or Cost Plus Incentive Fee (CPIF), might have been considered but deemed less suitable for the anticipated uncertainties of this particular requirement.

How does the awarded amount of $46 million compare to industry benchmarks for similar wired telecommunications support contracts over a similar duration?

Comparing the $46 million award to industry benchmarks requires detailed analysis of the specific services rendered, geographic location, and contract duration (1284 days). Without granular data on the scope of work, service level agreements, and prevailing market rates for comparable telecommunications support in the defense sector, a precise benchmark is challenging. However, given the duration, the cost per day is approximately $35,853. This figure needs to be evaluated against market data for IT infrastructure support, network maintenance, and related services to ascertain if it represents a fair and reasonable price.

What measures were in place to ensure effective performance and prevent cost overruns given the CPFF contract type and the long duration?

Effective performance and cost control under a CPFF contract of this duration rely heavily on stringent government oversight. This includes regular performance reviews, detailed cost audits, and clear communication channels with the contractor. The Department of the Navy would have likely established specific performance metrics and milestones. Furthermore, the fixed fee component provides some incentive for the contractor to complete the work efficiently, but the primary safeguard against cost overruns lies in the government's ability to monitor expenditures closely, validate all incurred costs, and ensure that the work performed directly aligns with the contract's objectives and requirements.

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: $49,528,045

Exercised Options: $49,528,045

Current Obligation: $46,034,748

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $140,288

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0020

IDV Type: IDC

Timeline