DoD's $80.8M contract for wired telecommunications services awarded to CACI-ISS, LLC

Contract Overview

Contract Amount: $80,791,610 ($80.8M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-30

End Date: 2015-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $55.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: HSMI SERVICES

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $80.8 million to CACI-ISS, LLC for work described as: HSMI SERVICES Key points: 1. The contract value represents a significant investment in essential communication infrastructure. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and service quality. 3. Performance risk indicators should be closely monitored given the duration and complexity of telecommunications services. 4. This contract's performance context is vital for understanding its contribution to broader defense communication networks. 5. The sector positioning highlights the critical role of telecommunications in modern defense operations.

Value Assessment

Rating: good

The contract's total value of approximately $80.8 million over its period of performance suggests a substantial commitment to telecommunications infrastructure. Benchmarking this against similar large-scale government contracts for wired telecommunications services indicates a moderate investment level. While specific pricing details per unit are not provided, the fixed-fee structure implies a degree of cost control. Further analysis would require comparing the scope of services and deliverables to industry standards and other awarded contracts to definitively assess value for money.

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 had the opportunity to bid. The specific number of bidders is not detailed, but this competitive approach is generally expected to foster price discovery and encourage vendors to offer their best terms. The open competition suggests a healthy market for these services, allowing the Department of Defense to select a provider based on a combination of technical capability, past performance, and price.

Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and a wider array of service options. Full and open competition helps ensure that government funds are used efficiently by driving down costs and improving service quality.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential wired telecommunications services. Services delivered likely include the installation, maintenance, and operation of voice and data networks. The geographic impact is likely concentrated within areas of operation for the Department of the Navy, potentially across multiple bases or facilities. Workforce implications may include the need for skilled telecommunications technicians and support staff, both within the contractor's organization and potentially within the government for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-fee structure does not adequately account for unforeseen technical challenges.
Risk of service disruptions if maintenance and support are not consistently robust.
Dependency on a single contractor for critical communication infrastructure could pose a long-term risk.
Ensuring compliance with evolving cybersecurity standards for telecommunications networks.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The contractor, CACI-ISS, LLC, likely has a track record in providing similar services to the government.
The fixed-fee structure provides a degree of cost certainty for the government.
The contract duration allows for stable service provision and potential for long-term relationship building.

Sector Analysis

The wired telecommunications carriers sector is fundamental to modern infrastructure, providing the backbone for voice and data transmission. This contract falls within a segment of the IT and telecommunications industry that supports critical government operations. The market size for government telecommunications contracts is substantial, driven by the ongoing need for secure and reliable communication networks. Comparable spending benchmarks would typically involve analyzing other large-scale contracts for network infrastructure and managed telecommunications services within the federal government.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While CACI-ISS, LLC is the prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on CACI-ISS's own subcontracting plan and the availability of qualified small business vendors for specific components or services. The impact on the small business ecosystem is likely indirect, unless significant subcontracting opportunities are created.

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 Navy. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases and public reporting mechanisms, although detailed operational data may be considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) contracts
General Services Administration (GSA) Federal Telecommunications Services Schedule
Other Department of Defense IT and telecommunications procurements

Risk Flags

Potential for cost creep in CPFF contracts.
Service disruption risk in critical infrastructure.
Cybersecurity vulnerabilities in telecommunications networks.
Contractor performance and reliability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.8 million to CACI-ISS, LLC. HSMI 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 $80.8 million.

What is the period of performance?

Start: 2011-09-30. End: 2015-09-29.

What is CACI-ISS, LLC's track record with similar large-scale telecommunications contracts for the Department of Defense?

CACI-ISS, LLC, as a subsidiary of CACI International Inc., has a significant history of providing IT and professional services to the U.S. government, including the Department of Defense. Their portfolio often includes complex network infrastructure, telecommunications, cybersecurity, and enterprise IT solutions. While specific details on past telecommunications contracts of this exact scale and nature would require deeper research into their contract history, CACI has consistently been a major player in government IT contracting. Their experience typically encompasses managing large, multi-year programs, adhering to stringent security protocols, and delivering services across diverse geographic locations. Government contract databases and CACI's own reporting often highlight their capabilities in areas directly relevant to wired telecommunications, such as network design, implementation, and sustainment, suggesting a strong foundational capability for this contract.

How does the awarded amount of $80.8 million compare to similar wired telecommunications contracts awarded by the DoD in recent years?

The $80.8 million awarded to CACI-ISS, LLC for wired telecommunications services represents a substantial, but not unprecedented, investment for the Department of Defense. To benchmark this value, one would typically compare it against other large-scale contracts for network infrastructure, telecommunications equipment, and managed services awarded by the DoD or other federal agencies over the past 3-5 years. Contracts for enterprise-wide network upgrades, base communication system modernizations, or global telecommunications support can easily reach tens or hundreds of millions of dollars. For instance, contracts related to satellite communications, fiber optic network expansion, or secure voice systems often fall within or exceed this range. The specific nature of 'wired telecommunications carriers' suggests a focus on terrestrial network infrastructure, which is a foundational element of military communications. Without knowing the exact scope (e.g., number of sites, specific technologies, duration of support), a precise comparison is difficult, but the amount is consistent with significant, long-term investments in critical infrastructure.

What are the primary risk indicators associated with a Cost Plus Fixed Fee (CPFF) contract for telecommunications services?

A Cost Plus Fixed Fee (CPFF) contract structure, while not explicitly stated as the primary type here (the data shows 'pt': 'COST PLUS FIXED FEE', but the award type is 'DELIVERY ORDER'), presents specific risks. For CPFF, the government agrees to pay the contractor's allowable costs plus a fixed fee representing profit. The primary risk for the government is that costs could escalate beyond initial projections, potentially leading to a higher total contract value than anticipated if the fixed fee doesn't adequately cover the contractor's overhead and profit margin on increased costs. For telecommunications services, risks include unforeseen technical complexities in installation or maintenance, the need for specialized equipment not initially budgeted, or changes in regulatory requirements that necessitate additional spending. The contractor bears the risk of cost overruns impacting their fixed fee, incentivizing them to manage costs efficiently. However, the government's risk lies in the potential for the 'cost' portion to grow significantly, making the overall value higher than a fixed-price contract might have been.

How effective is 'full and open competition' in ensuring value for money for complex IT and telecommunications contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for complex IT and telecommunications services. By allowing all responsible sources to submit offers, it maximizes the pool of potential providers, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This broad competition drives down costs as vendors vie for the contract. Furthermore, it allows the government to select the offer that represents the best overall value, considering not just price but also technical merit, past performance, and other factors. For complex services like telecommunications, where technology evolves rapidly and specialized expertise is required, open competition ensures that the government isn't locked into a single vendor's offerings or pricing structure. While the administrative effort to manage a full and open competition can be higher, the potential savings and improved service quality typically outweigh these costs, leading to better value for taxpayers.

What are the historical spending patterns for wired telecommunications services within the Department of Defense?

Historical spending patterns for wired telecommunications services within the Department of Defense (DoD) reflect a consistent and substantial requirement for robust communication infrastructure. Over the years, the DoD has allocated significant portions of its IT and procurement budgets to ensure reliable voice and data networks across its global operations. Spending has evolved from traditional telephony and leased lines to more advanced solutions including fiber optics, high-speed data transmission, and integrated communication systems. Major spending initiatives often focus on network modernization, cybersecurity enhancements, and consolidating communication services to achieve economies of scale. The total annual spending by the DoD on telecommunications services, including wired infrastructure, can run into billions of dollars, encompassing everything from basic circuit provisioning to complex managed network services. This particular contract, valued at approximately $80.8 million, fits within this broader pattern of significant, ongoing investment in foundational communication capabilities.

What are the implications of awarding a delivery order under a larger contract for telecommunications services?

Awarding a delivery order (DO) under a larger contract, such as this one for CACI-ISS, LLC, signifies a specific task or requirement being fulfilled within the scope of an existing, pre-negotiated agreement. In this case, the 'aw' field indicates 'DELIVERY ORDER', and the 'ct' field shows 'FULL AND OPEN COMPETITION', suggesting the underlying contract itself was competitively awarded. The delivery order mechanism allows for flexibility and phased implementation of services. For telecommunications, this could mean procuring specific network equipment, initiating a particular phase of network build-out, or establishing service at a defined set of locations. The terms, conditions, and pricing for the delivery order are typically based on the parent contract, which was established through full and open competition. This approach streamlines the procurement process for subsequent needs while ensuring that the initial contract vehicle provided a competitive baseline. The implications are that the government is exercising a portion of its previously contracted rights, likely for a defined period and scope, rather than initiating a completely new procurement.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: $86,768,022

Exercised Options: $86,768,022

Current Obligation: $80,791,610

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0020

IDV Type: IDC

Timeline