DHS awards $23.1M for cloud computing support, with CACI NSS, LLC as prime contractor

Contract Overview

Contract Amount: $23,096,887 ($23.1M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-07-01

End Date: 2025-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLOUD COMPUTING SUPPORT SERVICES

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.1 million to CACI NSS, LLC for work described as: CLOUD COMPUTING SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in cloud infrastructure modernization. 2. The award was made under a full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (1460 days) indicates a need for sustained support. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of IT services. 6. The contract is a BPA Call, indicating it's an order against a pre-existing Blanket Purchase Agreement.

Value Assessment

Rating: good

The contract value of $23.1 million over approximately four years for cloud computing support services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that pricing is likely competitive, especially considering it was awarded under full and open competition. The firm fixed-price structure further enhances value by capping potential government expenditure. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process and contract type are positive indicators.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation implies a robust competitive environment. A full and open competition generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award. This approach is intended to ensure the government receives competitive pricing and high-quality services.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it drives down costs through market forces and increases the likelihood of selecting the most cost-effective solution.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving essential cloud computing support. This contract ensures the continued operation and potential enhancement of DHS's cloud infrastructure. The services delivered will support the agency's mission-critical functions and data management. The contract is primarily focused on IT infrastructure and support services, with potential workforce implications for IT professionals within DHS or its contractors. The geographic impact is likely concentrated around DHS facilities or cloud service delivery points, primarily in Virginia where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the cloud support.
The duration of the contract (4 years) could lead to vendor lock-in if not managed carefully.
Details on the specific cloud services and technologies are not provided, limiting a full technical assessment.
The absence of small business subcontracting information raises questions about broader economic impact.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type helps control costs and provides budget certainty.
The contractor, CACI NSS, LLC, is a known entity in the federal IT services space.
The contract supports a critical agency (DHS) with essential cloud computing services.
The BPA Call mechanism suggests an established relationship and potentially streamlined ordering process.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cloud computing support. The federal government's spending on cloud services has been steadily increasing as agencies migrate from legacy systems to more agile and scalable cloud environments. This contract with DHS aligns with the government-wide trend towards cloud adoption, driven by initiatives like the Federal Cloud Computing Strategy. Comparable spending benchmarks for cloud support services vary widely based on scope, complexity, and service level agreements, but multi-million dollar awards for comprehensive support are common for large federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, there is no direct analysis of small business set-aside performance. However, the prime contractor, CACI NSS, LLC, may engage small businesses as subcontractors. Without specific subcontracting plans or reporting, the extent of small business participation and its impact on the small business ecosystem remains unclear. Future analysis could explore subcontracting data to assess opportunities created for small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of Homeland Security's Office of Procurement Operations. The firm fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling on costs. Transparency is facilitated by the public nature of contract awards, though detailed performance reports may not be publicly available. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Cloud Computing Services
IT Professional Services
Department of Homeland Security IT Contracts
Blanket Purchase Agreements (BPAs)
IT Infrastructure Support

Risk Flags

Potential for vendor lock-in
Lack of specific performance metrics
Limited transparency on bidder numbers

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.1 million to CACI NSS, LLC. CLOUD COMPUTING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

Start: 2021-07-01. End: 2025-06-30.

What is the track record of CACI NSS, LLC in delivering cloud computing support services to the federal government?

CACI NSS, LLC, a subsidiary of CACI International Inc., has a substantial history of providing IT services to various federal agencies, including cloud computing, cybersecurity, and enterprise IT solutions. Their track record includes numerous prime contracts and subcontracts across departments like Defense, Homeland Security, and others. While specific performance data for this particular BPA Call is not detailed here, CACI's overall federal contracting performance is generally characterized by a broad range of capabilities and a significant presence in the federal IT market. Agencies often select CACI based on their established experience, technical expertise, and ability to manage complex IT programs. However, like any large contractor, they may have faced past performance reviews or challenges on specific contracts, which would typically be considered during the source selection process for new awards.

How does the $23.1 million contract value compare to similar cloud computing support contracts awarded by DHS or other agencies?

The $23.1 million contract value for cloud computing support services over approximately four years is within the typical range for large federal agencies like DHS. Federal spending on cloud services has escalated significantly, with many agencies awarding contracts in the tens to hundreds of millions of dollars for comprehensive cloud migration, management, and support. For instance, other DHS contracts or those from agencies like the General Services Administration (GSA) or the Department of Defense (DoD) for similar IT infrastructure and cloud services often fall within this magnitude. The specific scope, service level agreements (SLAs), and technologies involved would dictate precise comparability, but this award reflects a substantial investment consistent with the needs of a major federal entity.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential cost overruns (mitigated by the firm fixed-price structure), performance deficiencies (mitigated by contract oversight and potential penalties), vendor lock-in (mitigated by clear exit strategies and potential for future competition), and cybersecurity vulnerabilities (mitigated by DHS's security requirements and contractor compliance). The firm fixed-price nature caps the government's financial exposure, making cost overruns less likely. Performance is monitored through contract administration, and the government can take action if services are not delivered to standard. Cybersecurity is a paramount concern for DHS, and contracts typically include stringent security clauses and compliance mandates.

How effective is the 'full and open competition' approach in ensuring value for taxpayers in this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for taxpayers. It allows any responsible vendor to bid, fostering a competitive environment that drives down prices and encourages innovation. For this $23.1 million DHS contract, this means that multiple companies likely vied for the opportunity, pushing CACI NSS, LLC to offer competitive terms. While the exact number of bidders isn't specified, the process itself increases the likelihood that the government secured services at a fair market price. The firm fixed-price structure further enhances taxpayer value by providing cost certainty.

What are the historical spending patterns for cloud computing support services within DHS?

Historical spending patterns for cloud computing support services within DHS, like most federal agencies, show a consistent and increasing trend. Agencies are actively migrating workloads to the cloud to improve efficiency, scalability, and security. DHS has been a significant investor in cloud technologies, seeking to consolidate IT infrastructure and enhance its operational capabilities. Spending in this area typically covers a range of services including cloud migration, managed services, platform-as-a-service (PaaS), infrastructure-as-a-service (IaaS), and software-as-a-service (SaaS) support. The $23.1 million award is indicative of this ongoing investment and aligns with broader federal strategies to leverage cloud computing.

What are the implications of this contract being a BPA Call?

This contract being a BPA Call signifies that it is an order placed against a pre-existing Blanket Purchase Agreement (BPA). BPAs are simplified acquisition vehicles that allow federal agencies to streamline the process of obtaining commonly purchased goods and services from pre-qualified vendors. For taxpayers, this can mean more efficient procurement, potentially leading to cost savings through pre-negotiated terms and reduced administrative burden. The fact that it's a BPA Call suggests that CACI NSS, LLC was previously awarded a BPA, likely through a competitive process, and DHS is now exercising an option or placing an order under that agreement for specific cloud computing support services.

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 › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14370 NEWBROOK DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,191,166

Exercised Options: $24,428,547

Current Obligation: $23,096,887

Actual Outlays: $18,735,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70RTAC20A00000003

IDV Type: BPA

Timeline