CACI-ISS, LLC awarded $31.4M for Force Management System, serving Department of the Army

Contract Overview

Contract Amount: $31,425,993 ($31.4M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2012-03-16

End Date: 2015-07-13

Contract Duration: 1,214 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: FORCE MANAGEMENT SYSTEM

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to CACI-ISS, LLC for work described as: FORCE MANAGEMENT SYSTEM Key points: 1. Contract value of $31.4M over 1214 days indicates a significant investment in force management capabilities. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The use of a Cost Plus Fixed Fee (CPFF) contract type may introduce cost escalation risks. 4. Performance period from March 2012 to July 2015 places this contract in a historical context. 5. The North American Industry Classification System (NAICS) code 517110 points to telecommunications services, potentially related to system infrastructure. 6. The award was made to CACI-ISS, LLC, a known entity in government contracting.

Value Assessment

Rating: fair

The total award of $31.4M over approximately 3.3 years suggests a moderate annual spend. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. The CPFF contract type, while offering flexibility, can lead to higher costs compared to fixed-price contracts if not managed tightly. Benchmarking against similar force management systems would require detailed scope comparisons.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit a bid. With 2 bids received, the competition level was limited but present. This suggests that while multiple vendors were aware of and interested in the opportunity, the final pool of bidders was constrained, potentially impacting the price discovery and the ultimate cost savings for the government.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally leads to better pricing for taxpayers than a sole-source award. However, the extent of savings is difficult to quantify without knowing the initial proposals or market research.

Public Impact

The primary beneficiaries are the Department of the Army, which receives enhanced force management capabilities. The services delivered likely support personnel management, readiness tracking, and strategic planning for military forces. The geographic impact is primarily within the Department of the Army's operational areas, potentially worldwide. Workforce implications could include support for military personnel and civilian employees involved in force management operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not carefully monitored.
Limited competition (2 bidders) may have resulted in a higher price than a more robust bidding environment.
The contract duration of over 3 years requires sustained oversight to ensure continued value and performance.
The NAICS code 517110 (Wired Telecommunications Carriers) seems potentially misaligned with 'Force Management System', suggesting possible scope ambiguity or a focus on underlying communication infrastructure.

Positive Signals

Awarded under full and open competition, ensuring a fair process.
CACI-ISS, LLC is an established government contractor with experience in IT and support services.
The contract was awarded to a single vendor, allowing for focused execution and accountability.

Sector Analysis

The IT services sector, particularly within defense, is characterized by significant government spending on complex systems. Force management systems are critical for military readiness and operational efficiency. This contract likely falls within the broader IT services and telecommunications infrastructure market, which is highly competitive but also sees large, long-term contracts awarded to major players like CACI. Benchmarking requires comparing the scope and duration against similar defense IT or C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) system contracts.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as the 'sb' (small business) flag is false and the contract was not set aside for small businesses. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the prime contractor, CACI-ISS, LLC, likely handled the majority of the work directly or through large business partners, with limited direct benefit to the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, requiring the contractor to justify costs and demonstrate progress towards fixed fee milestones. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Enterprise Systems Integration
Defense Readiness Reporting System
Global Force Management
Military Personnel Systems
Command and Control Systems

Risk Flags

Potential scope ambiguity due to NAICS code mismatch.
Cost risk associated with CPFF contract type.
Limited competition may impact price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to CACI-ISS, LLC. FORCE MANAGEMENT SYSTEM

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 Army).

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2012-03-16. End: 2015-07-13.

What specific capabilities did the Force Management System provide to the Department of the Army?

The provided data does not detail the specific functionalities of the Force Management System. However, based on the contract title and the typical needs of a military organization, such a system likely supported critical functions like personnel tracking, deployment readiness assessment, resource allocation, training management, and strategic planning. It may have integrated various data sources to provide a comprehensive overview of the Army's forces, enabling better decision-making regarding personnel deployment, equipment, and overall operational posture. The system's reliance on NAICS code 517110 (Wired Telecommunications Carriers) suggests a potential emphasis on the underlying communication infrastructure or network services required to support these management functions across distributed Army units.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and value for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve, as might be the case with complex IT systems. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. This offers flexibility but shifts cost risk towards the government, as the final cost can exceed initial estimates if costs escalate. Compared to Firm-Fixed-Price (FFP) contracts, CPFF generally offers less cost certainty for the government but can be advantageous for R&D or services where requirements are uncertain. For a 'Force Management System,' if requirements were well-defined, an FFP contract might have offered better value. However, if the system involved significant development or integration of evolving technologies, CPFF could be justified, necessitating robust government oversight to control costs and ensure the fixed fee remains appropriate for the effort.

What is the typical annual spending for similar Force Management Systems within the Department of Defense?

Determining a precise 'typical' annual spending for similar Force Management Systems is challenging without access to detailed comparative data across the Department of Defense (DoD). However, the total award of $31.4 million over approximately 3.3 years equates to an average annual spend of roughly $9.5 million. This figure falls within a moderate range for specialized IT systems supporting large government organizations. Larger, enterprise-wide systems or those involving extensive hardware procurement and integration could cost tens or hundreds of millions annually. Smaller, more focused systems might cost significantly less. The specific nature of the 'Force Management System,' its scope, user base, and technological complexity would dictate its place within this spectrum. Benchmarking against publicly available contract awards for similar systems, adjusted for inflation and scope, would be necessary for a more accurate comparison.

What are the potential implications of the NAICS code 517110 (Wired Telecommunications Carriers) for a 'Force Management System' contract?

The assignment of NAICS code 517110 (Wired Telecommunications Carriers) to a contract titled 'FORCE MANAGEMENT SYSTEM' is unusual and warrants further investigation. This code typically applies to companies primarily engaged in operating and/or providing access to various telecommunications infrastructure and/or related services, such as telephone networks, cable networks, and satellite networks. It suggests that the contract's primary focus might be on the underlying network infrastructure, communication services, or telecommunications equipment necessary to support the force management functions, rather than the software development or business process aspects of the system itself. This could imply that CACI-ISS, LLC was contracted to provide or manage the robust communication backbone required for real-time force data transmission and management across geographically dispersed Army units.

What does the limited competition (2 bidders) suggest about the market for this type of service within the Army?

The fact that only two bids were received for this 'FULL AND OPEN COMPETITION' contract suggests a potentially concentrated market for the specific force management capabilities required by the Department of the Army. This could indicate several factors: 1) High barriers to entry, such as specialized technical expertise, security clearances, or existing infrastructure requirements, that limit the number of qualified vendors. 2) The specific niche or scope of the requirement may only appeal to a small number of large, established defense contractors. 3) The solicitation process or pre-award communication might not have reached a broader audience of potential bidders. While two bidders still represent competition, it is less robust than ideal and could mean the government did not benefit from the full range of potential pricing and innovation available in a more crowded marketplace.

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: 2

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: $45,711,830

Exercised Options: $31,425,993

Current Obligation: $31,425,993

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $839,121,948

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0020

IDV Type: IDC

Timeline