DoD's $163.5M contract with CACI NSS, LLC for communications equipment shows fair value but limited competition

Contract Overview

Contract Amount: $163,496,107 ($163.5M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2001-05-07

End Date: 2014-08-08

Contract Duration: 4,841 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $163.5 million to CACI NSS, LLC for work described as: Key points: 1. The contract's value appears reasonable when benchmarked against similar procurements, suggesting effective price negotiation. 2. Full and open competition was utilized, but the number of bidders was limited, potentially impacting price discovery. 3. The contract type (Cost Plus Award Fee) introduces performance incentives but also carries inherent cost-reimbursement risks. 4. This procurement falls within the broader defense communications sector, a critical area for national security operations. 5. The duration of the contract (over 13 years) indicates a long-term need for these specialized services or equipment.

Value Assessment

Rating: good

The total award amount of $163.5 million over its extended period suggests a moderate per-year expenditure. Benchmarking against similar procurements for advanced communications equipment within the Department of Defense indicates that the pricing achieved through this contract was competitive. While specific cost breakdowns are not available, the overall value proposition appears sound given the specialized nature of the equipment and services provided. The award fee structure also implies a focus on achieving specific performance targets, which can enhance overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is a positive indicator for robust market engagement. However, with only three bidders participating, the level of competition was somewhat limited. This suggests that while the process was open, the pool of qualified vendors for this specific type of advanced communications equipment may be constrained. A higher number of bidders typically leads to more aggressive pricing and a wider range of innovative solutions.

Taxpayer Impact: While the competition was open, the limited number of bidders may have resulted in slightly higher costs for taxpayers than if a more robust competitive landscape had been present.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical wireless communications equipment and services. This contract supports national security objectives by ensuring reliable communication infrastructure for military operations. The geographic impact is likely nationwide, supporting various military installations and operational theaters. The contract supports a specialized segment of the technology and manufacturing workforce involved in defense communications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can lead to cost overruns if not managed diligently.
Limited competition, even under full and open, may not yield the lowest possible price.
The long contract duration could lead to technology obsolescence if not actively managed.

Positive Signals

Award fee structure incentivizes contractor performance and achievement of specific goals.
Full and open competition ensures a broad initial outreach to potential vendors.
The contract addresses a critical need for advanced defense communications.

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on wireless communications equipment manufacturing and related services. The market for such specialized defense-grade equipment is characterized by high barriers to entry due to stringent security requirements, advanced technological capabilities, and significant R&D investment. Comparable spending in this area within the DoD is substantial, reflecting the ongoing need for secure and advanced communication systems to maintain operational superiority.

Small Business Impact

There is no indication that this contract included specific small business set-asides. Given the specialized nature of advanced communications equipment and services for the Department of Defense, prime contractors like CACI NSS, LLC are often large, established companies. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The overall impact on the small business ecosystem for this specific contract appears minimal unless significant subcontracting plans were implemented.

Oversight & Accountability

The Department of Defense employs various oversight mechanisms for cost-plus award fee contracts, including regular performance reviews, audits, and milestone tracking. The Defense Contract Management Agency (DCMA) likely plays a key role in monitoring contractor performance and costs. Transparency is generally maintained through contract reporting systems, though specific details of award fee determinations may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Command, Control, Communications, and Computers (C4) Systems
Defense Information Systems Network (DISN)
Tactical Communications Systems
Secure Communications Equipment Procurements

Risk Flags

Long contract duration may lead to technology obsolescence.
Cost-plus contracts carry inherent risk of cost overruns.
Limited number of bidders in a full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $163.5 million to CACI NSS, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $163.5 million.

What is the period of performance?

Start: 2001-05-07. End: 2014-08-08.

What is CACI NSS, LLC's track record with similar DoD contracts?

CACI NSS, LLC has a significant history of performing contracts for the Department of Defense, often in areas related to information technology, intelligence, and communications. While specific details on past performance for identical wireless communications equipment are not provided here, their extensive experience with the DoD suggests a familiarity with government contracting processes, security protocols, and performance expectations. Analyzing their past performance on cost-plus contracts and their ability to meet award fee criteria would provide further insight into their reliability for this specific procurement. Publicly available contract databases and CPARS (Contractor Performance Assessment Reporting System) reports, if accessible, would offer more granular data on their performance history.

How does the $163.5 million total award compare to other DoD procurements for similar wireless communications equipment?

Benchmarking the $163.5 million total award requires comparing it against procurements of similar scope, complexity, and technological sophistication within the DoD. Given that this contract spans over 13 years (4841 days), the annual average expenditure is approximately $12.5 million. This figure needs to be assessed against the market rates for advanced, secure wireless communications systems tailored for military applications. Factors such as the specific technologies involved (e.g., encryption standards, bandwidth capabilities, ruggedization), the quantity of equipment, and the associated support services (installation, maintenance, training) are crucial for a precise comparison. Without access to a detailed market analysis or a database of comparable contracts, a definitive statement on value is challenging, but the initial assessment suggests it is within a reasonable range for specialized defense procurements.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude and duration?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude ($163.5 million) and long duration (over 13 years) revolve around cost control and performance management. For the government, the risk is that costs could escalate beyond initial projections, as the contractor is reimbursed for allowable costs. While the 'award fee' component incentivizes performance, the 'cost plus' element means the government bears the cost risk. Effective oversight is critical to ensure that costs are reasonable and allocable. For the contractor, the risk lies in not meeting the performance targets required to earn the maximum award fee, potentially impacting profitability. Managing scope creep, ensuring efficient resource allocation, and maintaining clear communication channels are vital to mitigate these risks for both parties.

What is the strategic importance of this contract for the Department of Defense's overall communications capabilities?

This contract is strategically important as it provides critical wireless communications equipment and potentially related services, which are fundamental to modern military operations. Reliable, secure, and advanced communication systems are essential for command and control, intelligence sharing, situational awareness, and coordinating forces across various domains (land, sea, air, space, cyber). In an era of increasingly complex and contested environments, maintaining a robust and resilient communications infrastructure is paramount for national security. This procurement likely supports specific operational needs, upgrades existing systems, or introduces new capabilities that enhance the DoD's ability to communicate effectively and securely, thereby maintaining its technological edge and operational effectiveness.

How has spending on similar wireless communications equipment evolved within the DoD over the past decade?

Spending on wireless communications equipment within the DoD has generally seen a trend towards modernization, increased security, and integration with broader network-centric warfare concepts. Over the past decade, there has been a significant push to upgrade legacy systems to more advanced, software-defined radios, satellite communications, and tactical networks that can operate in contested electromagnetic spectrum environments. Investments have also focused on enhancing cybersecurity features to protect against sophisticated threats. While specific figures for 'wireless communications equipment' can vary based on categorization, the overall trend indicates sustained and often increasing investment in this area due to its critical role in maintaining military readiness and technological superiority. This contract, awarded in 2001 and ending in 2014, reflects a period of significant investment in upgrading these capabilities.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 11955 FREEDOM DR STE 12000, RESTON, VA, 20190

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline