DoD's $279M IT services contract awarded to CACI NSS, LLC, with a significant portion for computer-related services

Contract Overview

Contract Amount: $27,913,485 ($27.9M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2004-08-16

End Date: 2007-06-30

Contract Duration: 1,048 days

Daily Burn Rate: $26.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200411!000001!5700!GV55 !ESC/TNK !GS35F5396H !C!N! !Y!FA872104F8500! !20040816!20041231!183355874!101918761!048341838!N!TITAN CORPORATION !700 TECHNOLOGY PARK DRIVE !BILLERICA !MA!01821!04650!017!25!BEDFORD !MIDDLESEX !MASS !+000000534844!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541611!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to CACI NSS, LLC for work described as: 200411!000001!5700!GV55 !ESC/TNK !GS35F5396H !C!N! !Y!FA872104F8500! !20040816!20041231!183355874!101918761!048341838!N!TITAN CORPORATION !700 TECHNOLOGY PARK DRIVE !BILLERICA !MA!01821!04650!017!25!BEDFORD !MIDD… Key points: 1. Contract value of $279.1 million for IT and professional services. 2. Primarily focused on 'Other Computer Related Services' (NAICS 541519). 3. Awarded under full and open competition, indicating a competitive bidding process. 4. Contract type is 'Delivery Order' under a larger contract vehicle. 5. Performance period spans over 3 years, from August 2004 to June 2007. 6. Contractor is CACI NSS, LLC, a known entity in the federal IT space.

Value Assessment

Rating: good

The contract value of $279.1 million is substantial for IT services. Benchmarking against similar large-scale IT contracts awarded by the Department of Defense would provide further context on value for money. The 'Time and Materials' pricing structure suggests potential for cost escalation if not managed closely, but is common for services requiring flexibility. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award suggests a reasonable price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' which implies that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection of contractors and potentially better pricing due to market forces. The data indicates there were 2 bids received, suggesting a moderate level of competition for this specific award.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down prices and encouraging innovation from multiple vendors, ensuring the government receives the best possible value.

Public Impact

The Department of Defense is the primary beneficiary, receiving IT and professional services. Services likely include a range of computer-related support, system integration, and potentially other professional services. The contract's geographic impact is centered in Massachusetts (MA), where the contractor is located. Workforce implications include employment opportunities for IT professionals and support staff within CACI NSS, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not closely monitored.
Limited insight into specific performance metrics and service level agreements.
Dependence on a single contractor (CACI NSS, LLC) for a significant duration.
The 'Other Computer Related Services' category is broad and could encompass a wide range of tasks.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Contractor CACI NSS, LLC is an established provider of IT services to the government.
The contract duration of over 3 years provides stability for service delivery.
The contract value is significant, indicating a substantial need for these services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer-related services. The federal IT market is vast, with agencies consistently investing in technology to support operations, cybersecurity, and data management. Contracts like this are typical for agencies requiring ongoing support for complex systems. Comparable spending benchmarks would involve looking at other large IT service contracts awarded by the DoD or other federal agencies for similar service categories.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this award. The primary contractor, CACI NSS, LLC, is likely a large business, and their subcontracting practices would be governed by broader federal regulations rather than specific set-aside requirements for this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (Department of Defense) and the specific administrative office (Defense Contract Management Agency). Accountability measures are inherent in the contract terms, including delivery schedules and service requirements. Transparency is facilitated through contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design Services
Defense Information Technology Contracting

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Broad scope of 'Other Computer Related Services' may lack specificity.
Need for robust government oversight to manage contractor effort.
Limited competition (2 bidders) may impact price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to CACI NSS, LLC. 200411!000001!5700!GV55 !ESC/TNK !GS35F5396H !C!N! !Y!FA872104F8500! !20040816!20041231!183355874!101918761!048341838!N!TITAN CORPORATION !700 TECHNOLOGY PARK DRIVE !BILLERICA !MA!01821!04650!017!25!BEDFORD !MIDDLESEX !MASS !+000000534844!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541611!E! !6! ! ! ! ! !999

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 $27.9 million.

What is the period of performance?

Start: 2004-08-16. End: 2007-06-30.

What is the specific nature of the 'Other Computer Related Services' provided under this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing services not classified under other computer-related NAICS codes. This can include IT support services, network management, data processing services, computer disaster recovery services, and IT consulting. Without more specific line-item details or a Statement of Work (SOW) for this delivery order, the exact services rendered are not fully delineated in the provided data. However, given the Department of Defense as the agency, it likely involves support for military information systems, network infrastructure, or specialized IT solutions critical to defense operations.

How does the per-unit cost of services compare to market rates or similar government contracts?

The provided data does not include specific per-unit cost breakdowns (e.g., hourly rates for different labor categories) or detailed service quantities. The contract uses a 'Time and Materials' (PT) pricing structure, which means costs are based on direct labor hours at specified rates plus actual costs for materials. To compare per-unit costs, one would need access to the contract's rate schedule and compare those rates to industry benchmarks for similar IT services in the relevant geographic area (Massachusetts) or to rates established in other government IT contracts. Without this granular data, a direct per-unit cost comparison is not feasible from the summary information.

What is CACI NSS, LLC's track record with the Department of Defense for similar IT services?

CACI NSS, LLC, and its parent company CACI International Inc., have a long history of providing IT and professional services to the Department of Defense and other federal agencies. They are a significant contractor in the federal space, often winning large-scale contracts for systems integration, cybersecurity, enterprise IT, and mission support. A review of their contract history with the DoD would likely reveal numerous awards for similar services, indicating established experience and a substantial presence. Their performance on past contracts, including any past performance evaluations or awards/debarments, would be crucial for a comprehensive assessment of their track record.

What were the primary performance objectives and metrics for this contract?

The provided data summary does not include the specific performance objectives or metrics that were established for this contract. Typically, such objectives would be detailed in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the delivery order. These metrics often relate to system uptime, response times for support requests, project completion timelines, security compliance, and user satisfaction. The 'Time and Materials' nature of the contract suggests that performance might be measured more by the successful completion of tasks and adherence to labor hour estimates rather than fixed-unit outputs, though service level agreements (SLAs) could still be in place.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over time, and where does this contract fit?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally trended upwards over the past two decades, reflecting the increasing reliance of government agencies on technology for mission execution, data management, and operational efficiency. This contract, awarded in 2004 for approximately $279 million, represented a significant investment at that time within this category. It fits within the broader trend of the DoD and other agencies outsourcing complex IT functions to specialized contractors to leverage expertise and manage costs. Comparing its value to the total federal spending on NAICS 541519 in FY2004 would place its relative size within the market.

What are the potential risks associated with a 'Time and Materials' contract of this magnitude?

Time and Materials (T&M) contracts, like this one, carry inherent risks, primarily related to cost control. Since payment is based on actual labor hours and material costs incurred, there is a risk of cost underruns if the contractor is inefficient or overruns if the scope is not well-defined or managed. For a contract of this size ($279M), effective oversight is critical to ensure that labor hours are reasonable, rates are fair, and materials are necessary and cost-effective. Without robust monitoring and clear task definitions, T&M contracts can lead to unexpected cost increases for the government. The government must actively manage the contractor's effort to mitigate these risks.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

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

Financial Breakdown

Contract Ceiling: $28,470,378

Exercised Options: $28,470,378

Current Obligation: $27,913,485

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5396H

IDV Type: FSS

Timeline