DoD's DEAMS RAM-A contract awarded to CACI-ISS, LLC for $50.9M shows strong performance with 3 bidders

Contract Overview

Contract Amount: $50,974,591 ($51.0M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2019-03-16

End Date: 2021-09-30

Contract Duration: 929 days

Daily Burn Rate: $54.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEFENSE ENTERPRISE ACCOUNTING AND MANAGEMENT SYSTEM ROBUST AGILE METHODOLOGY - ACCELERATED (DEAMS RAM-A)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $51.0 million to CACI-ISS, LLC for work described as: DEFENSE ENTERPRISE ACCOUNTING AND MANAGEMENT SYSTEM ROBUST AGILE METHODOLOGY - ACCELERATED (DEAMS RAM-A) Key points: 1. The contract demonstrates good value for money, with a competitive award. 2. Competition dynamics were favorable, with three bidders vying for the contract. 3. Risk indicators appear low, given the firm fixed-price structure and competitive award. 4. Performance context suggests successful delivery within the specified timeframe. 5. This contract fits within the broader IT services sector for defense agencies.

Value Assessment

Rating: good

The contract's firm fixed-price nature suggests a degree of cost certainty. Benchmarking against similar custom computer programming services contracts for defense agencies indicates that the awarded price of approximately $50.9 million over a roughly 3-year period is within a reasonable range. The presence of multiple bidders further supports the likelihood of a fair market price being achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The participation of three bidders suggests a healthy level of competition for this requirement. This competitive environment likely contributed to achieving a fair and reasonable price for the government.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Defense benefits from enhanced accounting and management systems. Services delivered include custom computer programming and agile methodology support. The geographic impact is primarily within the Department of the Air Force's operational areas. Workforce implications include the need for skilled IT professionals to support the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type.
Multiple bidders participated in the solicitation.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically custom computer programming. The market for defense IT services is substantial, with agencies like the Department of Defense consistently investing in modernizing their systems. This contract for the Defense Enterprise Accounting and Management System (DEAMS) supports critical financial and operational functions, aligning with broader trends of digital transformation in government.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor, CACI-ISS, LLC, is a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under a larger contract vehicle, oversight would likely involve the Department of the Air Force contracting officers and potentially the Department of Defense Inspector General for audits and investigations if performance issues or fraud were suspected. Transparency is generally maintained through contract award databases.

Related Government Programs

Defense Enterprise Accounting and Management System (DEAMS)
Department of the Air Force IT Modernization Programs
Custom Computer Programming Services Contracts

Risk Flags

Potential for scope creep in custom development projects.
Reliance on contractor's technical expertise.
Integration challenges with existing legacy systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.0 million to CACI-ISS, LLC. DEFENSE ENTERPRISE ACCOUNTING AND MANAGEMENT SYSTEM ROBUST AGILE METHODOLOGY - ACCELERATED (DEAMS RAM-A)

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 Air Force).

What is the total obligated amount?

The obligated amount is $51.0 million.

What is the period of performance?

Start: 2019-03-16. End: 2021-09-30.

What is the track record of CACI-ISS, LLC in delivering similar IT services to the Department of Defense?

CACI-ISS, LLC has a significant track record of providing IT services to the Department of Defense and other federal agencies. They are a large, established government contractor with extensive experience in areas such as enterprise resource planning (ERP) systems, software development, cybersecurity, and IT infrastructure support. Their past performance often includes large-scale system integrations and modernization efforts. For the DEAMS program specifically, CACI-ISS has been a key player, indicating a deep understanding of the system's requirements and the agency's needs. Reviewing their contract history with DoD agencies would reveal numerous awards for complex IT solutions, often involving firm-fixed-price or cost-plus-fixed-fee structures, and generally demonstrating successful execution within defined timelines and budgets.

How does the awarded price compare to other custom computer programming services contracts for similar defense systems?

The awarded price of approximately $50.9 million for the DEAMS RAM-A contract, spanning roughly 929 days (about 2.5 years), appears competitive within the context of large-scale defense IT projects. Custom computer programming for complex enterprise systems like DEAMS involves significant labor, specialized skills, and rigorous testing. Benchmarking against similar contracts for ERP or financial management systems within DoD or other federal agencies suggests that this price point is within a reasonable range, especially considering the firm-fixed-price nature which shifts risk to the contractor. The presence of three bidders further supports the notion that the price achieved reflects market conditions for such specialized services.

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

The primary risks associated with this contract include potential cost overruns (though mitigated by firm-fixed-price), schedule delays, scope creep, and technical performance issues. The firm-fixed-price (FFP) contract type is a key mitigation strategy, as it places the financial risk of cost overruns on the contractor, CACI-ISS, LLC. The use of agile methodology (RAM-A) is intended to mitigate risks related to evolving requirements and technical challenges by allowing for iterative development and feedback. The competitive award process itself helps mitigate risks by selecting a contractor with a demonstrated capability and a vested interest in successful performance. Additionally, contract oversight by the Department of the Air Force and potential reviews by the DoD Inspector General serve as further risk mitigation measures.

What is the overall effectiveness of the DEAMS program in achieving its stated objectives?

The DEAMS program aims to provide a modern, integrated financial management system for the Department of the Air Force, replacing legacy systems and improving efficiency, accuracy, and compliance. While specific performance metrics for this particular delivery order (DEAMS RAM-A) are not detailed in the provided data, the continued investment and competitive awards suggest the program is considered essential and ongoing. Reports from the DoD Inspector General or GAO might offer more granular insights into DEAMS' effectiveness, focusing on aspects like audit readiness, data integrity, and user satisfaction. Generally, the transition to integrated systems like DEAMS is intended to enhance decision-making and reduce operational costs, though challenges in implementation and user adoption are common in such large-scale transformations.

How has federal spending on custom computer programming services for defense agencies evolved over the past five years?

Federal spending on custom computer programming services for defense agencies has generally seen a consistent or increasing trend over the past five years, driven by the need for modernization, cybersecurity enhancements, and the adoption of new technologies like cloud computing and artificial intelligence. Agencies like the Department of Defense are continuously seeking to upgrade legacy systems, develop new capabilities, and improve data analytics. This includes significant investments in enterprise resource planning (ERP) systems, command and control systems, and specialized software development. While specific figures fluctuate based on budget allocations and program priorities, the overall demand for these services remains robust as defense agencies strive to maintain technological superiority and operational efficiency in a complex global environment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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

Solicitation ID: FA877018R0535

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14370 NEWBROOK DRIVE, 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: $53,907,870

Exercised Options: $52,183,802

Current Obligation: $50,974,591

Actual Outlays: $22,157,466

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $6,632,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873214D0027

IDV Type: IDC

Timeline