CACI NSS, LLC awarded $142.5M for IT logistics support, raising value-for-money questions

Contract Overview

Contract Amount: $142,505,625 ($142.5M)

Contractor: CACI NSS, LLC

Awarding Agency: General Services Administration

Start Date: 2015-01-01

End Date: 2021-02-28

Contract Duration: 2,250 days

Daily Burn Rate: $63.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF MC4 ENGINEERING AND LOGISTICS SUPPORT

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $142.5 million to CACI NSS, LLC for work described as: IGF::OT::IGF MC4 ENGINEERING AND LOGISTICS SUPPORT Key points: 1. Contract value significantly exceeds typical IT support contracts in this category. 2. Limited public data on performance metrics makes assessing value difficult. 3. The contractor, CACI NSS, LLC, has a substantial history with government contracts. 4. The contract type (Time and Materials) can lead to cost overruns if not managed closely. 5. This contract represents a notable portion of GSA's spending in computer systems design services. 6. The duration of the contract (over 6 years) suggests a long-term need for these services.

Value Assessment

Rating: questionable

The total award of $142.5 million for IT engineering and logistics support appears high when compared to similar contracts for computer systems design services. While CACI NSS, LLC is a large contractor with extensive experience, the lack of detailed performance metrics and the Time and Materials pricing structure raise concerns about cost-effectiveness. Benchmarking against industry standards for similar support services would be necessary to definitively assess value, but initial indicators suggest potential overspending without clear justification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the number of actual bidders is not specified in the provided data. Full and open competition is generally favorable for price discovery, but the ultimate price achieved depends on the specific bidding environment and the government's negotiation strategy.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition, which aims to secure the best value by allowing all eligible sources to participate.

Public Impact

The primary beneficiaries are likely federal agencies requiring IT engineering and logistics support, ensuring operational continuity. Services delivered include computer systems design and related support, crucial for maintaining government IT infrastructure. The contract's geographic impact is centered in Maryland, where the contract was awarded. Workforce implications may include employment opportunities for IT professionals and logistics specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of detailed performance metrics makes value assessment challenging.
Significant contract value could indicate a lack of competitive pressure on pricing.
Long contract duration may not reflect evolving technological needs.

Positive Signals

Awarded through full and open competition, suggesting a broad search for qualified contractors.
Contractor (CACI NSS, LLC) has extensive experience in government contracting.
Contract supports critical IT logistics functions for federal agencies.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The IT services market is highly competitive and dynamic, with significant government spending. Comparable spending benchmarks for large-scale IT support contracts can vary widely based on scope and duration, but $142.5 million over six years for comprehensive logistics support is substantial, placing it among larger awards in this category.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and large businesses likely dominated the bidding process. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is unclear but likely minimal for this specific award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) from the General Services Administration (GSA) and potentially the agency's Inspector General. Transparency is dependent on the level of detail made public regarding performance reviews and financial expenditures. Accountability rests with CACI NSS, LLC to fulfill contract requirements and with GSA to manage the contract effectively.

Related Government Programs

IT Professional Services
Computer Systems Design Services
Logistics Support Services
General Services Administration Contracts
Federal IT Procurement

Risk Flags

Potential for cost overruns due to T&M contract type.
Lack of detailed performance metrics.
High contract value requires robust oversight.
Long contract duration may not align with rapid IT evolution.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $142.5 million to CACI NSS, LLC. IGF::OT::IGF MC4 ENGINEERING AND LOGISTICS SUPPORT

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $142.5 million.

What is the period of performance?

Start: 2015-01-01. End: 2021-02-28.

What is the track record of CACI NSS, LLC with similar government contracts?

CACI NSS, LLC, as part of the larger CACI International Inc., has a significant and extensive track record with various U.S. federal agencies. They are a major government contractor frequently awarded contracts for IT services, intelligence support, and engineering solutions. Their history includes numerous large-scale awards across different departments, indicating a strong presence and capability in serving government needs. While this specific contract's value is substantial, CACI's overall experience suggests they are well-equipped to handle complex IT logistics and support requirements. However, a detailed review of past performance on similar contracts, including any past performance issues or successes, would provide a more nuanced understanding of their reliability and effectiveness in this specific domain.

How does the awarded amount compare to the duration and scope of services?

The awarded amount of $142.5 million over a period of approximately 6 years (from January 1, 2015, to February 28, 2021) translates to an average annual value of roughly $23.75 million. This figure needs to be assessed against the specific scope of 'Computer Systems Design Services' and 'Engineering and Logistics Support.' Given the complexity often associated with federal IT logistics, this annual average might be reasonable if the contract encompasses a wide range of services, extensive personnel, and significant infrastructure support. However, without a detailed breakdown of deliverables and required resources, it's difficult to definitively benchmark. The Time and Materials (T&M) contract type also introduces variability, meaning the final cost could deviate from the total award ceiling based on actual hours worked and materials used.

What are the primary risks associated with this Time and Materials contract?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the direct labor hours at specified hourly rates and for the cost of materials. This structure can incentivize longer project durations or less efficient work if not rigorously monitored. For the government, the risk is that the total cost could exceed initial estimates or budget allocations if the scope is not tightly controlled or if the contractor's efficiency is low. Effective oversight, detailed tracking of hours and materials, and clear task definitions are crucial to mitigate these risks and ensure the government receives good value for its investment.

How effective is the General Services Administration (GSA) in managing large IT support contracts?

The General Services Administration (GSA) plays a significant role in managing federal IT procurements and support contracts, often acting as a central service provider. GSA's Federal Acquisition Service (FAS) is responsible for acquiring goods and services for other federal agencies. While GSA aims to streamline procurement and achieve economies of scale, the effectiveness of managing large, complex IT support contracts can vary. Success depends heavily on the specific contracting officers, program managers, and the robustness of their oversight processes. Issues can arise from contract complexity, evolving technological landscapes, and the sheer volume of contracts GSA manages. For this specific contract, the duration and value suggest a need for continuous and diligent oversight to ensure performance standards are met and costs remain controlled.

What does the contract's duration suggest about the nature of the IT support required?

The contract's duration of over six years (2250 days) suggests that the IT engineering and logistics support required is for a long-term, stable need rather than a short-term project. This extended period implies that the services are integral to the ongoing operations of the supported agencies. Such long-term engagements are common for essential IT infrastructure maintenance, system administration, help desk support, and strategic IT planning where continuity is paramount. It also indicates a level of trust and satisfaction with the contractor's performance over time, assuming the contract was extended or awarded with options. However, it also raises questions about whether such a long duration adequately accounts for rapid technological advancements in the IT sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: ID03140028

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 12021 SUNSET HILLS RD, 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: $160,092,318

Exercised Options: $142,505,625

Current Obligation: $142,505,625

Actual Outlays: $-15,647

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,368,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0037

IDV Type: GWAC

Timeline