CACI NSS, LLC awarded $39.6M for IT Support to Army TRADOC, highlighting a need for specialized computer systems design services

Contract Overview

Contract Amount: $39,584,635 ($39.6M)

Contractor: CACI NSS, LLC

Awarding Agency: General Services Administration

Start Date: 2008-08-29

End Date: 2013-08-28

Contract Duration: 1,825 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SUPPORT FOR US ARMY TRADOC

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $39.6 million to CACI NSS, LLC for work described as: IT SUPPORT FOR US ARMY TRADOC Key points: 1. The contract value of $39.6 million over five years suggests a significant investment in IT infrastructure and support. 2. Awarded under full and open competition, this contract indicates a competitive market for IT support services. 3. The Time and Materials pricing structure may present cost escalation risks if not carefully managed. 4. The duration of 1825 days (5 years) points to a long-term need for these services. 5. The contract's focus on Computer Systems Design Services places it within a critical segment of the IT sector. 6. The award to CACI NSS, LLC, a known entity in federal IT contracting, suggests a reliance on established providers.

Value Assessment

Rating: fair

The contract value of $39.6 million over five years averages to approximately $7.9 million annually. Benchmarking this against similar IT support contracts for large federal agencies requires detailed analysis of scope and service levels. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. Without specific performance metrics or comparable contract data, a definitive value-for-money assessment is challenging, but the duration and scope suggest a substantial, ongoing need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it resulted in a single award (no.) indicates that CACI NSS, LLC was selected as the most advantageous offer. The level of competition is a positive sign for price discovery, as it theoretically drives down costs through market forces. However, the specific number of bids received is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores the broadest possible market, potentially uncovering innovative solutions and cost savings.

Public Impact

The primary beneficiaries are the U.S. Army Training and Doctrine Command (TRADOC), receiving essential IT support to maintain its operational capabilities. Services delivered include computer systems design, integration, and support, crucial for the functioning of military training and educational systems. The geographic impact is primarily within TRADOC facilities, which are located across various installations. Workforce implications include the potential for employment opportunities within CACI NSS, LLC and its subcontractors to fulfill the contract's IT support requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored and managed, as it allows for reimbursement of labor hours and material costs without a pre-defined ceiling.
Lack of specific performance metrics or Service Level Agreements (SLAs) in the provided data makes it difficult to assess the quality and efficiency of the IT support being delivered.
The contract's significant value and duration could indicate a substantial reliance on a single vendor, potentially limiting future flexibility or competition if not structured with clear exit strategies or performance incentives.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process that likely resulted in a competitive price.
The contract is with CACI NSS, LLC, a company with a significant presence and track record in providing IT services to the federal government, suggesting a level of established capability and reliability.
The contract duration of five years implies a stable, long-term requirement for these critical IT support services, allowing for consistent support and planning.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on Computer Systems Design Services. This segment of the IT market is characterized by high demand from government agencies requiring sophisticated support for complex systems. The market size for federal IT services is substantial, with agencies continually investing in modernization and maintenance. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded to system integrators and managed service providers within the federal government, particularly those supporting large operational commands like TRADOC.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and was not awarded to a small business (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, CACI NSS, LLC, may engage small businesses as subcontractors to fulfill parts of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means that large businesses were eligible and likely competed for this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the General Services Administration (GSA) and the U.S. Army TRADOC. Accountability measures would be defined by the contract's terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Army IT Modernization Programs
DoD Enterprise IT Services
GSA IT Schedule Contracts
Defense Information Systems Agency (DISA) Support Contracts
Federal Civilian IT Support Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of detailed performance metrics in provided data.
Reliance on a single vendor for critical IT support over a long duration.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $39.6 million to CACI NSS, LLC. IT SUPPORT FOR US ARMY TRADOC

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 $39.6 million.

What is the period of performance?

Start: 2008-08-29. End: 2013-08-28.

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

CACI NSS, LLC, as a subsidiary of CACI International Inc., has a substantial track record of providing IT support and services to various Department of Defense (DoD) components, including the Army. Their experience often encompasses systems integration, network operations, cybersecurity, and help desk support. Analyzing their past performance on similar contracts, particularly those with large-scale operational commands or training institutions, would reveal their ability to manage complex IT environments, meet performance requirements, and adhere to budgetary constraints. Past performance reviews and contract award histories available through federal procurement databases can offer insights into their reliability, technical expertise, and client satisfaction levels within the defense sector.

How does the $39.6 million contract value compare to other IT support contracts for large federal agencies?

The $39.6 million contract value over five years, averaging approximately $7.9 million annually, is a significant but not extraordinary figure for IT support services to a major federal agency like the U.S. Army TRADOC. Large federal agencies often award multi-million dollar contracts for comprehensive IT support, encompassing network management, system maintenance, help desk operations, and cybersecurity. For context, comparable contracts for agencies such as the Department of Defense (overall), NASA, or the Department of Homeland Security can range from tens to hundreds of millions of dollars annually, depending on the scope, complexity, and number of users supported. This contract appears to be within the mid-to-high range for specialized IT support within the federal landscape, reflecting the critical nature of TRADOC's mission.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor hours (at specified hourly rates) and materials used, plus a fee or profit. This structure offers flexibility but lacks a definitive ceiling on total expenditure unless specific limitations or clauses are included. For the government, this means the total cost can escalate beyond initial estimates if the project scope expands, if labor hours are inefficiently utilized, or if material costs increase unexpectedly. Effective oversight, detailed tracking of hours and materials, and strong project management are crucial to mitigate these risks and ensure the government receives good value.

How does the 'Computer Systems Design Services' NAICS code (541512) reflect the scope of work for TRADOC?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' accurately reflects the core technical requirements for supporting the U.S. Army TRADOC's IT infrastructure. This code encompasses a broad range of activities, including analyzing user needs, designing and implementing computer hardware and software solutions, integrating systems, and providing technical consulting. For TRADOC, this likely translates to services such as designing and maintaining training simulation systems, managing network architectures for educational platforms, integrating new software for curriculum delivery, and ensuring the overall functionality and compatibility of diverse IT systems used in military training and doctrine development. It signifies a focus on the strategic planning and technical architecture of IT systems rather than just routine maintenance or support.

What does the 'Awarding Agency' (General Services Administration) and 'Servicing Agency' (Federal Acquisition Service) indicate about this contract?

The General Services Administration (GSA) acting as the 'Awarding Agency' and its Federal Acquisition Service (FAS) as the 'Servicing Agency' indicates that this contract was likely procured through GSA's established procurement vehicles, such as an IT Schedule contract (e.g., Schedule 70). GSA often provides centralized procurement solutions for federal agencies, leveraging its expertise and existing contracts to streamline the acquisition process. This approach allows agencies like the Army TRADOC to access IT services and solutions more efficiently, often with pre-negotiated terms and conditions. The Federal Acquisition Service specifically focuses on providing government-wide acquisition solutions, making it a common point of contact for agencies seeking IT and other professional services.

What is the significance of the contract award being 'DO' (Defense Order)?

The 'DO' designation signifies that this contract is a 'Defense Order.' In the context of federal procurement, 'DO' ratings are used to prioritize defense-related contracts, especially during times of national emergency or heightened defense readiness, under the authority of the Defense Production Act (DPA). While this specific contract appears to be for routine IT support, the 'DO' rating suggests it was prioritized within the defense supply chain. This could imply that the services provided are considered critical to national defense operations or readiness, ensuring timely delivery and resource allocation for the contractor. It underscores the importance of TRADOC's IT infrastructure to the broader defense mission.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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

Financial Breakdown

Contract Ceiling: $96,213,441

Exercised Options: $74,286,375

Current Obligation: $39,584,635

Parent Contract

Parent Award PIID: GS09K99BHD0005

IDV Type: GWAC

Timeline