GSA's $424M IT support contract for Army Reserve Component Automation Systems awarded to CACI NSS, LLC

Contract Overview

Contract Amount: $424,447,051 ($424.4M)

Contractor: CACI NSS, LLC

Awarding Agency: General Services Administration

Start Date: 2013-03-15

End Date: 2018-09-24

Contract Duration: 2,019 days

Daily Burn Rate: $210.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::CL,CT::IGF THE PURPOSE OF THIS TO IS TO ACQUIRE PERFORMANCE-BASED INFORMATION TECHNOLOGY (IT) TECHNICAL SUPPORT SERVICES ASSOCIATED WITH ARMY PROJECTS, PROGRAMS, APPLICATIONS, AND INFRASTRUCTURE SERVICES IN SUPPORT OF THE PROJECT DIRECTORATE (PD) RESERVE COMPONENT AUTOMATION SYSTEMS (RCAS), THE ARMY NATIONAL GUARD (ARNG) DISTANCE LEARNING PROJECT (DLP) PROGRAMS AND INFRASTRUCTURE SERVICES TO SUPPORT THE PD RCAS, PROGRAMS, AND SERVICES TO SUPPORT THE PD RCAS, AND DEVELOPMENT, SUSTAINMENT, AND FIELDING OF INFORMATION MANAGEMENT SYSTEMS (IMS) PROJECTS, MILITARY IT INFRASTRUCTURE PROJECTS (ITII&R), PROGRAMS, APPLICATIONS, ARCHITECTURE IN SUPPORT OF THE ARNG.

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $424.4 million to CACI NSS, LLC for work described as: IGF::CL,CT::IGF THE PURPOSE OF THIS TO IS TO ACQUIRE PERFORMANCE-BASED INFORMATION TECHNOLOGY (IT) TECHNICAL SUPPORT SERVICES ASSOCIATED WITH ARMY PROJECTS, PROGRAMS, APPLICATIONS, AND INFRASTRUCTURE SERVICES IN SUPPORT OF THE PROJECT DIRECTORATE (PD) RESERVE COMPONENT AUTOMATIO… Key points: 1. Contract focuses on performance-based IT technical support for critical Army systems. 2. Competition was full and open, indicating a broad market search. 3. Contract type is Cost Plus Award Fee, incentivizing performance. 4. Duration spans over 5 years, suggesting a long-term need for services. 5. Services cover a range of IT functions including development, sustainment, and fielding. 6. Geographic focus is Virginia, supporting Army National Guard infrastructure.

Value Assessment

Rating: good

The contract's value of over $424 million over five years for IT technical support services appears reasonable given the scope of supporting Army projects, programs, applications, and infrastructure. Benchmarking against similar large-scale IT support contracts for defense agencies suggests this pricing is within expected ranges. The Cost Plus Award Fee (CPAF) structure allows for flexibility and incentivizes contractor performance, which can lead to better value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 9 bidders suggests a healthy level of competition for this significant IT support requirement. This broad competition is generally favorable for price discovery and ensures the government can select from a wide pool of qualified contractors.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing for taxpayers, as multiple companies vie for the contract, driving down costs and improving the quality of services offered.

Public Impact

The primary beneficiaries are the U.S. Army and Army National Guard, who will receive enhanced IT support for critical automation systems. Services delivered include development, sustainment, and fielding of information management systems and IT infrastructure. The geographic impact is concentrated in Virginia, where key Army National Guard distance learning programs and infrastructure are located. Workforce implications include the potential for significant employment opportunities within CACI NSS, LLC and its subcontractors in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
The long duration of the contract may require periodic re-evaluation to ensure continued market competitiveness.

Positive Signals

Performance-based contract structure incentivizes high-quality service delivery.
Full and open competition ensures a wide selection of capable vendors.
The contract supports essential IT functions for national defense readiness.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry. The market for IT support services to federal defense agencies is substantial, driven by the continuous need for modernization and maintenance of complex systems. Comparable spending benchmarks for large-scale IT support contracts often run into hundreds of millions of dollars, reflecting the critical nature and scale of these services. This contract represents a notable investment in maintaining and advancing the Army's IT capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the impact on the small business ecosystem will depend on CACI NSS, LLC's subcontracting practices. Without specific set-aside provisions or reporting, it's difficult to quantify the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA) Federal Acquisition Service, in conjunction with the Army program office. Accountability measures are built into the Cost Plus Award Fee structure, which ties a portion of the payment to performance metrics. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details would require deeper investigation into the contract's terms and conditions.

Related Government Programs

Army Reserve Component Automation Systems (RCAS)
Army National Guard Distance Learning Project (DLP)
Information Management Systems (IMS) Projects
Military IT Infrastructure Projects (ITII&R)

Risk Flags

Cost Plus Award Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration necessitates proactive management to ensure continued relevance and value.
Reliance on a single prime contractor for critical IT functions poses a potential risk.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $424.4 million to CACI NSS, LLC. IGF::CL,CT::IGF THE PURPOSE OF THIS TO IS TO ACQUIRE PERFORMANCE-BASED INFORMATION TECHNOLOGY (IT) TECHNICAL SUPPORT SERVICES ASSOCIATED WITH ARMY PROJECTS, PROGRAMS, APPLICATIONS, AND INFRASTRUCTURE SERVICES IN SUPPORT OF THE PROJECT DIRECTORATE (PD) RESERVE COMPONENT AUTOMATION SYSTEMS (RCAS), THE ARMY NATIONAL GUARD (ARNG) DISTANCE LEARNING PROJECT (DLP) PROGRAMS AND INFRASTRUCTURE SERVICES TO SUPPORT THE PD RCAS, PROGRAMS, AND SERVICES TO SUPPORT THE PD RCAS, AND DEVELOPMENT, SUSTAINMENT, A

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 $424.4 million.

What is the period of performance?

Start: 2013-03-15. End: 2018-09-24.

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

CACI NSS, LLC, as part of the larger CACI International Inc., has a substantial track record of providing IT support services to various branches of the U.S. military, including the Army. Their experience often encompasses systems development, integration, sustainment, and cybersecurity. For contracts similar to this one, CACI has historically been awarded significant prime contracts for IT modernization, network operations, and enterprise resource planning support. Performance on these contracts can be assessed through sources like the Federal Procurement Data System (FPDS) and past performance evaluations, which are typically considered during the source selection process. While specific performance metrics for this particular contract are not detailed here, CACI's general presence and success in the defense IT sector suggest a capacity to handle complex requirements.

How does the awarded price compare to market rates for similar IT technical support services?

The total awarded value of approximately $424.4 million over a period of roughly 5.5 years (March 2013 to September 2018) translates to an average annual value of about $77 million. Benchmarking this against market rates for large-scale, performance-based IT technical support services for federal agencies, particularly within the Department of Defense, suggests this pricing is competitive. The market is characterized by significant demand and a range of specialized service providers. Given the complexity and critical nature of supporting Army automation systems and infrastructure, the price appears aligned with industry standards for similar scope and scale. Factors such as the specific technical requirements, security clearances, and geographic location (Virginia) would influence precise market comparisons.

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

Key risks include potential cost overruns due to the Cost Plus Award Fee (CPAF) structure, performance degradation impacting critical Army systems, and contractor dependency. CPAF contracts, while incentivizing performance, require diligent oversight to manage costs effectively. Mitigation strategies typically involve robust performance monitoring, clearly defined award fee criteria tied to objective metrics, and regular program reviews. The government also mitigates risk by having multiple bidders during the initial competition, ensuring a baseline of capability. Furthermore, contract clauses related to service level agreements (SLAs) and termination for default provide recourse if performance issues arise. The long-term nature of the contract also necessitates proactive contract management to adapt to evolving technological needs and maintain competitive pressure.

How effective has the Cost Plus Award Fee (CPAF) pricing structure been in ensuring value for money on similar government IT contracts?

The Cost Plus Award Fee (CPAF) structure is designed to provide flexibility in pricing while incentivizing contractor performance beyond minimum requirements. Its effectiveness in ensuring value for money is highly dependent on the clarity and measurability of the award fee criteria and the rigor of government oversight. When well-defined metrics are established and consistently applied, CPAF can drive superior performance and innovation, leading to better value. However, if criteria are vague or oversight is lax, it can lead to increased costs without commensurate performance gains. For IT services, where performance can be complex to quantify, CPAF requires sophisticated program management to ensure that award fees truly reflect exceptional value delivered to the government and taxpayers.

What is the historical spending trend for IT technical support services by the General Services Administration (GSA) for the Army?

Historical spending data from GSA for IT technical support services to the Army shows a consistent and significant investment over the years. GSA, through its various IT schedules and contract vehicles, facilitates a large volume of procurement for the Department of Defense. Spending in this category has generally trended upwards, reflecting the increasing reliance on technology for military operations, modernization efforts, and the sustainment of complex legacy systems. Contracts like the one awarded to CACI NSS, LLC are indicative of this trend, often awarded through competitive processes to support specific Army programs or infrastructure needs. Analyzing FPDS data would reveal specific dollar amounts and trends for similar contracts over different fiscal years, highlighting the sustained demand for these critical services.

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: GSCQFOB1200024

Offers Received: 9

Pricing Type: COST PLUS AWARD FEE (R)

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: $493,644,009

Exercised Options: $493,644,009

Current Obligation: $424,447,051

Subaward Activity

Number of Subawards: 168

Total Subaward Amount: $64,047,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0037

IDV Type: GWAC

Timeline