CACI-ISS, LLC awarded $15M for IT support, with 2 bids received under full and open competition

Contract Overview

Contract Amount: $14,979,839 ($15.0M)

Contractor: Caci-Iss, LLC

Awarding Agency: General Services Administration

Start Date: 2007-01-22

End Date: 2011-09-28

Contract Duration: 1,710 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: FUNCTIONAL SUPPORT FOR FAMILY OF SYSTEMS (FOS)

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $15.0 million to CACI-ISS, LLC for work described as: FUNCTIONAL SUPPORT FOR FAMILY OF SYSTEMS (FOS) Key points: 1. Contract value appears reasonable given the 4-year duration and scope of IT support. 2. Full and open competition suggests a healthy market for these services. 3. The number of bids (2) is on the lower side for full and open competition, potentially impacting price. 4. Performance context is IT functional support for a family of systems. 5. This contract falls within the IT sector, specifically computer systems design services. 6. The contract was awarded as a delivery order, indicating it's part of a larger vehicle.

Value Assessment

Rating: good

The contract's total value of approximately $15 million over four years averages to about $3.75 million annually. This seems within a reasonable range for comprehensive IT functional support for a family of systems, especially considering the labor hours pricing model. Benchmarking against similar large-scale IT support contracts would provide a more precise value assessment, but initial indications suggest fair pricing for the services rendered.

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 bids. While the solicitation process aimed for broad participation, only two bids were received. This level of competition, while technically open, is on the lower end and could suggest potential barriers to entry for other firms or a concentrated market for this specific type of support.

Taxpayer Impact: The limited number of bidders in a full and open competition may have slightly reduced the downward pressure on pricing, potentially costing taxpayers more than if a larger pool of competitors had vied for the contract.

Public Impact

The primary beneficiaries are the government agencies relying on the functional support for their family of systems. Services delivered include computer systems design and support, crucial for maintaining operational IT infrastructure. The contract's performance is geographically located in Maryland, indicating a focus on federal IT operations within that region. Workforce implications include the employment of IT professionals by CACI-ISS, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate market concentration or barriers to entry.
Labor hours pricing model can sometimes lead to cost overruns if not managed tightly.
The contract duration of 4 years is substantial, requiring sustained oversight to ensure continued value.

Positive Signals

Awarded under full and open competition, suggesting an effort to maximize potential sources.
CACI-ISS, LLC is a well-established government contractor with a significant presence in IT services.
The contract is a delivery order, likely leveraging an existing, pre-competed contract vehicle, which can streamline acquisition.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration services. The market for such services is large and highly competitive, with numerous large and small businesses vying for federal contracts. This particular contract supports a family of systems, suggesting a complex IT environment requiring specialized expertise. Comparable spending benchmarks for similar IT functional support contracts can vary widely based on scope, duration, and specific technologies involved.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. CACI-ISS, LLC is a large business. There is no explicit information on subcontracting plans for small businesses within the provided data. The lack of a small business set-aside means opportunities for small business participation are not guaranteed and would depend on CACI-ISS's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). Performance monitoring, quality assurance, and invoice review are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design Services
Functional Support
Family of Systems Support
General Services Administration Contracts

Risk Flags

Low number of bidders for full and open competition
Potential for cost overruns with labor hours pricing model
Risk of technical obsolescence in supported systems
Dependence on contractor personnel expertise and retention

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.0 million to CACI-ISS, LLC. FUNCTIONAL SUPPORT FOR FAMILY OF SYSTEMS (FOS)

Who is the contractor on this award?

The obligated recipient is CACI-ISS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2007-01-22. End: 2011-09-28.

What is the track record of CACI-ISS, LLC with the General Services Administration?

CACI-ISS, LLC has a substantial history of contracting with the General Services Administration (GSA) across various IT service categories. Their awards often fall under large, multiple-award indefinite-delivery/indefinite-quantity (IDIQ) vehicles managed by GSA, such as IT Schedule 70 (now IT Professional Services). These contracts typically involve a wide range of services including systems integration, software development, cybersecurity, and IT support. CACI's performance history with GSA generally indicates a capacity to handle complex federal IT requirements, though specific performance metrics for individual contracts would require deeper analysis of past performance reviews and any associated contract modifications or disputes.

How does the $15 million value compare to similar IT functional support contracts?

The $15 million total contract value awarded to CACI-ISS, LLC for functional support of a family of systems over approximately four years (1710 days) translates to an average annual value of roughly $3.75 million. This figure is moderate within the vast landscape of federal IT contracts. Larger, more complex system integrations or agency-wide IT modernization efforts can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, specialized support tasks might be in the low millions or hundreds of thousands. Therefore, $3.75 million annually for dedicated functional support of a 'family of systems' suggests a significant but not exceptionally large contract, likely focused on maintaining and operating existing IT infrastructure rather than developing entirely new, large-scale systems.

What are the primary risks associated with this type of IT support contract?

Key risks for this IT functional support contract include scope creep, where requirements expand beyond the original agreement, potentially increasing costs and delaying timelines. Another significant risk is vendor lock-in, where the contractor becomes indispensable, making it difficult to transition to new solutions or providers. Technical obsolescence is also a concern; the 'family of systems' supported may become outdated, requiring costly upgrades or replacements that might not be fully accounted for in the current contract. Furthermore, personnel turnover within the contractor's team can lead to loss of institutional knowledge and impact service continuity. Finally, cybersecurity vulnerabilities within the supported systems pose a constant and evolving risk that requires diligent management.

How effective is the 'full and open competition' approach when only two bids are received?

The effectiveness of 'full and open competition' when only two bids are received is debatable and context-dependent. While the process technically allows all eligible sources to compete, a low number of bidders (two in this case) can indicate several things: the market for this specific service might be limited, the requirements could be highly specialized, or the barriers to entry (e.g., security clearances, specific expertise) might be high. From a taxpayer perspective, two bidders might still yield competitive pricing, but it offers less assurance of achieving the best possible value compared to a scenario with numerous competing offers. It suggests that the government might not be leveraging the full competitive potential of the market, potentially leading to prices that are not as low as they could be if more firms were involved.

What does the 'labor hours' pricing model imply for cost control?

A 'labor hours' pricing model means the contractor is reimbursed based on the actual hours worked by their personnel multiplied by pre-negotiated hourly rates. This model offers flexibility, especially for tasks where the exact effort is difficult to predict upfront, such as ongoing support or undefined troubleshooting. However, it shifts the cost control burden significantly towards the government's oversight. Without rigorous monitoring of hours, task assignments, and productivity, there is a risk of cost overruns if work takes longer than anticipated or if less efficient labor is utilized. Effective management requires detailed timesheets, regular progress reviews, and clear task definitions to ensure that labor hours translate into efficient and valuable service delivery.

How does this contract fit into the broader IT spending landscape of the GSA?

This contract, valued at approximately $15 million over four years for IT functional support, represents a segment of the GSA's extensive IT spending. GSA is a major procurer of IT goods and services, often acting as a central service provider for other federal agencies through various acquisition vehicles like IT Schedule 70 (now Professional Services Schedule). Spending in this category typically supports the operation, maintenance, and enhancement of government IT infrastructure and systems. While $15 million is a substantial sum for a single contract, it is a fraction of GSA's overall IT budget, which also includes large-scale cloud migrations, cybersecurity initiatives, and enterprise-wide software licenses. This contract likely supports a specific 'family of systems,' indicating a focused, albeit critical, area of GSA's or its client agencies' IT operations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: R3073214

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

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: $18,364,448

Exercised Options: $14,979,839

Current Obligation: $14,979,839

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS09K99BHD0006

IDV Type: GWAC

Timeline