DoD's $300M WMD Countering Contract Awarded to CACI NSS, LLC for Engineering Services

Contract Overview

Contract Amount: $300,137,340 ($300.1M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-30

End Date: 2026-06-29

Contract Duration: 1,095 days

Daily Burn Rate: $274.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: PROFESSIONAL AND ANALYTICAL SERVICES IN SUPPORT OF COUNTERING AND DETERRENCE OF WEAPONS OF MASS DESTRUCTION

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $300.1 million to CACI NSS, LLC for work described as: PROFESSIONAL AND ANALYTICAL SERVICES IN SUPPORT OF COUNTERING AND DETERRENCE OF WEAPONS OF MASS DESTRUCTION Key points: 1. Contract focuses on critical national security mission of countering weapons of mass destruction. 2. Awarded under full and open competition, suggesting a robust market for these specialized services. 3. Performance period spans three years, indicating a need for sustained support. 4. The contract type (Cost Plus Award Fee) incentivizes performance while allowing for cost flexibility. 5. CACI NSS, LLC, the awardee, has a significant presence in defense contracting. 6. The specific NAICS code (541330) points to engineering services, a key component of the mission.

Value Assessment

Rating: good

The total contract value of $300,137,340.09 over three years suggests a substantial investment in WMD countering capabilities. Benchmarking this against similar large-scale, specialized defense support contracts is challenging due to the unique nature of WMD deterrence. However, the Cost Plus Award Fee structure allows for performance-based adjustments, which can lead to better value if the contractor meets or exceeds performance objectives. The initial award amount of $274,098 for the delivery order indicates a phased approach to funding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and had the opportunity to bid. This competitive process is generally expected to drive down prices and ensure the government receives the best value. The number of bidders is not specified, but the 'full and open' designation implies a healthy level of market interest and capability.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The primary beneficiaries are national security agencies and the public, through enhanced WMD deterrence and response capabilities. Services delivered will support the Defense Threat Reduction Agency's mission to counter WMD threats. The geographic impact is likely global, given the nature of WMD threats, though specific operational areas are not detailed. Workforce implications include the potential for highly skilled engineers and analysts to be employed by CACI NSS, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher overall costs if not managed tightly, as they allow for profit on top of costs plus an award fee.
The specialized nature of WMD countering may limit the pool of truly qualified contractors, potentially reducing long-term competition.
The duration of the contract (3 years) requires ongoing vigilance to ensure continued value and performance.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially better pricing.
The Cost Plus Award Fee structure incentivizes high performance, which is critical for a mission as sensitive as WMD countering.
CACI NSS, LLC is an established defense contractor with a track record, implying experience and capability in delivering complex services.

Sector Analysis

The defense engineering services sector is a significant part of the federal contracting landscape, with agencies like the Department of Defense consistently investing in specialized technical support. This contract falls within the broader category of professional, scientific, and technical services, which is a large and diverse market. The specific focus on WMD countering places it within a niche but critically important segment of defense spending, often characterized by high technical barriers to entry and long-term strategic importance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, as a large prime contract awarded to CACI NSS, LLC, there may be opportunities for small businesses to participate as subcontractors, depending on CACI's subcontracting plan and the specific needs of the program. The overall impact on the small business ecosystem would depend on whether CACI actively seeks out and utilizes small business partners.

Oversight & Accountability

Oversight for this contract will primarily reside with the Defense Threat Reduction Agency (DTRA) and the Department of Defense. The Cost Plus Award Fee structure necessitates robust performance monitoring and evaluation to determine award fees. Transparency is typically managed through contract reporting mechanisms within the federal procurement system. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense - WMD Policy
Defense Threat Reduction Agency - Programs
National Nuclear Security Administration - Threat Reduction
Department of Homeland Security - WMD Preparedness

Risk Flags

Potential for cost growth under CPAF structure
Reliance on specialized expertise
Evolving threat landscape requiring adaptability
Performance measurement complexity for WMD deterrence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $300.1 million to CACI NSS, LLC. PROFESSIONAL AND ANALYTICAL SERVICES IN SUPPORT OF COUNTERING AND DETERRENCE OF WEAPONS OF MASS DESTRUCTION

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $300.1 million.

What is the period of performance?

Start: 2023-06-30. End: 2026-06-29.

What is CACI NSS, LLC's track record with the Defense Threat Reduction Agency and similar WMD-related contracts?

CACI NSS, LLC, as a subsidiary or division of CACI International Inc., has a substantial history of supporting Department of Defense and intelligence community missions. While specific contract details with DTRA for WMD countering services require deeper database analysis, CACI International Inc. has consistently secured large contracts across various defense domains, including intelligence, C4ISR, and IT modernization. Their experience often involves complex analytical, engineering, and technical support. Publicly available contract award data often shows CACI as a prime contractor on numerous DoD programs, indicating a strong existing relationship and proven capability to deliver on large-scale, high-stakes requirements. Their performance history on similar complex support services would be a key factor in DTRA's decision-making process.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for this type of service?

The Cost Plus Award Fee (CPAF) contract type is often used for complex services where performance outcomes are difficult to define precisely upfront or where innovation and exceeding baseline requirements are highly valued. Unlike Cost Plus Fixed Fee (CPFF), CPAF includes a base fee plus an award amount tied to achieving specific performance targets. This incentivizes the contractor to perform exceptionally well, potentially leading to better results for the government. However, it also means the final cost can be higher than anticipated if award fees are maximized. For WMD countering, where mission success is paramount and technical challenges can be unpredictable, CPAF offers a balance between cost reimbursement and performance incentives, making it suitable for R&D-heavy or highly specialized support services where exceeding expectations is critical.

What are the primary risks associated with a $300 million contract for WMD countering services?

The primary risks associated with a $300 million contract for WMD countering services are multifaceted. Firstly, there's the risk of cost overruns, inherent in CPAF contracts if performance targets are consistently exceeded or if unforeseen technical challenges arise. Secondly, performance risk is significant; failure to effectively counter WMD threats could have catastrophic national security implications. This includes risks related to the accuracy of threat assessments, the efficacy of deterrence strategies, and the readiness of response capabilities. Thirdly, there's a personnel risk, as the mission requires highly specialized expertise, and retaining or accessing top talent can be challenging. Finally, geopolitical risks and the evolving nature of WMD threats mean the contract's scope and objectives may need to adapt rapidly, posing integration and flexibility challenges.

What historical spending patterns exist for WMD countering and deterrence support within the Department of Defense?

Historical spending patterns within the Department of Defense for WMD countering and deterrence support have shown a consistent and significant investment, particularly following the September 11th attacks and subsequent focus on non-proliferation and counter-terrorism. Agencies like the Defense Threat Reduction Agency (DTRA) are central to this spending, managing programs related to nuclear, biological, and chemical (NBC) threat reduction, non-proliferation, and consequence management. Spending in this area often fluctuates based on perceived threat levels, geopolitical events, and shifts in national security priorities. While specific figures vary year-to-year, the overall trend indicates sustained funding for expertise, technology, and services aimed at understanding, deterring, and mitigating WMD threats. This $300 million contract aligns with the ongoing strategic importance placed on these capabilities.

How does the geographic location of the contracting agency (DTRA) and awardee (CACI) influence contract performance?

The geographic location of the contracting agency, the Defense Threat Reduction Agency (DTRA), and the awardee, CACI NSS, LLC, can influence contract performance in several ways. DTRA is headquartered at Fort Belvoir, Virginia, and CACI has a significant presence in the Washington D.C. metropolitan area, including Northern Virginia. This proximity facilitates communication, collaboration, and oversight between the agency and the contractor. Regular face-to-face meetings, site visits, and access to agency personnel are generally easier when parties are geographically close. This can streamline decision-making, problem-solving, and performance reviews. However, the nature of WMD countering often requires global operations, meaning that while the administrative hub may be local, the actual service delivery and impact will be geographically dispersed, necessitating robust remote management and communication strategies regardless of the headquarters' location.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Offers Received: 1

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: $874,868,467

Exercised Options: $874,868,467

Current Obligation: $300,137,340

Actual Outlays: $24,119,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU121

IDV Type: IDC

Timeline