CACI-ISS awarded $85.7M for engineering and maintenance support, raising value-for-money questions

Contract Overview

Contract Amount: $85,715,113 ($85.7M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2016-08-18

End Date: 2021-09-17

Contract Duration: 1,856 days

Daily Burn Rate: $46.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF TACCOM ENGINEERING AN MAINTENANCE SUPPORT SERVICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20065

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $85.7 million to CACI-ISS, LLC for work described as: IGF::OT::IGF TACCOM ENGINEERING AN MAINTENANCE SUPPORT SERVICE Key points: 1. The contract's value-for-money is questionable given the lack of detailed performance metrics and the time-and-materials pricing structure. 2. Competition dynamics were favorable with a full and open approach, but the final awardee's pricing relative to the market needs further scrutiny. 3. Risk indicators include the use of time-and-materials, which can lead to cost overruns if not managed tightly. 4. Performance context is limited, with no clear benchmarks provided for the engineering and maintenance services delivered. 5. The contract falls within the IT and Communications Equipment sector, supporting critical infrastructure for DHS. 6. The duration of the contract (over 5 years) suggests a need for sustained support, but the pricing model warrants close monitoring.

Value Assessment

Rating: questionable

The total award of $85.7 million over five years for engineering and maintenance support services appears substantial. However, without specific performance metrics or a fixed-price structure, it is difficult to benchmark the value for money. The time-and-materials (T&M) pricing model, while common for evolving requirements, carries inherent risks of cost escalation if not rigorously managed and monitored against defined deliverables. Comparing this to similar T&M contracts for comparable engineering services would be necessary for a more definitive assessment of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows two bids were received. While a full and open competition is generally positive for price discovery, the limited number of bidders (two) could suggest potential limitations in the market for these specialized services or a lack of aggressive bidding.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it theoretically drives down costs through market forces. However, with only two bids, the potential for cost savings may have been constrained compared to a scenario with more robust competition.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security, receiving critical engineering and maintenance support. Services delivered likely include technical support, system maintenance, and engineering expertise for communications equipment. The geographic impact is centered in the District of Columbia, where the contract is managed and likely where key personnel are based. Workforce implications involve skilled technical and engineering personnel employed by CACI-ISS, LLC, supporting federal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials pricing structure increases risk of cost overruns.
Limited transparency on specific performance metrics and deliverables.
Small number of bidders (two) may indicate limited market competition.
Contract duration of over five years requires sustained oversight.

Positive Signals

Awarded through full and open competition, maximizing potential bidder pool.
Contractor (CACI-ISS, LLC) likely has a track record with government contracts.
Supports critical functions within the Department of Homeland Security.

Sector Analysis

This contract falls within the IT and Communications Equipment Manufacturing sector (NAICS 334220). This sector is crucial for national security and government operations, encompassing the production and support of telecommunications equipment. The market size for government IT and communications support services is substantial, with agencies like DHS being major consumers. This contract represents a significant investment in maintaining and enhancing the operational capabilities of ICE's communication infrastructure.

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 or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, CACI-ISS, LLC, is likely a large business, and their engagement with small businesses would be voluntary or through general supply chain needs rather than mandated subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS). Accountability measures would be tied to the performance clauses within the contract, particularly concerning the delivery of engineering and maintenance services. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DHS IT Support Services
ICE Communications Infrastructure Modernization
Federal Engineering and Maintenance Contracts
CACI-ISS, LLC Government Contracts

Risk Flags

Potential for cost overruns due to T&M pricing.
Limited transparency on performance metrics.
Low number of bidders in a full and open competition.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $85.7 million to CACI-ISS, LLC. IGF::OT::IGF TACCOM ENGINEERING AN MAINTENANCE SUPPORT SERVICE

Who is the contractor on this award?

The obligated recipient is CACI-ISS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $85.7 million.

What is the period of performance?

Start: 2016-08-18. End: 2021-09-17.

What is CACI-ISS, LLC's track record with similar federal contracts, particularly within DHS or ICE?

CACI-ISS, LLC has a significant history of performing federal contracts, including those with the Department of Homeland Security and its various components. As a large government contractor, CACI typically holds numerous awards across different agencies and service areas, often related to IT, engineering, and professional services. While specific details on past performance for this exact type of engineering and maintenance support for ICE would require deeper analysis of contract databases and performance reviews, CACI's established presence suggests a level of experience and capability. However, the success and value derived from those past contracts can vary, and a review of past performance ratings and any documented issues would be crucial for a comprehensive assessment.

How does the $85.7 million award compare to similar engineering and maintenance support contracts for ICE or DHS?

Benchmarking this $85.7 million award requires comparing it to contracts with similar scope, duration, and service requirements within ICE or DHS. Given the five-year duration (approximately 2016-2021), the average annual value is roughly $17.1 million. Without specific details on the exact nature of the engineering and maintenance services, direct comparisons are challenging. However, for large federal agencies like DHS, multi-million dollar contracts for specialized IT and engineering support are common. The key comparison points would be the pricing structure (time-and-materials vs. fixed-price), the number of bidders, and the defined performance outcomes. If similar contracts with clearer deliverables and potentially more competitive pricing exist, it would suggest this award might be on the higher side or less cost-effective.

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) pricing structure is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M agreements compensate the contractor based on the actual hours worked and the cost of materials used. This can lead to increased costs for the government if the project scope expands, if work is inefficiently performed, or if the contractor bills for excessive hours. For the government, effective oversight and management are critical to mitigate these risks. This includes closely monitoring labor hours, ensuring that personnel are working efficiently, and verifying that the work performed aligns with the contract's objectives. Without stringent oversight, T&M contracts can become significantly more expensive than initially anticipated.

What specific performance metrics or deliverables are associated with this contract to ensure accountability?

The provided data does not specify the detailed performance metrics or deliverables associated with this contract. Contracts utilizing a time-and-materials (T&M) structure often have performance expectations outlined in a Statement of Work (SOW) or Performance Work Statement (PWS), but the raw award data typically does not include these granular details. Accountability in T&M contracts relies heavily on the government's ability to monitor the contractor's effort and ensure that the work performed meets the required standards and contributes to the overall objectives. Without explicit metrics, assessing the contractor's performance and the overall value for money becomes more subjective and dependent on the quality of government oversight and reporting.

How has federal spending in the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' (NAICS 334220) sector trended over the past five years?

Federal spending within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector (NAICS 334220) has likely seen fluctuations influenced by technological advancements, national security needs, and agency modernization efforts. While this specific contract falls under manufacturing, the services procured (engineering and maintenance support) often bridge into IT services and telecommunications infrastructure. Over the past five years (roughly aligning with the contract's period of performance), federal agencies have increasingly focused on upgrading communication systems, enhancing cybersecurity, and ensuring reliable connectivity. This trend suggests a sustained or potentially increasing demand for services related to the manufacturing, maintenance, and support of wireless communications equipment, driven by both civilian and defense requirements.

What is the significance of the contract being awarded as a 'Delivery Order' (aw: DELIVERY ORDER)?

The designation 'Delivery Order' (aw: DELIVERY ORDER) indicates that this contract was likely issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. IDIQ contracts allow agencies to order specific quantities of goods or services up to a certain ceiling amount over a defined period. A delivery order represents a specific task or order placed against that larger contract. This approach provides flexibility for the agency to procure services as needed, rather than committing to a large, upfront purchase. For taxpayers, it can mean more efficient procurement, but it also requires careful management of the overall IDIQ ceiling to prevent overspending.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

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: $102,360,020

Exercised Options: $102,360,020

Current Obligation: $85,715,113

Actual Outlays: $142,205

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $14,463,814

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSSS0112D0020

IDV Type: IDC

Timeline