CACI NSS, LLC awarded $39.9M for IT support services to DHS, a sole-source contract

Contract Overview

Contract Amount: $39,917,855 ($39.9M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2015-06-29

End Date: 2020-06-30

Contract Duration: 1,828 days

Daily Burn Rate: $21.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CL,CT::IGF DESKTOP SUPPORT SERVICES FPS HQ

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.9 million to CACI NSS, LLC for work described as: IGF::CL,CT::IGF DESKTOP SUPPORT SERVICES FPS HQ Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Significant duration of 1828 days suggests a long-term need for these services. 3. The contract's value places it in the mid-to-large tier for IT support services. 4. Performance is concentrated in the District of Columbia, indicating a localized service area. 5. The use of BPA CALL indicates a pre-negotiated agreement, potentially streamlining procurement but possibly impacting price competitiveness. 6. No small business set-aside was applied, suggesting larger prime contractors are expected to perform the work.

Value Assessment

Rating: fair

The contract value of $39.9 million over approximately five years for IT desktop support services appears within a reasonable range for a sole-source award of this nature. However, without a competitive bidding process, it is difficult to definitively benchmark the value against market rates or other similar contracts. The absence of competition means there's less assurance of achieving the best possible price. The contract type, 'LABOR HOURS', can sometimes lead to cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source BPA CALL. This indicates that only one source, CACI NSS, LLC, was deemed capable or available to fulfill the requirement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government did not benefit from multiple offers driving down the price.

Public Impact

The Department of Homeland Security (DHS) benefits from continuous IT desktop support services. Federal employees within DHS headquarters in the District of Columbia receive essential IT assistance. The contract ensures the operational continuity of critical IT infrastructure for a major federal agency. Workforce implications are primarily for CACI NSS, LLC employees providing the direct support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Long contract duration (1828 days) could lead to vendor lock-in if not managed carefully.
Labor hours contract type requires diligent oversight to prevent scope creep and cost overruns.
Concentration of services in DC may not reflect broader federal IT support needs.

Positive Signals

Award to an established contractor (CACI NSS, LLC) suggests a known entity providing services.
BPA CALL mechanism can offer some pre-negotiated efficiencies, though competition is limited.
The contract addresses a fundamental need for IT support within a critical federal agency.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The federal IT services market is substantial, with agencies consistently outsourcing support functions. This contract represents a portion of the broader federal spending on IT maintenance and support, which often involves long-term engagements to ensure operational stability. Benchmarking this specific award is challenging due to its sole-source nature, but similar large-scale IT support contracts can range from tens to hundreds of millions of dollars.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This indicates that the primary award went to a large business contractor, CACI NSS, LLC. There is no explicit information on subcontracting plans for small businesses within the provided data. This suggests that the bulk of the work is likely performed by the prime contractor, potentially limiting opportunities for small businesses to participate in this specific federal IT support effort.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. As a sole-source award, scrutiny might be higher to ensure fair pricing and performance. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse. Transparency is limited by the non-competitive nature of the award, but contract performance metrics and payment details would be subject to internal DHS oversight and potentially public reporting through systems like FPDS.

Related Government Programs

DHS IT Support Services
Federal Desktop Support Contracts
IT Services for Law Enforcement Agencies
Computer Systems Design Services Contracts

Risk Flags

Sole-source award
Long contract duration
Labor hours contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.9 million to CACI NSS, LLC. IGF::CL,CT::IGF DESKTOP SUPPORT SERVICES FPS HQ

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $39.9 million.

What is the period of performance?

Start: 2015-06-29. End: 2020-06-30.

What is the track record of CACI NSS, LLC with the Department of Homeland Security?

CACI NSS, LLC has a significant history of contracting with the Department of Homeland Security (DHS) and other federal agencies. Their portfolio often includes IT support, cybersecurity, and professional services. For DHS specifically, CACI has been awarded numerous contracts over the years, ranging in value and scope. This particular contract, valued at approximately $39.9 million, represents a substantial, long-term engagement for IT desktop support. Analyzing CACI's past performance on similar DHS contracts, including adherence to schedules, quality of deliverables, and customer satisfaction, would provide further context on their reliability and capability in fulfilling this requirement. Past performance reviews and contract close-out reports, where available, are crucial for assessing their track record.

How does the value of this contract compare to similar IT support contracts awarded by DHS?

The $39.9 million value for this 1828-day (approx. 5-year) IT desktop support contract is substantial. When compared to similar IT support services contracts awarded by DHS or other large federal agencies, this award falls within the mid-to-large range. However, direct comparisons are complicated by the sole-source nature of this award. Competitively bid contracts for similar services might yield lower per-year costs due to market pressures. For instance, a fully competed contract for nationwide IT support might have a higher total value but a lower unit cost or a more favorable pricing structure. The absence of competition here means this $39.9M figure represents a negotiated price without the benefit of multiple bids to establish a market baseline.

What are the primary risks associated with a sole-source IT support contract of this magnitude?

The primary risks associated with this sole-source IT support contract include: 1. **Price Risk:** The government may not be receiving the best possible price due to the lack of competition. Negotiated prices in sole-source awards can sometimes be higher than those achieved through competitive bidding. 2. **Performance Risk:** While CACI NSS, LLC is an established contractor, any sole-source award carries inherent performance risk if the contractor fails to meet expectations. Without competitive alternatives readily available, transitioning to a new vendor could be disruptive and costly. 3. **Vendor Lock-in:** The long duration (1828 days) and specialized nature of IT support can lead to vendor lock-in, making it difficult and expensive to switch providers in the future. 4. **Scope Creep:** Contracts based on 'LABOR HOURS' are susceptible to scope creep, where the work expands beyond the original intent, leading to increased costs if not rigorously managed.

What does the 'Computer Systems Design Services' (NAICS 541512) classification imply for the services rendered?

The NAICS code 541512, 'Computer Systems Design Services,' indicates that the contract is for services related to the planning, design, development, and integration of computer systems. For this DHS contract, this likely encompasses a broad range of IT support functions beyond simple help desk operations. It could include system analysis, network design, hardware/software integration, IT infrastructure management, and potentially the design of new IT solutions or improvements to existing ones. This classification suggests a focus on the architectural and engineering aspects of IT systems, ensuring they are well-designed, efficient, and meet the specific operational needs of the Department of Homeland Security's headquarters.

How has federal spending on IT support services evolved, and where does this contract fit?

Federal spending on IT support services has consistently been a significant portion of the overall federal IT budget. Agencies increasingly rely on external contractors for specialized IT functions, including desktop support, network management, and system integration, to focus internal resources on core missions. This trend is driven by the complexity of modern IT environments and the need for specialized expertise. This $39.9 million contract for DHS fits within this broader pattern of federal agencies outsourcing IT support. While the exact year-over-year spending trends fluctuate based on agency priorities and budget allocations, the demand for such services remains robust. This specific award, being sole-source, represents a particular procurement strategy rather than a trend in overall market competitiveness.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14370 NEWBROOK DR, 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: $78,060,212

Exercised Options: $39,917,855

Current Obligation: $39,917,855

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC14A00010

IDV Type: BPA

Timeline