DoD's $48.7M IT services contract for TEWLS/SAP environment awarded to CACI NSS, LLC

Contract Overview

Contract Amount: $48,672,073 ($48.7M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2019-01-29

End Date: 2024-02-27

Contract Duration: 1,855 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NON-PERSONNEL INFORMATION TECHNOLOGY (IT) SERVICES IN SUPPORT OF THE LEGACY THEATER ENTERPRISE-WIDE LOGISTICS SYSTEM (TEWLS) APPLICATION TO BE KNOWN IN THE FUTURE AS THE SYSTEMS, APPLICATIONS AND PRODUCTS (SAP) ENVIRONMENT IN THE LOGICOLE APPLICATION

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $48.7 million to CACI NSS, LLC for work described as: NON-PERSONNEL INFORMATION TECHNOLOGY (IT) SERVICES IN SUPPORT OF THE LEGACY THEATER ENTERPRISE-WIDE LOGISTICS SYSTEM (TEWLS) APPLICATION TO BE KNOWN IN THE FUTURE AS THE SYSTEMS, APPLICATIONS AND PRODUCTS (SAP) ENVIRONMENT IN THE LOGICOLE APPLICATION Key points: 1. Contract provides essential IT services for a critical logistics system, ensuring operational continuity. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 1800 days indicates a long-term need for these services. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The specific NAICS code (541519) points to a broad range of computer-related services. 6. The contract's value is substantial, reflecting the complexity and importance of the supported system.

Value Assessment

Rating: good

The contract value of $48.7 million over approximately five years for IT services is within a reasonable range for enterprise-level logistics system support. Benchmarking against similar large-scale IT service contracts for defense agencies suggests this pricing is competitive, especially considering the scope of supporting a legacy system transitioning to SAP. The firm-fixed-price structure provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of a single award delivery order suggests that while competition was open, CACI NSS, LLC was selected as the most advantageous offer. The level of competition, though not explicitly detailed by the number of bidders, is generally expected to drive better pricing and service quality.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the value of federal spending.

Public Impact

The Defense Health Agency benefits from continued operational support of its logistics systems. Military personnel and support staff rely on the TEWLS/SAP environment for critical logistics functions. The contract ensures the smooth functioning of a system vital to defense operations. Workforce implications include the need for skilled IT professionals to maintain and enhance the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly specialized to CACI's expertise.
Risk of cost overruns if the scope of 'legacy system support' expands unexpectedly.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust selection process.
Long-term contract indicates a stable and ongoing requirement, allowing for focused service delivery.
Award to an established IT services provider like CACI NSS, LLC suggests a degree of reliability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on enterprise resource planning (ERP) system support and legacy system modernization. The market for such services is large and competitive, with significant government spending allocated to maintaining and upgrading complex IT infrastructures. The Defense Health Agency's reliance on systems like TEWLS/SAP is common across federal agencies needing to manage vast amounts of data and operational processes.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, CACI NSS, LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Health Agency contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified IT services. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency IT Support Contracts
Military Health System IT Modernization Programs
Enterprise Resource Planning (ERP) System Implementation Contracts
Legacy System Modernization Contracts
CACI IT Services Contracts with DoD

Risk Flags

Long-term reliance on a single vendor for critical IT infrastructure.
Complexity of supporting a legacy system while transitioning to a new ERP.
Potential for scope creep in defining 'support' for evolving systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.7 million to CACI NSS, LLC. NON-PERSONNEL INFORMATION TECHNOLOGY (IT) SERVICES IN SUPPORT OF THE LEGACY THEATER ENTERPRISE-WIDE LOGISTICS SYSTEM (TEWLS) APPLICATION TO BE KNOWN IN THE FUTURE AS THE SYSTEMS, APPLICATIONS AND PRODUCTS (SAP) ENVIRONMENT IN THE LOGICOLE APPLICATION

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 Health Agency).

What is the total obligated amount?

The obligated amount is $48.7 million.

What is the period of performance?

Start: 2019-01-29. End: 2024-02-27.

What is the historical spending trend for IT services supporting the TEWLS/SAP environment prior to this contract?

Detailed historical spending data specifically for the TEWLS/SAP environment prior to this contract award is not provided in the given data. However, the contract's duration (1855 days) and value ($48.7M) suggest a significant and ongoing investment in maintaining and evolving this critical logistics IT infrastructure. To assess historical trends, one would typically analyze previous contract awards for TEWLS support, looking at award amounts, contract types, and durations over several fiscal years. This would reveal whether spending has been consistent, increasing, or decreasing, and identify any shifts in service providers or contract strategies.

How does the per-unit cost or service rate compare to industry benchmarks for similar IT support services?

A direct per-unit cost comparison is challenging without specific service delivery metrics (e.g., cost per help desk ticket, cost per server managed, cost per developer hour). The contract is a firm-fixed-price award for a broad scope of IT services, making granular benchmarking difficult. However, the overall contract value of $48.7 million spread over approximately five years suggests an average annual spend of roughly $9.74 million. This figure needs to be evaluated against the scale and complexity of the TEWLS/SAP environment and the specific services rendered. Industry benchmarks for large-scale IT support and ERP maintenance in the federal sector vary widely, but this annual spend appears within a plausible range for supporting a critical defense logistics system.

What is CACI NSS, LLC's track record with the Defense Health Agency and similar large IT contracts?

CACI NSS, LLC, as a subsidiary or division of CACI International Inc., has a substantial track record of performing IT services for various U.S. federal agencies, including the Department of Defense and specifically the Defense Health Agency. CACI is a well-established government contractor known for its extensive IT and professional services. While specific performance details for this exact contract (Delivery Order 5415) are not detailed here, CACI's broader portfolio includes significant work in areas like enterprise IT, cybersecurity, cloud computing, and data analytics for defense and intelligence clients. Their history suggests experience with large, complex systems and adherence to government contracting requirements. A deeper dive into past performance evaluations and contract histories with DHA would provide more granular insights.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for IT services supporting critical logistics systems like TEWLS/SAP, typical KPIs would likely include system uptime and availability, response times for issue resolution, successful completion of system updates and patches, adherence to security protocols, user satisfaction levels, and timely delivery of project milestones if modernization or enhancements are involved. The firm-fixed-price nature of the contract implies that meeting defined service levels and deliverables is paramount for successful performance and payment.

What is the risk associated with the transition from TEWLS to SAP, and how does this contract address it?

The transition from a legacy system (TEWLS) to an SAP environment is inherently complex and carries risks related to data migration, system integration, user training, potential disruptions to operations, and cost overruns. This contract, described as providing 'NON-PERSONNEL INFORMATION TECHNOLOGY (IT) SERVICES IN SUPPORT OF THE LEGACY THEATER ENTERPRISE-WIDE LOGISTICS SYSTEM (TEWLS) APPLICATION TO BE KNOWN IN THE FUTURE AS THE SYSTEMS, APPLICATIONS AND PRODUCTS (SAP) ENVIRONMENT', suggests it is intended to manage and support this transition. The specific services likely include system administration, maintenance of both environments during the transition, data management, and potentially integration support. The firm-fixed-price structure aims to control costs, while the long duration allows for phased implementation and stabilization. However, the success heavily depends on the detailed statement of work and CACI's execution capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: HT001519R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $60,001,948

Exercised Options: $48,672,073

Current Obligation: $48,672,073

Actual Outlays: $110,006

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $6,599,248

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F349CA

IDV Type: FSS

Timeline