Interior Department's $18.3M IT support contract with CACI-ISS, LLC shows fair value and limited competition

Contract Overview

Contract Amount: $18,361,097 ($18.4M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of the Interior

Start Date: 2005-01-01

End Date: 2009-01-31

Contract Duration: 1,491 days

Daily Burn Rate: $12.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION SYSTEMS SUPPORT

Place of Performance

Location: TRIPLER ARMY MEDICAL CENTER, HONOLULU County, HAWAII, 96859

State: Hawaii Government Spending

Plain-Language Summary

Department of the Interior obligated $18.4 million to CACI-ISS, LLC for work described as: INFORMATION SYSTEMS SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Competition was limited, with only one bid received, potentially impacting price discovery. 3. Risk indicators are moderate, with no significant performance issues noted in available data. 4. The contract duration of nearly four years provides stability for essential IT functions. 5. This contract falls within the broader IT services sector, supporting administrative functions. 6. The use of Time and Materials pricing may present cost control challenges if not closely managed.

Value Assessment

Rating: fair

The total contract value of approximately $18.3 million over nearly four years for information systems support suggests a moderate annual spend. Benchmarking against similar IT support contracts is challenging without more granular data on service levels and specific deliverables. However, the pricing structure (Time and Materials) can lead to cost overruns if not diligently managed and monitored by the agency. The value proposition appears fair, assuming the services met the Department of the Interior's needs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, but only one bid was received. This limited competition suggests potential barriers to entry for other firms or a lack of market interest at the time of solicitation. While technically competed, the single-bid nature raises questions about whether the full spectrum of market capabilities was explored, which could have led to more competitive pricing.

Taxpayer Impact: A single bidder means taxpayers may not have benefited from the most competitive pricing that could have been achieved with broader market participation.

Public Impact

Benefits the Department of the Interior by ensuring the continuity of essential information systems and administrative management services. Delivers critical IT support, likely encompassing network management, system maintenance, and user assistance. Geographic impact is primarily within the Department of the Interior's operational areas, potentially nationwide. Workforce implications include support for government IT personnel and potentially the contractor's own IT specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than if multiple bids were received.
Time and Materials contract type can lead to cost uncertainty and potential overspending if not tightly controlled.
Lack of detailed performance metrics in the provided data makes a definitive assessment of service quality difficult.

Positive Signals

Contract provided stable IT support over a significant duration (nearly 4 years).
Awarded to a known entity (CACI-ISS, LLC) with established capabilities in IT services.
The contract was competed, indicating an attempt to solicit offers from the market.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on administrative management and general management consulting services (NAICS 541611). The IT services market is vast and highly competitive, encompassing everything from hardware procurement to complex software development and ongoing support. Contracts like this are crucial for government agencies to maintain their operational infrastructure and digital capabilities. Comparable spending benchmarks would typically involve analyzing other government contracts for similar IT support services, considering factors like agency size, complexity of systems, and service level agreements.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (SB: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless CACI-ISS, LLC voluntarily engaged small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Information Technology Professional Services
IT Management Consulting
Government IT Support Contracts
Department of the Interior IT Spending
Administrative Management Services

Risk Flags

Limited competition
Time and Materials pricing
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.4 million to CACI-ISS, LLC. INFORMATION SYSTEMS SUPPORT

Who is the contractor on this award?

The obligated recipient is CACI-ISS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2005-01-01. End: 2009-01-31.

What was the specific nature of the 'Information Systems Support' provided under this contract?

The contract, awarded under NAICS code 541611 (Administrative Management and General Management Consulting Services), indicates that the 'Information Systems Support' likely encompassed a range of services critical to the Department of the Interior's operations. This could include help desk support, network administration, system maintenance, software updates, cybersecurity monitoring, and potentially IT infrastructure management. Given the 'Time and Materials' pricing structure, the scope was likely flexible, allowing the contractor to provide labor and materials as needed to address evolving IT requirements. Without a detailed statement of work, the precise technical services remain generalized, but the core function was to ensure the reliable operation and maintenance of the department's information technology infrastructure.

How does the annual spending on this contract compare to similar IT support contracts within the Department of the Interior or other federal agencies?

The total contract value of approximately $18.3 million over 1491 days (roughly 4 years) equates to an average annual spend of about $4.7 million. Comparing this to similar IT support contracts requires access to a broader dataset of federal procurements. However, for a large federal agency like the Department of the Interior, this annual figure appears moderate for comprehensive IT support services. Larger agencies or those with more complex IT infrastructures might spend significantly more annually. Conversely, smaller agencies or those with more specialized IT needs might spend less. The key differentiator would be the scope and complexity of services, number of users supported, and specific service level agreements (SLAs) in place, which are not detailed in the provided summary data.

What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with a Time and Materials (T&M) contract type is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the contractor's labor hours are not efficiently managed, or if material costs escalate unexpectedly, the total cost to the government can exceed initial estimates. For the Department of the Interior, this necessitates robust oversight, including detailed tracking of labor hours, verification of work performed, and careful review of material invoices. Without stringent monitoring and clear task definitions, T&M contracts can become less cost-effective than other contract types, potentially leading to a perception of poor value for taxpayer money.

Given that only one bid was received, what does this imply about the contractor's track record or market conditions?

Receiving only one bid for a 'competitive delivery order' suggests several possibilities regarding the contractor's track record and market conditions. It could indicate that CACI-ISS, LLC possesses unique qualifications, existing relationships, or a strong past performance record that made them the sole viable or preferred option for this specific requirement. Alternatively, it might reflect market conditions where few companies were interested or capable of bidding, perhaps due to the specific technical requirements, the contract's geographic location (Hawaii), or the perceived profitability. It could also suggest that the solicitation process or requirements were structured in a way that inadvertently limited broader participation. Without further context on the solicitation, it's difficult to definitively attribute the single bid solely to the contractor's track record versus external market factors.

How has the Department of the Interior's spending on IT support services evolved over time, and does this contract fit into a larger trend?

Analyzing the evolution of the Department of the Interior's spending on IT support services requires historical data beyond this single contract. This contract, awarded in 2005 and ending in 2009, represents a snapshot of IT spending during that period. Federal IT spending has generally trended upwards over the past two decades, driven by increasing digitalization, cybersecurity needs, and the adoption of new technologies. Contracts for IT support services are a consistent component of agency budgets. This specific contract's value ($18.3M) would need to be compared against the department's overall IT budget for those years and against other IT contracts awarded concurrently to understand its significance within the broader spending landscape. It likely reflects a standard approach to outsourcing IT support functions to manage complex systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14151 PARK MEADOW DRIVE, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,548,495

Exercised Options: $19,548,495

Current Obligation: $18,361,097

Parent Contract

Parent Award PIID: GS10F0376N

IDV Type: FSS

Timeline