CACI-ISS, LLC awarded $24.2M for Wired Telecommunications Carriers services by the Department of Defense

Contract Overview

Contract Amount: $24,221,351 ($24.2M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2009-06-19

End Date: 2013-09-18

Contract Duration: 1,552 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: BASE YEAR LABOR/ODCS

Place of Performance

Location: CHARLOTTESVILLE, CHARLOTTESVILLE CITY County, VIRGINIA, 22901

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to CACI-ISS, LLC for work described as: BASE YEAR LABOR/ODCS Key points: 1. Contract value indicates significant investment in telecommunications infrastructure. 2. Full and open competition suggests a robust market for these services. 3. The contract duration of over 4 years implies a need for sustained support. 4. Cost Plus Award Fee structure incentivizes performance but requires careful oversight. 5. The specific NAICS code points to a specialized segment within the IT sector. 6. Awarded by the Defense Information Systems Agency, highlighting critical defense needs.

Value Assessment

Rating: good

The total award of $24.2 million over approximately 4 years for wired telecommunications services appears reasonable given the scope and duration. Benchmarking against similar large-scale telecommunications contracts within the federal government suggests that the overall investment aligns with market expectations for complex network infrastructure and support. The Cost Plus Award Fee (CPAF) pricing structure, while offering flexibility, necessitates diligent monitoring to ensure that award fees are tied to demonstrable performance and value, preventing cost overruns without commensurate benefit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of a competitive bidding process is a positive sign for price discovery and ensures that the government has access to a range of qualified providers. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of market engagement, which typically drives more competitive pricing and innovative solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of high-quality services. This process helps ensure that federal funds are used efficiently by leveraging market forces to obtain the best value.

Public Impact

The Department of Defense benefits from reliable and advanced wired telecommunications infrastructure, crucial for its operations. Services delivered likely include installation, maintenance, and management of telecommunications networks. The geographic impact is likely widespread, supporting military bases and operations across various locations. Workforce implications include employment opportunities for telecommunications technicians, engineers, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep under the Cost Plus Award Fee structure if performance metrics are not rigorously defined and monitored.
Reliance on a single contractor for critical telecommunications infrastructure could pose a risk if performance degrades or if the contractor faces financial instability.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded good value.
The contract's duration indicates a stable, long-term need, allowing for strategic planning and infrastructure development.
The CPAF structure, if managed well, can incentivize high performance and innovation from the contractor.

Sector Analysis

The telecommunications sector is a critical component of the broader IT and defense industries, providing the foundational infrastructure for data transmission and communication. This contract falls within the wired telecommunications carriers sub-sector, which encompasses services like the operation and maintenance of wired networks, including fiber optics and copper lines. The federal government is a significant consumer of these services, requiring robust and secure networks to support its vast operations. Comparable spending benchmarks in this area are often in the tens to hundreds of millions of dollars annually for large agencies.

Small Business Impact

The contract was not specifically set aside for small businesses, and the prime contractor, CACI-ISS, LLC, is a large business. This suggests that subcontracting opportunities may exist for small businesses within the telecommunications and IT support ecosystem. However, without specific subcontracting plans or goals outlined in the award data, the direct impact on the small business ecosystem is unclear. Large prime contractors often engage small businesses for specialized services or to meet broader socioeconomic goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation to ensure that award fees are justified. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) contracts
Network Infrastructure Services
Telecommunications Modernization Programs
DoD Enterprise IT Services

Risk Flags

Cost Plus Award Fee structure requires diligent oversight to manage costs.
Contract duration implies long-term reliance on contractor, necessitating performance monitoring.
Potential for vendor lock-in if competition is limited in future procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to CACI-ISS, LLC. BASE YEAR LABOR/ODCS

Who is the contractor on this award?

The obligated recipient is CACI-ISS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2009-06-19. End: 2013-09-18.

What is the historical spending trend for CACI-ISS, LLC with the Department of Defense for similar telecommunications services?

Analyzing CACI-ISS, LLC's historical spending with the Department of Defense for similar telecommunications services requires access to detailed federal procurement databases. Generally, CACI is a significant federal contractor with a broad portfolio, including IT and telecommunications. Their awards in this space often span multiple years and agencies, reflecting their established presence. To provide a precise trend, one would need to query databases like FPDS or USASpending for contracts categorized under NAICS code 517110 (Wired Telecommunications Carriers) or related service codes awarded to CACI-ISS, LLC by the DoD. This would reveal patterns in contract values, durations, and the specific agencies within DoD that have utilized their services, indicating whether this $24.2M award is consistent with past engagements or represents a significant increase or decrease in spending.

How does the awarded amount compare to the average contract value for wired telecommunications services within the federal government?

The awarded amount of $24.2 million for wired telecommunications services over approximately four years places this contract within the mid-to-large range for federal procurements in this category. Average contract values can vary significantly based on the scope, duration, and specific services required. Smaller, localized network maintenance contracts might be in the low millions, while large-scale, agency-wide network modernization efforts can reach hundreds of millions. This $24.2 million award suggests a substantial project, likely encompassing significant infrastructure, installation, and ongoing support for a specific set of DoD facilities or operations. Benchmarking against similar contracts awarded by agencies like DISA or other military branches for comparable services would provide a more precise comparison, but it indicates a significant investment.

What are the key performance indicators (KPIs) used to evaluate CACI-ISS, LLC under the Cost Plus Award Fee (CPAF) structure for this contract?

Under a Cost Plus Award Fee (CPAF) contract, Key Performance Indicators (KPIs) are crucial for determining the 'award fee' portion of the contractor's compensation. While the specific KPIs for this $24.2 million contract are not detailed in the provided data, they typically revolve around service delivery, network performance, and operational efficiency. Examples could include network uptime percentages, latency and jitter metrics, response times for service requests and repairs, successful implementation of upgrades, adherence to security protocols, and overall customer satisfaction surveys from the end-users within the Department of Defense. The contracting officer and technical monitors would regularly assess CACI-ISS, LLC's performance against these predefined metrics. Performance exceeding expectations would result in higher award fees, while performance meeting or falling short would result in lower or no award fees, alongside the base cost reimbursement.

What is the potential risk associated with the Cost Plus Award Fee (CPAF) pricing model for this contract?

The primary risk associated with the Cost Plus Award Fee (CPAF) pricing model is the potential for cost escalation if not managed diligently. Unlike fixed-price contracts, CPAF allows the contractor to recover allowable costs plus a fee that is composed of a fixed base amount and an award amount. The award amount is determined by the government based on the contractor's performance against specific criteria. The risk lies in the government potentially paying higher overall costs if the performance criteria are not clearly defined, measurable, or if the oversight is insufficient. This could lead to the contractor receiving substantial award fees even if costs increase, without a proportional increase in the value delivered. Effective management requires robust performance monitoring and a clear, objective framework for determining award fees to ensure alignment between cost and performance.

How does this contract contribute to the Defense Information Systems Agency's (DISA) overall mission and strategic objectives?

This contract directly supports the Defense Information Systems Agency's (DISA) mission to provide, operate, and assure information systems and services for the Department of Defense (DoD) and national leaders. Wired telecommunications infrastructure is the backbone of modern military communication and data transfer. By ensuring reliable and high-performance wired networks, DISA enables critical functions such as command and control, intelligence sharing, logistics management, and secure communications for warfighters and policymakers. This contract likely underpins DISA's efforts to maintain and modernize the DoD's global network infrastructure, ensuring its resilience, security, and capability to meet evolving operational demands and technological advancements.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14151 PARK MEADOW DRIVE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,523,194

Exercised Options: $25,570,541

Current Obligation: $24,221,351

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0020

IDV Type: IDC

Timeline