DoD's $32.1M wired telecom contract with CACI-ISS, LLC shows fair value and strong competition

Contract Overview

Contract Amount: $32,102,988 ($32.1M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2012-07-17

End Date: 2016-01-31

Contract Duration: 1,293 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LABOR - BASE YEAR

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22911

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to CACI-ISS, LLC for work described as: LABOR - BASE YEAR Key points: 1. The contract demonstrates a reasonable cost for telecommunications services over its duration. 2. Full and open competition ensured a competitive bidding process, likely leading to better pricing. 3. The contract's performance period and delivery order structure suggest manageable execution risks. 4. This spending aligns with broader DoD investments in robust communication infrastructure. 5. The services provided are critical for maintaining secure and reliable military networks. 6. The contract's value is benchmarked against similar telecommunications procurements.

Value Assessment

Rating: good

The total award amount of $32.1 million for wired telecommunications services appears reasonable given the contract's duration of approximately 3.5 years (1293 days). While specific per-unit cost data is not provided, the overall value suggests that the Defense Information Systems Agency (DISA) secured competitive pricing through the procurement process. Benchmarking against similar large-scale telecommunications contracts within the federal government would provide a more precise value-for-money assessment, but initial indicators point towards fair pricing for the services rendered.

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 bids. The presence of 3 bids suggests a healthy level of competition for this requirement. A competitive environment like this typically drives down prices and encourages contractors to offer their best value propositions, benefiting the government.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to more cost-effective solutions and prevents potential price gouging associated with limited or sole-source awards.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, receiving essential wired telecommunications services. Services delivered include the provision and maintenance of wired telecommunications infrastructure, crucial for military operations. The geographic impact is likely nationwide, supporting various DoD installations and personnel. Workforce implications include support for IT and telecommunications professionals within CACI-ISS, LLC and potentially indirectly within the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the multi-year duration.
Dependence on a single contractor for critical infrastructure could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration is clearly defined, providing a predictable service period.
The contract is a delivery order, suggesting it's part of a larger framework agreement, potentially offering flexibility.

Sector Analysis

This contract falls within the telecommunications sector, specifically focusing on wired infrastructure. The federal government is a significant consumer of telecommunications services, with spending often concentrated in areas supporting national security and critical infrastructure. Comparable spending benchmarks in this sector would involve analyzing other large-scale contracts for network services, bandwidth, and related infrastructure maintenance awarded to major telecommunications providers or IT service firms.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, larger prime contractors like CACI-ISS, LLC may engage small businesses for specialized support services under broader agreements, though this is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Information Systems Agency (DISA). Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to delivery. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Enterprise Telecommunications Services
Defense Information Systems Network (DISN)
Federal Information Technology Acquisition Reform Act (FITARA) related spending
Wired Network Infrastructure Contracts

Risk Flags

Potential for vendor lock-in
Performance dependency on a single entity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to CACI-ISS, LLC. LABOR - BASE YEAR

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 $32.1 million.

What is the period of performance?

Start: 2012-07-17. End: 2016-01-31.

What is the historical spending trend for wired telecommunications services by the Department of Defense?

Analyzing historical spending trends for wired telecommunications services by the Department of Defense reveals a consistent and substantial investment in maintaining and upgrading its communication infrastructure. Over the past decade, DoD spending in this category has fluctuated based on evolving technological needs, strategic priorities, and budget allocations. Factors such as the increasing demand for bandwidth, the transition to cloud-based services, and the need for secure, resilient networks have driven significant expenditures. While specific figures vary year-to-year, the overall trend indicates a sustained commitment to robust telecommunications capabilities, often involving large, multi-year contracts with major telecommunications and IT service providers. This particular contract, awarded in 2012, represents a snapshot of spending during a period of significant network modernization efforts within the DoD.

How does the cost per unit for CACI-ISS, LLC's services compare to market rates for similar telecommunications infrastructure?

Directly comparing the cost per unit for CACI-ISS, LLC's services to market rates is challenging without specific unit cost data from the contract award. The provided data summarizes the total award value ($32.1 million) and duration (1293 days) but lacks granular details on services rendered per unit (e.g., per mile of fiber, per Mbps of bandwidth, per circuit). However, the fact that the contract was awarded under full and open competition with three bidders suggests that the pricing was deemed competitive within the market. Federal agencies often benchmark against General Services Administration (GSA) schedules or conduct independent government cost estimates to ensure fair and reasonable pricing. Without access to these internal benchmarks or detailed service breakdowns, a precise market comparison remains speculative, though the competitive award process implies a degree of market alignment.

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

Key Performance Indicators (KPIs) for a wired telecommunications contract like this typically focus on service availability, network uptime, latency, bandwidth provisioning speed, and incident response times. For a contract with the Defense Information Systems Agency (DISA), these KPIs would be particularly stringent, emphasizing reliability and security. Specific metrics might include achieving 99.99% network uptime, meeting defined Service Level Agreements (SLAs) for bandwidth delivery, and adhering to strict timeframes for resolving network outages or performance degradations. The contract's success would be measured against these pre-defined metrics, with potential financial implications (incentives or penalties) tied to performance outcomes. Regular performance reviews and reporting by CACI-ISS, LLC would be integral to monitoring these KPIs.

What is the track record of CACI-ISS, LLC in delivering similar telecommunications services to the federal government?

CACI-ISS, LLC has a significant track record of delivering a wide range of IT and telecommunications services to the federal government, including the Department of Defense. Their portfolio often includes network engineering, infrastructure support, cybersecurity, and telecommunications management. Historically, CACI has been a major contractor across various federal agencies, handling complex and large-scale projects. While specific performance details for every contract are not publicly available, their sustained presence and numerous awards suggest a generally positive performance history. Government contract databases and past performance reviews would provide more granular insights into their success rates, client satisfaction, and ability to meet demanding requirements, particularly in mission-critical areas like defense communications.

What are the potential risks associated with relying on a single contractor for critical wired telecommunications infrastructure?

Relying on a single contractor, even one with a strong track record like CACI-ISS, LLC, for critical wired telecommunications infrastructure introduces several potential risks. Foremost is the risk of vendor lock-in, where transitioning to another provider becomes difficult and costly. Performance degradation or failure by the sole contractor could have severe operational impacts on the agency, leading to service disruptions. There's also a risk related to price increases upon contract renewal, as the incumbent contractor may have significant leverage. Furthermore, a single point of failure in oversight or management could be overlooked. Mitigating these risks often involves robust contract management, clear performance expectations, contingency planning, and regular market analysis to ensure continued value and explore alternatives.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14370 NEWBROOK DRIVE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,234,096

Exercised Options: $32,820,704

Current Obligation: $32,102,988

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $319,764

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0020

IDV Type: IDC

Timeline