CACI-ISS, LLC awarded $91M for C4ISR electronic systems support, a sole-source contract

Contract Overview

Contract Amount: $91,054,523 ($91.1M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2015-08-03

End Date: 2019-08-11

Contract Duration: 1,469 days

Daily Burn Rate: $62.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF COMMAND, CONTROL, COMPUTERS, COMMUNICATIONS, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C4ISR) ELECTRONIC SYSTEMS SUPPORT FOR SPECIAL COMMUNICATIONS MISSION SOLUTIONS (SCMS) AD-4.11.4

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $91.1 million to CACI-ISS, LLC for work described as: IGF::OT::IGF COMMAND, CONTROL, COMPUTERS, COMMUNICATIONS, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C4ISR) ELECTRONIC SYSTEMS SUPPORT FOR SPECIAL COMMUNICATIONS MISSION SOLUTIONS (SCMS) AD-4.11.4 Key points: 1. Contract awarded to CACI-ISS, LLC for specialized C4ISR electronic systems support. 2. The contract duration was 1469 days, spanning from August 2015 to August 2019. 3. This was a sole-source award, indicating limited competition. 4. The contract type was Cost Plus Fixed Fee (CPFF), which can shift risk to the government. 5. The primary agency was the Department of Defense, with the Department of the Navy as the specific service. 6. The North American Industry Classification System (NAICS) code is 541330 for Engineering Services. 7. The contract was not set aside for small businesses. 8. The base contract value was approximately $61.98 million.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specific technical requirements for C4ISR electronic systems support. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex R&D or services where costs are uncertain, can lead to higher overall spending compared to fixed-price contracts if not managed closely. Without competitive bids, it's difficult to ascertain if the pricing reflects market rates or if there was an opportunity for cost savings through competition. The base value of $61.98 million, with a total award of $91.05 million, suggests significant scope expansion or cost overruns during the contract period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that the Department of the Navy did not conduct a competitive bidding process. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or when urgent needs preclude a full and open competition. The lack of competition means that potential cost efficiencies that might arise from multiple bidders vying for the contract were not realized. This approach can be justified for highly specialized services where only one or a few entities can meet the requirements, but it limits price discovery.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price for the services rendered. The government relies on negotiation and oversight to ensure fair pricing, rather than the downward pressure exerted by a competitive market.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Navy, receiving critical C4ISR electronic systems support. The services delivered are essential for intelligence, surveillance, and reconnaissance missions, enhancing national security capabilities. The contract's geographic impact is likely centered around naval operations and defense installations, though specific locations are not detailed. The contract supports specialized technical roles within the defense sector, potentially impacting a skilled workforce in engineering and electronic systems. The contract contributes to the operational readiness and technological advantage of U.S. military forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost Plus Fixed Fee (CPFF) contract type can incentivize higher spending if not rigorously managed.
Lack of transparency in the justification for sole-source award.
Potential for scope creep without competitive pressure to control costs.
Limited visibility into the specific performance metrics and outcomes achieved.

Positive Signals

Awarded to a contractor with established presence in defense contracting (CACI-ISS, LLC).
Contract addresses critical C4ISR electronic systems support, vital for national security.
Long contract duration suggests a sustained need for these specialized services.
The contract was managed under the Department of the Navy, a major defense entity.
The base contract value indicates a significant, though not exceptionally large, investment in this area.

Sector Analysis

The contract falls within the Engineering Services sector (NAICS 541330), specifically supporting Command, Control, Computers, Communications, Intelligence, Surveillance, and Reconnaissance (C4ISR) electronic systems. This is a highly specialized niche within the broader defense industrial base, requiring deep technical expertise. The market for C4ISR support is characterized by a limited number of highly capable contractors, often holding existing relationships with defense agencies. Spending in this area is driven by the continuous need for technological advancement and maintenance of sophisticated military communication and intelligence systems. Comparable spending benchmarks are difficult to establish due to the unique nature of sole-source, specialized service contracts.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large prime contractor (CACI-ISS, LLC), the direct impact on the small business ecosystem is likely minimal unless CACI-ISS voluntarily engages small businesses for specific components or services. The absence of set-asides suggests that the primary focus was on acquiring specialized capabilities from a known provider, rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor costs and ensure the fixed fee remains appropriate. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Accountability would be measured by the contractor's ability to deliver the required C4ISR electronic systems support within the agreed-upon terms and conditions, though specific performance metrics are not detailed here.

Related Government Programs

Department of Defense C4ISR Procurement
Naval Electronic Systems Support Contracts
Intelligence, Surveillance, and Reconnaissance (ISR) Technology
Defense Engineering Services
Specialized Communications Systems Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited price competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.1 million to CACI-ISS, LLC. IGF::OT::IGF COMMAND, CONTROL, COMPUTERS, COMMUNICATIONS, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C4ISR) ELECTRONIC SYSTEMS SUPPORT FOR SPECIAL COMMUNICATIONS MISSION SOLUTIONS (SCMS) AD-4.11.4

Who is the contractor on this award?

The obligated recipient is CACI-ISS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $91.1 million.

What is the period of performance?

Start: 2015-08-03. End: 2019-08-11.

What is the track record of CACI-ISS, LLC in delivering C4ISR electronic systems support?

CACI-ISS, LLC, a subsidiary of CACI International Inc., has a significant history of providing IT and engineering solutions to the U.S. federal government, particularly within the defense sector. Their expertise often includes C4ISR systems, electronic warfare, intelligence analysis, and cybersecurity. While this specific contract highlights their role in providing electronic systems support for special communications mission solutions, their broader portfolio suggests extensive experience in complex defense-related technical services. Evaluating their overall track record would involve examining past performance reviews, contract awards, and any documented issues or successes across their numerous government contracts. The duration and value of this particular contract indicate a level of trust and capability recognized by the Department of the Navy.

How does the $91 million award compare to similar C4ISR electronic systems support contracts?

Comparing this $91 million award is challenging due to its sole-source nature and specific focus on 'Special Communications Mission Solutions (SCMS)' within C4ISR. Sole-source contracts inherently lack direct competitive benchmarks. However, C4ISR systems support is a substantial market within defense spending. Contracts for similar broad C4ISR support services, when competed, can range from tens of millions to hundreds of millions of dollars over their lifecycle, depending on scope, duration, and technological complexity. The Cost Plus Fixed Fee (CPFF) structure also means the final cost can vary. Without knowing the exact deliverables and market rates for SCMS, a precise comparison is difficult, but the value is significant for a specialized support function.

What are the primary risks associated with a sole-source Cost Plus Fixed Fee (CPFF) contract for specialized electronic systems support?

The primary risks associated with a sole-source CPFF contract are multifaceted. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than might be achieved through open competition. Taxpayers bear the risk of paying a premium. Secondly, the CPFF structure shifts cost risk to the government. While it allows for flexibility in projects with uncertain costs, it can incentivize the contractor to incur higher costs to increase the fixed fee base, or simply lead to cost overruns if not meticulously managed. This requires robust government oversight to scrutinize costs, prevent scope creep, and ensure the fixed fee remains fair and justified throughout the contract's life. The lack of competition also means less transparency in pricing justification.

What was the justification for awarding this contract as sole-source?

The provided data does not explicitly state the justification for this contract being awarded as sole-source. However, common justifications for sole-source awards in defense contracting include: (1) unique capabilities or proprietary technology possessed by only one source; (2) urgent and compelling needs where competition is impractical; (3) specific follow-on work to a system where only the original developer can provide necessary support; or (4) when the cost of competition would outweigh the benefits. For specialized C4ISR electronic systems support, it's plausible that CACI-ISS, LLC possessed unique expertise, proprietary tools, or was the incumbent provider for a critical system, making competition infeasible or detrimental to mission success.

How does this contract fit into the broader context of Department of Defense C4ISR spending?

This contract represents a component of the Department of Defense's substantial investment in C4ISR capabilities. C4ISR systems are fundamental to modern military operations, enabling situational awareness, command and control, and intelligence gathering. DoD spending in this area is consistently high, driven by the need to maintain technological superiority and adapt to evolving threats. Contracts like this, focusing on electronic systems support for specialized communications, are crucial for ensuring the reliability and effectiveness of these complex networks. While $91 million is a significant sum, it is one piece within a much larger ecosystem of C4ISR procurement, research, development, and sustainment activities across all military branches.

What are the implications of the Cost Plus Fixed Fee (CPFF) contract type on government spending and contractor incentives?

The Cost Plus Fixed Fee (CPFF) contract type is designed for situations where the extent or nature of the work cannot be precisely defined, or where costs are highly uncertain, such as research and development or complex services. It reimburses the contractor for allowable costs incurred plus a predetermined fixed fee. The primary implication for government spending is that the total cost is not fixed upfront, and the government bears the risk of cost overruns. For the contractor, the incentive is to complete the work efficiently to protect their fixed fee, but there's less direct incentive to minimize costs compared to fixed-price contracts, as costs are reimbursed. Effective government oversight is critical to manage costs and ensure the fixed fee remains appropriate for the work performed.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042115R0054

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 14370 NEWBROOK DRIVE, 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: $92,984,933

Exercised Options: $92,984,933

Current Obligation: $91,054,523

Actual Outlays: $-100,245

Subaward Activity

Number of Subawards: 98

Total Subaward Amount: $13,885,715

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline