VA awards $164M IT services contract to CACI-ISS, LLC for document conversion

Contract Overview

Contract Amount: $164,348,981 ($164.3M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-07-25

End Date: 2016-05-27

Contract Duration: 1,402 days

Daily Burn Rate: $117.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 107

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VBA DOCUMENT CONVERSION SERVICES T4 TASK ORDER PSC CODE- D311

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $164.3 million to CACI-ISS, LLC for work described as: VBA DOCUMENT CONVERSION SERVICES T4 TASK ORDER PSC CODE- D311 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1402 days indicates a significant, long-term need for these services. 3. Fixed-price contract type may offer cost certainty for the government. 4. The award to a single contractor, CACI-ISS, LLC, warrants a review of performance and pricing. 5. The PSC code D311 points to a specific IT service category, allowing for targeted benchmarking. 6. The contract was awarded as a Delivery Order under a T4 Task Order, implying a pre-existing framework.

Value Assessment

Rating: good

The total award amount of $164.3 million for computer systems design services over approximately 3.8 years appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts for document conversion within the federal government would provide further context. The firm fixed-price structure helps mitigate cost overrun risks for the VA. Without specific per-unit data, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

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 a bid. The high number of bidders (107) suggests robust market interest and a competitive environment. This level of competition is generally favorable for price discovery and can lead to better pricing for the government.

Taxpayer Impact: The extensive competition for this contract likely resulted in more favorable pricing for taxpayers compared to a sole-source or limited competition award. It ensures that the VA received proposals from a wide range of qualified vendors, driving down costs.

Public Impact

Veterans Affairs (VA) benefits from modernized and efficient document management systems. Improved access to and management of veteran records, potentially leading to faster service delivery. The services delivered support the core IT infrastructure of the Department of Veterans Affairs. The contract's impact is primarily within the federal IT sector, supporting government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is not continuously monitored.
Reliance on a single contractor for critical document conversion services.
Need for robust contract management to ensure deliverables meet VA standards.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost predictability.
Long contract duration suggests a stable, ongoing need met by this vendor.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design services. The federal IT services market is substantial, with agencies like the VA being major consumers. Document conversion and management are critical functions for large organizations to digitize records, improve accessibility, and reduce physical storage costs. Comparable spending benchmarks would involve analyzing other large-scale IT modernization or data management contracts within the federal government.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While CACI-ISS, LLC is a large business, the competitive nature of the award suggests opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned for this contract and its impact on the small business ecosystem.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has its own oversight mechanisms. As a Delivery Order under a T4 Task Order, it likely falls under the purview of the original T4 contract's oversight. Transparency is generally facilitated by the public nature of contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA IT Modernization Programs
Federal Document Management Systems
IT Services for Healthcare Agencies
Computer Systems Design Services

Risk Flags

Contract Duration
Single Contractor Reliance
IT Service Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $164.3 million to CACI-ISS, LLC. VBA DOCUMENT CONVERSION SERVICES T4 TASK ORDER PSC CODE- D311

Who is the contractor on this award?

The obligated recipient is CACI-ISS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $164.3 million.

What is the period of performance?

Start: 2012-07-25. End: 2016-05-27.

What is CACI-ISS, LLC's track record with the Department of Veterans Affairs and similar federal agencies?

CACI-ISS, LLC has a significant history of contracting with the federal government, including the Department of Veterans Affairs. Their portfolio often includes IT modernization, enterprise resource planning, and various support services. Examining past performance reviews, contract modifications, and any past disputes or awards related to CACI-ISS, LLC within the VA and other agencies would provide a clearer picture of their reliability and capability. For instance, their involvement in other large-scale IT projects for the VA could indicate a strong understanding of the agency's unique requirements and operational environment. Conversely, any history of performance issues or contract terminations would raise concerns.

How does the per-unit cost or hourly rate for these services compare to market rates or similar federal contracts?

The provided data does not include specific per-unit cost or hourly rate information, making a direct comparison difficult. However, the contract's firm fixed-price nature suggests that the total cost was agreed upon upfront. To benchmark value, one would need to access detailed pricing breakdowns or compare the total contract value against the volume of documents converted or the complexity of the systems designed. Analyzing the average cost per document or per system component, if derivable, against industry standards or similar government contracts awarded around the same period would be necessary. The high number of bidders (107) in a full and open competition suggests that the agreed-upon price is likely competitive.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided summary data. However, for a contract of this nature (VBA DOCUMENT CONVERSION SERVICES), typical KPIs would likely include metrics related to accuracy of conversion, turnaround time for document processing, data security compliance, system uptime, and user satisfaction. SLAs would define the acceptable performance thresholds for these KPIs, often with associated remedies or penalties for non-compliance. The Department of Veterans Affairs would have established these to ensure the quality and efficiency of the document conversion services provided by CACI-ISS, LLC.

What is the historical spending trend for VBA document conversion services at the Department of Veterans Affairs?

The provided data focuses on a single contract award of $164.3 million. To understand historical spending trends for VBA document conversion services, one would need to analyze contract data for the VA over several fiscal years. This would involve identifying all contracts related to document conversion, digitization, and related IT services for the Veterans Benefits Administration (VBA). Trends could reveal whether spending has increased, decreased, or remained stable, and whether this particular contract represents a significant shift or continuation of previous investment levels in this area.

What are the potential risks associated with relying on a single contractor for such a large-scale IT service contract?

Relying on a single contractor, CACI-ISS, LLC, for a $164.3 million IT service contract presents several potential risks. These include vendor lock-in, where the VA becomes heavily dependent on CACI-ISS, making it difficult or costly to switch providers. There's also the risk of complacency, where performance might decline over time if not rigorously managed. Furthermore, if CACI-ISS faces financial difficulties, operational disruptions, or key personnel departures, it could significantly impact the VA's document conversion services. Robust contract management, clear performance metrics, and contingency planning are crucial to mitigate these risks.

Industry Classification

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

Offers Received: 107

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

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: $370,618,613

Exercised Options: $171,785,086

Current Obligation: $164,348,981

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $164,493

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1007

IDV Type: IDC

Timeline