DoD's $31.5M CACI contract for core labor services shows fair value with 5 bidders
Contract Overview
Contract Amount: $31,491,461 ($31.5M)
Contractor: CACI NSS, LLC
Awarding Agency: Department of Defense
Start Date: 2014-09-26
End Date: 2017-03-01
Contract Duration: 887 days
Daily Burn Rate: $35.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CORE LABOR SERVICES (XMGS)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $31.5 million to CACI NSS, LLC for work described as: CORE LABOR SERVICES (XMGS) Key points: 1. The contract was awarded under full and open competition, indicating a competitive marketplace. 2. The fixed-price contract type helps mitigate cost overrun risks for the government. 3. The duration of the contract (887 days) suggests a need for sustained services. 4. The award was made to CACI NSS, LLC, a known entity in the IT services sector. 5. The contract falls under computer systems design services, a critical area for defense operations.
Value Assessment
Rating: good
The contract's value of approximately $31.5 million over its period of performance appears reasonable given the scope of core labor services for the Department of Defense. Benchmarking against similar large-scale IT service contracts for defense agencies suggests that CACI's pricing was competitive, especially considering the fixed-price nature which shifts risk to the contractor. The presence of five bidders further supports the notion that the pricing was likely market-driven and offered good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. The fact that five bids were received indicates a healthy level of competition for these services. This competitive environment generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.
Taxpayer Impact: The robust competition for this contract suggests that taxpayers benefited from a fair market price, avoiding potential overpayment that could occur in less competitive scenarios.
Public Impact
The Department of Defense benefits from essential core labor services supporting its operational needs. The contract ensures the continuity of critical IT and support functions within the Army. The services provided likely contribute to the overall readiness and effectiveness of military operations. The contract supports a workforce skilled in computer systems design and related technical areas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized and difficult to transition.
- Reliance on a single contractor for core functions could pose a risk if performance degrades.
- Scope creep could become an issue if not managed tightly, potentially increasing costs beyond initial estimates.
Positive Signals
- Fixed-price contract structure provides cost certainty.
- Awarded through full and open competition, ensuring market-driven pricing.
- Contractor CACI NSS, LLC has a significant presence and experience in government contracting.
- The contract duration suggests a stable, ongoing need for these services, allowing for efficient resource planning.
Sector Analysis
The IT services sector, particularly within defense, is characterized by high demand for specialized skills in areas like computer systems design. This contract, valued at over $31 million, represents a significant investment in maintaining critical IT infrastructure and support for the Department of the Army. Comparable spending benchmarks in this sector show substantial government outlays for similar services, often awarded through competitive processes to large and mid-sized IT firms.
Small Business Impact
This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While CACI NSS, LLC is a large business, there is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses were involved in the supply chain or if subcontracting opportunities were mandated.
Oversight & Accountability
The contract's oversight would typically fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract vehicle, oversight mechanisms would likely include performance reviews, milestone tracking, and adherence to the firm-fixed-price terms. Transparency is generally maintained through contract databases, though specific performance metrics and oversight reports may not always be publicly accessible.
Related Government Programs
- Department of Defense IT Services Contracts
- Army IT Support Services
- Computer Systems Design and Related Services
- Core Labor Services Contracts
Risk Flags
- Contract duration may indicate long-term dependency.
- Lack of specific small business subcontracting details.
- Potential for scope creep in complex IT service contracts.
Tags
it, defense, department-of-defense, department-of-the-army, full-and-open-competition, delivery-order, firm-fixed-price, computer-systems-design-services, core-labor-services, district-of-columbia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.5 million to CACI NSS, LLC. CORE LABOR SERVICES (XMGS)
Who is the contractor on this award?
The obligated recipient is CACI NSS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $31.5 million.
What is the period of performance?
Start: 2014-09-26. End: 2017-03-01.
What is CACI NSS, LLC's track record with the Department of Defense?
CACI NSS, LLC, a subsidiary of CACI International Inc., has a substantial track record of serving the Department of Defense and other federal agencies. They are a well-established government contractor specializing in IT and professional services. Their portfolio includes a wide range of support, from enterprise IT infrastructure and cybersecurity to intelligence analysis and program management. Historically, CACI has secured numerous large contracts across various military branches, demonstrating a consistent ability to meet the complex requirements of defense clients. Their performance on previous contracts, including those with the Army, has generally been viewed positively, though like any large contractor, specific contract performance can vary. The company's extensive experience suggests a deep understanding of military operational needs and procurement processes.
How does the value of this contract compare to similar IT services contracts awarded by the Department of the Army?
The $31.5 million value for core labor services over approximately two years (887 days) is within the typical range for significant IT support contracts awarded by the Department of the Army. Large-scale IT service contracts for defense agencies often run into tens or hundreds of millions of dollars, reflecting the complexity and criticality of the systems supported. This contract's value appears reasonable when benchmarked against other contracts for computer systems design and related services. Factors such as the specific technical requirements, duration, and the level of expertise required influence the overall cost. The competitive nature of its award (5 bidders) further suggests that the pricing achieved was likely aligned with market rates for comparable services.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks include potential performance issues from the contractor, scope creep, and over-reliance on a single vendor for critical functions. Performance risks are mitigated through the fixed-price contract type, which incentivizes the contractor to deliver efficiently, and through the Department of the Army's oversight mechanisms, including performance monitoring and potential penalties for non-compliance. Scope creep is managed through clear contract definitions and change control processes. The risk of vendor lock-in is inherent in long-term service contracts but can be addressed through periodic re-competition or by ensuring knowledge transfer and documentation standards are maintained. The competitive award process itself helps mitigate risks by selecting a contractor with a demonstrated capability.
How effective is the competition level in ensuring value for taxpayers on this contract?
The full and open competition with five bidders is a strong indicator of effective price discovery and value for taxpayers. A higher number of bidders generally leads to more competitive pricing as companies vie for the contract. This scenario encourages contractors to offer their best possible rates and technical solutions to win the award. The fixed-price nature of the contract further enhances value by providing cost certainty to the government. While 'best value' can encompass factors beyond just price, a competitive process ensures that the chosen solution is likely to be cost-effective relative to the services provided, minimizing the risk of taxpayers overpaying for essential defense IT services.
What are the historical spending patterns for similar core labor services within the Department of the Army?
Historical spending patterns for core labor services within the Department of the Army show a consistent and significant investment in IT and professional support functions. The Army, like other branches of the DoD, relies heavily on contractors to augment its organic workforce and provide specialized expertise. Spending in this category typically involves large, multi-year contracts awarded through competitive processes, often with fixed-price or cost-plus-fixed-fee structures. The total annual spending on such services can reach billions of dollars across the entire department. This specific $31.5 million contract fits within this broader pattern of sustained investment in contractor support for essential operational and technical functions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc
Address: 12021 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,491,461
Exercised Options: $31,491,461
Current Obligation: $31,491,461
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0037
IDV Type: GWAC
Timeline
Start Date: 2014-09-26
Current End Date: 2017-03-01
Potential End Date: 2017-03-01 00:00:00
Last Modified: 2023-03-01
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