CACI-ISS awarded $146.8M for IT services, with 7 bidders indicating strong competition

Contract Overview

Contract Amount: $146,786,981 ($146.8M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-16

End Date: 2023-08-26

Contract Duration: 2,354 days

Daily Burn Rate: $62.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF AONS SERVICES SUPPORT AWARD FOR CIO/G-6

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $146.8 million to CACI-ISS, LLC for work described as: IGF::OT::IGF AONS SERVICES SUPPORT AWARD FOR CIO/G-6 Key points: 1. The contract's firm-fixed-price structure suggests a defined scope and cost control. 2. A high number of bidders points to a competitive market for these IT services. 3. The contract duration of over 6 years may introduce performance and technology obsolescence risks. 4. This award represents a significant investment in IT support for the Department of the Army. 5. The contractor, CACI-ISS, LLC, is a major player in the federal IT services sector.

Value Assessment

Rating: good

The contract value of $146.8 million over approximately six years suggests a substantial but potentially reasonable annual spend for comprehensive IT support services. Benchmarking against similar large-scale IT service contracts awarded by the Department of Defense would be necessary for a definitive value assessment. The firm-fixed-price nature of the award implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bidders participating. This level of competition is generally considered healthy and suggests that multiple capable vendors were interested in providing these services. A robust bidding process typically leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

Taxpayer Impact: The strong competition indicates that taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best value, potentially driving down costs compared to a less competitive scenario.

Public Impact

The Department of the Army benefits from enhanced IT systems and support, crucial for its operational effectiveness. Users within the Army, including military personnel and civilian staff, will receive improved IT services. The contract supports IT infrastructure and services primarily within Virginia, where CACI-ISS is located. This award likely sustains or creates jobs within the IT sector, particularly for CACI-ISS and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) increases the risk of technology obsolescence and potential cost increases if scope needs significant adjustment.
Reliance on a single large contractor for critical IT services could pose a risk if performance degrades or if the contractor faces financial instability.
The specific nature of 'Computer Systems Design Services' can be broad, potentially leading to scope creep if not meticulously managed.

Positive Signals

Awarded under full and open competition with seven bidders, indicating a competitive market and likely fair pricing.
Firm-fixed-price contract type shifts cost overrun risk to the contractor, promoting cost control.
The contractor, CACI-ISS, LLC, is an established entity with significant experience in federal IT contracting.
The contract supports essential IT functions for a major government agency (Department of the Army).

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. This sector is characterized by high demand from government agencies seeking to modernize and maintain their digital infrastructure. The market size for federal IT services is substantial, with agencies consistently investing in areas like cloud computing, cybersecurity, and system integration. This award to CACI-ISS, LLC, aligns with the government's ongoing efforts to procure advanced IT solutions to support its diverse missions.

Small Business Impact

While this contract was awarded to CACI-ISS, LLC, and there is no explicit indication of a small business set-aside, large prime contracts often have subcontracting requirements. It is possible that CACI-ISS will engage small businesses for specific components of the IT services, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

The contract is a Definitive Contract awarded by the Department of the Army, implying standard government oversight. As a firm-fixed-price contract, performance monitoring and adherence to the defined scope are key oversight areas. The Department of Defense's Inspector General would have jurisdiction over potential fraud, waste, or abuse related to this award. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise IT Services
General Services Administration (GSA) IT Schedule Contracts
IT Services for Federal Agencies

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for scope creep in complex IT design services.
Performance risk over an extended period.
Dependence on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $146.8 million to CACI-ISS, LLC. IGF::OT::IGF AONS SERVICES SUPPORT AWARD FOR CIO/G-6

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 Army).

What is the total obligated amount?

The obligated amount is $146.8 million.

What is the period of performance?

Start: 2017-03-16. End: 2023-08-26.

What is CACI-ISS, LLC's track record with similar large-scale IT service contracts for the Department of Defense?

CACI-ISS, LLC, is a subsidiary of CACI International Inc., a major federal contractor with extensive experience in providing IT and professional services to various government agencies, including the Department of Defense. They have a history of managing large, complex IT support and systems integration contracts. Reviewing their past performance on similar firm-fixed-price, full-and-open competition awards would provide insight into their ability to deliver within scope and budget. Data from contract databases often shows a pattern of successful contract completions, though specific performance metrics and any past issues would require deeper investigation into contract performance reports and any associated corrective actions.

How does the $146.8 million contract value compare to other similar IT system design services contracts awarded by the Army or DoD?

The $146.8 million contract value over approximately 2,354 days (roughly 6.5 years) translates to an average annual value of approximately $22.6 million. This figure is substantial but falls within the range of large-scale IT support and systems design contracts typically awarded by major federal agencies like the Department of the Army. Benchmarking this against other definitive contracts for 'Computer Systems Design Services' (NAICS 541512) with similar durations and scope within the DoD would be necessary. However, given the number of bidders (7), it suggests the price was competitive within the market for such comprehensive services.

What are the primary risks associated with a contract of this duration (over 6 years) for IT services?

The primary risks associated with a contract of this duration for IT services include technology obsolescence, scope creep, and potential contractor performance degradation over time. Technology evolves rapidly, and systems designed or supported under this contract could become outdated before its completion. Scope creep is a risk if the requirements are not precisely defined or if changes are not managed rigorously, leading to cost overruns (though mitigated by FFP). Contractor performance can also wane over extended periods. To mitigate these, robust contract management, regular performance reviews, and clear change control processes are essential. The firm-fixed-price nature helps control costs but requires diligent oversight of the defined scope.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this type of IT service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for IT services when the scope of work is well-defined and unlikely to change significantly. It places the risk of cost overruns on the contractor, incentivizing them to manage resources efficiently and control costs. For the government, this means a predictable price. However, if the scope is poorly defined or if unforeseen technical challenges arise, the contractor might be incentivized to cut corners on quality, or the government might need to issue costly modifications. In this case, with a long duration, careful initial scope definition and change management are critical to realizing the value.

What does the presence of 7 bidders signify regarding the market competitiveness for Computer Systems Design Services?

The presence of seven bidders for this contract signifies a highly competitive market for Computer Systems Design Services within the federal sector, particularly for the Department of the Army. A larger number of bidders generally indicates that the market has sufficient capacity and that multiple companies possess the necessary qualifications and interest to pursue such opportunities. This heightened competition typically drives down prices, encourages innovation, and allows the government to select the offer that provides the best overall value, rather than simply the lowest price. It suggests that the barriers to entry for qualified firms are not excessively high.

What are the potential implications of this contract award on future IT spending patterns within the Department of the Army?

This award of $146.8 million for IT services suggests a continued strategic focus by the Department of the Army on modernizing and maintaining its IT infrastructure. It indicates a commitment to outsourcing or contracting for specialized IT design and support functions. Such large awards can set precedents for future procurements, potentially influencing how similar needs are met. It may also signal a trend towards longer-term contracts for IT support, reflecting a desire for stability and continuity. The success of this contract could encourage similar large-scale, competitively awarded IT service contracts in the future.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $146,786,981

Exercised Options: $146,786,981

Current Obligation: $146,786,981

Actual Outlays: $8,489,171

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $12,651,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline