DoD's $135M IT contract for LogiCole application development and sustainment awarded to CACI NSS, LLC
Contract Overview
Contract Amount: $135,231,676 ($135.2M)
Contractor: CACI NSS, LLC
Awarding Agency: Department of Defense
Start Date: 2018-09-30
End Date: 2023-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $74.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION TECHNOLOGY AND INFORMATION MANAGEMENT SERVICES IN SUPPORT OF THE LOGICOLE APPLICATION DEVELOPMENT AND SUSTAINMENT.
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21702
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $135.2 million to CACI NSS, LLC for work described as: INFORMATION TECHNOLOGY AND INFORMATION MANAGEMENT SERVICES IN SUPPORT OF THE LOGICOLE APPLICATION DEVELOPMENT AND SUSTAINMENT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract spans five years, indicating a long-term need for these IT services. 3. The primary contractor, CACI NSS, LLC, has a significant presence in the federal IT sector. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The North American Industry Classification System (NAICS) code 541519 indicates a broad range of computer-related services.
Value Assessment
Rating: good
The total award amount of $135.2 million over five years for IT application development and sustainment appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts within the Department of Defense suggests this pricing is within expected ranges. The firm fixed-price nature of the contract helps control costs for the government, as the contractor assumes the risk of cost overruns. However, without detailed breakdowns of labor categories and hours, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The fact that there were two bidders indicates a moderate level of competition for this significant IT services contract. A higher number of bidders might have potentially driven the price down further, but two bidders still provide a basis for price comparison and selection.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. The presence of multiple bidders suggests that taxpayer funds are being used efficiently by selecting the most advantageous offer.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Defense Health Agency, which receives critical IT application development and sustainment services. The contract supports the LogiCole application, likely crucial for managing defense health information or operations. The services delivered ensure the continued functionality and potential enhancement of essential defense IT systems. The geographic impact is primarily within the Defense Health Agency's operational footprint, likely supporting personnel across various military branches and locations. Workforce implications include employment for IT professionals at CACI NSS, LLC and potentially subcontractors involved in application development and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term IT sustainment contracts if not managed rigorously.
- Dependence on a single contractor for critical application sustainment could pose a risk if performance degrades.
- The specific functionalities and impact of the LogiCole application are not detailed, making a full assessment of its criticality difficult.
Positive Signals
- Firm Fixed Price contract structure helps manage cost certainty for the government.
- Awarded under full and open competition, indicating a structured procurement process.
- The five-year duration suggests a stable, long-term requirement being met.
Sector Analysis
This contract falls within the broader Information Technology and Information Management Services sector, a significant area of federal spending. The market for IT services supporting defense applications is substantial, with numerous large and small businesses competing for these contracts. The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide array of IT support, development, and maintenance activities. Comparable spending benchmarks for similar multi-year IT sustainment contracts within the DoD often range in the tens to hundreds of millions of dollars.
Small Business Impact
This contract was not set aside for small businesses, as indicated by 'sb': false. The prime contractor, CACI NSS, LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless CACI NSS voluntarily engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Health Agency. As a delivery order under a potential IDIQ, oversight might also be influenced by the terms of the parent contract. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to meet performance standards within budget. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance metrics are often internal.
Related Government Programs
- Defense Health Information System (DHIS)
- Military Health System (MHS)
- IT Services for Department of Defense
- Application Development and Sustainment Contracts
Risk Flags
- Long-term contract duration may require careful monitoring for evolving technological needs.
- Firm Fixed Price structure requires diligent oversight to ensure contractor performance and prevent cost-cutting that impacts quality.
Tags
information-technology, it-services, application-development, application-sustainment, department-of-defense, defense-health-agency, caci-nss-llc, firm-fixed-price, full-and-open-competition, delivery-order, maryland, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $135.2 million to CACI NSS, LLC. INFORMATION TECHNOLOGY AND INFORMATION MANAGEMENT SERVICES IN SUPPORT OF THE LOGICOLE APPLICATION DEVELOPMENT AND SUSTAINMENT.
Who is the contractor on this award?
The obligated recipient is CACI NSS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $135.2 million.
What is the period of performance?
Start: 2018-09-30. End: 2023-09-29.
What is the specific function and criticality of the LogiCole application within the Defense Health Agency?
The provided data does not specify the exact functions or criticality of the LogiCole application. However, given its sustainment and development contract awarded by the Defense Health Agency (DHA), it is likely a mission-critical system supporting healthcare operations, data management, or administrative processes within the Military Health System (MHS). Applications within DHA often handle sensitive patient data, operational logistics, or resource management, making their reliable performance essential for military readiness and healthcare delivery. Further investigation into DHA's IT portfolio or specific program documentation would be required to ascertain LogiCole's precise role and importance.
How does the $135.2 million total contract value compare to other similar IT sustainment contracts within the DoD?
The $135.2 million total contract value for five years of IT application development and sustainment is substantial but falls within a common range for large-scale IT support contracts within the Department of Defense. Many DoD IT contracts, especially those involving complex systems or broad user bases, can reach hundreds of millions or even billions of dollars over their lifecycle. This contract's value is comparable to other multi-year sustainment efforts for significant software applications or IT infrastructure management. Factors influencing this value include the complexity of the application, the number of users, security requirements, and the scope of development and maintenance services required. Without specific details on the LogiCole application's complexity, a precise comparison is difficult, but the award size suggests a significant undertaking.
What are the key performance indicators (KPIs) used to measure CACI NSS, LLC's performance on this contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. However, for IT application development and sustainment contracts, common KPIs typically include system uptime/availability, response times, defect resolution rates (e.g., mean time to repair), user satisfaction, successful deployment of new features or updates, and adherence to security protocols. For a firm fixed-price contract, meeting these performance standards is crucial for the contractor to achieve profitability. The Defense Health Agency would have established these KPIs in the contract's Performance Work Statement (PWS) to ensure the LogiCole application remains functional, secure, and meets the evolving needs of its users.
What is CACI NSS, LLC's track record with the Defense Health Agency and similar IT contracts?
CACI NSS, LLC, as part of the larger CACI International Inc., has a significant history of performing IT services for the Department of Defense and various federal agencies, including the Defense Health Agency. CACI is a well-established government contractor known for providing a wide range of IT solutions, including software development, cybersecurity, and systems integration. While specific performance details for this particular LogiCole contract are not provided, CACI's overall track record suggests they possess the capabilities and experience necessary for such a task. Analyzing past performance evaluations and contract awards for CACI with DHA and other defense components would offer a more granular view of their reliability and effectiveness in similar engagements.
What are the potential risks associated with a five-year firm fixed-price contract for IT sustainment?
A significant risk with a five-year firm fixed-price contract for IT sustainment is the potential for the contractor to under-invest in necessary upgrades or innovation if the initial pricing was too aggressive or if market conditions change unfavorably. Conversely, if the scope of work expands significantly beyond the original estimates (scope creep), the contractor may struggle to deliver without incurring substantial losses, potentially leading to performance issues or requests for contract modifications. For the government, the risk lies in the application becoming outdated or less efficient over the contract term if the fixed price doesn't adequately incentivize continuous improvement or adaptation to new technologies. Robust contract management and clear change control processes are essential to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc
Address: 14370 NEWBROOK DR, 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: $158,889,217
Exercised Options: $135,231,676
Current Obligation: $135,231,676
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F349CA
IDV Type: FSS
Timeline
Start Date: 2018-09-30
Current End Date: 2023-09-29
Potential End Date: 2023-09-29 00:00:00
Last Modified: 2024-12-10
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