DoD's $10.2M IT Services Contract Awarded to CACI NSS, LLC for Special Operations Command

Contract Overview

Contract Amount: $10,247,529 ($10.2M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2006-12-02

End Date: 2007-12-01

Contract Duration: 364 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST NO FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33609

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to CACI NSS, LLC for work described as: INFORMATION TECHNOLOGY Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 364 days indicates a short-term need for services. 3. The 'COST NO FEE' contract type implies that the government reimburses the contractor for allowable costs without an additional fee. 4. The award was made by the U.S. Special Operations Command, highlighting its specific operational needs. 5. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'. 6. The contract was awarded in Florida, indicating the geographic location of service delivery or contractor presence.

Value Assessment

Rating: fair

The contract type 'COST NO FEE' makes a direct value-for-money assessment challenging without further details on the cost drivers and the contractor's performance. Benchmarking against similar 'Other Computer Related Services' contracts would be necessary to determine if the reimbursed costs represent a fair market value. The absence of a fee suggests the contractor may have other strategic interests in this engagement, or it could be a mechanism to manage costs for a specific type of service where profit margins are less relevant or difficult to define.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit a bid. The presence of 5 bidders suggests a moderate level of competition for this requirement. This level of competition is generally favorable for price discovery, as it allows the government to receive multiple proposals and select the most advantageous offer based on a combination of factors, potentially including price and technical merit.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. The multiple bids received suggest that the government likely secured a reasonable price for the services rendered.

Public Impact

The U.S. Special Operations Command benefits from specialized IT services to support its unique missions. The contract delivers 'Other Computer Related Services', which could encompass a range of IT support, consulting, or system maintenance. Services are likely delivered within Florida, impacting the local IT service provider ecosystem. The contract supports the operational readiness and technological capabilities of special operations forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of fee in 'COST NO FEE' contract type obscures profit motive and potential for cost overruns.
Limited contract duration (364 days) may indicate a need for ongoing re-competition or potential instability for the contractor.
Specific details on the 'Other Computer Related Services' are not provided, making it difficult to assess the scope and criticality.
The award date is historical (2006), and current market rates or service needs may have significantly changed.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
Multiple bidders (5) indicate a healthy level of interest and competition for this contract.
The contract supports a critical national security entity (U.S. Special Operations Command).

Sector Analysis

The Information Technology sector, specifically 'Other Computer Related Services', is a vast and dynamic market. Contracts like this, supporting specialized government needs, are common. The market size for IT services to the federal government is in the billions annually. This contract, at approximately $10.2 million, represents a small but significant portion of the overall IT spending by defense agencies, particularly those with unique operational requirements like U.S. Special Operations Command.

Small Business Impact

There is no explicit indication that this contract was set aside for small businesses, and the award to CACI NSS, LLC, a large business, suggests it was not. The contract does not mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though CACI may engage small businesses as subcontractors if their own capabilities do not cover all aspects of the service.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Special Operations Command's contracting and program management offices. Accountability measures would be defined in the contract's Performance Work Statement (PWS) and monitored through regular reporting and performance reviews. Transparency is generally maintained through contract award databases like FPDS, which provide basic information on contract awards, though detailed performance data is often not publicly available.

Related Government Programs

Information Technology Professional Services
Other Computer Related Services
Department of Defense IT Contracts
U.S. Special Operations Command Support Services

Risk Flags

Historical Award Data
Lack of Specific Service Details
Cost-Reimbursement Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to CACI NSS, LLC. INFORMATION TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2006-12-02. End: 2007-12-01.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data indicates the NAICS code 541519, which covers 'Other Computer Related Services'. This broad category can include a wide array of IT services not elsewhere classified, such as IT consulting, custom software development, IT support services, network management, data processing, and IT project management. Without the specific Performance Work Statement (PWS) or contract details, the exact nature of the services rendered remains unspecified. However, given the award to U.S. Special Operations Command, these services likely supported critical operational or intelligence functions requiring specialized IT expertise.

How does the 'COST NO FEE' contract type impact contractor performance and government oversight?

The 'COST NO FEE' contract type means the government reimburses the contractor for all allowable costs incurred in performing the contract, but the contractor does not receive any profit or fee. This structure is often used when the scope of work is uncertain or when the government wants to incentivize the contractor to focus on achieving a specific outcome rather than maximizing profit. For government oversight, it necessitates rigorous auditing of costs to ensure they are reasonable, allocable, and allowable. Contractor performance is still critical, as the government relies on the contractor to deliver the required services effectively, even without a direct financial incentive tied to profit. The lack of a fee can sometimes reduce the contractor's motivation for efficiency or innovation compared to a fixed-price or cost-plus-incentive-fee contract.

What is the significance of awarding this contract to CACI NSS, LLC?

CACI NSS, LLC is a subsidiary of CACI International Inc., a large government contractor known for providing IT and professional services to defense and intelligence agencies. Awarding this contract to CACI NSS, LLC suggests that the company possesses the necessary technical capabilities, security clearances, and experience to meet the specialized IT requirements of the U.S. Special Operations Command. The company's track record with other government contracts would provide further context on its performance and reliability in delivering similar services. This award signifies CACI's continued role as a key IT service provider within the defense sector.

What does the competition level of 5 bidders imply for the taxpayer?

A competition level of 5 bidders for this contract suggests a reasonably competitive environment. When multiple companies vie for a contract, it typically drives down prices as each bidder attempts to offer the most attractive proposal to win the award. For taxpayers, this means that the government is likely to have secured the IT services at a more competitive rate than if there had been only one or two bidders. This level of competition helps ensure that public funds are used efficiently and that the government is not overpaying for the services it procures.

How does this contract fit into the broader IT spending landscape for the Department of Defense?

This $10.2 million contract for 'Other Computer Related Services' represents a small fraction of the Department of Defense's overall IT budget, which runs into the tens of billions of dollars annually. However, contracts awarded to specialized units like the U.S. Special Operations Command are crucial for maintaining their unique operational capabilities. Such contracts often involve highly specialized technologies, security protocols, and support services tailored to the demanding environments in which these forces operate. This award reflects the DoD's strategy of procuring specialized IT support to meet diverse mission requirements across its various components.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 5

Pricing Type: COST NO FEE (S)

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 5100 W KENNEDY BLVD STE 500, TAMPA, FL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,247,529

Exercised Options: $10,247,529

Current Obligation: $10,247,529

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: USZA2202D0017

IDV Type: IDC

Timeline