VA awards $220M contract for FMBT IFAMS interface development to CACI NSS, LLC

Contract Overview

Contract Amount: $219,520,256 ($219.5M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-07-24

End Date: 2026-07-23

Contract Duration: 2,190 days

Daily Burn Rate: $100.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: REQUIREMENT IS FOR FMBT IFAMS INTERFACE DEVELOPMENT.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $219.5 million to CACI NSS, LLC for work described as: REQUIREMENT IS FOR FMBT IFAMS INTERFACE DEVELOPMENT. Key points: 1. Contract value represents a significant investment in IT infrastructure modernization. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance period extends over several years, indicating a long-term need. 4. The contract type (Time and Materials) may pose cost control challenges. 5. This award falls within the broader category of IT services for federal agencies. 6. The specific NAICS code points to specialized computer-related services.

Value Assessment

Rating: fair

The contract value of approximately $220 million over its duration is substantial for IT interface development. Benchmarking this against similar large-scale IT modernization projects within the VA or other federal agencies would be necessary for a precise value-for-money assessment. The Time and Materials pricing structure, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. Without specific performance metrics or detailed cost breakdowns, it's difficult to definitively assess if this represents excellent value, but it warrants careful monitoring.

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 bids. With three bidders participating, the competition level appears moderate. This suggests that while multiple companies were interested, the market may not be as broad as for more common IT services. Moderate competition can lead to reasonable pricing, but the ultimate price discovery depends on the specific capabilities and proposals submitted by each bidder.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of solutions and potentially driving down costs through competitive pressure. The presence of multiple bidders suggests that taxpayer funds are being allocated through a process designed to identify the most capable and cost-effective provider.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving enhanced IT interface capabilities. The contract will deliver development services for the FMBT IFAMS interface. The geographic impact is primarily within the VA's operational footprint, likely supporting its nationwide IT systems. Workforce implications may include specialized IT development roles within CACI NSS, LLC and potentially related support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
The extended performance period requires sustained oversight to ensure objectives are met.
Dependence on a single contractor for a critical interface development carries inherent risk.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Multiple bidders participated, indicating market interest and potential for competitive pricing.
The contract addresses a specific, stated need for IT interface development within the VA.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software development and system integration. The federal IT services market is vast, with agencies consistently investing in modernizing legacy systems and developing new interfaces to improve operational efficiency and data management. Comparable spending benchmarks would involve looking at other large-scale IT development contracts awarded by agencies like the VA, DoD, or GSA for similar system integration or interface development projects. The market size for federal IT services is in the hundreds of billions annually.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting requirements indicated in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless CACI NSS, LLC voluntarily engages small businesses as subcontractors. The focus appears to be on larger, established IT service providers capable of handling complex development projects.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures would be tied to the contract's performance work statement, delivery schedules, and quality standards. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal IT Modernization Programs
Department of Veterans Affairs IT Infrastructure
Financial Management Business Transformation (FMBT) Initiatives
Interagency Financial Management Systems

Risk Flags

Potential for cost overruns due to T&M contract type.
Risk of scope creep impacting timeline and budget.
Technological obsolescence over the contract's long duration.
Dependency on contractor performance for critical system integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $219.5 million to CACI NSS, LLC. REQUIREMENT IS FOR FMBT IFAMS INTERFACE DEVELOPMENT.

Who is the contractor on this award?

The obligated recipient is CACI NSS, 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 $219.5 million.

What is the period of performance?

Start: 2020-07-24. End: 2026-07-23.

What is the track record of CACI NSS, LLC in delivering similar IT interface development projects for the federal government?

CACI NSS, LLC, as a subsidiary or division of CACI International Inc., has a substantial track record with the federal government, including the Department of Veterans Affairs. CACI International Inc. is a large government contractor that provides a wide range of IT and professional services. Their past performance often includes complex system integration, software development, cybersecurity, and enterprise IT support across various civilian and defense agencies. Specific to interface development, CACI has been involved in numerous projects requiring the integration of disparate systems, data migration, and the creation of new user interfaces to enhance functionality and user experience. A detailed review of their contract history within FPDS-NG and agency performance evaluations would provide a more granular understanding of their success rates, past challenges, and client satisfaction for projects analogous to the FMBT IFAMS interface development.

How does the awarded amount of $219.5 million compare to the estimated value or budget for this FMBT IFAMS interface development requirement?

The awarded amount of $219,520,256.07 represents the total ceiling value for this Delivery Order under a larger contract, likely an Indefinite Delivery/Indefinite Quantity (IDIQ) or similar vehicle. Without access to the original solicitation's estimated value or the agency's internal budget allocation for this specific requirement, a direct comparison is challenging. However, the fact that it was awarded under full and open competition with three bidders suggests that the final negotiated price is within a range considered acceptable by the agency and competitive among the participants. Large-scale IT interface development projects for federal agencies often run into tens or hundreds of millions of dollars, depending on the complexity, scope, and duration. The awarded amount appears substantial, aligning with the typical investment required for significant IT modernization efforts within large federal organizations like the VA.

What are the primary risks associated with a Time and Materials (T&M) contract for IT interface development, and how might they be mitigated?

Time and Materials (T&M) contracts, like the one awarded to CACI NSS, LLC, carry inherent risks, primarily concerning cost control. The contractor is reimbursed for direct labor hours at specified hourly rates and for the cost of materials. This structure can lead to cost overruns if the project scope expands, if labor hours are not efficiently utilized, or if material costs escalate unexpectedly. For IT interface development, scope creep is a common challenge. Mitigation strategies employed by the VA would include robust project management, clearly defined milestones, strict change control processes, regular progress reviews, and potentially establishing a ceiling on the total labor hours or costs. The contracting officer must actively monitor performance and expenditures to ensure the project stays within budget and delivers the intended functionality without unnecessary delays or cost increases. Clear communication and a collaborative relationship between the government and contractor are also crucial.

What is the expected impact of this FMBT IFAMS interface development on the VA's overall financial management systems and operational efficiency?

The FMBT IFAMS interface development is expected to significantly enhance the VA's financial management systems by improving the integration and functionality of the Financial Management Business Transformation (FMBT) and the Integrated Financial and Acquisition Management System (IFAMS). A well-developed interface should streamline data flow between these critical systems, reduce manual data entry, minimize errors, and provide more accurate and timely financial reporting. This improved efficiency can lead to better decision-making, enhanced compliance with financial regulations, and potentially cost savings through optimized resource allocation. Ultimately, the goal is to modernize the VA's financial infrastructure, making it more robust, agile, and capable of supporting the agency's mission effectively. The success of this interface development is crucial for the broader FMBT initiative's objectives.

How does the duration of the contract (2190 days, approximately 6 years) influence the assessment of its value and the management of associated risks?

The contract's duration of approximately six years (2190 days) indicates a long-term commitment to developing and potentially maintaining the FMBT IFAMS interface. This extended period allows for a phased development approach, accommodating evolving requirements and technological advancements. From a value perspective, a longer duration can sometimes lead to better overall pricing if efficiencies are realized over time, but it also necessitates sustained oversight to ensure continued value delivery. The primary risk associated with such a long duration is the potential for technological obsolescence, changing agency needs, or contractor performance degradation. Effective risk management requires continuous monitoring of performance, regular contract reviews, and flexibility to adapt to unforeseen circumstances. The VA must ensure that the contract remains relevant and cost-effective throughout its lifecycle.

Given the NAICS code 541519 (Other Computer Related Services), what specific types of services are typically encompassed, and how does this contract fit?

NAICS code 541519, 'Other Computer Related Services,' is a broad category that includes establishments primarily engaged in providing on-site computer hardware support, installation services, and disaster recovery services. It also covers services such as computer systems integration design consulting, computer facilities management, and computer disaster recovery services. This specific contract for FMBT IFAMS interface development fits within this category as it involves the design, development, and integration of software and systems, which are core computer-related services. While it might also touch upon aspects of software development (often under 541511), the 'other' designation suggests a focus on the broader integration and service aspects of computer systems, aligning well with the need to connect and manage different financial and acquisition management platforms.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $400,044,074

Exercised Options: $361,005,528

Current Obligation: $219,520,256

Actual Outlays: $138,808,715

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $49,452,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F349CA

IDV Type: FSS

Timeline