CACI NSS awarded $730M contract for Special Operations Forces support, with 6 bidders

Contract Overview

Contract Amount: $730,320,870 ($730.3M)

Contractor: CACI NSS, LLC

Awarding Agency: General Services Administration

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $400.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: SPECIAL OPERATIONS FORCES EMERGING THREATS OPERATIONS AND PLANNING SUPPORT

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $730.3 million to CACI NSS, LLC for work described as: SPECIAL OPERATIONS FORCES EMERGING THREATS OPERATIONS AND PLANNING SUPPORT Key points: 1. Contract provides critical operational and planning support to SOF. 2. Awarded under full and open competition, indicating broad market engagement. 3. Performance period spans five years, suggesting long-term strategic alignment. 4. Cost-plus award fee structure incentivizes contractor performance. 5. Significant value suggests a high level of trust and capability required. 6. North Carolina location may indicate concentrated operational or support activities.

Value Assessment

Rating: good

The contract's value of $730 million over five years is substantial, reflecting the critical nature of Special Operations Forces (SOF) support. While specific performance metrics and award fee details are not public, the cost-plus award fee (CPAFF) structure is common for complex services where outcomes are difficult to predefine. Benchmarking against similar large-scale support contracts for SOF or other high-level defense entities would be necessary for a precise value-for-money assessment. However, the competitive nature of the award suggests a reasonable price was negotiated.

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. Six bidders participated in the competition, indicating a healthy level of interest and a robust market for these specialized services. The presence of multiple bidders generally supports price discovery and encourages competitive pricing, which is beneficial for the government.

Taxpayer Impact: The full and open competition with six bidders suggests that taxpayers are likely benefiting from a competitive pricing environment, as multiple companies vied to provide these essential services.

Public Impact

Directly supports the operational readiness and effectiveness of U.S. Special Operations Forces. Enhances planning capabilities for complex and emerging threats. Services likely involve a range of expertise from intelligence analysis to logistical support. Geographic impact is primarily focused on areas where SOF operates, with a specific contract performance location in North Carolina. Workforce implications include skilled professionals in defense, intelligence, and operational planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex, evolving SOF operations.
Reliance on a single contractor for critical, long-term support could pose risks if performance degrades.
CPAFF structure requires diligent oversight to ensure award fees are earned appropriately.

Positive Signals

Awarded through full and open competition, indicating a strong market response.
Contract duration of five years suggests a stable and predictable support environment for SOF.
CACI NSS, LLC has a track record in government contracting, implying established capabilities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services, supporting defense and national security. The market for such specialized support to elite military units is significant, though often concentrated among a few large, experienced contractors. The $730 million value positions this as a major contract within its niche, reflecting the high stakes and specialized knowledge required for Special Operations Forces.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While CACI NSS, LLC may utilize small business subcontractors, the primary award was not directed towards small businesses. This suggests that the scale and complexity of the requirement likely favored larger, established firms with extensive experience in supporting Special Operations Forces.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (General Services Administration, Federal Acquisition Service) and the requiring activity within Special Operations Command. The Cost Plus Award Fee (CPAFF) structure necessitates robust performance monitoring and evaluation to ensure award fees are justified. Transparency is generally maintained through contract awards databases, though specific performance details and award fee determinations are often sensitive.

Related Government Programs

Special Operations Forces Support Contracts
Defense Intelligence Support
Operational Planning Services
Engineering and Technical Services
Federal Acquisition Service Contracts

Risk Flags

Potential for cost overruns due to CPAFF structure.
Risk of contractor performance degradation over a five-year period.
Dependence on a single contractor for critical SOF support.
Need for robust oversight to ensure award fees are justified.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $730.3 million to CACI NSS, LLC. SPECIAL OPERATIONS FORCES EMERGING THREATS OPERATIONS AND PLANNING SUPPORT

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $730.3 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What is CACI NSS, LLC's track record with similar large-scale defense support contracts?

CACI NSS, LLC, as part of the broader CACI International Inc., has a substantial track record in providing IT, intelligence, and operational support services to various U.S. government agencies, including the Department of Defense and intelligence community. They have held numerous large prime contracts and subcontracts involving complex technical, analytical, and program management support. Their experience often includes supporting special operations, special warfare, and other high-demand military units, suggesting a familiarity with the operational tempo and requirements inherent in such contracts. The scale of this $730 million award is consistent with their demonstrated capability to manage significant government contracts.

How does the $730 million contract value compare to historical spending on SOF operational support?

The $730 million contract value represents a significant investment in Special Operations Forces (SOF) operational and planning support over its five-year duration. Historical spending on SOF support can fluctuate based on global security environments and specific mission requirements. While precise year-over-year comparisons require detailed historical data, contracts of this magnitude are typical for major SOF support functions, especially those involving emerging threats and complex planning. This figure aligns with the substantial resources dedicated to maintaining the readiness and effectiveness of elite military units, reflecting the critical nature of their missions and the specialized expertise required.

What are the primary risks associated with a five-year Cost Plus Award Fee (CPAFF) contract for SOF support?

A primary risk with a five-year CPAFF contract for SOF support is the potential for cost overruns if not managed diligently, as the 'cost-plus' element allows for reimbursement of allowable costs. The 'award fee' component, while incentivizing performance, requires clear, objective metrics to prevent subjective evaluations or disputes. For SOF support, risks also include the dynamic nature of threats and operations, which could lead to scope creep or require rapid adaptation, potentially straining contract resources. Ensuring that award fees are tied to measurable, mission-critical outcomes is crucial to mitigate risks and ensure value for taxpayer money. Contractor performance degradation over a long period is also a concern.

How effective is the Cost Plus Award Fee (CPAFF) structure in ensuring performance for complex defense services?

The CPAFF structure is generally considered effective for complex defense services where performance outcomes are difficult to define precisely at the outset or are subject to change. It incentivizes the contractor to exceed minimum performance standards by offering additional profit (award fee) for superior performance, while still covering costs. This can foster innovation and a proactive approach. However, its effectiveness hinges on the clarity and objectivity of the performance standards and evaluation criteria. Without well-defined metrics and rigorous oversight, there's a risk of subjective assessments or the contractor focusing on easily achievable metrics rather than mission-critical objectives. Diligent government oversight is paramount for CPAFF success.

What are the implications of awarding this contract to CACI NSS, LLC for the broader SOF support ecosystem?

Awarding this significant contract to CACI NSS, LLC has several implications for the broader SOF support ecosystem. It solidifies CACI's position as a key provider of specialized services to SOF, potentially influencing future contract opportunities. It also means that a substantial portion of SOF's operational and planning support will be channeled through this single entity, highlighting the importance of their performance and reliability. For other potential contractors, it underscores the competitive landscape and the high standards required to win such large-scale awards. Furthermore, it may influence the development of specialized skills within CACI's workforce dedicated to SOF requirements.

What is the significance of the contract being performed in North Carolina?

The specified performance location in North Carolina suggests a strategic concentration of Special Operations Forces (SOF) activities or support infrastructure in that region. North Carolina is home to several significant military installations, including those associated with SOF units. This contract's performance location likely aligns with the operational footprint or command structure of the SOF elements being supported, potentially facilitating closer collaboration, reduced travel costs, and more integrated support services. It may also indicate a focus on specific training ranges, operational planning centers, or logistical hubs located within the state.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Solicitation ID: 47QFCA21R0103

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

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: $1,047,522,963

Exercised Options: $1,047,522,963

Current Obligation: $730,320,870

Actual Outlays: $-121,911

Subaward Activity

Number of Subawards: 236

Total Subaward Amount: $215,348,169

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU121

IDV Type: IDC

Timeline