DHS awards $215M IT support BPA call to CACI NSS, LLC for HQ operations and service delivery

Contract Overview

Contract Amount: $215,344,713 ($215.3M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-03-02

End Date: 2026-03-01

Contract Duration: 1,825 days

Daily Burn Rate: $118.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS BPA CALL IS TO PROCURE SERVICES TO PROVIDE CONTINUOUS SUPPORT FOR DHS HEADQUARTERS OPERATIONS DIVISION (HOD) PROJECTS AND IT SERVICE DELIVERY IN ACCORDANCE WITH ATTACHMENT 2 STATEMENT OF WORK (SOW-67 PAGES) AND ATTACHMENT 3 TERMS

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $215.3 million to CACI NSS, LLC for work described as: THE PURPOSE OF THIS BPA CALL IS TO PROCURE SERVICES TO PROVIDE CONTINUOUS SUPPORT FOR DHS HEADQUARTERS OPERATIONS DIVISION (HOD) PROJECTS AND IT SERVICE DELIVERY IN ACCORDANCE WITH ATTACHMENT 2 STATEMENT OF WORK (SOW-67 PAGES) AND ATTACHMENT 3 TERMS Key points: 1. Contract focuses on IT service delivery and project support for DHS Headquarters Operations Division. 2. The contract utilizes a Firm Fixed Price (FFP) award type, indicating a defined scope and cost. 3. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-competed framework. 4. The duration of the contract is 5 years, aligning with typical IT support lifecycles. 5. No small business set-aside was utilized for this procurement. 6. The contract is for IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract value of $215.3 million over five years for IT support services at DHS headquarters appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that pricing is likely competitive, especially considering it was awarded under full and open competition. The firm fixed-price nature of the award provides cost certainty for the government, though it places performance risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This BPA Call was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of a BPA framework suggests that the underlying contract was already competed, and this call represents a specific task order against it.

Taxpayer Impact: Full and open competition maximizes the potential for cost savings and ensures that taxpayers benefit from the most competitive pricing available in the market for these critical IT services.

Public Impact

The primary beneficiaries are the Department of Homeland Security's Headquarters Operations Division, which will receive continuous IT support. Services delivered include project support and IT service delivery, crucial for the functioning of DHS HQ. The geographic impact is concentrated within DHS headquarters, likely in Washington D.C. and surrounding areas. The contract supports the IT infrastructure and operational efficiency of a major federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the Statement of Work is not tightly managed.
Reliance on a single contractor for critical IT functions could pose a risk if performance issues arise.
The complexity of DHS HQ operations may present challenges in consistently meeting all service level agreements.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing structure.
Firm Fixed Price contract type provides cost certainty for the government.
Long-term duration (5 years) allows for stable support and potential for contractor expertise development.
Contractor CACI NSS, LLC has a significant presence in the federal IT contracting space.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT support and project management. The market for federal IT services is substantial, with agencies like DHS representing significant spending. This BPA Call fits within the broader trend of agencies outsourcing IT operations and project support to specialized contractors to ensure efficient and effective service delivery, leveraging industry expertise and economies of scale.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly stated 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 for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Contracting Officer's Representative (COR) within the DHS Headquarters Operations Division, ensuring adherence to the Statement of Work and performance standards. The contract's performance will be monitored against established metrics and deliverables. Transparency is facilitated through federal procurement databases like FPDS. Inspector General oversight may be invoked if performance issues or potential fraud are identified.

Related Government Programs

DHS IT Modernization efforts
Federal Civilian IT Services
IT Operations and Maintenance Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for vendor lock-in due to long-term contract and specialized knowledge.
Performance degradation risk if contractor resources are reallocated or incentives misalign.
Cybersecurity risks inherent in providing IT support to a federal agency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $215.3 million to CACI NSS, LLC. THE PURPOSE OF THIS BPA CALL IS TO PROCURE SERVICES TO PROVIDE CONTINUOUS SUPPORT FOR DHS HEADQUARTERS OPERATIONS DIVISION (HOD) PROJECTS AND IT SERVICE DELIVERY IN ACCORDANCE WITH ATTACHMENT 2 STATEMENT OF WORK (SOW-67 PAGES) AND ATTACHMENT 3 TERMS

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $215.3 million.

What is the period of performance?

Start: 2021-03-02. End: 2026-03-01.

What is CACI NSS, LLC's track record with similar IT support contracts for federal agencies, particularly within DHS?

CACI NSS, LLC has a substantial history of performing IT support and services for various federal agencies, including the Department of Homeland Security. Their portfolio often includes network operations, system integration, cybersecurity, and IT project management. Analyzing their past performance on similar large-scale contracts, especially those involving headquarters operations or critical infrastructure support, would provide insight into their capability to meet the demands of this BPA Call. Specific metrics from past DHS contracts, such as on-time delivery, budget adherence, and customer satisfaction ratings, would be key indicators of their reliability and effectiveness in fulfilling the requirements outlined in the Statement of Work.

How does the awarded value compare to industry benchmarks for similar IT support services over a five-year period?

The awarded value of approximately $215 million over five years, averaging around $43 million annually, needs to be benchmarked against industry standards for comprehensive IT support services for a large federal headquarters. Factors influencing this benchmark include the scope of services (e.g., help desk, network management, application support, cybersecurity), the number of users supported, and the complexity of the IT environment. Given that this contract was awarded under full and open competition, it suggests the pricing is likely competitive. However, a detailed analysis would involve comparing the specific labor categories, rates, and overhead applied by CACI NSS, LLC against publicly available data for similar government IT support contracts and commercial IT outsourcing agreements, adjusted for federal procurement nuances.

What are the primary performance risks associated with this contract, and how are they mitigated?

Key performance risks include potential service disruptions, failure to meet Service Level Agreements (SLAs), cybersecurity vulnerabilities, and challenges in adapting to evolving technological requirements within DHS. Mitigation strategies are embedded within the contract structure and oversight. The Firm Fixed Price (FFP) nature incentivizes the contractor to manage costs and performance efficiently. The detailed Statement of Work (SOW) defines clear deliverables and performance standards. The Contracting Officer's Representative (COR) plays a crucial role in monitoring performance, conducting regular reviews, and enforcing contract terms. Furthermore, the five-year duration allows for building a strong working relationship and addressing issues proactively, while the contractor's experience in the federal IT space suggests familiarity with these risk mitigation processes.

How effective is the current IT service delivery model at DHS HQ, and how does this contract contribute to its effectiveness?

This contract is designed to ensure 'continuous support' for DHS Headquarters Operations Division (HOD) projects and IT service delivery, implying a focus on maintaining and enhancing the existing service delivery model's effectiveness. The effectiveness hinges on the contractor's ability to provide reliable, timely, and secure IT services that align with HOD's mission objectives. By outsourcing these functions to a specialized provider like CACI NSS, LLC, DHS aims to leverage external expertise, potentially improve response times, enhance system uptime, and allow internal DHS IT staff to focus on strategic initiatives rather than day-to-day operations. The success will be measured by the contractor's adherence to SLAs, user satisfaction, and the overall stability and performance of the IT infrastructure supporting DHS HQ.

What has been the historical spending trend for similar IT support services at DHS headquarters over the past five years?

Analyzing historical spending for IT support at DHS headquarters over the past five years would provide context for the $215 million award. This would involve examining previous contracts for IT services, operations, and project support specifically for HOD or equivalent entities. Trends might reveal increasing or decreasing reliance on external contractors, shifts in technology focus (e.g., cloud migration, cybersecurity enhancements), and fluctuations in average annual spending. Understanding this history helps assess whether the current award represents a significant increase or decrease in investment, a continuation of established patterns, or a strategic shift in how DHS procures and manages its critical IT functions.

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 › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RTAC21Q00000026

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: $216,025,907

Exercised Options: $215,344,713

Current Obligation: $215,344,713

Actual Outlays: $132,459,021

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $192,141

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70RTAC20A00000003

IDV Type: BPA

Timeline