DHS awards $37.17M for network operations and security support to CACI NSS, LLC

Contract Overview

Contract Amount: $37,174,220 ($37.2M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-01

End Date: 2026-06-30

Contract Duration: 1,398 days

Daily Burn Rate: $26.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DHS NETWORK OPERATIONS AND SECURITY CENTER (NOSC) INFRASTRUCTURE CONTINUING SUPPORT SERVICES CALL ORDER.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.2 million to CACI NSS, LLC for work described as: DHS NETWORK OPERATIONS AND SECURITY CENTER (NOSC) INFRASTRUCTURE CONTINUING SUPPORT SERVICES CALL ORDER. Key points: 1. Contract value represents a significant investment in critical cybersecurity infrastructure. 2. The firm-fixed-price contract type suggests a defined scope and predictable costs. 3. A long performance period of nearly four years indicates a need for sustained support. 4. The award was made under a Best Practices Agreement (BPA) Call, a common procurement vehicle. 5. The North American Industry Classification System (NAICS) code 541519 points to broad IT support services. 6. The contract is not set aside for small businesses, implying a focus on larger prime contractors.

Value Assessment

Rating: good

The total contract value of $37.17 million over approximately 3.8 years averages to about $9.78 million annually. Benchmarking this against similar large-scale IT support contracts for federal agencies, this figure appears within a reasonable range, especially considering the critical nature of network operations and security. The firm-fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The specific number of bidders is not provided, but the use of full and open competition is a strong signal of a robust bidding process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider array of innovative solutions, maximizing the value received for federal dollars spent.

Public Impact

The Department of Homeland Security (DHS) benefits directly through enhanced network security and operational stability. Services delivered are crucial for maintaining the integrity and availability of DHS's IT infrastructure. The primary geographic impact is within Virginia, where the contractor is located, but the services support national security operations. The contract supports skilled IT professionals, likely contributing to the cybersecurity workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the long-term nature of the support services.
Reliance on a single contractor for critical network operations could pose a risk if performance degrades.
The broad NAICS code might obscure the specific technical expertise required, potentially leading to less targeted competition in the future.

Positive Signals

Firm-fixed-price contract type provides cost predictability.
Awarded through full and open competition, suggesting a competitive pricing environment.
Long performance period indicates a stable, ongoing need for these essential services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer network operations and security. The market for such services is substantial, with federal agencies being major consumers due to the critical nature of their data and operations. Comparable spending benchmarks for cybersecurity and network support services for large federal departments often run into tens or hundreds of millions of dollars annually, making this award a significant but not outlier investment.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the `ss` and `sb` fields being false. This suggests that the primary contractor, CACI NSS, LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses within the provided data, which means the direct impact on the small business ecosystem for this specific award is likely limited unless CACI NSS voluntarily engages them.

Oversight & Accountability

The contract is managed by the Department of Homeland Security (DHS), Office of Procurement Operations. Oversight mechanisms would typically involve contract officers, program managers, and potentially the DHS Inspector General's office for audits and investigations. Transparency is generally maintained through contract award databases like FPDS, where basic details are publicly available.

Related Government Programs

DHS Cybersecurity Support Services
Federal Network Infrastructure Contracts
IT Operations and Maintenance Services
Cybersecurity Services for Government Agencies

Risk Flags

Long-term contract duration may increase risk of vendor lock-in.
Reliance on a single provider for critical infrastructure.
Broad NAICS code could indicate a wide range of services, requiring careful oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.2 million to CACI NSS, LLC. DHS NETWORK OPERATIONS AND SECURITY CENTER (NOSC) INFRASTRUCTURE CONTINUING SUPPORT SERVICES CALL ORDER.

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 $37.2 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-06-30.

What is the historical spending pattern for network operations and security support services at DHS?

Analyzing historical spending patterns for network operations and security support at DHS is crucial for context. While specific historical data for this exact contract is not provided, DHS, as a large federal agency responsible for national security and critical infrastructure, consistently allocates significant resources to cybersecurity and IT infrastructure. Annual spending in this domain often reaches hundreds of millions, if not billions, of dollars across various contracts. Trends indicate a steady increase in cybersecurity investments over the past decade due to evolving threats. This $37.17 million award represents a portion of that larger, ongoing investment, likely for a specific set of services or a particular operational unit within DHS.

How does the pricing of this contract compare to similar IT support services awarded by other federal agencies?

Benchmarking the pricing of this $37.17 million contract requires detailed analysis of the specific services rendered and the labor categories involved, which are not fully detailed in the provided summary. However, given the firm-fixed-price structure and the full and open competition, it suggests that the pricing was vetted against market rates. Generally, large-scale IT support contracts for federal agencies can range widely, from tens to hundreds of millions of dollars annually, depending on scope, complexity, and security requirements. CACI NSS, LLC is a known entity in the federal IT contracting space, and their pricing is expected to be competitive within this market. Without specific line-item comparisons or detailed service level agreements, a precise pricing assessment is difficult, but the competitive award process provides a degree of confidence in its reasonableness.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this DHS Network Operations and Security Center (NOSC) Infrastructure Continuing Support Services contract. However, for a contract of this nature, focused on critical network operations and security, typical KPIs would likely include metrics related to network uptime and availability, incident response times, security vulnerability remediation rates, system performance, and adherence to security protocols and compliance standards. SLAs would define the expected levels of service for these metrics, often with associated penalties for non-performance and potential incentives for exceeding targets. These are usually detailed within the contract's statement of work.

What is the track record of CACI NSS, LLC in performing similar federal IT support contracts?

CACI NSS, LLC, as part of the larger CACI International Inc., has a substantial track record in providing IT support services to various U.S. federal agencies. CACI is a well-established government contractor with extensive experience in areas such as IT modernization, cybersecurity, enterprise resource planning, and mission support. They have held numerous large-scale contracts with departments like the Department of Defense, Department of Homeland Security, and others. Their performance history generally includes managing complex IT infrastructures, ensuring system security, and delivering operational support. While specific performance ratings for this particular call order are not provided, CACI's overall presence and continued awards suggest a generally positive performance history in fulfilling government IT requirements.

What are the potential risks associated with relying on a single contractor for critical network operations and security?

Relying on a single contractor, even one with a strong track record like CACI NSS, LLC, for critical network operations and security inherently carries risks. These include potential vendor lock-in, where transitioning to another provider becomes difficult and costly. Performance degradation is another risk; if the contractor's service quality declines, it could directly impact DHS's operational capabilities and security posture. Furthermore, a single point of failure exists; unforeseen issues with the contractor, such as financial instability, key personnel departures, or even a security breach on their end, could disrupt services. Mitigating these risks often involves robust contract management, clear performance expectations, contingency planning, and regular performance reviews by the government.

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 - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RTAC22Q00000083

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: $40,631,032

Exercised Options: $40,619,032

Current Obligation: $37,174,220

Actual Outlays: $31,984,741

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70RTAC20A00000003

IDV Type: BPA

Timeline