DoD Awards $7.16M CACI Contract for IBS-NS System Sustainment, Lacking Competition

Contract Overview

Contract Amount: $7,161,662 ($7.2M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-20

End Date: 2026-08-19

Contract Duration: 364 days

Daily Burn Rate: $19.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SUSTAINMENT OF THE IBS-NS SYSTEM

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.2 million to CACI NSS, LLC for work described as: SUSTAINMENT OF THE IBS-NS SYSTEM Key points: 1. Significant contract value for system sustainment. 2. Sole-source award limits competitive pricing. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Engineering services sector with a focus on defense IT systems.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type, combined with a sole-source award, raises concerns about cost control and value for money. Benchmarking against similar sustainment contracts for complex systems is difficult without competitive data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may result in higher costs for the government compared to a competitively awarded contract.

Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially leading to a less efficient use of resources.

Public Impact

Ensures continued operation of a critical defense system. Lack of competition may lead to higher long-term costs. Potential impact on modernization if sustainment costs are excessive.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing

Positive Signals

Ensures continuity of essential system operations
Contract awarded to an established provider

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense information technology systems. Spending benchmarks for sustainment of complex IT infrastructure can vary widely, but sole-source awards often deviate from optimal cost structures.

Small Business Impact

The provided data does not indicate any specific provisions or considerations for small business participation in this contract. The award was made to CACI NSS, LLC, a large business entity.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. Robust monitoring by the Department of the Air Force is crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited transparency on pricing justification
No small business set-aside identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.2 million to CACI NSS, LLC. SUSTAINMENT OF THE IBS-NS SYSTEM

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $7.2 million.

What is the period of performance?

Start: 2025-08-20. End: 2026-08-19.

What is the justification for the sole-source award, and what steps are being taken to ensure cost reasonableness?

The justification for a sole-source award typically involves specific circumstances like unique capabilities or urgent needs. Without this justification, it's difficult to assess cost reasonableness. The Department of the Air Force should have a documented rationale and employ rigorous cost analysis and performance monitoring to mitigate risks associated with non-competitive awards.

How does the Cost Plus Fixed Fee structure impact the government's ability to control costs for this sustainment effort?

The CPFF structure can incentivize contractors to incur costs, as their fee is a fixed percentage of those costs. This can lead to less cost-consciousness compared to fixed-price contracts. Effective oversight, detailed cost tracking, and clear performance metrics are essential to manage this risk and ensure value for taxpayer money.

What is the long-term strategy for IBS-NS system sustainment, and how does this contract align with future modernization plans?

This contract covers sustainment for one year. The long-term strategy should address whether the IBS-NS system is slated for upgrade or replacement. High sustainment costs without a clear path to modernization could represent inefficient use of resources, potentially delaying or hindering future technological advancements.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $9,904,429

Exercised Options: $9,904,429

Current Obligation: $7,161,662

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA855525DB001

IDV Type: IDC

Timeline