DoD awards $30.5M for Secret Internet Protocol Router services to CACI NSS, LLC

Contract Overview

Contract Amount: $30,533,262 ($30.5M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $41.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: EITAAS WAVE 1 - SECRET INTERNET PROTOCOL ROUTER (SIPR)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to CACI NSS, LLC for work described as: EITAAS WAVE 1 - SECRET INTERNET PROTOCOL ROUTER (SIPR) Key points: 1. Contract awarded under Special Access Program (SAP) procedures, limiting public visibility. 2. CACI NSS, LLC, a significant player in IT services, secured this award. 3. The contract is for Computer Systems Design Services, indicating a focus on IT infrastructure. 4. A Time and Materials contract type suggests potential for cost overruns if not managed closely. 5. The duration of 729 days indicates a medium-term need for these specialized services. 6. The award value of $30.5M positions this as a substantial investment in secure communications.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its classification under a Special Access Program (SAP), which restricts the release of detailed pricing and performance data. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. Without access to comparable SAP contracts or detailed cost breakdowns, a definitive value-for-money assessment is difficult. However, the award to a known entity like CACI NSS, LLC suggests a degree of confidence in their ability to deliver, though the T&M structure warrants close monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under Special Access Program (SAP) procedures. The specific details regarding the number of bidders and the extent of competition are not publicly disclosed due to the classified nature of SAP. This limited transparency makes it difficult to assess the effectiveness of the competition in driving price discovery and ensuring the best possible value for the government.

Taxpayer Impact: The limited public information on the competition level means taxpayers cannot be assured that competitive pressures were fully leveraged to secure the most economical outcome.

Public Impact

The Department of the Air Force benefits from enhanced secure communication capabilities. This contract supports the delivery of critical Secret Internet Protocol Router (SIPR) services. The services are essential for maintaining secure classified network operations within the Department of Defense. Workforce implications are likely related to specialized IT and cybersecurity personnel required for SIPR operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type poses a risk of cost overruns if not diligently managed.
Limited public information due to SAP classification hinders independent oversight and value assessment.
The specific performance metrics and quality standards are not publicly available for scrutiny.

Positive Signals

Award to CACI NSS, LLC, a contractor with established experience in defense IT services.
The contract addresses a critical need for secure communication infrastructure within the DoD.
The duration suggests a stable, medium-term requirement, allowing for consistent service delivery.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. The market for secure government IT infrastructure, particularly for classified networks like SIPR, is highly specialized and often dominated by a few key players with the necessary security clearances and expertise. Spending in this area is driven by national security requirements and the constant need to maintain and upgrade secure communication channels. Comparable spending benchmarks are difficult to establish due to the classified nature of the services.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and opportunities for subcontracting to small businesses are not explicitly detailed in the public award notice. The focus appears to be on large, specialized IT service providers capable of meeting the stringent requirements of classified network operations.

Oversight & Accountability

Oversight for this contract is primarily internal to the Department of Defense, operating under the specific regulations governing Special Access Programs (SAP). While the contract is awarded by the Department of the Air Force, the classified nature of the services means that traditional public oversight mechanisms, such as detailed public reporting or Inspector General reviews of cost specifics, may be limited. Accountability is likely managed through internal DoD channels and program security directives.

Related Government Programs

EITAAS
SIPRNet
DoD Secure Networks
Classified IT Services

Risk Flags

Limited competition due to SAP
Time and Materials contract type carries cost overrun risk
Lack of public transparency hinders oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to CACI NSS, LLC. EITAAS WAVE 1 - SECRET INTERNET PROTOCOL ROUTER (SIPR)

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 $30.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is CACI NSS, LLC's track record with similar classified IT contracts?

CACI NSS, LLC has a significant history of providing IT and C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) services to the Department of Defense and other federal agencies. They are known for their work on complex, mission-critical systems, including those requiring high levels of security clearance and specialized infrastructure. While specific details on their performance for classified contracts like the EITAAS WAVE 1 SIPR contract are not publicly available due to security protocols, their sustained presence and numerous awards in the defense IT sector suggest a strong capability and a generally positive track record in delivering secure and reliable solutions. Their portfolio often includes network operations, cybersecurity, and systems integration for sensitive government programs.

How does the $30.5M award compare to historical spending on SIPR services?

Direct historical spending comparisons for this specific SIPR contract are challenging due to the classified nature of Special Access Programs (SAP). Publicly available data often aggregates spending or focuses on unclassified systems. However, the $30.5 million award over approximately two years (729 days) suggests a substantial but not unprecedented investment in maintaining and operating secure internet protocol router services. The Department of Defense consistently invests billions annually in its IT infrastructure, including secure networks like SIPR. This particular award represents a segment of that larger investment, likely reflecting the specialized nature, security requirements, and operational demands associated with ensuring the integrity and availability of classified communications.

What are the primary risks associated with this Time and Materials contract type for SIPR services?

The primary risk with a Time and Materials (T&M) contract for critical SIPR services is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. If project scope creeps, inefficiencies arise, or labor rates are higher than anticipated, the total cost can exceed initial estimates. For classified systems like SIPR, where specialized personnel and potentially unique hardware/software are involved, managing T&M contracts requires rigorous oversight, detailed tracking of hours and expenses, and strong contract administration to ensure that costs remain reasonable and deliverables are met. Without robust government oversight, the contractor could potentially incur higher costs than necessary, impacting the overall value for taxpayers.

What does the 'COMPETED UNDER SAP' designation imply for transparency and cost-effectiveness?

The 'COMPETED UNDER SAP' (Special Access Program) designation implies that the competition process itself was conducted under security protocols that limit public disclosure. While it suggests some form of competition occurred, the specifics of the bidding process, the number of competitors, and the evaluation criteria are not publicly accessible. This lack of transparency makes it difficult for external observers, including taxpayers and watchdog groups, to independently assess whether the competition was robust enough to drive optimal pricing and ensure the best value. For cost-effectiveness, while competition is generally a driver of lower prices, the unique and often highly specialized nature of SAP requirements can limit the pool of eligible bidders, potentially reducing competitive pressure compared to open market procurements.

How does this contract fit into the broader cybersecurity and network infrastructure spending of the DoD?

This contract for EITAAS WAVE 1 SIPR services is a crucial component of the Department of Defense's (DoD) overall cybersecurity and network infrastructure strategy. SIPRNet is the backbone for transmitting classified information up to the Secret level across the DoD and other government agencies. Spending on such services is essential for maintaining the confidentiality, integrity, and availability of sensitive national security data. It represents a direct investment in secure communication channels, which are fundamental to military operations, intelligence gathering, and diplomatic communications. This contract likely complements other investments in network modernization, cybersecurity tools, and personnel training aimed at defending against sophisticated cyber threats and ensuring operational resilience in a contested digital environment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

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: $63,392,116

Exercised Options: $34,951,953

Current Obligation: $30,533,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872622A0001

IDV Type: BPA

Timeline