DoD's $34.6M Fixed Site Installations Contract with CACI NSS Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $34,603,147 ($34.6M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-20

End Date: 2022-04-30

Contract Duration: 1,318 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IFG: :OT: :IGF FPS3 CENTCOM FIXED SITE INSTALLATIONS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to CACI NSS, LLC for work described as: IFG: :OT: :IGF FPS3 CENTCOM FIXED SITE INSTALLATIONS Key points: 1. The contract awarded to CACI NSS, LLC for security systems services represents a significant investment in fixed site installations. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed tightly. 4. The sector is IT/Security Systems Services, a critical area for defense operations.

Value Assessment

Rating: fair

The contract's value of $34.6M for security systems services needs further benchmarking against similar fixed-site installation contracts. The CPFF structure warrants close monitoring to ensure costs remain reasonable and aligned with the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the CPFF pricing structure requires diligent oversight to prevent potential cost escalation beyond initial expectations.

Taxpayer Impact: Taxpayer funds are being utilized for critical security infrastructure. Ensuring cost-effectiveness through robust oversight is paramount to maximizing the value of this investment.

Public Impact

Ensures security for critical fixed installations, contributing to national defense. Supports CACI NSS, LLC, a significant contractor in the defense sector. The CPFF structure necessitates transparency and accountability in spending. Potential for cost overruns could impact the overall budget for security enhancements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize higher costs.
  • Lack of specific performance metrics makes value assessment difficult.
  • Limited detail on the 'fixed site installations' scope.
  • Contract duration is substantial, increasing risk over time.

Positive Signals

  • Awarded under full and open competition.
  • Addresses critical security needs for defense installations.
  • Contractor has experience in the security systems domain.

Sector Analysis

This contract falls within the IT and Security Systems Services sector, specifically focusing on physical security installations for defense facilities. Spending benchmarks in this area are highly variable depending on the scale and complexity of the installations.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The CPFF contract type necessitates strong government oversight to manage costs and ensure performance. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

  • Security Systems Services (except Locksmiths)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Broad scope definition ('fixed site installations').
  • Lack of specific performance metrics.
  • Long contract duration.
  • Potential for cost overruns.

Tags

security-systems-services-except-locksmi, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to CACI NSS, LLC. IFG: :OT: :IGF FPS3 CENTCOM FIXED SITE INSTALLATIONS

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 $34.6 million.

What is the period of performance?

Start: 2018-09-20. End: 2022-04-30.

What specific security systems and installation services were included in this $34.6M contract, and how does this scope align with the CPFF pricing structure to ensure value for money?

The contract details for 'fixed site installations' are broad. A breakdown of specific security systems (e.g., access control, surveillance, intrusion detection) and the installation labor/material costs is needed. The CPFF structure means the government pays costs plus a fixed fee, so understanding the cost drivers and ensuring they are reasonable and necessary is key to validating the $34.6M expenditure.

Given the CPFF structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure CACI NSS, LLC remains incentivized to control expenses?

Effective mitigation requires robust government oversight, including detailed cost audits, regular performance reviews, and clear definition of allowable costs. Incentive clauses or performance-based metrics, if incorporated, could further encourage cost control. Without these, the CPFF model inherently carries a higher risk of cost escalation compared to fixed-price contracts.

How effectively does this contract contribute to the Department of Defense's overall security posture, and are there measurable outcomes demonstrating its success?

The contract's contribution to the overall security posture is difficult to assess without specific performance metrics tied to the installations. While essential for physical security, the success hinges on the effectiveness of the installed systems in preventing breaches and ensuring operational continuity. Measurable outcomes like reduced incident rates or improved compliance scores would provide better insight into its effectiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Systems Services (except Locksmiths)

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 11955 FREEDOM DR STE 12000, 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: $34,603,147

Exercised Options: $34,603,147

Current Obligation: $34,603,147

Actual Outlays: $3,337,288

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $35,066

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873015D0002

IDV Type: IDC

Timeline

Start Date: 2018-09-20

Current End Date: 2022-04-30

Potential End Date: 2022-04-30 00:00:00

Last Modified: 2022-03-03

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