DoD's $136M CACI Logistics Contract for Europe/Africa Faces Scrutiny Over Cost and Competition
Contract Overview
Contract Amount: $13,647,957 ($13.6M)
Contractor: CACI NSS, LLC
Awarding Agency: Department of Defense
Start Date: 2020-04-21
End Date: 2022-04-20
Contract Duration: 729 days
Daily Burn Rate: $18.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FIXED SITE SUSTAINMENT III CONTRACTOR LOGISTICS SUPPORT IN EUROPE AND AFRICA
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.6 million to CACI NSS, LLC for work described as: FIXED SITE SUSTAINMENT III CONTRACTOR LOGISTICS SUPPORT IN EUROPE AND AFRICA Key points: 1. The contract's cost-plus-fixed-fee structure warrants close examination for potential cost overruns. 2. While awarded under full and open competition, the specific pricing and value proposition require deeper analysis. 3. The duration and geographic scope present inherent risks related to logistical complexities and geopolitical factors. 4. The security systems services sector is critical but often involves specialized, high-cost solutions.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, with a base award of $136M and a potential ceiling, raises concerns about cost control. Without detailed breakdowns of labor rates, overhead, and profit margins, it's difficult to benchmark against similar logistics support contracts in complex operational environments.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the effectiveness of this competition in driving optimal pricing for complex logistics support in Europe and Africa needs further validation through analysis of the awarded price and the number of bids received.
Taxpayer Impact: Taxpayer funds are being utilized for critical logistics support. The CPFF structure necessitates robust oversight to ensure costs are reasonable and that the competition effectively translated into value for money.
Public Impact
Ensures critical logistical support for DoD operations in Europe and Africa, maintaining operational readiness. Supports personnel and equipment movement, maintenance, and supply chain management in sensitive regions. Potential for cost efficiencies if managed effectively, but also risk of overspending due to CPFF structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Geographic complexity and risk
- Potential for cost overruns
Positive Signals
- Full and open competition awarded
- Critical operational support provided
Sector Analysis
This contract falls within the Security Systems Services sector, which can encompass a wide range of specialized support. Benchmarking costs for complex, multi-year international logistics support within this sector is challenging due to the unique operational requirements and geographic scope.
Small Business Impact
The data indicates the awardee is CACI NSS, LLC, a large business. There is no explicit information provided regarding small business participation or subcontracting goals within this specific contract award.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) nature of this contract requires diligent oversight from the Department of the Air Force to ensure costs are reasonable and allocable. Regular audits and performance reviews are crucial for accountability and preventing potential cost creep.
Related Government Programs
- Security Systems Services (except Locksmiths)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee structure can lead to cost overruns.
- Complex operational environment in Europe and Africa presents inherent risks.
- Potential for contractor inefficiency if not closely monitored.
- Lack of detailed cost breakdown makes benchmarking difficult.
- Long contract duration increases exposure to changing conditions.
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 $13.6 million to CACI NSS, LLC. FIXED SITE SUSTAINMENT III CONTRACTOR LOGISTICS SUPPORT IN EUROPE AND AFRICA
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 $13.6 million.
What is the period of performance?
Start: 2020-04-21. End: 2022-04-20.
What specific performance metrics are used to evaluate the contractor's effectiveness in providing logistics support, and how are these tied to the fixed fee?
The effectiveness of logistics support is typically evaluated through metrics such as on-time delivery rates, inventory accuracy, equipment uptime, and response times to critical needs. These metrics should be clearly defined in the contract's Performance Work Statement (PWS). The fixed fee component should ideally be structured to incentivize meeting or exceeding these performance targets, with potential for award or penalties based on performance outcomes.
How does the Department of Defense ensure that the 'fixed fee' component of this CPFF contract accurately reflects the contractor's risk and effort, and prevents excessive profit?
The fixed fee is negotiated based on an estimate of the contractor's effort, complexity, and risk involved. DoD contracting officers should conduct thorough market research and cost analyses to ensure the fee is fair and reasonable. Regular reviews of the contractor's performance and cost submissions are essential to monitor adherence to the contract terms and prevent the fee from becoming disproportionate to the actual work performed or risks undertaken.
Given the CPFF structure and the operational environment, what mechanisms are in place to mitigate the risk of cost overruns and ensure value for taxpayer money?
Mitigation strategies include robust contract surveillance, detailed cost monitoring, and regular audits of contractor expenditures. Establishing clear ceilings for direct costs and fee, implementing strong change control processes, and requiring detailed justification for all costs are crucial. Furthermore, fostering a collaborative relationship with the contractor while maintaining a firm stance on cost control and performance expectations is vital for achieving value.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security 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: 3
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: $23,612,971
Exercised Options: $23,612,971
Current Obligation: $13,647,957
Actual Outlays: $236,917
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,280,914
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA873015D0002
IDV Type: IDC
Timeline
Start Date: 2020-04-21
Current End Date: 2022-04-20
Potential End Date: 2022-04-20 00:00:00
Last Modified: 2026-01-16
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