CACI NSS awarded $578M for ISR innovation and integration, with 316M spent to date

Contract Overview

Contract Amount: $578,355,175 ($578.4M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-11

End Date: 2024-09-10

Contract Duration: 1,826 days

Daily Burn Rate: $316.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FULL-SPECTRUM INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR)INNOVATION AND INTEGRATION (F3I-2)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $578.4 million to CACI NSS, LLC for work described as: FULL-SPECTRUM INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR)INNOVATION AND INTEGRATION (F3I-2) Key points: 1. Contract value of $578.4M over 5 years suggests significant investment in advanced ISR capabilities. 2. The contract's cost-plus-fixed-fee (CPFF) structure may incentivize contractor efficiency, but requires careful oversight. 3. A full and open competition indicates a broad market search, potentially leading to competitive pricing. 4. The contract duration of 1826 days (5 years) allows for sustained development and integration efforts. 5. Focus on intelligence, surveillance, and reconnaissance (ISR) innovation aligns with evolving national security needs. 6. The award to CACI NSS, LLC, a known defense contractor, suggests a focus on established capabilities.

Value Assessment

Rating: good

The total contract value of $578.4 million over five years for ISR innovation and integration is substantial. While specific cost breakdowns are not provided, the CPFF pricing structure necessitates close monitoring to ensure value for money. Benchmarking against similar large-scale ISR development contracts would be beneficial to fully assess pricing effectiveness. The significant amount spent to date ($316.7M) indicates substantial progress and commitment to the program's objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of three bidders indicates a healthy level of competition for this significant ISR contract. This competitive process is expected to drive more favorable pricing and innovative solutions for the Department of Defense.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for advanced intelligence, surveillance, and reconnaissance capabilities.

Public Impact

The primary beneficiaries are the Department of Defense and its intelligence agencies, receiving advanced ISR capabilities. Services delivered include innovation and integration of intelligence, surveillance, and reconnaissance systems. The geographic impact is likely global, supporting military operations and intelligence gathering worldwide. Workforce implications may include specialized roles in systems engineering, software development, and intelligence analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns and ensure efficiency.
The substantial contract value raises concerns about potential scope creep if not managed effectively.
Reliance on a single contractor for a critical function like ISR innovation could pose long-term risks.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
The contract's focus on innovation and integration addresses critical and evolving national security needs.
The five-year duration allows for sustained development and ensures continuity of essential ISR capabilities.

Sector Analysis

The Intelligence, Surveillance, and Reconnaissance (ISR) sector is a critical component of national security, encompassing technologies and services that gather and analyze information. This contract fits within the broader defense technology and services market, which is characterized by significant government investment and a focus on advanced capabilities. Comparable spending benchmarks in this sector are typically in the hundreds of millions to billions of dollars for large-scale development and integration programs.

Small Business Impact

The contract details do not indicate any specific small business set-asides. As a large prime contract awarded through full and open competition, it is likely that CACI NSS, LLC will engage small businesses as subcontractors to fulfill specific requirements. The extent of small business participation will depend on CACI's subcontracting plan and the availability of specialized small business capabilities within the ISR innovation ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the CPFF structure, requiring detailed reporting and justification of costs. Transparency is typically maintained through contract reporting mechanisms and potential audits by the Defense Contract Audit Agency (DCAA) or the Inspector General.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Programs
Advanced Technology Development Contracts
Department of Defense IT and Systems Integration
National Security Technology Innovation

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Potential
Technological Obsolescence
Integration Complexity
Contractor Performance Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $578.4 million to CACI NSS, LLC. FULL-SPECTRUM INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR)INNOVATION AND INTEGRATION (F3I-2)

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 $578.4 million.

What is the period of performance?

Start: 2019-09-11. End: 2024-09-10.

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

CACI NSS, LLC, a subsidiary of CACI International Inc., has a significant history of supporting defense and intelligence agencies with a wide range of services, including C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance). They have been involved in numerous contracts related to intelligence analysis, systems engineering, software development, and integration for various branches of the military and intelligence community. Their experience often includes modernizing legacy systems, developing new capabilities, and providing operational support for ISR platforms. While specific details of past ISR innovation and integration contracts are proprietary, CACI's overall portfolio demonstrates a strong capability in this domain, often securing large, complex, and long-term agreements with the federal government.

How does the pricing structure (Cost Plus Fixed Fee) compare to other ISR contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for research and development, complex system integration, and services where the scope of work is not precisely defined at the outset, making it difficult to establish a firm fixed price. For ISR contracts, CPFF is often used when exploring innovative solutions or integrating novel technologies, as it allows for flexibility in technical approaches. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility to the contractor to adapt to evolving requirements but places a greater burden on the government to meticulously track and audit costs to ensure value. Other common structures for ISR-related work can include Cost Plus Incentive Fee (CPIF), which adds performance incentives, or Fixed-Price Incentive Fee (FPIF), which shares cost risks between the government and contractor. The choice of CPFF here suggests a focus on exploration and integration where precise cost estimation is challenging.

What are the primary risks associated with this contract?

The primary risks associated with this contract include cost overruns due to the CPFF structure, potential scope creep if requirements are not tightly managed, and contractor performance issues in delivering innovative and integrated ISR solutions. There's also a risk of technological obsolescence if the innovations developed do not keep pace with rapidly evolving threats and technologies. Dependence on a single contractor for critical ISR capabilities could also pose a risk if the contractor faces financial instability or strategic shifts. Furthermore, ensuring effective knowledge transfer and integration with existing military systems presents significant technical and programmatic challenges.

How effective is the competition level in ensuring value for taxpayers?

The 'full and open competition' with three bidders is a positive indicator for taxpayer value. This level of competition suggests that the government cast a wide net, allowing multiple capable firms to propose solutions. Competition generally drives down prices, encourages innovation, and leads to better quality services as contractors vie for the award. The fact that three entities submitted proposals indicates sufficient market interest and capability, reducing the risk of a contractor having undue pricing power. However, the ultimate value for taxpayers also depends on the government's ability to effectively define requirements, manage the contract, and oversee performance throughout its duration.

What is the historical spending trend for ISR innovation and integration by the Department of Defense?

The Department of Defense (DoD) consistently allocates substantial funding towards Intelligence, Surveillance, and Reconnaissance (ISR) capabilities, recognizing its critical role in modern warfare and national security. Historical spending trends show a continuous and significant investment in ISR, driven by evolving threats, technological advancements, and the need for persistent situational awareness. This includes funding for platforms (aircraft, satellites, drones), sensors, data processing, analytics, and integration services. While specific figures for 'ISR innovation and integration' as a distinct category fluctuate annually based on strategic priorities and budget allocations, the overall ISR budget has remained robust, often in the tens of billions of dollars annually across the DoD. Contracts like the F3I-2 award represent a portion of this larger, ongoing investment in maintaining and advancing U.S. ISR superiority.

What are the potential performance metrics or KPIs for this contract?

Performance metrics and Key Performance Indicators (KPIs) for a contract focused on ISR innovation and integration would likely be multifaceted, reflecting the complex nature of the work. Potential KPIs could include: successful development and demonstration of new ISR technologies within specified timelines and budgets; seamless integration of new capabilities with existing platforms and command-and-control systems, measured by interoperability tests and system performance benchmarks; achievement of specific intelligence-gathering or analysis targets (e.g., improved detection rates, reduced data processing times, enhanced data fusion accuracy); successful deployment and operational effectiveness of integrated systems in relevant environments; and adherence to security protocols and data handling standards. The CPFF structure often necessitates detailed reporting on cost performance and progress against milestones.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA875019R0003

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: $599,849,525

Exercised Options: $599,849,525

Current Obligation: $578,355,175

Actual Outlays: $40,435,186

Subaward Activity

Number of Subawards: 114

Total Subaward Amount: $207,399,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873215D0044

IDV Type: IDC

Timeline