DoD awards $18.7M for IT services, facing limited competition and potential cost overruns

Contract Overview

Contract Amount: $18,737,061 ($18.7M)

Contractor: CACI NSS, LLC

Awarding Agency: Department of Defense

Start Date: 2005-09-22

End Date: 2007-09-08

Contract Duration: 716 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: 200511!000639!5700!FA8770!MSG/PK !GS35F5396H !C!N! !Y!FA877005F8024! !20050922!20060929!085442114!085442114!008898843!N!L-3 COMMUNICATIONS TITAN CORPO!300 CONCORD RD STE 400 !BILLERICA !MA!01821!05770!017!25!BILLERICA !MIDDLESEX !MASS !+000005624712!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !20200930!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to CACI NSS, LLC for work described as: 200511!000639!5700!FA8770!MSG/PK !GS35F5396H !C!N! !Y!FA877005F8024! !20050922!20060929!085442114!085442114!008898843!N!L-3 COMMUNICATIONS TITAN CORPO!300 CONCORD RD STE 400 !BILLERICA !MA!01821!05770!017!25!BILLERICA !MIDD… Key points: 1. The contract awarded to L-3 Communications Titan Corp. for IT services represents a significant expenditure. 2. Competition was limited, raising concerns about price discovery and potential overpayment. 3. The contract's duration and value suggest a substantial commitment of taxpayer funds. 4. The sector is IT services, a critical area for defense operations.

Value Assessment

Rating: questionable

The contract value of $18.7 million for IT services appears high given the limited competition. Benchmarking against similar contracts is difficult without more detailed service descriptions, but the awarded amount warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under limited competition, which can lead to higher prices than under full and open competition. The specific reasons for this limitation are not detailed, impacting the government's ability to secure the best possible price.

Taxpayer Impact: Limited competition increases the risk of overpaying for services, meaning taxpayer funds may not be used as efficiently as possible.

Public Impact

Taxpayers may be paying a premium due to the lack of robust competition for these IT services. The Department of Defense relies on these services, so any inefficiencies could impact operational readiness. The long-term implications of awarding contracts with limited competition are a concern for fiscal responsibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, which is a significant area of government spending. Benchmarks for similar IT service contracts vary widely based on scope and complexity, but limited competition often inflates costs.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation.

Oversight & Accountability

The data provides basic contract details but lacks information on performance reviews, oversight mechanisms, or specific accountability measures for L-3 Communications Titan Corp. Further investigation into oversight is needed.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-defense, ma, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to CACI NSS, LLC. 200511!000639!5700!FA8770!MSG/PK !GS35F5396H !C!N! !Y!FA877005F8024! !20050922!20060929!085442114!085442114!008898843!N!L-3 COMMUNICATIONS TITAN CORPO!300 CONCORD RD STE 400 !BILLERICA !MA!01821!05770!017!25!BILLERICA !MIDDLESEX !MASS !+000005624712!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is CACI NSS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2005-09-22. End: 2007-09-08.

What specific IT services were procured under this contract, and how do they align with the government's needs?

The contract specifies 'Other Computer Related Services' (NAICS 541519) and 'Other Management Support Services' (NAICS 541519). While essential for defense operations, the broad categorization makes it difficult to assess precise alignment without further details on the scope of work, deliverables, and performance metrics.

What were the justifications for limiting competition for this significant IT services contract?

The provided data indicates 'FULL AND OPEN COMPETITION' as the contract type, yet also states 'limited' competition. This is a contradiction. If competition was indeed limited, the justification for this limitation is crucial for understanding potential price impacts and ensuring fair market access.

How does the awarded price compare to industry benchmarks for similar IT services, considering the limited competition?

Direct comparison is challenging due to the limited competition and broad service description. However, limited competition typically results in higher prices than full and open competition. The benchmark of $18.7 million warrants a deeper dive into the specific services rendered and their market value.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5396H

IDV Type: FSS

Timeline

Start Date: 2005-09-22

Current End Date: 2007-09-08

Potential End Date: 2007-09-08 00:00:00

Last Modified: 2021-11-25

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