Air Force Awards $600M Satellite Network Contract to CACI NSS, LLC for Maintenance and Operations
Contract Overview
Contract Amount: $600,725,818 ($600.7M)
Contractor: CACI NSS, LLC
Awarding Agency: Department of Defense
Start Date: 2016-06-13
End Date: 2026-06-30
Contract Duration: 3,669 days
Daily Burn Rate: $163.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST NO FEE
Sector: IT
Official Description: IGF::OT::IGF CONSOLIDATED AIR FORCE SATELLITE CONTROL NETWORK MAINTENANCE, MODIFICATIONS AND OPERATIONS CONTRACT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $600.7 million to CACI NSS, LLC for work described as: IGF::OT::IGF CONSOLIDATED AIR FORCE SATELLITE CONTROL NETWORK MAINTENANCE, MODIFICATIONS AND OPERATIONS CONTRACT Key points: 1. Contract value of $600.7M over its life. 2. CACI NSS, LLC is the sole awardee. 3. High risk associated with critical satellite network infrastructure. 4. Sector is IT/Telecommunications, specifically satellite operations.
Value Assessment
Rating: fair
The contract type is Cost No Fee, which offers less price certainty for the government. Benchmarking is difficult without specific cost breakdowns, but the overall value suggests significant investment in a critical capability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair pricing, though the Cost No Fee structure requires careful oversight.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential satellite network services.
Public Impact
Ensures continued operation and maintenance of the Air Force Satellite Control Network. Supports critical national security and space-based communication capabilities. Potential impact on future satellite technology development and deployment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type
- Long duration (over 10 years)
- Sole awardee for critical infrastructure
Positive Signals
- Full and open competition
- Supports critical national security functions
Sector Analysis
This contract falls within the IT and Telecommunications sector, specifically focusing on the operation and maintenance of satellite ground systems. Spending in this area is crucial for national defense and global communication infrastructure.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were pursued.
Oversight & Accountability
The Cost No Fee structure necessitates robust government oversight to ensure performance and prevent cost overruns, despite the fee structure. Regular performance reviews and audits are critical.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration exceeds 10 years.
- Cost No Fee contract type.
- Sole awardee for critical infrastructure.
- Lack of explicit small business participation noted.
Tags
satellite-telecommunications, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $600.7 million to CACI NSS, LLC. IGF::OT::IGF CONSOLIDATED AIR FORCE SATELLITE CONTROL NETWORK MAINTENANCE, MODIFICATIONS AND OPERATIONS CONTRACT
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 $600.7 million.
What is the period of performance?
Start: 2016-06-13. End: 2026-06-30.
What is the projected cost per year for this contract, and how does it compare to similar satellite network maintenance contracts?
The total contract value is approximately $600.7 million over roughly 10 years, suggesting an average annual cost of around $60 million. Direct comparison is challenging without detailed cost breakdowns and specific contract scopes. However, this figure should be benchmarked against industry standards for similar government satellite control network operations and maintenance to assess value for money.
What are the specific risks associated with relying on a single contractor for such a critical national security asset like the Satellite Control Network?
Reliance on a single contractor, CACI NSS, LLC, for the Satellite Control Network presents risks including potential vendor lock-in, reduced leverage in future negotiations, and vulnerability to contractor performance issues or financial instability. A single point of failure could impact critical military communications and space operations if the contractor fails to meet performance requirements or experiences disruptions.
How effectively does the 'Cost No Fee' contract type ensure mission success and cost control for the Air Force in this high-stakes IT acquisition?
The 'Cost No Fee' (CNF) structure incentivizes the contractor to control costs as they do not receive a fee based on the incurred costs. However, it can reduce the contractor's motivation for efficiency compared to fixed-price contracts. Effective cost control and mission success rely heavily on stringent government oversight, performance metrics, and clear deliverables to ensure the contractor meets all requirements without unnecessary expenditure.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA882313R0009
Offers Received: 4
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 5575 TECH CENTER DR STE 330, COLORADO SPRINGS, CO, 80919
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $635,864,552
Exercised Options: $635,864,552
Current Obligation: $600,725,818
Actual Outlays: $26,770,759
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $5,819,073
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-06-13
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-12
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