DoD's $733M IPPS-A Increment II Contract Awarded to CACI-ISS, LLC for System Integration

Contract Overview

Contract Amount: $733,720,755 ($733.7M)

Contractor: Caci-Iss, LLC

Awarding Agency: Department of Defense

Start Date: 2015-05-18

End Date: 2025-06-02

Contract Duration: 3,668 days

Daily Burn Rate: $200.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: IGF::CL,CT::IGF SYSTEM INTEGRATOR FOR INCREMENT II OF INTEGRATED PERSONNEL AND PAY SYSTEM -- ARMY (IPPS-A)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $733.7 million to CACI-ISS, LLC for work described as: IGF::CL,CT::IGF SYSTEM INTEGRATOR FOR INCREMENT II OF INTEGRATED PERSONNEL AND PAY SYSTEM -- ARMY (IPPS-A) Key points: 1. The contract, valued at $733.7 million, focuses on system integration for the Army's personnel and pay system. 2. CACI-ISS, LLC, a large business, was awarded this definitive contract. 3. The contract type is Cost Plus Incentive Fee, suggesting potential for cost overruns but also performance incentives. 4. The sector is IT, specifically custom computer programming services, a critical area for defense modernization.

Value Assessment

Rating: good

The contract's Cost Plus Incentive Fee structure allows for flexibility in pricing based on performance and cost targets. Benchmarking against similar large-scale IT system integration contracts is challenging due to unique program complexities, but the overall value appears within a reasonable range for such a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method allows multiple qualified vendors to bid, fostering competition and potentially leading to more favorable pricing for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives competitive pricing and best value for its investments.

Public Impact

Impacts over 3,600 days of service, affecting Army personnel and pay processes. Modernization of a critical defense system, aiming for improved efficiency and data management. Potential for long-term IT infrastructure development within the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to higher final costs if not managed closely.
The contract duration is extensive (over 10 years), requiring sustained oversight.
No small business participation noted, potentially missing opportunities for economic inclusion.

Positive Signals

Awarded under full and open competition, ensuring a competitive bidding process.
Focus on a critical defense system modernization (IPPS-A).
Definitive contract provides a clear framework for service delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area for defense modernization is substantial, with large-scale system integration projects often costing hundreds of millions to billions of dollars.

Small Business Impact

This contract was not awarded to small businesses, as indicated by 'sb: false'. While CACI-ISS, LLC is a large business, the absence of small business subcontracting goals or participation might represent a missed opportunity to leverage the capabilities of smaller, specialized firms within the IT sector.

Oversight & Accountability

The extensive duration and complexity of this contract necessitate robust oversight from the Department of the Army to ensure performance objectives are met and costs remain controlled. Regular reviews and audits will be crucial for accountability.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to CPIF contract type.
Long contract duration requires sustained oversight.
No small business participation noted.
Complexity of integrating large-scale personnel and pay systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $733.7 million to CACI-ISS, LLC. IGF::CL,CT::IGF SYSTEM INTEGRATOR FOR INCREMENT II OF INTEGRATED PERSONNEL AND PAY SYSTEM -- ARMY (IPPS-A)

Who is the contractor on this award?

The obligated recipient is CACI-ISS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $733.7 million.

What is the period of performance?

Start: 2015-05-18. End: 2025-06-02.

What is the projected return on investment for the IPPS-A Increment II system integration, considering the $733.7 million cost?

The projected return on investment (ROI) for IPPS-A Increment II is not explicitly detailed in the provided data. However, the system aims to improve personnel and pay processes, reduce administrative burdens, and enhance data accuracy for the Army. Quantifying the ROI would involve analyzing cost savings from streamlined operations, reduced errors, and improved decision-making capabilities over the system's lifecycle, which are typically estimated through business case analyses conducted by the agency.

What are the primary risks associated with a Cost Plus Incentive Fee contract for a system integration project of this magnitude?

The primary risks with a Cost Plus Incentive Fee (CPIF) contract for a large system integration project include potential cost overruns if the incentive targets are not well-defined or achievable, leading to higher final costs than anticipated. There's also a risk of the contractor focusing on meeting incentive metrics rather than overall project quality or scope. Effective government oversight is crucial to manage these risks by closely monitoring costs, performance, and the alignment of incentives with desired outcomes.

How does the full and open competition method ensure the effectiveness of the IPPS-A Increment II system integration?

Full and open competition ensures effectiveness by allowing multiple vendors to propose solutions, fostering innovation and driving the selection of the most capable and cost-efficient approach. This competitive process encourages contractors to offer their best technical solutions and pricing strategies to win the contract. The resulting system is more likely to be effective because it is built upon a foundation of rigorous evaluation and selection based on demonstrated capabilities and value, rather than a sole-sourced or limited competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W15QKN12RH023

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 14370 NEWBROOK DRIVE, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $800,761,145

Exercised Options: $800,761,145

Current Obligation: $733,720,755

Actual Outlays: $23,849,197

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $35,755,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline