CACI Enterprise Solutions awarded $64.2M for DMLSS sustainment and development, a significant IT services contract

Contract Overview

Contract Amount: $64,236,893 ($64.2M)

Contractor: CACI Enterprise Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2015-06-25

End Date: 2018-09-29

Contract Duration: 1,192 days

Daily Burn Rate: $53.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF DMLSS SUSTAINMENT&DEVELOPMENT SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $64.2 million to CACI ENTERPRISE SOLUTIONS, LLC for work described as: IGF::OT::IGF DMLSS SUSTAINMENT&DEVELOPMENT SUPPORT SERVICES Key points: 1. The contract value of $64.2 million over approximately three years suggests a substantial investment in IT sustainment. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The firm-fixed-price contract type indicates that CACI Enterprise Solutions assumed the risk for cost overruns. 4. This contract falls within the Computer Systems Design Services NAICS code, a common area for federal IT support. 5. The duration of the contract (1192 days) points to a long-term need for these services. 6. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $64.2 million for sustainment and development of IT systems over roughly three years appears reasonable for the scope of services. Benchmarking against similar large-scale IT sustainment contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests a degree of cost control, as the contractor bears the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a competitive environment, though the exact number of bids received is not detailed. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, driving down costs and improving service quality.

Public Impact

The Department of the Army is the primary beneficiary, receiving critical IT sustainment and development services. This contract supports the Defense Logistics Management System (DMLSS), a key system for military logistics operations. The services delivered are essential for maintaining the operational readiness and efficiency of military supply chains. The geographic impact is likely widespread, supporting Army operations across various locations. Workforce implications include the employment of IT professionals by CACI Enterprise Solutions to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the developed system becomes highly specialized and difficult to transition.
Reliance on a single contractor for critical system sustainment could pose risks if performance degrades.
The complexity of sustainment and development may lead to unforeseen technical challenges and cost increases, despite the FFP structure.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type shifts cost risk to the contractor.
The contract supports a critical defense logistics system, ensuring operational continuity.
The contractor, CACI Enterprise Solutions, likely has a track record in providing similar IT services to the government.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and sustainment. The federal IT market is vast, with significant spending allocated to maintaining and upgrading complex systems like the DMLSS. Contracts of this nature are crucial for ensuring the operational effectiveness of defense logistics, which underpins military readiness. Comparable spending benchmarks would involve analyzing other large-scale IT sustainment contracts awarded by the Department of Defense or other federal agencies for similar system complexity and scope.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the large dollar value and the nature of the services, it is likely that larger, established IT firms were the primary bidders. The absence of small business set-aside provisions means that opportunities for small businesses to participate directly in this contract may be limited, though they could potentially be involved as subcontractors if CACI Enterprise Solutions opts to utilize them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Management System (DMLSS)
Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
Computer Systems Design Services Contracts

Risk Flags

Contract duration is substantial, requiring long-term oversight.
Firm-fixed-price contracts can sometimes lead to scope creep if not managed carefully.
Reliance on a single vendor for critical system sustainment carries inherent risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.2 million to CACI ENTERPRISE SOLUTIONS, LLC. IGF::OT::IGF DMLSS SUSTAINMENT&DEVELOPMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CACI ENTERPRISE SOLUTIONS, 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 $64.2 million.

What is the period of performance?

Start: 2015-06-25. End: 2018-09-29.

What is the historical spending pattern for DMLSS sustainment and development services prior to this contract?

Analyzing historical spending for DMLSS sustainment and development prior to this $64.2 million contract awarded in 2015 is crucial for understanding trends and identifying potential cost efficiencies or escalations. Without specific prior contract data, we can infer that the Army has consistently invested in maintaining and upgrading its logistics management systems. Federal IT spending, in general, has seen a steady increase over the years, driven by the need to modernize aging infrastructure and enhance cybersecurity. Understanding the previous contract values, durations, and the number of bidders for DMLSS would provide context for the current award, helping to determine if the $64.2 million represents an increase, decrease, or stable level of investment. It would also highlight whether the sustainment needs have grown or if new development initiatives have driven up costs.

How does the per-unit cost of CACI's services compare to similar IT sustainment contracts within the DoD?

Benchmarking the per-unit cost of CACI Enterprise Solutions' services against similar IT sustainment contracts within the Department of Defense is essential for assessing value for money. However, without specific details on the units of service (e.g., hours, licenses, support tickets) and their associated rates within this $64.2 million contract, a direct per-unit comparison is challenging. Generally, IT sustainment contracts for complex systems like DMLSS involve a mix of labor categories, software licensing, and infrastructure support. A comprehensive analysis would require access to the contract's detailed CLINs (Contract Line Item Numbers) and CLIN-level pricing. Comparing these rates to industry benchmarks or other government contracts for comparable services, considering factors like labor mix, geographic location, and service level agreements, would reveal whether CACI's pricing is competitive. A higher per-unit cost might be justified by superior performance or specialized expertise, but it warrants careful scrutiny.

What is CACI Enterprise Solutions' track record with similar large-scale IT sustainment contracts for the Department of Defense?

CACI Enterprise Solutions, as a significant government contractor, likely possesses a substantial track record in providing IT sustainment and development services to the Department of Defense and other federal agencies. Their experience with complex systems, logistics platforms, and large-scale IT infrastructure projects would be a key factor in their ability to successfully execute this $64.2 million contract. A review of their past performance evaluations, contract awards, and any reported issues or successes on similar DoD contracts would provide insight into their capabilities, reliability, and adherence to contract requirements. Specifically, examining their history with systems similar in scope and criticality to DMLSS would be most relevant. Positive past performance generally indicates a lower risk of contract failure and a higher likelihood of successful service delivery.

What are the key performance indicators (KPIs) used to measure the success of this DMLSS sustainment and development contract?

The success of the DMLSS sustainment and development contract awarded to CACI Enterprise Solutions is likely measured through a set of Key Performance Indicators (KPIs) defined in the contract's Performance Work Statement (PWS). These KPIs are designed to ensure the contractor meets the government's requirements for system availability, performance, security, and responsiveness. Typical KPIs for IT sustainment might include system uptime percentages, response times for issue resolution, patch deployment rates, security vulnerability remediation timelines, and user satisfaction metrics. For development aspects, KPIs could relate to on-time delivery of new features, adherence to budget for development tasks, and the successful integration of new functionalities. Regular performance reviews and reporting against these KPIs would be conducted by the Army to monitor CACI's progress and ensure the contract delivers the intended value.

What is the potential impact of this contract on the overall IT modernization efforts within the Department of the Army?

This $64.2 million contract for DMLSS sustainment and development plays a crucial role in the Department of the Army's broader IT modernization efforts. By ensuring the continued operational effectiveness and potential enhancement of a critical logistics system, it allows the Army to maintain current capabilities while pursuing larger strategic modernization goals. The sustainment aspect ensures that existing systems remain functional and secure, preventing degradation that could hinder operations. The development component allows for incremental improvements and adaptation to evolving needs, potentially integrating with newer technologies or platforms. Successful execution of this contract can free up resources and provide a stable foundation upon which more transformative IT initiatives can be built, contributing to the overall efficiency and readiness of the Army's digital infrastructure.

Industry Classification

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

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14370 NEWBROOK DRIVE STE 100, 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: $70,070,822

Exercised Options: $64,236,893

Current Obligation: $64,236,893

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $3,055,859

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200009W

IDV Type: GWAC

Timeline