DoD's $28.9M CACI Contract for Computer Systems Design Services Lacked Competition
Contract Overview
Contract Amount: $28,894,823 ($28.9M)
Contractor: CACI NSS, LLC
Awarding Agency: Department of Defense
Start Date: 2013-08-30
End Date: 2015-10-31
Contract Duration: 792 days
Daily Burn Rate: $36.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: LABOR- TECHNOLOGY INSERTION O&M
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.9 million to CACI NSS, LLC for work described as: LABOR- TECHNOLOGY INSERTION O&M Key points: 1. Significant spending on computer systems design services by the Department of the Army. 2. CACI NSS, LLC was the sole awardee, raising questions about competitive pricing. 3. The contract type (Cost Plus Fixed Fee) can sometimes lead to higher costs without strong oversight. 4. The lack of competition is a key risk factor for taxpayer value.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, suggests potential for inflated costs. Benchmarking against similar 'Computer Systems Design Services' contracts would be necessary to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competitive bidding process. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition likely resulted in taxpayers paying more than they would have under a competitive procurement.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The Department of Defense's reliance on sole-source contracts can stifle innovation from other vendors. Limited transparency into the pricing structure due to the non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Contract awarded to a known entity (CACI NSS, LLC)
Sector Analysis
This contract falls under Computer Systems Design Services, a sector critical for defense operations. Spending benchmarks for this category can vary widely based on complexity and duration, but competitive pricing is generally expected.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities. Sole-source awards often limit the ability for small businesses to participate.
Oversight & Accountability
The 'VA' status suggests it may be subject to specific oversight, but the lack of competition and cost-plus structure warrant close monitoring of expenditures and performance to ensure accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- Reduced incentive for contractor efficiency
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.9 million to CACI NSS, LLC. LABOR- TECHNOLOGY INSERTION O&M
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 Army).
What is the total obligated amount?
The obligated amount is $28.9 million.
What is the period of performance?
Start: 2013-08-30. End: 2015-10-31.
What was the justification for the sole-source award, and how was the fixed fee determined?
The justification for a sole-source award is crucial for understanding why competition was bypassed. The determination of the fixed fee in a Cost Plus Fixed Fee contract requires careful negotiation and should reflect a reasonable profit margin for the contractor based on the estimated costs and risks involved. Without this information, it's difficult to assess if the fee was appropriate.
How did the government ensure cost control and prevent overruns with a Cost Plus Fixed Fee contract awarded non-competitively?
Controlling costs on a Cost Plus Fixed Fee contract, especially when awarded non-competitively, relies heavily on robust government oversight. This includes detailed auditing of incurred costs, strict adherence to the contract's scope, and proactive management of any potential changes. The government must actively monitor contractor performance and expenditures to prevent unnecessary spending and ensure the fixed fee remains justified.
What was the specific technology insertion or O&M service provided, and was it unique enough to warrant a sole-source award?
Understanding the specific 'Technology Insertion O&M' services is key to evaluating the sole-source justification. If the services involved highly specialized, proprietary technology or unique expertise not available elsewhere, a sole-source award might be defensible. However, without such clear justification, it raises concerns about whether alternative solutions or vendors could have provided similar services competitively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W911W413R0010
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc (UEI: 045534641)
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: $35,902,378
Exercised Options: $35,902,378
Current Obligation: $28,894,823
Subaward Activity
Number of Subawards: 68
Total Subaward Amount: $858,190,372
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-08-30
Current End Date: 2015-10-31
Potential End Date: 2015-10-31 00:00:00
Last Modified: 2018-09-21
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