CACI International (NYSE: CACI) has won a potential seven-year, $445, 900, 944 contract that consolidates maintenance services for the U.S. Air Force‘s main Satellite Control Network into a single purchasing mechanism in an effort to reduce the service branch’s operation and sustainment costs.
A Monday contracting notice on FedBizOpps says the Consolidated Air Force Satellite Control Network Modifications, Maintenance and Operations contract — also known as CAMMO — merges requirements from three existing contracts that cover operations and site support, organizational and depot maintenance, sustainment, sustainment modifications, and factory compatibility testing services.
The Air Force officially awarded the fixed-price incentive CAMMO contract to L-3 National Security Solutions, which CACI acquired for $550 million in February.
“By vertically integrating AFSCN contracted work, the government expects economies of scale, economies of scope, and productivity gains; as well as efficiencies compelled by competition resulting in significant projected savings, ” said Air Force Lt. Gen. Samuel Greaves, commander of the service branch’s Space and Missile Systems Center in Los Angeles and program executive officer for space.
AFSCN functions as a global network of communications and computer systems that support the U.S. military’s fleet of orbiting satellites and other space vehicles and is also used by civilian agencies such as the National Oceanic and Atmospheric Administration.
CAMMO contains one base year worth $43, 874, 673 with six one-year options and an additional six-month option that would bring the contract to its full potential value.
CAMMO’s predecessor contacts include the Air Force Satellite Control Network contract held by Honeywell (NYSE: HON), the Engineering Development and Sustainment contract held by Lockheed Martin (NYSE: LMT), and the Network Space Operations and Maintenance contract held by Harris Corp. (NYSE: HRS).