DoD's $31.3M C4ISR sensor systems contract awarded to Sabre Systems, LLC, spanning nearly 8 years

Contract Overview

Contract Amount: $31,335,751 ($31.3M)

Contractor: Sabre Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2009-04-01

End Date: 2016-09-30

Contract Duration: 2,739 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: C4ISR RF SENSOR SYSTEMS/SUBSYSTEMS AND OTHER SPECIAL SYSTEMS WITHIN Z17

Place of Performance

Location: WARMINSTER, BUCKS County, PENNSYLVANIA, 18974

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to SABRE SYSTEMS, LLC for work described as: C4ISR RF SENSOR SYSTEMS/SUBSYSTEMS AND OTHER SPECIAL SYSTEMS WITHIN Z17 Key points: 1. Contract value represents a significant investment in advanced defense technology. 2. Competition dynamics suggest a potentially robust market for specialized C4ISR solutions. 3. Long duration indicates a sustained need for these critical systems. 4. Performance context is tied to engineering services for complex defense systems. 5. Sector positioning is within the highly specialized C4ISR domain of the Defense industry.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the C4ISR sensor systems and subsystems procured. The total award amount of $31.3 million over nearly 8 years averages to approximately $4 million annually, which could be considered moderate for specialized defense engineering services. However, without comparable contract data for similar systems or a clear understanding of the scope of work, a definitive value-for-money assessment is difficult. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, but it also allows for flexibility in evolving defense requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a single award (no) suggests that while competition was open, Sabre Systems, LLC was ultimately selected as the most advantageous offer. The level of competition is not explicitly detailed, but the 'full and open' designation generally implies a healthy bidding environment, which can contribute to better pricing and innovation.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the contract was awarded through a transparent process, allowing for the best value to be identified among qualified vendors.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, receiving advanced C4ISR sensor systems and subsystems. Services delivered include engineering support for the development, integration, and sustainment of critical defense technology. Geographic impact is likely national, supporting military operations and readiness across various theaters. Workforce implications include employment for engineers, technicians, and support staff within Sabre Systems, LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not meticulously managed.
The long contract duration (nearly 8 years) may present challenges in adapting to rapidly evolving technological landscapes in C4ISR.
Lack of specific performance metrics or outcome data makes it difficult to fully assess the effectiveness and efficiency of the services provided.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely yielded fair market value.
Sabre Systems, LLC's long-standing engagement indicates a level of trust and capability in delivering complex defense solutions.
The contract addresses critical C4ISR capabilities, essential for modern military intelligence, surveillance, and reconnaissance operations.

Sector Analysis

The C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) sector is a vital and highly specialized segment of the defense industry. This contract falls within the engineering services sub-sector, focusing on the development and integration of sensor systems and subsystems. The market for C4ISR solutions is characterized by high barriers to entry due to technological complexity and stringent security requirements. Spending in this area is consistently high as nations prioritize advanced intelligence and situational awareness capabilities. Comparable spending benchmarks would typically involve other large-scale defense contracts for similar technological systems and engineering support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses within this award. The primary focus appears to be on large-scale prime contracting. While Sabre Systems, LLC may engage small businesses as subcontractors, this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on Sabre's subcontracting practices, which are not specified here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are inherent in the CPFF contract type, which requires detailed cost reporting and justification. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense C4ISR Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Platforms
Advanced Sensor Technology Development
Military Engineering Services
Command and Control Systems

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to higher costs if not managed effectively.
Long contract duration (nearly 8 years) poses a risk of technological obsolescence or changing requirements.
Lack of detailed performance metrics in the provided data hinders a comprehensive assessment of value and effectiveness.
Specific details on the types of C4ISR sensor systems and subsystems are not provided, limiting in-depth technical analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to SABRE SYSTEMS, LLC. C4ISR RF SENSOR SYSTEMS/SUBSYSTEMS AND OTHER SPECIAL SYSTEMS WITHIN Z17

Who is the contractor on this award?

The obligated recipient is SABRE SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $31.3 million.

What is the period of performance?

Start: 2009-04-01. End: 2016-09-30.

What is Sabre Systems, LLC's track record with similar C4ISR contracts?

Sabre Systems, LLC has a history of engaging in defense contracts, including those related to C4ISR and engineering services. While this specific contract is for $31.3 million over nearly 8 years, their broader portfolio likely includes various projects of different scales and complexities within the defense sector. To fully assess their track record, a deeper dive into their past performance on similar C4ISR sensor system contracts, including client feedback, on-time delivery rates, and budget adherence, would be necessary. Information on their experience with specific types of sensors or subsystems would also provide further context on their specialized capabilities and reliability in this domain.

How does the $31.3 million award compare to other C4ISR sensor system contracts?

The $31.3 million award for C4ISR sensor systems and subsystems over approximately 7.7 years (2739 days) averages to about $4.07 million per year. This figure can be considered moderate within the broader landscape of defense contracting, where individual system procurements or development programs can range from tens of millions to billions of dollars. However, the 'average' annual spend doesn't capture the lumpiness of development and integration costs. To provide a more precise comparison, one would need to benchmark against contracts for similar types of sensor technologies (e.g., radar, electro-optical, signals intelligence) and the specific engineering services required (e.g., design, integration, testing, sustainment). Without this granular detail, it's difficult to definitively state if this represents a particularly high or low investment relative to its peers.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the fee is fixed, the government bears the risk of increased costs incurred by the contractor in performing the work. If Sabre Systems, LLC experiences unforeseen technical challenges, material cost increases, or inefficiencies in its operations, the total cost to the government could escalate beyond initial projections. Effective oversight by the Defense Contract Management Agency (DCMA) is crucial to mitigate this risk by scrutinizing contractor expenditures and ensuring that costs are reasonable and allocable to the contract. Additionally, the long duration of the contract introduces program risk, as technological obsolescence or shifts in strategic priorities could impact the relevance or necessity of the systems being developed.

How effective are C4ISR sensor systems in enhancing military operational effectiveness?

C4ISR sensor systems are fundamental to modern military operational effectiveness. They provide the critical intelligence, surveillance, and reconnaissance (ISR) capabilities that enable commanders to understand the battlespace, identify threats, and make informed decisions. Advanced sensors can detect and track targets across various domains (air, land, sea, space, cyber) with increasing precision and speed. The data gathered is fused and disseminated through command and control networks, allowing for coordinated responses and improved situational awareness. The effectiveness of these systems is directly tied to their reliability, accuracy, integration with other platforms, and the speed at which actionable intelligence can be delivered to decision-makers. Contracts like this one, focused on developing and sustaining these systems, are therefore crucial for maintaining a technological edge and ensuring mission success.

What has been the historical spending trend for C4ISR sensor systems within the Department of Defense?

Historical spending on C4ISR sensor systems within the Department of Defense has consistently been substantial, reflecting the enduring strategic importance of intelligence, surveillance, and reconnaissance capabilities. While specific figures fluctuate based on geopolitical events, technological advancements, and budget allocations, the overall trend indicates a sustained and significant investment. For instance, major defense budgets often allocate tens of billions of dollars annually towards C4ISR programs, encompassing research, development, procurement, and sustainment. This particular contract, valued at $31.3 million, represents a component of this larger, ongoing investment. Trends often show increased spending during periods of conflict or heightened global tensions, and a continuous drive towards more sophisticated, networked, and data-rich sensor technologies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3070

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 65 W STREET RD, WARMINSTER, PA, 18974

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $96,762,390

Exercised Options: $57,291,748

Current Obligation: $31,335,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4546

IDV Type: IDC

Timeline