Army R&D Contract Awarded to Sabel Systems Technology Solutions, LLC for Over $72M

Contract Overview

Contract Amount: $72,082,982 ($72.1M)

Contractor: Sabel Systems Technology Solutions, LLC

Awarding Agency: General Services Administration

Start Date: 2023-12-10

End Date: 2026-12-09

Contract Duration: 1,095 days

Daily Burn Rate: $65.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: SBIR PHASE III ARMY DAE TASK ORDER 01

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45431

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $72.1 million to SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC for work described as: SBIR PHASE III ARMY DAE TASK ORDER 01 Key points: 1. Contract awarded as a sole-source, indicating limited competition. 2. Long duration of 1095 days suggests a significant, ongoing project. 3. Firm Fixed Price contract type offers cost certainty for the government. 4. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 5. Awarded by the General Services Administration (GSA) via a Delivery Order. 6. The contract value is substantial, requiring careful performance monitoring.

Value Assessment

Rating: fair

The contract value of over $72 million for a 3-year period requires thorough justification for its fairness and reasonableness, especially given the sole-source nature. Benchmarking against similar R&D contracts for specialized services is crucial. Without more detailed service descriptions or comparable contract data, a definitive value assessment is challenging. The firm fixed price structure provides some cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor possesses unique capabilities or when circumstances prevent full and open competition. The lack of competition means potential cost savings from a competitive bidding process may have been foregone. The justification for this sole-source award would need to be robust to ensure taxpayer value.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiary is the U.S. Army, which will receive specialized research and development services. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or improved capabilities for the military. The geographic impact is centered in Ohio, where SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC is located. Workforce implications include employment opportunities at SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation from a wider market.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if not closely managed due to lack of competitive pressure.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Long-term award suggests a critical need and potential for sustained R&D effort.
Award to a specific company indicates specialized expertise aligned with Army requirements.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization, where innovation is key to maintaining technological superiority. The market for specialized R&D services is competitive, but specific niche capabilities can lead to sole-source awards. Comparable spending benchmarks would depend heavily on the specific scientific or engineering domain addressed by the contract.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the nature of the work, but it is not explicitly mandated by the award details provided.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the U.S. Army program office that initiated the requirement. Accountability measures would be tied to the performance metrics outlined in the contract's Statement of Work. Transparency is generally facilitated through contract databases, but the specifics of sole-source justifications may have limited public disclosure.

Related Government Programs

Army R&D Programs
GSA Federal Acquisition Service Contracts
Research and Development Services
Defense Science and Technology

Risk Flags

Sole-source award requires strong justification.
Potential for higher costs due to lack of competition.
Need for robust oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $72.1 million to SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC. SBIR PHASE III ARMY DAE TASK ORDER 01

Who is the contractor on this award?

The obligated recipient is SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $72.1 million.

What is the period of performance?

Start: 2023-12-10. End: 2026-12-09.

What specific research and development services are being provided under this contract?

The contract falls under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' While the specific task order details are not provided, this broad category suggests the work could encompass a wide range of scientific and engineering disciplines. Examples might include materials science, advanced manufacturing processes, simulation and modeling, environmental engineering, or specialized testing and analysis relevant to Army operational needs. The exact nature of the R&D would be detailed in the Statement of Work (SOW) associated with this Delivery Order, which is not publicly available in this data extract. Understanding the SOW is critical to assessing the contract's true purpose and value.

What is the justification for awarding this contract on a sole-source basis?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency that precludes full and open competition. For this contract, the justification would likely stem from SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC possessing unique technical expertise, proprietary technology, or a pre-existing relationship that makes them the only viable option for the Army's specific R&D needs. The General Services Administration (GSA), as the awarding agency, would have required a formal justification document (e.g., a Justification and Approval - J&A) from the requiring Army activity detailing why competition was not feasible or advantageous. This document would need to be approved by appropriate authorities before the sole-source award could be finalized.

How does the $72 million contract value compare to similar R&D contracts in the physical, engineering, and life sciences sector?

Assessing the $72 million value requires context regarding the specific R&D domain and the scope of work. Contracts in the physical, engineering, and life sciences sector can vary dramatically in cost. For instance, basic research might be less expensive than advanced prototype development or large-scale testing. Given this is a sole-source award for a 3-year duration, the value suggests a significant and complex R&D effort. Benchmarking would ideally involve comparing it to other sole-source or competitively awarded contracts for similar Army R&D requirements, focusing on the type of research, deliverables, and contractor expertise. Without more granular data on the specific services, a precise comparison is difficult, but the amount indicates a substantial investment in specialized scientific and technical capabilities.

What are the potential risks associated with a sole-source R&D contract of this magnitude?

Several risks are associated with sole-source R&D contracts of this magnitude. Firstly, the lack of competition can lead to higher costs for taxpayers, as there is no market pressure to ensure the most competitive pricing. Secondly, there's a risk of contractor complacency or reduced innovation if the contractor knows they are the only option, potentially impacting the quality or timeliness of deliverables. Thirdly, if the contractor's unique capabilities are not well-documented or transferable, the government could become overly reliant on them, creating a strategic risk. Finally, the justification for the sole-source award itself could be challenged, raising concerns about fairness and adherence to procurement regulations. Robust government oversight and clear performance metrics are essential to mitigate these risks.

What is SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC's track record with federal R&D contracts, particularly with the Army or GSA?

Information on SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC's specific track record with federal R&D contracts, especially with the Army or GSA, is not detailed in the provided data. To assess their performance history, one would typically review contract databases (like FPDS or SAM.gov) for past awards, contract performance evaluations (e.g., CPARS reports), and any publicly available information on their previous projects. A positive track record with similar R&D efforts, demonstrated success in meeting technical requirements, and adherence to budget and schedule would be indicators of reliability. Conversely, past performance issues or a lack of relevant experience could raise concerns about the successful execution of this $72 million contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA24R0003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2290 LAKEVIEW DR, BEAVERCREEK, OH, 45431

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,214,585

Exercised Options: $72,082,982

Current Obligation: $72,082,982

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $10,260,954

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QFLA24D0001

IDV Type: IDC

Timeline