DoD's $49.6M Engineering Services Contract Awarded to Sabre Systems, LLC for Naval Support

Contract Overview

Contract Amount: $49,642,193 ($49.6M)

Contractor: Sabre Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2009-07-06

End Date: 2014-07-05

Contract Duration: 1,825 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ALRE, EAF AND SE CSS

Place of Performance

Location: LAKEHURST, OCEAN County, NEW JERSEY, 08733

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $49.6 million to SABRE SYSTEMS, LLC for work described as: ALRE, EAF AND SE CSS Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract type, Cost Plus Fixed Fee, can present cost control challenges. 3. Performance period of 5 years indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering expertise. 5. The award was a delivery order under a larger contract vehicle. 6. The contract was not set aside for small businesses. 7. The contractor, Sabre Systems, LLC, has a track record with the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total contract value it falls under and the specific services rendered. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex projects, can lead to cost overruns if not managed tightly. Comparing this to similar engineering services contracts within the Department of the Navy would provide a clearer picture of its value-for-money, but such data is not readily available in this summary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single delivery order suggests that while competition was available, Sabre Systems, LLC was selected as the most advantageous offer. The level of competition is generally positive for price discovery, but the specifics of the bidding process (number of bids received, evaluation criteria) are not detailed here.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. This approach ensures that the government is likely to receive the best value for its investment.

Public Impact

The Department of the Navy benefits from specialized engineering services crucial for its operations. This contract supports the maintenance and enhancement of naval systems and infrastructure. The geographic impact is primarily in New Jersey, where the contractor is located. The contract likely supports a workforce of engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not properly monitored.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The duration of the contract (5 years) could lead to vendor lock-in if not managed proactively.
Limited information on the specific engineering tasks performed makes it hard to gauge the true value delivered.
No indication of small business subcontracting targets could mean missed opportunities for smaller firms.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contractor, Sabre Systems, LLC, has prior experience with the Department of Defense.
The contract addresses a clear need for engineering services within the Navy.
The fixed fee component of the CPFF contract provides some level of cost predictability.
The delivery order structure allows for phased execution of work.

Sector Analysis

Engineering services, classified under NAICS code 541330, represent a significant sector within the federal procurement landscape, particularly for defense agencies. This contract fits within the broader category of professional, scientific, and technical services. The Department of Defense is a major consumer of these services, utilizing them for design, development, testing, and sustainment of complex military systems. Comparable spending benchmarks for engineering services can vary widely based on specialization, project complexity, and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if Sabre Systems, LLC chooses to engage them. The absence of set-aside provisions means that the direct impact on the small business ecosystem for this specific award is likely minimal, unless subcontracting plans are implemented.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract terms and conditions, including performance standards and payment schedules. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Support Services
Professional, Scientific, and Technical Services Contracts
Cost Plus Fixed Fee Contracts
Defense Engineering and Technical Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
Long contract duration (5 years) necessitates proactive performance management.
Lack of detailed service description limits granular value assessment.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.6 million to SABRE SYSTEMS, LLC. ALRE, EAF AND SE CSS

Who is the contractor on this award?

The obligated recipient is SABRE SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $49.6 million.

What is the period of performance?

Start: 2009-07-06. End: 2014-07-05.

What is the specific nature of the engineering services provided under this contract?

The provided data indicates the contract falls under NAICS code 541330, which covers Engineering Services. This typically includes services such as designing, developing, and testing systems; providing technical consultation; and performing research and development in engineering fields. For the Department of the Navy, these services could range from naval architecture and marine engineering to systems engineering for complex platforms like ships, submarines, or associated weapon systems. Without more specific line-item details or a statement of work, the precise engineering tasks remain generalized.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this contract?

The Cost Plus Fixed Fee (CPFF) contract structure involves the government reimbursing the contractor for allowable costs plus a predetermined fixed fee representing profit. While the fixed fee provides some cost certainty for the contractor's profit margin, it can incentivize cost escalation if not rigorously managed. The government bears the risk of cost overruns, as the contractor is incentivized to incur costs to perform the work, knowing their fee is fixed. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate the risk of uncontrolled spending under a CPFF arrangement.

What is Sabre Systems, LLC's track record with the Department of Defense?

Sabre Systems, LLC has a history of contracting with the Department of Defense. The award of this delivery order, valued at approximately $49.6 million, suggests a continued relationship and demonstrated capability to meet DoD requirements. Federal procurement databases would provide a more comprehensive view of their past performance, including the types of services rendered, contract values, and performance ratings on previous DoD contracts. This existing relationship implies a level of trust and proven performance in serving defense needs.

What is the significance of this contract being a delivery order under a larger contract vehicle?

This contract is a delivery order, meaning it is a specific task or order issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) or other type of multiple-award contract. This structure allows agencies to procure services efficiently without needing to re-compete the entire requirement each time. It signifies that a broader contract vehicle was previously competed, and this delivery order represents a specific call for services within the scope of that larger vehicle. The value of $49.6 million represents the funding allocated for this particular delivery order, not necessarily the total value of the parent contract.

How does the 'full and open competition' designation affect taxpayer value?

Awarding contracts through 'full and open competition' means that all responsible sources were permitted to submit a bid or proposal. This process is designed to maximize the number of potential bidders, thereby increasing competition. Increased competition generally leads to better price discovery, encourages innovation, and ensures that the government receives the most advantageous offer in terms of both price and technical merit. For taxpayers, this translates to a higher likelihood of obtaining services at a fair and reasonable price, maximizing the value of public funds.

What are the potential risks associated with a 5-year performance period for engineering services?

A 5-year performance period for engineering services, as indicated by the 1825-day duration (approximately 5 years), presents several potential risks. Firstly, it can lead to vendor lock-in, where the government becomes heavily reliant on a single contractor, potentially reducing leverage for future negotiations. Secondly, over such a long period, the technological landscape or specific requirements might evolve, and the contractor's initial approach might become outdated if not actively managed. Lastly, maintaining consistent quality and performance over an extended duration requires robust oversight and performance management to ensure continued value delivery.

Industry Classification

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

Solicitation ID: N0002409R3118

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: $49,945,820

Exercised Options: $49,945,820

Current Obligation: $49,642,193

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4546

IDV Type: IDC

Timeline