DOJ's $10.3M IT services contract for Firebird Information System awarded non-competitively to Sabre Systems, LLC

Contract Overview

Contract Amount: $10,289,194 ($10.3M)

Contractor: Sabre Systems, LLC

Awarding Agency: Department of Justice

Start Date: 2007-03-30

End Date: 2008-09-29

Contract Duration: 549 days

Daily Burn Rate: $18.7K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: FIRS: SHORT TERM CONTINUITY OF IT SERVICES FOR WORLDWIDE SUPPORT OF FIREBIRD INFORMATION SYSTEM

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $10.3 million to SABRE SYSTEMS, LLC for work described as: FIRS: SHORT TERM CONTINUITY OF IT SERVICES FOR WORLDWIDE SUPPORT OF FIREBIRD INFORMATION SYSTEM Key points: 1. Contract awarded as a non-competitive delivery order, raising questions about potential cost savings through competition. 2. The fixed-price, level-of-effort contract type suggests a defined scope but allows for flexibility in resource allocation. 3. The contract duration of 549 days indicates a short-term need for continuity of IT services. 4. Awarded to Sabre Systems, LLC, whose track record and past performance on similar contracts warrant review. 5. The North American Industry Classification System (NAICS) code 443120 (Computer and Software Stores) appears to be a mismatch for IT services. 6. The contract's value of over $10 million for less than two years of service requires benchmarking against similar IT support contracts.

Value Assessment

Rating: questionable

The contract value of $10,289,194.16 for 549 days of IT services appears high, especially given the non-competitive award. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar government contracts. The fixed-price, level-of-effort structure can sometimes lead to inefficiencies if not closely managed. Further analysis of the specific services rendered and the contractor's labor rates would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, indicating that the agency did not solicit bids from multiple offerors. This approach is typically used when only one source is capable of meeting the requirement, or in urgent situations. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government. The specific justification for this sole-source award is not provided but would be crucial for understanding the procurement rationale.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, which typically drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are the Department of Justice and its Drug Enforcement Administration, receiving continuity of IT services for the Firebird Information System. Essential IT support services are delivered to ensure the operational functionality of a critical information system. The geographic impact is worldwide, supporting global operations of the DEA. Workforce implications include the potential reliance on Sabre Systems, LLC personnel for specialized IT functions, impacting internal staffing needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potentially increases costs.
NAICS code mismatch (443120) raises concerns about the accuracy of procurement data and classification.
Short contract duration (549 days) may indicate a stop-gap measure, potentially leading to future re-procurement costs.
Fixed-price, level-of-effort contract type can be prone to cost overruns if not managed diligently.

Positive Signals

Ensures continuity of critical IT services for the Firebird Information System, preventing operational disruptions.
Awarded to a single contractor, potentially streamlining management and communication for this specific task.
Fixed-price contract provides some cost certainty for the government, assuming scope is well-defined.

Sector Analysis

The IT services sector is a vast and dynamic market. This contract falls under IT support and maintenance, a crucial segment for government agencies relying on complex information systems. The market for such services is competitive, with numerous firms offering specialized expertise. However, non-competitive awards can limit the visibility into market pricing and the availability of innovative solutions from a broader range of providers. Benchmarking this contract's value against similar IT support contracts awarded competitively by agencies like the DEA or other law enforcement bodies would provide a clearer picture of its cost-effectiveness.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award was made to Sabre Systems, LLC, a company that may or may not be classified as a small business. Without specific details on subcontracting plans or set-aside provisions, the direct impact on the small business ecosystem is unclear. Further investigation into the contractor's size status and subcontracting goals would be necessary to assess its effect on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and program managers. The Drug Enforcement Administration would be responsible for monitoring performance and ensuring compliance with contract terms. Transparency is limited due to the non-competitive nature of the award. There is no specific mention of an Inspector General's involvement in this particular delivery order, though the DOJ OIG generally oversees agency operations.

Related Government Programs

Department of Justice IT Modernization Programs
Drug Enforcement Administration Information Technology Support
Federal Law Enforcement IT Systems
Government-wide IT Services Contracts
Firebird Information System Maintenance

Risk Flags

Non-competitive award
Potential NAICS code mismatch
High contract value for short duration
Lack of detailed performance metrics in provided data

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $10.3 million to SABRE SYSTEMS, LLC. FIRS: SHORT TERM CONTINUITY OF IT SERVICES FOR WORLDWIDE SUPPORT OF FIREBIRD INFORMATION SYSTEM

Who is the contractor on this award?

The obligated recipient is SABRE SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2007-03-30. End: 2008-09-29.

What was the specific justification for awarding this contract non-competitively?

The provided data indicates the contract was a 'NON-COMPETITIVE DELIVERY ORDER'. Typically, such awards are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without the specific justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reason. However, the short duration (549 days) and the need for 'SHORT TERM CONTINUITY OF IT SERVICES' might suggest a situation where a rapid, sole-source solution was deemed necessary to avoid a gap in essential services while a more competitive, long-term solution was being planned or executed.

How does the pricing of this contract compare to similar IT support contracts for law enforcement agencies?

Direct comparison is challenging without knowing the specific services rendered and the labor mix. However, a $10.3 million contract for approximately 18 months of IT support for a single system is substantial. Government-wide IT support contracts, especially those awarded competitively, often show a wide range of per-hour labor rates depending on skill set and location. Given this was a non-competitive award, it is plausible that the pricing may be higher than what could have been achieved through open competition. Benchmarking against contracts for similar 'level of effort' IT services for agencies like the FBI or DHS, particularly those with fixed-price structures, would be necessary for a more accurate assessment of value for money.

What is the track record of Sabre Systems, LLC on federal contracts, particularly for IT services?

Sabre Systems, LLC has a history of receiving federal contracts, primarily within the IT and engineering services domains. A review of publicly available contract data (e.g., FPDS) would reveal their performance history, including contract types, agencies served, and award values. For this specific contract, understanding their past performance on similar 'continuity of IT services' or 'information system support' contracts, especially with agencies like the Department of Justice or DEA, would be crucial. Positive past performance on comparable contracts could mitigate some concerns associated with a non-competitive award, while negative performance would heighten them.

What are the potential risks associated with the NAICS code 443120 for this contract?

The NAICS code 443120, 'Computer and Software Stores,' is typically associated with retail or wholesale sales of computer hardware and software, not the provision of IT services like system support, maintenance, or development. Using an incorrect NAICS code can lead to several risks: it may misrepresent the nature of the services procured, potentially skewing government spending data and making accurate benchmarking difficult. It could also indicate a misunderstanding of the procurement requirements or the market. For IT services, codes like 541511 (Custom Computer Programming Services), 541512 (Computer Systems Design Services), or 541519 (Other Computer Related Services) are more appropriate. This discrepancy warrants further investigation into why this code was assigned.

How does the fixed-price, level-of-effort contract type influence risk and value?

A Fixed-Price, Level-of-Effort (FPLE) contract is a hybrid type. The 'fixed-price' aspect provides cost certainty for the government regarding the total amount that can be billed, up to a specified limit. The 'level-of-effort' clause defines the estimated amount of direct labor hours and associated costs the contractor is to expend. The risk lies in managing the 'effort' – if the contractor expends more effort than anticipated to achieve the defined scope, they may not be fully compensated beyond the fixed price, or the government may need to modify the contract. Conversely, if less effort is required, the government pays for the effort expended up to the fixed price. This structure can be advantageous for services where the scope is relatively clear but the exact effort is uncertain, but it requires diligent oversight to ensure efficient resource utilization and prevent scope creep or under-delivery.

What is the significance of the contract's short duration (549 days)?

The duration of 549 days (approximately 18 months) suggests this contract was intended to fulfill a short-term need for IT services continuity. This could imply several scenarios: it might be a bridge contract to cover a gap while a longer-term, potentially competitive contract is being established; it could be for a specific project with a defined endpoint; or it might represent a temporary solution for evolving IT requirements. The short timeframe also means that the government may incur additional costs and administrative burden associated with future re-procurement or contract extensions if the need extends beyond this period.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 65 W STREET RD STE A200, WARMINSTER, PA, 18974

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,289,194

Exercised Options: $10,289,194

Current Obligation: $10,289,194

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4703G

IDV Type: FSS

Timeline