DoD's $168M Engineering Support Contract for NAVAIR: Sabre Systems Awarded Full & Open Competition Task Order

Contract Overview

Contract Amount: $167,958,721 ($168.0M)

Contractor: Sabre Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2016-03-24

End Date: 2021-11-30

Contract Duration: 2,077 days

Daily Burn Rate: $80.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT SERVICES INCLUDING SOFTWARE ENGINEERING, SOFTWARE DEVELOPMENT, AND SYSTEMS INTEGRATION TESTING FOR NAVAIR 4.9.4 (FORMERLY 4.1.4). THE PERIOD OF PERFORMANCE IS FOR A BASE PERIOD AND FOUR (4) OPTION PERIODS OF PERFORMANCE.

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $168.0 million to SABRE SYSTEMS, LLC for work described as: IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT SERVICES INCLUDING SOFTWARE ENGINEERING, SOFTWARE DEVELOPMENT, AND SYSTEMS INTEGRATION TESTING FOR NAVAIR 4.9.4 (FORMERLY 4.1.4). THE PERIOD OF PERFORMANCE IS FOR A BASE PERIOD AND FOUR (4) OPTION PERIODS OF PERFORMANCE. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract covers critical engineering and technical support for NAVAIR, including software development and testing. 3. Sabre Systems, LLC, a mid-sized business, is the prime contractor. 4. The contract's duration spans nearly five years, indicating a significant, long-term need.

Value Assessment

Rating: good

The contract's total value is $167,958,721.47. Without specific pricing details or benchmarks for similar engineering support services, a precise value assessment is difficult. However, the duration and scope suggest a reasonable price point for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order mechanism within this framework suggests a structured approach to tasking.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense engineering services.

Public Impact

Supports critical naval aviation software engineering and systems integration. Ensures continued technological advancement and maintenance for NAVAIR systems. Provides stable employment for technical professionals within the defense sector. Contributes to the operational readiness of naval aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 81 / 10

Warning Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts if not closely monitored.
Reliance on a single prime contractor for a broad range of critical services.

Positive Signals

Awarded through full and open competition.
Supports a vital defense agency (NAVAIR).
Long-term contract provides stability for services.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) within the broader defense sector. Spending in this area is substantial, driven by the need for advanced technological solutions and ongoing support for complex military systems. Benchmarks vary widely based on specialization and contract type.

Small Business Impact

While the prime contractor, Sabre Systems, LLC, is a mid-sized business, the contract data indicates that small business participation (ss: false, sb: false) was not a primary focus or requirement for this specific award. Further analysis would be needed to determine if subcontracting opportunities were pursued.

Oversight & Accountability

The contract's oversight would fall under the Department of the Navy's contracting and program management offices. Regular performance reviews and financial audits are standard procedures to ensure accountability and proper execution of Cost Plus Fixed Fee contracts.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Potential for scope creep impacting budget and timeline.
Dependence on a single prime contractor for critical functions.
Long performance period increases risk of obsolescence or changing requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $168.0 million to SABRE SYSTEMS, LLC. IGF::OT::IGF ENGINEERING AND TECHNICAL SUPPORT SERVICES INCLUDING SOFTWARE ENGINEERING, SOFTWARE DEVELOPMENT, AND SYSTEMS INTEGRATION TESTING FOR NAVAIR 4.9.4 (FORMERLY 4.1.4). THE PERIOD OF PERFORMANCE IS FOR A BASE PERIOD AND FOUR (4) OPTION PERIODS OF PERFORMANCE.

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 $168.0 million.

What is the period of performance?

Start: 2016-03-24. End: 2021-11-30.

What is the breakdown of costs within the Cost Plus Fixed Fee structure, and how are indirect costs managed?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Effective oversight requires detailed review of incurred costs, justification of indirect rates, and rigorous auditing to prevent unallowable costs from being charged. Transparency in cost reporting is crucial for assessing value and preventing overruns.

How does the government ensure the fixed fee remains appropriate throughout the contract's lifecycle, especially with potential scope changes?

The fixed fee is typically negotiated upfront and should reflect the complexity and risk associated with the contract. While the fee itself is fixed, significant scope changes may necessitate a contract modification to adjust the fee if the nature or volume of work changes substantially. Robust change management processes and clear baseline performance metrics are essential for maintaining fee integrity.

What mechanisms are in place to assess the technical performance and effectiveness of Sabre Systems' engineering support?

Performance is typically assessed through metrics defined in the contract's Performance Work Statement (PWS), such as on-time delivery, quality of deliverables, and adherence to technical specifications. Regular progress reviews, user feedback from NAVAIR stakeholders, and potentially independent technical evaluations would be used to gauge the effectiveness of the engineering services provided.

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: N0002412R3166

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sabre Systems, Inc.

Address: 865 EASTON RD STE 300, WARRINGTON, PA, 18976

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $180,593,940

Exercised Options: $180,593,940

Current Obligation: $167,958,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7908

IDV Type: IDC

Timeline