DoD's $41.4M IT contract with Sabre Systems, LLC for computer systems design services awarded via full and open competition

Contract Overview

Contract Amount: $41,406,981 ($41.4M)

Contractor: Sabre Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2020-08-15

End Date: 2026-07-31

Contract Duration: 2,176 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: LABOR CLIN

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $41.4 million to SABRE SYSTEMS, LLC for work described as: LABOR CLIN Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The contract duration is substantial, spanning over 2000 days, indicating a long-term need for these services. 4. The primary contractor, Sabre Systems, LLC, is a key player in the IT services sector. 5. The contract is for computer systems design services, a critical component of modern defense operations. 6. The contract is geographically concentrated in Maryland, potentially impacting the local IT workforce.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the duration and scope suggest a significant investment. Comparing it to similar IT services contracts within the Department of Defense would provide better context on whether the pricing structure and overall award represent good value for the services rendered. The fixed fee component offers some predictability, but the cost-plus nature requires careful oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings. The number of bidders is not specified, but the 'full and open' designation implies a robust competition.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers as it is intended to drive down costs and improve the quality of services received by the government.

Public Impact

The Department of Defense benefits from advanced computer systems design services to support its operational needs. The contract supports the development and maintenance of critical IT infrastructure for national security. The geographic impact is concentrated in Maryland, potentially creating or sustaining IT jobs in the region. The services delivered are essential for modernizing and securing defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contracts can lead to cost overruns if not managed diligently.
Long contract durations may require adjustments for evolving technological needs.
Concentration of IT services in a single region could pose localized risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Sabre Systems, LLC has a track record in government contracting.
The contract addresses a critical need for IT infrastructure.

Sector Analysis

The Information Technology (IT) sector is a vast and rapidly evolving market, with government contracts forming a significant portion of its revenue. This contract for computer systems design services falls within the broader IT services industry, which includes software development, system integration, and IT consulting. The market size for government IT services is substantial, driven by the need for modernization, cybersecurity, and operational efficiency across various agencies. This specific contract likely fits into the defense IT spending category, which is characterized by complex requirements and high security standards.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Sabre Systems, LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside means that opportunities for small businesses to participate in this contract would depend on Sabre Systems, LLC's subcontracting strategy, which is not detailed here. This could limit direct opportunities for small businesses on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy, a component of the Department of Defense. Mechanisms likely include contract performance reviews, financial audits, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Navy Information Technology Support Contracts
Computer Systems Design and Related Services
Federal IT Services Procurement

Risk Flags

Cost-plus contract type requires careful monitoring for cost efficiency.
Long contract duration may necessitate adaptation to evolving technological needs.
Geographic concentration in Maryland could present localized risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.4 million to SABRE SYSTEMS, LLC. LABOR CLIN

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 $41.4 million.

What is the period of performance?

Start: 2020-08-15. End: 2026-07-31.

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

Sabre Systems, LLC has a history of performing IT and engineering services for various government agencies, including the Department of Defense. Their contract portfolio often includes areas such as systems engineering, software development, and technical support. Analyzing their past performance on similar Cost Plus Fixed Fee contracts within the DoD would reveal their ability to manage costs effectively and deliver on complex technical requirements. A review of past performance evaluations and any contract disputes or awards would provide a clearer picture of their reliability and expertise in delivering computer systems design services.

How does the $41.4 million total award value compare to similar computer systems design contracts within the DoD?

The $41.4 million total award value for computer systems design services over its duration is a significant sum, but its comparability depends heavily on the scope, complexity, and duration of the services rendered. To benchmark this value, one would need to compare it against other DoD contracts for similar IT services, considering factors like the number of personnel involved, the specific technologies utilized, and the criticality of the systems being designed. Contracts with similar durations (over 2000 days) and service types (computer systems design) awarded through full and open competition would offer the most relevant comparison points. Without more granular data on the specific deliverables and market rates for specialized IT design services, a precise value-for-money assessment is difficult.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude and duration include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen issues arise during performance. While the fixed fee provides a ceiling for the contractor's profit, the government bears the risk of increased labor and material costs. For long-duration contracts, there's also a risk that the technology or requirements may evolve, necessitating contract modifications that could impact the overall cost and schedule. Effective oversight, detailed cost tracking, and robust change management processes are crucial to mitigate these risks and ensure the government receives good value.

How effective are the oversight mechanisms for ensuring performance and cost control on this contract?

The effectiveness of oversight mechanisms for this contract hinges on the diligence of the Department of the Navy's contracting officers and technical representatives. Standard oversight practices for CPFF contracts involve regular reviews of the contractor's cost submissions, performance metrics, and progress reports. The presence of a fixed fee component incentivizes the contractor to control costs to maximize their profit margin. However, the 'cost-plus' element requires vigilant monitoring to prevent scope creep and ensure that all incurred costs are reasonable, allocable, and necessary for contract performance. The specific effectiveness would depend on the resources allocated to oversight and the contractor's transparency.

What is the historical spending trend for computer systems design services by the Department of the Navy?

Historical spending trends for computer systems design services by the Department of the Navy typically show a consistent and substantial investment, reflecting the critical role of IT in naval operations. This spending is often driven by modernization efforts, cybersecurity enhancements, and the need to maintain complex legacy systems. Analyzing past fiscal years would reveal fluctuations based on budgetary priorities, major acquisition programs, and technological advancements. The Navy, like other branches of the DoD, relies heavily on external contractors for specialized IT design expertise, making this a recurring and significant expenditure category.

What are the implications of this contract being awarded in Maryland, a hub for defense contracting?

Awarding this contract in Maryland has several implications, given the state's significant concentration of defense contractors and federal agencies. It suggests that Sabre Systems, LLC may have a strong presence or operational base in the region, potentially leveraging local talent and existing infrastructure. For the local economy, it could mean job creation or retention within the IT sector. However, it also places the contract within a highly competitive ecosystem, where talent acquisition and retention can be challenging. Furthermore, geographic concentration can sometimes lead to risks if local economic conditions or unforeseen events impact operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042119R0101

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: $53,145,926

Exercised Options: $53,145,926

Current Obligation: $41,406,981

Actual Outlays: $116,919

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $8,751,606

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042120D0072

IDV Type: IDC

Timeline