DoD Navy awards $11.4M Task Order for Computer Systems Design Services to Sabre Systems, LLC
Contract Overview
Contract Amount: $11,386,589 ($11.4M)
Contractor: Sabre Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-14
End Date: 2026-08-01
Contract Duration: 1,935 days
Daily Burn Rate: $5.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TASK ORDER 5
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $11.4 million to SABRE SYSTEMS, LLC for work described as: TASK ORDER 5 Key points: 1. Contract Value: $11.4 million over its period of performance. 2. Competition: Awarded under full and open competition. 3. Risk: Cost-plus-fixed-fee contract type may present cost overrun risks. 4. Sector: Information Technology (Computer Systems Design Services).
Value Assessment
Rating: good
The contract is a cost-plus-fixed-fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar contracts for computer systems design services is recommended to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The competitive award process is expected to yield a reasonable price for the services rendered, benefiting taxpayers.
Public Impact
Supports Department of the Navy's IT infrastructure and operations. Provides essential computer systems design services. Contract duration extends to August 2026, ensuring continuity of services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type.
- No small business participation noted.
Positive Signals
- Full and open competition.
- Long-term contract duration.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across government agencies, with varying pricing based on complexity and duration.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis could explore opportunities for small business subcontracting to promote broader economic participation.
Oversight & Accountability
Oversight will be crucial to manage the cost-plus-fixed-fee structure effectively and ensure that the services delivered meet the Navy's requirements within budget.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus-fixed-fee contract type.
- No small business participation.
- Potential for cost overruns if not managed effectively.
- Long contract duration may require ongoing performance monitoring.
Tags
computer-systems-design-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.4 million to SABRE SYSTEMS, LLC. TASK ORDER 5
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 $11.4 million.
What is the period of performance?
Start: 2021-04-14. End: 2026-08-01.
What is the typical profit margin for Cost Plus Fixed Fee contracts in IT services?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in IT services can vary significantly based on contract complexity, risk, and market conditions. Generally, the fixed fee is negotiated as a percentage of the estimated cost. While specific benchmarks are proprietary, agencies often aim for fees that reflect the level of contractor risk and effort, typically ranging from 5% to 15% of the estimated cost. Robust oversight is essential to ensure the fee remains fair and reasonable.
How does the lack of small business participation impact overall contract value and innovation?
The absence of small business participation in prime contracts can limit opportunities for innovation and potentially lead to higher overall costs if larger companies have greater overhead. While large businesses bring scale, small businesses often offer specialized expertise and agility. Agencies are encouraged to set small business subcontracting goals to ensure broader economic benefits and foster a diverse supplier base, even when prime contracts are awarded to large entities.
What are the key performance indicators (KPIs) for computer systems design services contracts?
Key performance indicators for computer systems design services contracts typically include system performance metrics (e.g., uptime, response time), adherence to project timelines and milestones, quality of deliverables (e.g., documentation, code), user satisfaction, and cost control. For CPFF contracts, tracking actual costs against estimates and ensuring the fixed fee is justified by performance are critical oversight elements.
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 › IT AND TELECOM - IT MANAGEMENT
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: $13,814,273
Exercised Options: $13,814,273
Current Obligation: $11,386,589
Actual Outlays: $274,291
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
Start Date: 2021-04-14
Current End Date: 2026-08-01
Potential End Date: 2026-08-01 00:00:00
Last Modified: 2025-12-22
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