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

Positive Signals

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

Risk Flags

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 ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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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