DoD's $6.6M contract for computer systems design services awarded to Sabre Systems, LLC

Contract Overview

Contract Amount: $6,607,041 ($6.6M)

Contractor: Sabre Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-01

End Date: 2026-02-28

Contract Duration: 1,733 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: LABOR

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to SABRE SYSTEMS, LLC for work described as: LABOR 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 risk. 3. The duration of the contract is over 4 years, indicating a long-term need for these services. 4. The contract is a delivery order under a larger contract, suggesting it's part of an existing framework. 5. The specific Product Service Code (PSC) is not provided, limiting detailed analysis of the service category. 6. The contract is not set aside for small businesses, meaning larger firms likely participated.

Value Assessment

Rating: fair

Benchmarking the value of this $6.6 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed carefully. While the fee is fixed, the total cost to the government is variable. Without knowing the specific services rendered and their market rates, it's difficult to definitively assess value for money. However, the duration suggests a sustained need, and the competition level might have helped in achieving a reasonable price.

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, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the 'full and open' designation implies a robust competition was sought. The outcome of such competition is typically a more favorable price and quality balance for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of obtaining services at competitive market rates, thereby maximizing the value of public funds.

Public Impact

The Department of the Navy benefits from computer systems design services to support its operations. This contract likely supports critical IT infrastructure and systems for naval operations. The geographic impact is centered in Maryland (MD), where the contractor is located. The contract may have implications for the IT workforce, potentially creating or sustaining jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost uncertainty if not closely monitored.
Lack of specific Product Service Code (PSC) hinders detailed service analysis.
The duration of the contract (over 4 years) requires ongoing performance monitoring to ensure continued value.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract is a delivery order, implying it's part of an established and potentially vetted acquisition strategy.
The contractor, Sabre Systems, LLC, is likely experienced in providing these types of services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The IT services market is vast and highly competitive, with government spending on IT solutions being a significant portion of federal budgets. Contracts like this are essential for maintaining and upgrading the complex technological infrastructure required by defense agencies. Benchmarking against similar IT services contracts would require detailed service descriptions and performance data.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business subcontracting goals were specified (sb: false). This suggests that the competition was likely dominated by larger, established firms capable of meeting the contract's requirements. While this doesn't preclude small business participation as subcontractors, the primary award was not directed towards them, potentially limiting direct opportunities for small businesses in this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates rigorous oversight to ensure costs are reasonable and allocable to the contract. Transparency is generally maintained through contract reporting mechanisms, and any concerns regarding performance or cost would fall under the purview of the agency's Inspector General.

Related Government Programs

Department of Defense IT Services Contracts
Navy Information Technology Support
Computer Systems Design Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs.
Lack of specific Product Service Code (PSC) limits detailed service analysis.
Contract duration exceeds four years, necessitating sustained performance oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to SABRE SYSTEMS, LLC. LABOR

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 $6.6 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-02-28.

What is the track record of Sabre Systems, LLC in performing similar government contracts?

Sabre Systems, LLC has a history of performing government contracts, primarily within the defense sector. Analyzing their past performance on similar IT services contracts, particularly those involving computer systems design and Cost Plus Fixed Fee structures, would provide insight into their reliability, cost management capabilities, and overall performance quality. Reviewing contract award histories and past performance evaluations, where available, can indicate their success rate in meeting contract requirements and managing budgets. A deeper dive into their portfolio would reveal the scale and complexity of projects they have successfully delivered for federal agencies, offering a basis for assessing their suitability for this current contract.

How does the estimated value of this contract compare to similar IT services contracts awarded by the Department of the Navy?

Comparing the $6.6 million value of this contract to similar IT services contracts awarded by the Department of the Navy requires access to a broader dataset of contract awards with comparable scope and duration. Without specific details on the services rendered (beyond 'Computer Systems Design Services') and the contract's specific objectives, a direct comparison is difficult. However, contracts of this magnitude for specialized IT design services are common within large defense organizations. Factors such as the complexity of the systems, the level of customization required, and the duration of support significantly influence contract value. A benchmark analysis would ideally look at contracts with similar Product Service Codes (PSCs) and award values over the past few fiscal years.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for computer systems design services?

The primary risk with a CPFF contract for computer systems design services is the potential for cost overruns. While the contractor's profit (the fixed fee) is predetermined, the government bears the risk of actual costs exceeding initial estimates. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total project expense. Effective oversight is crucial to ensure costs are reasonable, allocable, and allowable. For complex design services, where requirements may evolve or unforeseen technical challenges arise, the CPFF structure can lead to a higher final cost to the government compared to fixed-price contracts, if not managed diligently.

How effective is 'full and open competition' in ensuring competitive pricing for specialized IT services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for specialized IT services, as it allows all responsible sources to participate. This broad participation increases the pool of potential bidders, fostering a more robust bidding environment. The increased competition typically drives down prices and encourages innovation as contractors strive to offer the best value. However, the effectiveness can be influenced by factors such as the clarity of the solicitation requirements, the complexity of the services, and the number of qualified bidders actually submitting proposals. For highly specialized niches, the number of capable competitors might be limited, potentially reducing the competitive pressure.

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 are generally substantial, reflecting the critical role of IT in modern naval operations. The Navy, like other branches of the DoD, consistently invests in upgrading and maintaining its complex systems. Spending in this category can fluctuate based on modernization initiatives, cybersecurity needs, and the lifecycle of existing systems. Analyzing multi-year spending data for the relevant Product Service Codes (e.g., 541512) would reveal patterns, identify peak spending periods, and indicate the overall budget allocation towards these essential services. This context helps in evaluating whether the current contract's value aligns with historical investment levels.

What are the potential implications of this contract being a delivery order under a larger contract?

When a contract is a delivery order under a larger contract (often referred to as an 'indefinite-delivery, indefinite-quantity' or IDIQ contract), it implies that a broader scope of work and terms have already been established. This approach can streamline the acquisition process for subsequent needs, potentially leading to faster delivery and reduced administrative burden. It also suggests that the initial IDIQ contract likely underwent a thorough vetting and competition process. However, the specific terms and pricing for this delivery order are critical. While the overarching contract may have been competitively awarded, the pricing and specifics of each delivery order should still be scrutinized to ensure they represent good value and align with the original competition's intent.

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: $6,681,774

Exercised Options: $6,681,774

Current Obligation: $6,607,041

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