DoD awards $13.9M for Computer Systems Design Services to Sabre Systems, LLC

Contract Overview

Contract Amount: $13,901,000 ($13.9M)

Contractor: Sabre Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-15

End Date: 2026-07-01

Contract Duration: 1,204 days

Daily Burn Rate: $11.5K/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 $13.9 million to SABRE SYSTEMS, LLC for work described as: LABOR CLIN Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 3 years indicates a significant, ongoing need for these services. 3. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges if not closely managed. 4. The awardee, Sabre Systems, LLC, is a known entity in the federal contracting space. 5. The services are categorized under Computer Systems Design, a critical area for defense operations. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this $13.9 million contract requires more detailed cost breakdowns and comparison to similar Computer Systems Design Services contracts. The CPFF structure necessitates rigorous oversight to ensure costs remain reasonable and the fixed fee is justified. Without specific performance metrics or comparable contract data, assessing the overall value-for-money is challenging. However, the duration suggests a sustained need, and the competitive award process is a positive indicator.

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. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select from the widest possible pool of qualified contractors. The open competition suggests that the government sought the best value proposition available in the market for these specialized services.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government explored multiple options before awarding the contract. This process aims to secure services at a fair market price.

Public Impact

The Department of the Navy benefits from enhanced computer systems design capabilities. This contract supports the development and maintenance of critical IT infrastructure for defense operations. The services are likely to impact personnel involved in IT management and system development within the Navy. Geographic impact is centered around the contract performance location, likely within Maryland (MD) as indicated by the state code.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not meticulously managed and monitored.
Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
The nature of 'Computer Systems Design Services' can be broad, requiring clear performance standards to avoid scope creep.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Contract duration of over three years suggests a stable and predictable requirement.
The awardee, Sabre Systems, LLC, has experience in the federal contracting arena.

Sector Analysis

Computer Systems Design Services fall within the broader Information Technology (IT) sector, a significant area of federal spending. This sector is characterized by rapid innovation and a constant demand for specialized expertise. The market size for such services is substantial, with numerous large and small businesses competing for government contracts. This specific contract likely supports the Navy's efforts to modernize or maintain its complex IT infrastructure, aligning with broader defense modernization trends.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. However, the prime contractor, Sabre Systems, LLC, may engage small businesses as subcontractors depending on their internal capabilities and the specific needs of the project.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing will be crucial to ensure costs are reasonable and allocable. Transparency will depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services
Navy Information Technology Support
Computer Systems Design and Integration Services
Federal IT Consulting Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Lack of specific bidder count limits the assessment of competitive intensity.
The broad nature of 'Computer Systems Design Services' necessitates clear performance metrics and scope definition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 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 $13.9 million.

What is the period of performance?

Start: 2023-03-15. End: 2026-07-01.

What is Sabre Systems, LLC's track record with the Department of Defense, particularly in Computer Systems Design Services?

Sabre Systems, LLC has a history of performing contracts for the Department of Defense. While specific details on their performance for Computer Systems Design Services under this particular contract are not immediately available from the provided data, their presence as an awardee suggests they possess the necessary qualifications and past performance to be considered. A deeper dive into federal procurement databases like FPDS or SAM.gov would reveal the scope, value, and performance ratings of their previous DoD contracts. This would provide a clearer picture of their experience and reliability in delivering similar services.

How does the $13.9 million value compare to similar Computer Systems Design Services contracts awarded by the Navy or DoD?

The $13.9 million value for this three-year contract (March 2023 - July 2026) for Computer Systems Design Services is a moderate-sized award within the context of large federal IT procurements. To benchmark effectively, one would need to compare it against other contracts for similar services, considering factors like contract duration, scope of work, and the specific agency. For instance, larger, more complex system integration projects might run into hundreds of millions, while smaller, specialized design tasks could be in the low millions. This $13.9M award suggests a significant but not massive undertaking, likely focused on specific system design or enhancement rather than a complete overhaul of a major defense system.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Computer Systems Design?

The primary risk with a CPFF contract for Computer Systems Design is the potential for cost overruns. While the contractor is guaranteed a fixed fee, the 'cost plus' portion means the government reimburses allowable costs. If the project scope expands, unforeseen technical challenges arise, or the contractor is inefficient, costs can escalate beyond initial estimates. This necessitates robust government oversight to scrutinize all incurred costs, ensure they are reasonable, allocable, and necessary for the project. For design services, defining the scope clearly upfront is critical to mitigate the risk of scope creep, which can drive up costs without necessarily adding commensurate value.

How effective is 'full and open competition' in ensuring value for money for IT services like computer systems design?

Full and open competition is generally considered the most effective method for ensuring value for money in federal IT procurements. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This process allows the government to solicit proposals based on best value, which can include technical merit, past performance, and price. While it requires more administrative effort upfront, the potential for cost savings and access to a wider range of solutions typically outweighs these initial investments, leading to better outcomes for taxpayers.

What is the historical spending trend for Computer Systems Design Services by the Department of the Navy?

Historical spending on Computer Systems Design Services by the Department of the Navy has been substantial and generally increasing, reflecting the growing reliance on advanced IT systems for naval operations. The Navy, like other branches of the DoD, continuously invests in modernizing its networks, software, and data management capabilities. This includes everything from designing new communication systems to developing specialized software applications. Spending in this category is influenced by technological advancements, evolving threats, and strategic modernization initiatives. The $13.9M award to Sabre Systems fits within this broader trend of consistent investment in IT infrastructure and design services.

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 - APLLICATIONS

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: $16,009,719

Exercised Options: $15,811,669

Current Obligation: $13,901,000

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,181,694

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