Calibre Systems Inc. awarded $43.7M for Army technical support, a sole-source contract

Contract Overview

Contract Amount: $43,717,432 ($43.7M)

Contractor: Calibre Systems Inc

Awarding Agency: Department of Defense

Start Date: 2016-09-23

End Date: 2021-03-22

Contract Duration: 1,641 days

Daily Burn Rate: $26.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF TECHNICAL SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $43.7 million to CALIBRE SYSTEMS INC for work described as: IGF::OT::IGF TECHNICAL SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration of over 4 years suggests a significant, ongoing need. 3. Administrative Management and General Management Consulting Services (NAICS 541611) indicates a focus on operational efficiency and strategic advice. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 5. Virginia is the state where the contract is managed, potentially impacting local economic benefits. 6. The contract was awarded to a single vendor, raising questions about market competitiveness.

Value Assessment

Rating: fair

The contract's value of $43.7 million over approximately 4.5 years averages around $9.7 million annually. Without specific benchmarks for similar technical support services within the Department of the Army or comparable agencies, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. The absence of competition further complicates direct price comparisons.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the service, or in cases of urgent need. The lack of competition means that the government did not benefit from the price reductions and innovation that typically arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government did not have the opportunity to secure the best possible price through a bidding war.

Public Impact

The Department of the Army benefits from specialized technical support services, likely enhancing operational capabilities and efficiency. The services provided fall under Administrative Management and General Management Consulting, suggesting support for strategic planning, process improvement, or organizational management. The contract's performance is likely concentrated within the Army's operational theaters or administrative centers. The contract may support a workforce of consultants and technical experts, contributing to employment in the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost Plus Fixed Fee contract type introduces risk of cost overruns if not rigorously managed.
Lack of transparency in the sole-source justification could mask potential inefficiencies or missed opportunities for better value.
The long duration of the contract (over 4 years) means sustained reliance on a single provider, potentially hindering agility.
The specific nature of 'technical support services' is broad and requires further detail to assess true value and necessity.

Positive Signals

The contract addresses a specific need within the Department of the Army, indicating a potentially critical requirement.
Calibre Systems Inc. has secured a significant contract, suggesting a level of established capability and trust with the agency.
The contract duration implies a stable, long-term relationship that can foster expertise and efficiency for the specific services required.
The award is managed by the Department of the Army, a major federal entity with established procurement processes.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is a significant component of federal spending, supporting a wide range of government functions from strategic planning to operational support. The market for these services is competitive, but specific niche capabilities, as potentially demonstrated by Calibre Systems Inc., can lead to sole-source awards. Benchmarking requires comparison to similar consulting contracts within defense agencies, which often involve complex requirements and specialized expertise.

Small Business Impact

This contract does not appear to have a small business set-aside (SB is false). There is no explicit indication of subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless Calibre Systems Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The Inspector General (IG) for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is limited by the sole-source nature of the award; however, contract modifications, performance reports, and payment data would typically be subject to agency oversight and potentially public disclosure through contract databases.

Related Government Programs

Department of Defense IT Support Services
Army Management Consulting Contracts
Federal Professional Services Procurement
Sole-Source Defense Contracts
Cost-Plus Contract Management

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.7 million to CALIBRE SYSTEMS INC. IGF::OT::IGF TECHNICAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CALIBRE SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $43.7 million.

What is the period of performance?

Start: 2016-09-23. End: 2021-03-22.

What specific technical support services does Calibre Systems Inc. provide under this contract, and how do these services align with the Army's mission objectives?

The contract specifies 'Administrative Management and General Management Consulting Services' (NAICS 541611). This broad category suggests services related to improving organizational efficiency, strategic planning, process optimization, and potentially program management support for the Department of the Army. Without more detailed contract line item numbers (CLINs) or statements of work (SOWs), the precise nature of the technical support remains undefined. However, such services are crucial for enabling the Army to manage its complex operations, adapt to evolving threats, and optimize resource allocation. The alignment with mission objectives would depend on how effectively these consulting services contribute to the Army's strategic goals, such as readiness, modernization, or operational effectiveness.

How was the determination made that Calibre Systems Inc. was the only source capable of providing these services, and what was the justification for a sole-source award?

The justification for a sole-source award typically stems from specific criteria outlined in federal acquisition regulations (FAR). For the Department of the Army, this could include a determination that only Calibre Systems Inc. possesses unique capabilities, proprietary technology, or specialized expertise essential for the required technical support. Other justifications might involve urgent and compelling needs where competition is impractical, or if the services are a follow-on to a prior contract where only the original contractor can provide them due to compatibility or knowledge. The specific justification document, often a Justification and Approval (J&A) for Other Than Full and Open Competition, would detail these reasons. Without access to this document, the precise rationale remains speculative, but it is a critical piece of information for assessing the necessity of the sole-source approach.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type, and what measures are in place to mitigate them?

The Cost Plus Fixed Fee (CPFF) contract type presents inherent risks, primarily the potential for cost overruns. While the contractor is paid their actual allowable costs plus a fixed fee (profit), there is less incentive for the contractor to control costs compared to fixed-price contracts. If the contractor's costs exceed initial estimates, the government is obligated to pay them, potentially leading to a higher final price than anticipated. Mitigation measures typically include robust government oversight, detailed cost monitoring, thorough audits of contractor expenditures, and clear definitions of allowable costs within the contract. The contracting officer must exercise diligent management to ensure the contractor operates efficiently and within the spirit of the agreement to prevent excessive spending.

How does the $43.7 million contract value compare to historical spending on similar technical support services by the Department of the Army or other defense agencies?

Comparing the $43.7 million contract value requires access to historical spending data for similar technical support services within the Department of the Army and other defense agencies. Without a direct benchmark, it's difficult to ascertain if this amount represents a high, low, or average expenditure. Factors influencing this value include the scope and complexity of the services, the duration of the contract (1641 days, approximately 4.5 years), and the specific expertise required. Generally, large-scale technical support and management consulting for major defense organizations can run into tens or hundreds of millions of dollars over several years. A comprehensive analysis would involve identifying comparable contracts using the same or similar Product Service Codes (PSCs) and NAICS codes, and then analyzing their total values and durations.

What is Calibre Systems Inc.'s track record with federal contracts, particularly with the Department of the Army, and have they previously received sole-source awards?

Calibre Systems Inc. has a history of receiving federal contracts. Publicly available data indicates they have been awarded numerous contracts across various agencies, including the Department of Defense. To assess their track record specifically with the Department of the Army, one would need to analyze contract databases for awards made to Calibre Systems Inc. by this agency. Information regarding previous sole-source awards would also be available in these databases. A positive track record with the Army, including successful past performance on similar contracts and adherence to contractual terms, could lend credibility to their selection, even on a sole-source basis. Conversely, a history of performance issues or disputes might raise concerns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6354 WALKER LN STE 300, ALEXANDRIA, VA, 22310

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,717,432

Exercised Options: $43,717,432

Current Obligation: $43,717,432

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $197,600

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline