Army's $56.7M OSMIS Support Contract Awarded to Calibre Systems Inc. for Engineering Services
Contract Overview
Contract Amount: $56,743,987 ($56.7M)
Contractor: Calibre Systems Inc
Awarding Agency: Department of Defense
Start Date: 2021-03-22
End Date: 2026-03-21
Contract Duration: 1,825 days
Daily Burn Rate: $31.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: DASA-CE OSMIS SUPPORT SERVICES FY2021-2026
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $56.7 million to CALIBRE SYSTEMS INC for work described as: DASA-CE OSMIS SUPPORT SERVICES FY2021-2026 Key points: 1. Contract value of $56.7M over 5 years. 2. Awarded via full and open competition. 3. Potential risk in cost-plus-fixed-fee pricing structure. 4. Engineering Services sector with a PSC code of 541330.
Value Assessment
Rating: fair
The contract uses a Cost Plus Fixed Fee (CPFF) pricing structure, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without detailed scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the CPFF structure may still allow for costs to exceed initial expectations.
Taxpayer Impact: Taxpayer funds are utilized for engineering services supporting the Army's OSMIS. The CPFF structure necessitates careful oversight to ensure cost efficiency.
Public Impact
Ensures continued support for the Army's Operational Support Management Information Systems (OSMIS). Impacts the engineering services sector by awarding a significant contract. Potential for cost efficiencies or overruns depending on contract management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee pricing can incentivize higher costs.
- Long contract duration (5 years) may reduce flexibility.
- Limited information on specific performance metrics.
Positive Signals
- Awarded through full and open competition.
- Supports critical Army operations.
- Clear contract end date.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for government operations. Spending benchmarks for this sector vary widely based on the specific services and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting larger firms were the primary bidders. Further analysis would be needed to determine if small business subcontracting opportunities exist.
Oversight & Accountability
The Department of the Army is the awarding agency, implying established oversight mechanisms. However, the CPFF structure requires diligent monitoring to ensure accountability for expenditures.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus-fixed-fee pricing
- Long contract duration
- Potential for cost overruns
- Lack of specific performance metrics in provided data
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.7 million to CALIBRE SYSTEMS INC. DASA-CE OSMIS SUPPORT SERVICES FY2021-2026
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 $56.7 million.
What is the period of performance?
Start: 2021-03-22. End: 2026-03-21.
What is the estimated total cost for the entire contract period, and how does it compare to similar engineering support contracts?
The total estimated value for the contract period is $56.7 million. Direct comparison is challenging without detailed scope of work and specific service requirements. However, for large-scale, multi-year engineering support contracts, this value is within a typical range, though specific benchmarks depend heavily on the complexity and criticality of the OSMIS systems.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure in this contract?
The primary risk with CPFF is that the contractor is reimbursed for all allowable costs plus a fixed fee. This can incentivize the contractor to incur higher costs, as their profit margin (the fixed fee) remains constant. Effective oversight is crucial to ensure costs are reasonable and allocable to the contract.
How effectively does this contract ensure the continued operational readiness and modernization of the Army's OSMIS?
The contract's effectiveness hinges on Calibre Systems Inc.'s ability to deliver the specified engineering services. While the award suggests they met initial requirements, ongoing performance monitoring, adherence to service level agreements, and successful system upgrades will determine its true effectiveness in maintaining and improving OSMIS capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6361 WALKER LN STE 1100, 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: $56,743,987
Exercised Options: $56,743,987
Current Obligation: $56,743,987
Actual Outlays: $763,926
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $8,275,950
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAD20DU126
IDV Type: IDC
Timeline
Start Date: 2021-03-22
Current End Date: 2026-03-21
Potential End Date: 2026-03-21 00:00:00
Last Modified: 2025-09-05
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