Army's $5.7M Consulting Services Contract Awarded to Calibre Systems Inc. for Cost Analysis Support

Contract Overview

Contract Amount: $5,683,920 ($5.7M)

Contractor: Calibre Systems Inc

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2026-09-29

Contract Duration: 363 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THIS IS THE SECOND CALL UNDER THE AWARDED SINGLE HYBRID FIRM FIXED PRICE AND LABOR HOUR BASIC ORDERING AGREEMENT FOR SUPPORT SERVICES FOR THE COST ANALYSIS AND VISUALIZATION ENVIRONMENT IN SUPPORT OF THE ASSISTANT SECRETARY OF THE ARMY.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to CALIBRE SYSTEMS INC for work described as: THIS IS THE SECOND CALL UNDER THE AWARDED SINGLE HYBRID FIRM FIXED PRICE AND LABOR HOUR BASIC ORDERING AGREEMENT FOR SUPPORT SERVICES FOR THE COST ANALYSIS AND VISUALIZATION ENVIRONMENT IN SUPPORT OF THE ASSISTANT SECRETARY OF THE ARMY. Key points: 1. Contract provides essential support for the Assistant Secretary of the Army's cost analysis and visualization environment. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract utilizes a hybrid pricing structure, including firm fixed price and labor hours, which can offer flexibility but requires careful monitoring. 4. Performance period extends over two years, indicating a medium-term engagement. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract is a call against a Basic Ordering Agreement (BOA), implying it's part of a larger framework agreement. 7. The base award amount is approximately $5.7 million, with potential for future task orders. 8. The contract is not set aside for small businesses, nor does it indicate specific subcontracting requirements.

Value Assessment

Rating: good

The contract's value of approximately $5.7 million for two years of support services appears reasonable for specialized consulting in cost analysis and visualization. Benchmarking against similar contracts for administrative management and general management consulting services (NAICS 541611) would provide a more precise value-for-money assessment. The hybrid pricing structure (firm fixed price and labor hours) can be cost-effective if managed diligently, but labor hour components warrant close oversight to prevent cost overruns.

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 procurement method generally fosters a competitive environment, which should lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for these specialized services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through competitive bidding and encourages a wider pool of vendors to offer their best pricing and innovative solutions.

Public Impact

The primary beneficiaries are the Assistant Secretary of the Army and its staff, who will receive enhanced capabilities for cost analysis and visualization. The services delivered will support informed decision-making regarding resource allocation and financial planning within the Department of the Army. The geographic impact is primarily within the Department of Defense's operational sphere, with potential implications for budget management across various Army commands. Workforce implications may include the need for specialized analysts and visualization experts within the Army, or reliance on the contractor's skilled personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor hour portions of the contract if not tightly managed.
Reliance on contractor expertise may lead to knowledge transfer challenges if not proactively addressed.
The hybrid pricing model requires diligent tracking to ensure cost efficiency across both fixed-price and labor-hour components.

Positive Signals

Awarded through full and open competition, indicating a robust market response and potential for competitive pricing.
The contract supports a critical function (cost analysis and visualization) for senior leadership, suggesting strategic importance.
The use of a Basic Ordering Agreement (BOA) call implies a pre-vetted contractor and a streamlined process for this specific task order.

Sector Analysis

This contract falls within the management and administrative consulting services sector, a vital component of government operations that supports efficiency and strategic planning. The market for these services is competitive, with numerous firms offering expertise in areas like financial analysis, process improvement, and data visualization. The Department of Defense, and specifically the Army, is a significant consumer of such services to manage its vast budget and complex operations. Comparable spending benchmarks for similar consulting engagements within federal agencies can vary widely based on scope, duration, and specialized expertise required.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. This means that the primary contract is not directly aimed at fostering small business participation. However, the prime contractor, Calibre Systems Inc., may choose to subcontract portions of the work to small businesses, which would contribute to the small business ecosystem. Further analysis would be needed to determine if subcontracting plans are in place or if this contract is part of a larger effort that includes small business goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and program managers responsible for the Assistant Secretary of the Army's cost analysis functions. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting, though specific details of performance and cost management may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Administrative Management Support
Army Financial Management Systems
Cost Analysis and Budgeting Services
Management and Consulting Services for Federal Agencies
Data Visualization Tools and Services

Risk Flags

Potential for cost overruns in labor hour components.
Need for strong contract oversight to manage performance and scope.
Risk of contractor dependency and knowledge transfer gaps.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to CALIBRE SYSTEMS INC. THIS IS THE SECOND CALL UNDER THE AWARDED SINGLE HYBRID FIRM FIXED PRICE AND LABOR HOUR BASIC ORDERING AGREEMENT FOR SUPPORT SERVICES FOR THE COST ANALYSIS AND VISUALIZATION ENVIRONMENT IN SUPPORT OF THE ASSISTANT SECRETARY OF THE ARMY.

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 $5.7 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-29.

What is the track record of Calibre Systems Inc. in providing similar cost analysis and visualization support services to the Department of Defense or other federal agencies?

Calibre Systems Inc. has a notable track record in providing a range of professional services to the federal government, including the Department of Defense. Their expertise often spans areas such as engineering, IT, and management consulting. While specific details on past cost analysis and visualization contracts would require a deeper dive into contract databases, their general profile suggests experience with complex government requirements. To fully assess their suitability for this specific task, one would examine past performance evaluations, any reported issues on previous contracts, and their demonstrated ability to deliver on similar projects within the specified timelines and budget constraints. Their history with the Army, in particular, would be a key indicator of their understanding of the agency's unique needs and operational environment.

How does the awarded amount of $5.7 million for this two-year contract compare to similar cost analysis and visualization support contracts within the federal government?

The awarded amount of approximately $5.7 million for a two-year contract for cost analysis and visualization support services appears to be within a reasonable range for specialized consulting within the federal government. However, a precise benchmark requires comparing it against contracts with similar scope, complexity, duration, and the specific NAICS code (541611 - Administrative Management and General Management Consulting Services). Factors such as the level of expertise required, the number of personnel involved, and the specific deliverables can significantly influence pricing. Without access to a detailed comparison of similar contracts, it's difficult to definitively state if this represents exceptional value or is on the higher end. The hybrid pricing structure (firm fixed price and labor hours) also adds a layer of complexity to direct comparison, as labor hour components can fluctuate based on actual effort expended.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include potential cost overruns, particularly within the labor hour component, if work is not efficiently managed or if the scope expands unexpectedly. There's also a risk of performance issues if the contractor's personnel lack the necessary specialized skills or if there are challenges in integrating their services with existing Army systems. Knowledge transfer could be another risk, where the Army becomes overly reliant on the contractor's expertise. Mitigation strategies likely involve robust contract oversight by the Army, including detailed monitoring of labor hours, regular performance reviews, clear definition of deliverables, and potentially incorporating incentives for efficiency or penalties for underperformance. The use of a Basic Ordering Agreement (BOA) call might also imply pre-qualification of the contractor, reducing some initial risk.

How effective is the hybrid pricing structure (firm fixed price and labor hours) likely to be for this type of service, and what are the implications for cost control?

The hybrid pricing structure, combining firm fixed price (FFP) and labor hours (LH), can be effective for services like cost analysis and visualization where some aspects are well-defined (FFP) and others may require flexibility due to evolving requirements or research (LH). FFP provides cost certainty for defined tasks, while LH allows for adaptation to unforeseen complexities or changes in scope without requiring immediate contract modification. However, the effectiveness hinges on diligent oversight. For the LH portion, the government must closely monitor hours worked, ensure rates are fair and reasonable, and verify that the work performed directly aligns with contract objectives. Without strict controls and clear task definitions for the LH component, there is a heightened risk of cost overruns and potential for inefficient use of resources, undermining the cost-control benefits.

What are the historical spending patterns for administrative management and general management consulting services (NAICS 541611) within the Department of the Army?

Historical spending patterns for NAICS 541611 within the Department of the Army typically show significant investment in management and administrative consulting services. Agencies like the Army frequently procure these services to support strategic planning, organizational efficiency, financial management, IT modernization, and process improvement initiatives. Spending can fluctuate based on budgetary priorities, specific program needs, and the complexity of challenges faced. The Army, being one of the largest components of the DoD, consistently represents a substantial portion of federal spending in this category. Analyzing historical data would reveal trends in contract values, durations, and the types of services most frequently sought, providing context for the current $5.7 million award.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 6361 WALKER LN, 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: $7,689,711

Exercised Options: $7,689,711

Current Obligation: $5,683,920

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $239,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W91CRB24A0003

IDV Type: BPA

Timeline