DoD's $40.6M consulting contract with CALIBRE SYSTEMS INC shows fair value, but limited competition raises concerns
Contract Overview
Contract Amount: $40,643,960 ($40.6M)
Contractor: Calibre Systems Inc
Awarding Agency: Department of Defense
Start Date: 2012-09-23
End Date: 2016-09-23
Contract Duration: 1,461 days
Daily Burn Rate: $27.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OSMIS - LABOR
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $40.6 million to CALIBRE SYSTEMS INC for work described as: OSMIS - LABOR Key points: 1. The contract's value appears reasonable when benchmarked against similar administrative management consulting services. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract was awarded as a definitive contract with a firm fixed price, indicating predictable costs. 4. Performance occurred over a four-year period, allowing for sustained support. 5. The services provided fall under administrative management and general management consulting. 6. The contract was awarded to a single vendor, CALIBRE SYSTEMS INC.
Value Assessment
Rating: good
The total award amount of approximately $40.6 million for four years of administrative management and general management consulting services appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for management consulting services awarded by the Department of Defense suggests that the pricing structure was competitive. The firm fixed-price contract type further supports the assessment of good value, as it shifts cost risk to the contractor and provides budget certainty.
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. While the data shows one award, the 'full and open' designation implies a robust solicitation process. The number of bids received is not specified, but the competitive nature of the award suggests that multiple entities likely vied for the contract, contributing to price discovery.
Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible value through a competitive process, rather than being limited to a pre-selected vendor.
Public Impact
The Department of Defense benefits from enhanced administrative management and general management consulting services. These services likely support operational efficiency and strategic planning within the Army. The contract's impact is primarily within the federal government's administrative functions. Workforce implications are indirect, potentially involving the integration of consulting expertise with government personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
- The duration of the contract (4 years) could potentially lead to vendor lock-in if not managed carefully.
Positive Signals
- Awarded under full and open competition, suggesting a fair and broad solicitation process.
- Firm fixed-price contract type provides cost certainty and shifts risk to the contractor.
- The contract was awarded to CALIBRE SYSTEMS INC., a known entity in the government contracting space.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting various government functions. Comparable spending benchmarks for management consulting services within the Department of Defense are substantial, reflecting the ongoing need for specialized expertise to improve efficiency and effectiveness.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, CALIBRE SYSTEMS INC., would determine any subcontracting opportunities based on their own business strategy and project needs.
Oversight & Accountability
As a Department of Defense contract, oversight would typically be managed by the contracting officer and relevant program managers within the Army. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver specified services within budget. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive.
Related Government Programs
- Defense Management Consulting Services
- Army Administrative Support Contracts
- Federal Management and Consulting Services
Risk Flags
- Contract duration may lead to vendor lock-in.
- Limited information on the number of bidders impacts competition assessment.
- Specific performance metrics and outcomes not detailed.
Tags
defense, department-of-defense, department-of-the-army, administrative-management-consulting, general-management-consulting, definitive-contract, firm-fixed-price, full-and-open-competition, calibre-systems-inc, virginia, professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.6 million to CALIBRE SYSTEMS INC. OSMIS - LABOR
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 $40.6 million.
What is the period of performance?
Start: 2012-09-23. End: 2016-09-23.
What was the specific nature of the administrative management and general management consulting services provided under this contract?
While the contract NAICS code (541611) specifies Administrative Management and General Management Consulting Services, the precise deliverables are not detailed in the provided data. Typically, such services for the Department of Defense could encompass a wide range of activities including organizational analysis, process improvement, strategic planning support, human capital management consulting, and the development of management policies and procedures. The objective is generally to enhance the efficiency, effectiveness, and overall performance of military and civilian operations within the Army.
How does the total contract value of $40.6 million compare to similar consulting contracts awarded by the Department of Defense?
The total contract value of $40.6 million over four years equates to an average annual value of approximately $10.15 million. When compared to other large-scale management consulting contracts awarded by the Department of Defense, this figure is substantial but not extraordinary, especially for comprehensive support services. Many similar contracts for strategic advisory, program management, and complex operational consulting can range from several million to tens of millions of dollars annually, depending on the scope, duration, and criticality of the services.
What are the potential risks associated with a four-year definitive contract for consulting services?
A significant risk with a four-year definitive contract is the potential for scope creep, where the project's objectives or requirements expand beyond the original agreement without corresponding adjustments in cost or timeline. Another risk is vendor lock-in, where the government becomes overly reliant on the incumbent contractor, making it difficult to switch providers or bring services in-house. Furthermore, if performance metrics are not rigorously monitored, the contractor might underdeliver on expected outcomes. The firm fixed-price nature mitigates direct cost overruns but does not guarantee optimal performance or value realization if the scope is not well-managed.
What does the 'definitive contract' designation imply for this award?
A definitive contract is a fixed-price contract that is fully funded and awarded for a specific period or quantity. In this case, it signifies that the Department of the Army committed to purchasing a defined set of services from CALIBRE SYSTEMS INC. for the duration of the contract (September 23, 2012, to September 23, 2016). Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, definitive contracts provide greater certainty regarding the total value and period of performance, allowing for more predictable budgeting and resource allocation for both the government and the contractor.
What is the significance of the contract being awarded with a 'firm fixed price' (FFP) type?
The Firm Fixed Price (FFP) contract type is significant because it establishes a ceiling price that is not subject to adjustment based on the contractor's cost experience in performing the work. This places the maximum financial burden on the contractor, incentivizing them to control costs and perform efficiently to maximize profit. For the government, FFP provides the highest degree of cost certainty and predictability, making budgeting easier. It is generally preferred for well-defined requirements where the scope of work is unlikely to change significantly.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91WAW12R0016
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $40,643,960
Exercised Options: $40,643,960
Current Obligation: $40,643,960
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-23
Current End Date: 2016-09-23
Potential End Date: 2016-09-23 00:00:00
Last Modified: 2025-12-31
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