Orbis Sibro Inc. awarded $25.5M for engineering and logistics services to NAVSEA 04LR
Contract Overview
Contract Amount: $25,490,342 ($25.5M)
Contractor: Orbis Sibro Inc
Awarding Agency: Department of Defense
Start Date: 2010-02-03
End Date: 2016-11-02
Contract Duration: 2,464 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROVIDE ENGINEERING AND LOGISTICS SERVICES TO NAVSEA 04LR
Place of Performance
Location: MOUNT PLEASANT, CHARLESTON County, SOUTH CAROLINA, 29464
Plain-Language Summary
Department of Defense obligated $25.5 million to ORBIS SIBRO INC for work described as: PROVIDE ENGINEERING AND LOGISTICS SERVICES TO NAVSEA 04LR Key points: 1. Contract value of $25.5M over approximately 8 years suggests a significant, long-term need for specialized engineering and logistics support. 2. The 'Delivery Order' award type indicates this was likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, allowing for task-specific ordering. 3. The contract was awarded under full and open competition, implying a robust bidding process and potential for competitive pricing. 4. The 'Cost Plus Fixed Fee' pricing structure means the contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize cost control but also carries some risk of cost overruns. 5. The duration of 2464 days (approx. 6.7 years) indicates a substantial commitment and a need for sustained support. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component for complex defense systems.
Value Assessment
Rating: good
The contract value of $25.5 million over nearly 7 years for engineering and logistics services to NAVSEA 04LR appears reasonable given the scope. Benchmarking against similar long-term, specialized support contracts for naval systems would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, requires careful oversight to ensure costs remain within expectations and the fixed fee provides adequate profit without excessive risk to the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of 3 bidders (no is 3) indicates a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring the best value, the actual level of competition can vary based on the specificity of the requirements and the number of capable contractors in the market.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a wider pool of potential bidders. This approach increases the likelihood that the government secures services at a competitive market rate, maximizing the value of taxpayer dollars.
Public Impact
Naval Sea Systems Command (NAVSEA) personnel benefit from enhanced engineering and logistics support, crucial for maintaining and modernizing naval assets. The services delivered are essential for the operational readiness and effectiveness of the U.S. Navy's fleet. The contract's impact is primarily within the defense sector, supporting national security objectives. The contract likely supports a specialized workforce of engineers, logisticians, and technical experts, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, potentially increasing the final cost to taxpayers.
- Long-term contracts, while providing stability, may reduce flexibility to adapt to changing technological needs or market conditions without significant modification costs.
- Reliance on a single contractor for extended periods could lead to vendor lock-in, potentially diminishing future competitive opportunities.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process that likely secured favorable pricing.
- The contract duration suggests a stable, long-term need, allowing for efficient planning and resource allocation by both the government and the contractor.
- The provision of engineering and logistics services is critical for the operational effectiveness of naval systems, indicating a high-value service delivery.
Sector Analysis
Engineering services, particularly those supporting defense applications, represent a significant segment of the professional services market. Companies like Orbis Sibro Inc. operate within a sector characterized by high technical expertise, stringent quality requirements, and long-term government contracts. The market size for defense engineering services is substantial, driven by the continuous need for research, development, sustainment, and modernization of military platforms and systems. This contract fits within the broader landscape of defense procurement, where specialized technical support is essential for maintaining a technological edge.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature and potential value of the services, it is likely that larger, established firms with specialized capabilities were the primary bidders. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance, compliance with contract terms, and proper cost accounting. The 'Cost Plus Fixed Fee' structure necessitates rigorous financial oversight to validate incurred costs and ensure the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting requirements and performance reviews, though specific details on public accessibility of performance data may vary.
Related Government Programs
- NAVSEA Engineering and Technical Services
- Naval Logistics Support Contracts
- Defense Professional Services Procurement
- IDIQ Contract Vehicles for Engineering Support
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage potential cost overruns.
- Long contract duration may limit government flexibility to adapt to evolving requirements.
- Potential for vendor lock-in due to extended contract term.
Tags
defense, engineering-services, logistics-support, navsea, department-of-defense, cost-plus-fixed-fee, full-and-open-competition, delivery-order, long-term-contract, professional-services, south-carolina, orbis-sibro-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 million to ORBIS SIBRO INC. PROVIDE ENGINEERING AND LOGISTICS SERVICES TO NAVSEA 04LR
Who is the contractor on this award?
The obligated recipient is ORBIS SIBRO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $25.5 million.
What is the period of performance?
Start: 2010-02-03. End: 2016-11-02.
What is the track record of Orbis Sibro Inc. with NAVSEA and similar defense contracts?
Orbis Sibro Inc. has a history of performing services for the Department of Defense, including contracts related to engineering and technical support. Analyzing their past performance on similar NAVSEA contracts, particularly those with a Cost Plus Fixed Fee structure, would reveal their ability to manage costs, meet performance metrics, and adhere to schedules. A review of past performance evaluations and any contract disputes or awards would provide insight into their reliability and expertise in delivering complex engineering and logistics solutions within the defense sector. Their experience with NAVSEA specifically suggests a familiarity with the command's requirements and operational environment.
How does the $25.5 million contract value compare to similar engineering and logistics support contracts for naval systems?
The $25.5 million contract value over approximately 6.7 years for engineering and logistics services to NAVSEA 04LR represents a significant but not extraordinary investment for long-term support of naval systems. Comparable contracts for similar scope and duration within the defense sector can range widely depending on the specific systems supported, the level of technical expertise required, and the geographic locations involved. Contracts for major platform sustainment or complex system integration can easily reach tens or hundreds of millions of dollars. This contract appears to fall within a moderate range for specialized, long-duration support, suggesting a competitive award that reflects market rates for such critical services.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?
The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type is the potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the government bears the risk of reimbursing all allowable costs. If the contractor's costs exceed initial estimates, the total contract price will increase, potentially exceeding the government's budget. Effective oversight, detailed cost tracking, and robust auditing are crucial to mitigate this risk. Additionally, CPFF contracts can sometimes incentivize contractors to incur higher costs if they believe it will lead to a larger fee, although the fixed nature of the fee is intended to counter this.
How effective is full and open competition in ensuring value for money for engineering services contracts like this one?
Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for engineering services. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as indicated by the 3 bidders for this contract, increases the likelihood that the government will receive proposals that are both technically sound and cost-effective. However, the effectiveness is contingent on the clarity of the solicitation requirements and the ability of the government to properly evaluate the proposals received to select the best overall value, not just the lowest price.
What is the historical spending trend for engineering and logistics services by NAVSEA?
Historical spending by NAVSEA on engineering and logistics services is substantial and generally trends upwards, reflecting the continuous need to maintain, modernize, and support a complex and aging naval fleet. NAVSEA procures a wide array of services, from ship design and construction oversight to lifecycle sustainment and advanced technology integration. Spending patterns are influenced by defense budgets, geopolitical priorities, and the specific modernization programs underway. Analyzing past NAVSEA spending data within the 541330 NAICS code (Engineering Services) and related logistics categories would reveal consistent demand for these critical support functions, often utilizing IDIQ contracts with multiple delivery orders like the one awarded to Orbis Sibro Inc.
What are the potential implications of the contract duration (approx. 6.7 years) on contractor performance and government flexibility?
A contract duration of approximately 6.7 years provides significant benefits for both the contractor and the government. For the contractor, it offers stability, allowing for long-term resource planning, investment in specialized personnel and equipment, and a predictable revenue stream. This stability can lead to improved performance and efficiency as the contractor gains deep familiarity with the requirements. For the government, it ensures continuity of essential services without the frequent administrative burden of re-competing contracts. However, a long duration can also reduce flexibility. If requirements change significantly due to technological advancements or shifts in strategic priorities, modifying or terminating a long-term contract can be complex and costly, potentially leading to vendor lock-in.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002409R3500
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 268 W COLEMAN BLVD STE 2A, MOUNT PLEASANT, SC, 29464
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $25,548,716
Exercised Options: $25,548,716
Current Obligation: $25,490,342
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4100
IDV Type: IDC
Timeline
Start Date: 2010-02-03
Current End Date: 2016-11-02
Potential End Date: 2016-11-02 00:00:00
Last Modified: 2017-07-27
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