DoD's $24.8M software and cyber engineering contract for expeditionary systems awarded to Barbaricum LLC

Contract Overview

Contract Amount: $24,816,812 ($24.8M)

Contractor: Barbaricum LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-30

End Date: 2025-08-31

Contract Duration: 1,523 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: REQUIREMENT FOR A THREE (3) YEAR SOFTWARE DEVELOPMENT AND CYBER ENGINEERING SUPPORT FOR EXPEDITIONARY SYSTEMS AND PRODUCT LINES IN DIRECT SUPPORT OF THE MANEUVER, SURVEILLANCE, AND ENGAGEMENT (MS&E) SYSTEMS DIVISION (JXW).

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to BARBARICUM LLC for work described as: REQUIREMENT FOR A THREE (3) YEAR SOFTWARE DEVELOPMENT AND CYBER ENGINEERING SUPPORT FOR EXPEDITIONARY SYSTEMS AND PRODUCT LINES IN DIRECT SUPPORT OF THE MANEUVER, SURVEILLANCE, AND ENGAGEMENT (MS&E) SYSTEMS DIVISION (JXW). Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 4 years (1523 days) indicates a significant, long-term need. 3. The Cost Plus Fixed Fee (CPFF) contract type may allow for cost overruns, requiring close monitoring. 4. The award to Barbaricum LLC, a single entity, warrants examination of their capacity and past performance. 5. The focus on software development and cyber engineering for expeditionary systems highlights a critical defense capability. 6. The contract's value of over $24 million suggests a substantial investment in this specialized area.

Value Assessment

Rating: fair

The contract's total value of $24.8 million over approximately four years averages to about $6.2 million annually. Benchmarking this against similar software development and cyber engineering support contracts is challenging without more specific service details. The CPFF pricing structure introduces inherent risk for cost control, as the government pays the actual costs plus a fixed fee. This necessitates robust oversight to ensure costs remain reasonable and the fixed fee is appropriate for the scope of work.

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 offers. The presence of 3 bidders suggests a moderate level of competition for this specialized requirement. While multiple bidders are positive, the exact number (3) may not be sufficient to guarantee the most competitive pricing, especially for highly specialized defense engineering services.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to drive down prices through market forces. However, with only three bidders, the potential for significant cost savings might be limited compared to scenarios with a larger number of competitive offers.

Public Impact

The Maneuver, Surveillance, and Engagement (MS&E) Systems Division within the Department of the Navy directly benefits from this support. The contract delivers critical software development and cyber engineering services essential for modern expeditionary systems. The geographic impact is primarily within the Department of Defense's operational and development centers, with potential global reach for supported systems. The contract supports a specialized workforce in software development and cybersecurity engineering, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Limited competition (3 bidders) may not have yielded the lowest possible price for the government.
The specific nature of 'expeditionary systems' requires ongoing assessment to ensure evolving needs are met efficiently.
Cyber engineering is a rapidly evolving field; continuous adaptation and innovation are crucial for sustained effectiveness.

Positive Signals

Awarded through full and open competition, indicating a structured and accessible bidding process.
The contract addresses critical defense capabilities in software development and cybersecurity.
The duration suggests a stable, long-term requirement and commitment from the agency.
Support is directed towards a specific division (MS&E Systems), implying focused and potentially efficient resource allocation.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on software development and cybersecurity for defense systems. The market for defense-related engineering and IT services is substantial, driven by continuous modernization efforts within the armed forces. Comparable spending benchmarks would typically be found within broader IT and professional services categories for the Department of Defense, often running into billions of dollars annually across various specialized domains.

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. However, the prime contractor, Barbaricum LLC, may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the CPFF contract structure, requiring detailed reporting on costs and progress. Transparency is facilitated through contract award databases and reporting requirements, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Software Development Contracts
Cybersecurity Engineering Services
Expeditionary Systems Development
Naval Systems Command Support
IT Services for Defense Agencies

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition (3 bidders) may impact price competitiveness.
Cybersecurity is a rapidly evolving threat landscape requiring continuous adaptation.
Ensuring adequate contractor performance and delivery timelines is critical for mission success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to BARBARICUM LLC. REQUIREMENT FOR A THREE (3) YEAR SOFTWARE DEVELOPMENT AND CYBER ENGINEERING SUPPORT FOR EXPEDITIONARY SYSTEMS AND PRODUCT LINES IN DIRECT SUPPORT OF THE MANEUVER, SURVEILLANCE, AND ENGAGEMENT (MS&E) SYSTEMS DIVISION (JXW).

Who is the contractor on this award?

The obligated recipient is BARBARICUM LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2021-06-30. End: 2025-08-31.

What is Barbaricum LLC's track record with similar Department of Defense contracts, particularly in software development and cyber engineering?

Barbaricum LLC has a history of supporting defense and national security clients. While specific details on past performance for contracts of this exact scope and value are not provided in the summary, their general profile suggests experience in areas relevant to this requirement. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous DoD engagements, would be necessary to fully assess their capability and reliability for this specific software development and cyber engineering support role. Examining their portfolio of completed projects and client testimonials, if available, would offer further insight into their expertise and delivery success.

How does the $24.8 million value compare to other software development and cyber engineering contracts awarded by the Department of the Navy for similar systems?

The $24.8 million value for a three-year contract (with potential extensions) for specialized software development and cyber engineering support for expeditionary systems appears to be within a reasonable range for the defense sector. However, without precise definitions of 'expeditionary systems' and the specific scope of 'software development and cyber engineering support,' direct comparisons are difficult. Contracts for highly specialized IT and engineering services within the DoD can range from a few million to hundreds of millions of dollars, depending on complexity, duration, and the criticality of the systems involved. The Department of the Navy, like other branches, invests heavily in maintaining and advancing its technological capabilities, making this contract size indicative of a significant, albeit not exceptionally large, investment in a critical area.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific requirement?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of paying all allowable costs incurred. If the contractor's actual costs exceed initial estimates significantly, the total expenditure could be higher than anticipated. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. The fixed fee itself needs to be carefully negotiated to reflect the complexity and risk involved, ensuring it is fair compensation without being excessive.

How effective is the 'full and open competition' with only three bidders in ensuring optimal value for taxpayers?

Full and open competition is designed to maximize value by encouraging a wide range of potential bidders. However, with only three bidders, the level of competition might be considered moderate rather than robust. While it's better than a sole-source award, three bidders may not generate the intense price pressure seen when five or more companies vie for a contract. The effectiveness in ensuring optimal value depends heavily on the specificity of the requirement, the number of qualified companies in the market, and the bidding strategies employed. It's possible that the market for such specialized services is inherently limited, making three bidders a reasonable outcome, but it warrants scrutiny to ensure the pricing reflects fair market value.

What are the potential implications of this contract on the development and cybersecurity posture of US expeditionary systems?

This contract is crucial for enhancing the capabilities of US expeditionary systems through advanced software development and robust cybersecurity engineering. By securing specialized support, the Department of the Navy aims to ensure these systems are not only technologically advanced but also resilient against cyber threats. Improved software can lead to enhanced functionality, better user interfaces, and increased operational efficiency. Strong cybersecurity measures are vital to protect sensitive data, maintain system integrity, and prevent disruptions during critical missions. The successful execution of this contract should directly contribute to a stronger, more secure, and more capable expeditionary force.

How does the $16,295 'br' value relate to the overall contract and what does it signify?

The value 'br': 16295 likely represents a specific metric or benchmark related to the contract, possibly 'burden rate' or a similar cost component, though its exact meaning is not explicitly defined in the provided data. If it represents a burden rate, it would indicate the overhead costs applied to direct labor. Without further context or definition, it's difficult to definitively state its significance. However, in the context of a Cost Plus Fixed Fee contract, understanding various cost components and their associated rates is crucial for effective oversight and ensuring the government is not overpaying for services rendered. Further clarification on this specific metric would be needed for a precise analysis.

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

Solicitation ID: N0016421R3000

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1714 N STREET, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,945,611

Exercised Options: $25,945,611

Current Obligation: $24,816,812

Actual Outlays: $173,693

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $512,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7227

IDV Type: IDC

Timeline