Orbis Sibro Inc. awarded $27.3M for Navy professional support services, highlighting engineering expertise

Contract Overview

Contract Amount: $27,261,081 ($27.3M)

Contractor: Orbis Sibro Inc

Awarding Agency: Department of Defense

Start Date: 2023-05-31

End Date: 2026-05-31

Contract Duration: 1,096 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROFESSIONAL SUPPORT SERVICES FOR NAVSEA SEA10 CORPORATE OPERATIONS & TOTAL FORCE AND SEA00 OFFICE OF THE COMMANDER

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to ORBIS SIBRO INC for work described as: PROFESSIONAL SUPPORT SERVICES FOR NAVSEA SEA10 CORPORATE OPERATIONS & TOTAL FORCE AND SEA00 OFFICE OF THE COMMANDER Key points: 1. Contract value represents a significant investment in essential corporate and total force operations for NAVSEA. 2. The full and open competition suggests a robust market for these specialized support services. 3. Potential risks include contractor performance and the effective management of cost-plus-fixed-fee arrangements. 4. This contract supports critical functions within the Department of the Navy, contributing to overall defense readiness. 5. The engineering services sector is highly competitive, with numerous firms capable of fulfilling such requirements. 6. The duration of the contract indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of $27.3 million over approximately three years appears reasonable for comprehensive professional support services within a major naval command. Benchmarking against similar contracts for engineering and management support within the Department of Defense is necessary for a definitive value assessment. However, the fixed-fee component suggests a degree of cost control, though the 'cost plus' nature warrants scrutiny of incurred expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 8 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government can select from a wide pool of capable contractors.

Taxpayer Impact: A competitive bidding process like this typically leads to better pricing for taxpayers by driving down costs through market forces.

Public Impact

Naval Sea Systems Command (NAVSEA) benefits from enhanced corporate operations and total force management. Services delivered include essential professional support, contributing to the efficiency and effectiveness of naval command functions. The primary geographic impact is within the District of Columbia, where the services are likely performed. The contract supports a workforce of professionals skilled in engineering, management, and administrative support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns inherent in cost-plus contracts if not rigorously managed.
  • Ensuring consistent service quality and performance throughout the contract's multi-year duration.
  • Dependency on a single contractor for critical operational support functions.

Positive Signals

  • Awarded through full and open competition, indicating a competitive market and potential for best value.
  • The contract duration suggests a stable, long-term need, allowing for focused service delivery.
  • The fixed-fee element provides some predictability in contractor profit margins.

Sector Analysis

The engineering services sector (NAICS 541330) is a substantial part of the federal procurement landscape, supporting a wide array of government functions, particularly in defense and infrastructure. This contract fits within the broader category of professional, scientific, and technical services, which consistently represent a significant portion of federal spending. Comparable spending benchmarks for similar support services within the Department of Defense often run into the tens or hundreds of millions annually, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements were mandated. The prime contractor, Orbis Sibro Inc., is likely a mid-to-large-sized firm. The absence of small business set-asides means that opportunities for small business participation are not guaranteed through this specific award, though the prime contractor may engage them voluntarily.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases, though detailed operational performance data may be less publicly accessible.

Related Government Programs

  • NAVSEA Corporate Operations Support
  • Department of the Navy Total Force Management
  • Engineering Services Contracts
  • Professional Support Services
  • Defense Management Support

Risk Flags

  • Cost-plus contract type requires diligent oversight to manage costs.
  • Long contract duration necessitates continuous performance monitoring.
  • Potential for vendor lock-in due to extended service period.

Tags

defense, department-of-defense, department-of-the-navy, navsea, professional-services, engineering-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, district-of-columbia, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to ORBIS SIBRO INC. PROFESSIONAL SUPPORT SERVICES FOR NAVSEA SEA10 CORPORATE OPERATIONS & TOTAL FORCE AND SEA00 OFFICE OF THE COMMANDER

Who is the contractor on this award?

The obligated recipient is ORBIS SIBRO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2023-05-31. End: 2026-05-31.

What is Orbis Sibro Inc.'s track record with federal contracts, particularly within the Department of Defense?

Orbis Sibro Inc. has a history of performing federal contracts, primarily within the defense sector. Reviewing their past performance on similar contracts, especially those involving professional support and engineering services for naval commands, is crucial. Data on contract values, durations, and any reported performance issues or awards would provide insight into their reliability and capability. A deeper analysis would involve examining contract close-out data, any disputes, or contract modifications to understand the full scope of their federal contracting experience and identify any patterns in their performance.

How does the $27.3 million contract value compare to similar professional support services contracts awarded by the Department of the Navy?

The $27.3 million value for approximately three years of professional support services for NAVSEA SEA10 appears to be within a typical range for contracts of this nature within the Department of Defense. Similar contracts supporting command operations, total force management, and engineering services can range from several million to tens of millions of dollars annually, depending on the specific scope, complexity, and number of personnel required. A direct comparison would involve identifying contracts with comparable NAICS codes (e.g., 541330 - Engineering Services, 541611 - Administrative Management and General Management Consulting Services) awarded to similar-sized commands or agencies within the Navy or DoD over the past few fiscal years.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for these services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for the contractor to incur costs that exceed initial estimates, although the fixed fee provides a defined profit margin. While the government pays the allowable costs, there's a risk of contractor inefficiency driving up costs, which the government ultimately bears. Effective oversight is critical to ensure that costs are reasonable, allocable, and allowable. The fixed fee, however, incentivizes the contractor to control costs to some extent, as their profit is capped. Without robust monitoring, the government might end up paying more than necessary for the services rendered.

How effective is the full and open competition process in ensuring the best value for taxpayers in this specific contract?

The full and open competition process, evidenced by 8 bidders, is generally considered the most effective method for ensuring best value for taxpayers. It allows a wide range of qualified vendors to compete, driving down prices through market forces and encouraging innovation. The government can select the offer that provides the best combination of technical merit and price. The success of this process hinges on a well-defined Statement of Work (SOW) and clear evaluation criteria, ensuring that the lowest price doesn't automatically win if technical capabilities are insufficient. The competitive tension created by multiple bidders typically leads to more favorable pricing and service terms.

What is the historical spending trend for professional support services within NAVSEA SEA10 or similar commands?

Analyzing historical spending trends for professional support services within NAVSEA SEA10 or comparable commands is essential for context. This involves examining contract data over several fiscal years to identify patterns in spending levels, contract types, and incumbent contractors. Significant year-over-year increases or decreases could indicate shifts in program priorities, changes in operational needs, or evolving contracting strategies. Understanding this history helps in assessing whether the current $27.3 million award is an anomaly or part of a consistent spending pattern, and whether past spending has yielded demonstrable improvements in operational efficiency or mission accomplishment.

What are the implications of the contract's duration (1096 days) on service continuity and potential contractor lock-in?

A contract duration of 1096 days (approximately three years) provides significant service continuity, which is beneficial for complex, ongoing operations like those within NAVSEA. This extended period allows the contractor to develop deep institutional knowledge and streamline processes, potentially leading to greater efficiency. However, such a long duration also increases the risk of contractor 'lock-in,' where the government becomes heavily reliant on the incumbent, potentially diminishing future competitive leverage. It necessitates robust performance management throughout the period to ensure the contractor remains accountable and that the services continue to meet evolving needs.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017421R3013

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 238 ALBEMARLE RD, CHARLESTON, SC, 29407

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $45,572,991

Exercised Options: $28,377,427

Current Obligation: $27,261,081

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,781,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8239

IDV Type: IDC

Timeline

Start Date: 2023-05-31

Current End Date: 2026-05-31

Potential End Date: 2028-05-31 00:00:00

Last Modified: 2026-01-08

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