Orbis Sibro Inc. awarded $15.8M for Navy ship modernization support, facing competition and oversight
Contract Overview
Contract Amount: $15,845,146 ($15.8M)
Contractor: Orbis Sibro Inc
Awarding Agency: Department of Defense
Start Date: 2022-12-01
End Date: 2026-12-09
Contract Duration: 1,469 days
Daily Burn Rate: $10.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE CONTRACTOR SHALL PROVIDE SUPPORT AND OVERSIGHT TO SHIPS MODERNIZATION PROGRAMS.
Place of Performance
Location: NORFOLK, NORFOLK County, MASSACHUSETTS, 02056
Plain-Language Summary
Department of Defense obligated $15.8 million to ORBIS SIBRO INC for work described as: THE CONTRACTOR SHALL PROVIDE SUPPORT AND OVERSIGHT TO SHIPS MODERNIZATION PROGRAMS. Key points: 1. Contract focuses on crucial ship modernization, a high-priority area for naval readiness. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract type (Cost Plus Fixed Fee) warrants close monitoring for cost overruns. 4. Performance period spans over four years, indicating a significant, long-term engagement. 5. Engineering services are essential for complex naval projects, highlighting the contractor's specialized role. 6. The award is a delivery order under a larger contract vehicle, suggesting established procurement processes.
Value Assessment
Rating: good
The contract value of $15.8 million for engineering services related to ship modernization appears reasonable given the four-year duration and the complexity of naval programs. Benchmarking against similar large-scale defense engineering contracts would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs remain within acceptable parameters and that the fixed fee is commensurate with the effort required.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 6 bidders suggests a healthy level of competition for this type of specialized engineering service. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple firms to bid, potentially driving down costs and ensuring the government receives competitive pricing for essential ship modernization services.
Public Impact
The U.S. Navy benefits from specialized engineering support to modernize its fleet, enhancing operational capabilities. Services delivered include crucial oversight and support for ship modernization programs. The geographic impact is likely concentrated around naval shipyards and relevant operational areas. Workforce implications include the need for skilled engineers and technical personnel within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require robust oversight to manage potential cost escalations.
- Long-term contracts can sometimes lead to complacency if not actively managed.
- The specific nature of ship modernization can involve unforeseen technical challenges and cost impacts.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- The contractor is providing essential engineering services for critical naval assets.
- The contract duration suggests a stable and predictable need for these services.
Sector Analysis
The defense engineering services sector is characterized by highly specialized firms capable of supporting complex government programs. This contract fits within the broader market for defense logistics and technical support, where companies provide expertise in areas like naval architecture, systems engineering, and program management. Spending in this sector is substantial, driven by the continuous need to maintain and modernize military assets.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award to Orbis Sibro Inc. suggests a prime contractor capable of handling large-scale defense contracts. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this engagement.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency is typically maintained through contract reporting systems and potential audits by the Defense Contract Audit Agency (DCAA) or the Inspector General.
Related Government Programs
- Naval Ship Modernization Programs
- Defense Engineering Services
- Shipbuilding and Repair Contracts
- Naval Fleet Readiness Initiatives
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent cost oversight.
- Long-term duration of the contract necessitates ongoing performance monitoring.
- Complexity of ship modernization can introduce unforeseen risks and cost impacts.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, ship-modernization, full-and-open-competition, cost-plus-fixed-fee, delivery-order, massachusetts, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.8 million to ORBIS SIBRO INC. THE CONTRACTOR SHALL PROVIDE SUPPORT AND OVERSIGHT TO SHIPS MODERNIZATION PROGRAMS.
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 $15.8 million.
What is the period of performance?
Start: 2022-12-01. End: 2026-12-09.
What is Orbis Sibro Inc.'s track record with similar defense contracts, particularly those involving ship modernization?
Orbis Sibro Inc. has a history of performing various defense-related contracts. While specific details on their ship modernization experience require deeper investigation into their contract portfolio, their ability to secure this $15.8 million award from the Department of the Navy suggests they possess the necessary qualifications and past performance. Analyzing their prior awards, client feedback, and any performance reviews would provide a clearer picture of their expertise and reliability in this specialized domain. It's important to assess if they have successfully managed similar cost-plus contracts and delivered complex engineering solutions on time and within budget in the past.
How does the $15.8 million value compare to similar ship modernization support contracts awarded by the Navy or other branches?
The $15.8 million value for a four-year contract supporting ship modernization is within a typical range for specialized engineering services in the defense sector. However, a precise comparison requires benchmarking against contracts with similar scopes of work, duration, and complexity. Factors such as the specific types of ships being modernized, the level of engineering required (e.g., design, integration, testing), and the geographic location of the work can significantly influence contract value. Without access to a comprehensive database of comparable contracts, it's difficult to definitively state if this represents exceptional value, but it does not appear to be an outlier for the services described.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for ship modernization, and how are they mitigated?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs exceed estimates, the government bears the burden. For ship modernization, risks include unforeseen technical challenges, scope creep, and delays in shipyard availability, all of which can inflate costs. Mitigation strategies include robust government oversight, detailed cost tracking and reporting, clearly defined contract requirements, and strong negotiation of the fixed fee based on realistic cost projections. The government must actively manage the contract to ensure efficiency and prevent unnecessary expenditures.
How effective are the current oversight mechanisms for ensuring the successful delivery of ship modernization services under this contract?
The effectiveness of oversight mechanisms hinges on the diligence and resources allocated by the Department of the Navy. Standard oversight includes regular progress meetings, review of contractor deliverables, audits by the Defense Contract Audit Agency (DCAA), and performance evaluations. For ship modernization, which involves complex technical and logistical challenges, effective oversight requires experienced government personnel who can scrutinize technical plans, cost proposals, and schedule adherence. The presence of an Inspector General's office within the DoD also provides an additional layer of accountability. The success of these mechanisms depends on proactive engagement and the authority to enforce contract terms.
What has been the historical spending trend for ship modernization support services within the Department of the Navy over the past five years?
Historical spending on ship modernization support services within the Department of the Navy has generally been substantial and often increasing, driven by the need to maintain a modern and capable fleet in response to evolving geopolitical threats. Factors such as aging vessels, the introduction of new technologies, and strategic fleet recapitalization plans contribute to consistent demand. While specific figures for 'ship modernization support' as a distinct category can vary based on how it's classified in budget documents, overall shipbuilding, conversion, and repair budgets, which encompass modernization, represent billions of dollars annually. This indicates a sustained commitment and significant investment in keeping the Navy's assets up-to-date.
What are the implications of awarding this contract under 'full and open competition' versus a sole-source or limited competition approach?
Awarding this contract under 'full and open competition' implies that the government solicited proposals from all responsible sources and awarded the contract to the responsible offeror whose proposal represented the best value. This approach generally fosters a competitive environment, potentially leading to lower prices, higher quality services, and innovative solutions due to the broader pool of potential bidders. It also ensures fairness and transparency in the procurement process. In contrast, sole-source or limited competition might be used when only one or a few sources can meet the requirement, potentially leading to higher costs and less innovation, though it can be faster in specific urgent situations.
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: N6449822R3024
Offers Received: 6
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: $24,870,551
Exercised Options: $19,672,892
Current Obligation: $15,845,146
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,631,807
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: 2022-12-01
Current End Date: 2026-12-09
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2026-01-08
More Contracts from Orbis Sibro Inc
- THE Contractor Shall Perform ALL Tasks Required and Delineated in the Performance Work Statement (PWS) to Support System Level Technical Expertise in the Functional Areas of Cyber Security/Information Assurance (IA) Support, Technical Data Support, System Architecture&engineering, Coding/Programming, Database Administration, System / WEB Server / Application Server Administration, Customer Support, Engineering&technical Support, and Training&instruction Support — $32.6M (Department of Defense)
- Technical, Programmatic and Information Technology Support Services in Support of SEA21 — $27.4M (Department of Defense)
- Professional Support Services for Navsea SEA10 Corporate Operations & Total Force and SEA00 Office of the Commander — $27.3M (Department of Defense)
- 200406!000085!1700!BY006 !navsea Washington DC !gs23f0185n !C!N! !n!n0002404fb034! !20040218!20040930!872942706!872942706!872942706!n!orbis Inc !2557 John Boone CT !mount Pleasant !sc!29466!48535!019!45!mount Pleasant !charleston !S Carolina!+000000225000!n!n!000000000000!r408!program Management/Support Services !c9e!all Other Supplies and Equipment !000 !* !541611!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !y!b!y!n! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! ! — $26.0M (Department of Defense)
- Provide Engineering and Logistics Services to Navsea 04LR — $25.5M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)