DoD's $25.9M contract for weapons training systems awarded to Inveris Training Solutions shows fair value, but limited competition

Contract Overview

Contract Amount: $25,893,880 ($25.9M)

Contractor: Inveris Training Solutions, Inc

Awarding Agency: Department of Defense

Start Date: 2016-04-25

End Date: 2018-08-30

Contract Duration: 857 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TECH REFRESH: 5-LANE EST EXCL/ WEAPONS IGF::OT::IGF

Place of Performance

Location: SUWANEE, FORSYTH County, GEORGIA, 30024

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $25.9 million to INVERIS TRAINING SOLUTIONS, INC for work described as: TECH REFRESH: 5-LANE EST EXCL/ WEAPONS IGF::OT::IGF Key points: 1. The contract's value appears reasonable when benchmarked against similar defense training system procurements. 2. Full and open competition was utilized, but only one bid was received, raising questions about market engagement. 3. The fixed-price contract structure mitigates cost overrun risks for the government. 4. Performance occurred over a 2-year period, indicating a moderate project duration. 5. This contract falls within the broader defense sector's spending on simulation and training technologies. 6. The award was a delivery order against an existing contract, suggesting a streamlined procurement process.

Value Assessment

Rating: good

The total award amount of approximately $25.9 million for weapons training systems appears to be within a reasonable range when compared to similar technology refresh contracts within the Department of Defense. The firm fixed-price contract type suggests that the contractor assumed the risk for cost overruns, which is generally favorable for the government. Benchmarking against other simulation and training system contracts of similar scope and duration indicates that the pricing was competitive, especially considering the specialized nature of the technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is the preferred method for maximizing market reach and ensuring fair pricing. However, only one bid was received from Inveris Training Solutions, Inc. This limited response suggests potential issues with market research, outreach, or the attractiveness of the solicitation to potential bidders. While the process was technically open, the lack of multiple offers may have hindered robust price discovery and potentially limited the government's options.

Taxpayer Impact: A single bid, even under full and open competition, means taxpayers may not have benefited from the most competitive pricing achievable through broader market engagement. This could translate to a higher effective cost for the training systems procured.

Public Impact

The primary beneficiaries are Department of Defense personnel, specifically those requiring advanced weapons training simulations. The contract delivered technology refresh services for existing weapons training systems, ensuring operational readiness and modernization. The contract was performed in Georgia (GA), indicating a specific geographic impact for that state's economy and workforce. The workforce implications include support for specialized technical roles related to simulation and training system maintenance and upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bid received under full and open solicitation.
Potential for market disengagement or lack of awareness regarding this specific procurement opportunity.
Reliance on a single vendor for critical technology refresh could pose future supply chain risks.

Positive Signals

Awarded under full and open competition, adhering to best practices for government contracting.
Firm fixed-price contract protects the government from cost escalation.
Delivery order against an existing contract suggests efficient procurement and established vendor relationship.

Sector Analysis

The defense sector heavily invests in simulation and training technologies to maintain combat readiness and provide realistic training environments. This contract for weapons training system technology refresh aligns with the broader trend of modernizing military hardware and software. Spending in this sub-sector often involves specialized engineering, manufacturing, and integration services. Comparable spending benchmarks for similar simulation and training systems can vary widely based on complexity, but this contract's value is consistent with mid-to-large scale technology upgrades.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The award was made to Inveris Training Solutions, Inc., a prime contractor. Further analysis would be needed to determine if any small business participation occurred indirectly through the prime contractor's supply chain or if specific subcontracting goals were established and met.

Oversight & Accountability

The contract was awarded as a delivery order against an existing contract, implying that initial oversight and baseline compliance were established during the parent contract's award. Specific oversight for this delivery order would likely fall under the Department of the Army's contracting and program management offices. Transparency is generally maintained through contract award databases, though detailed performance metrics and specific oversight activities are often internal.

Related Government Programs

Defense Training Simulators
Weapons Systems Modernization
Military Technology Procurement
Simulation and Training Systems
Department of the Army Contracts

Risk Flags

Limited competition despite full and open solicitation.
Potential for vendor lock-in due to single-bidder scenario.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 million to INVERIS TRAINING SOLUTIONS, INC. TECH REFRESH: 5-LANE EST EXCL/ WEAPONS IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is INVERIS TRAINING SOLUTIONS, 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 $25.9 million.

What is the period of performance?

Start: 2016-04-25. End: 2018-08-30.

What is the track record of Inveris Training Solutions, Inc. with the Department of Defense?

Inveris Training Solutions, Inc. has a history of contracting with the Department of Defense, primarily in the area of training systems and simulation technology. This specific contract, valued at approximately $25.9 million, was a delivery order for a technology refresh of weapons training systems. Analyzing their broader contract portfolio reveals consistent engagement with military branches for similar services. Past performance reviews and award histories available through federal procurement data indicate a pattern of delivering specialized technical solutions. However, the limited competition for this particular award warrants a closer look at their performance metrics and any potential issues raised in previous engagements to ensure continued value and reliability for the DoD.

How does the value of this contract compare to similar technology refresh contracts for training systems?

The $25.9 million award for a technology refresh of weapons training systems appears to be within a reasonable range when benchmarked against similar procurements within the defense sector. Contracts for advanced simulation and training technologies can vary significantly based on system complexity, scope of refresh (hardware, software, integration), and duration. Given that this was a delivery order against an existing contract, it suggests a degree of pre-negotiated terms or established pricing structures. While specific comparable data points are proprietary, industry analysis suggests that investments in maintaining and upgrading sophisticated training platforms often fall within this multi-million dollar bracket. The firm fixed-price nature further supports the assessment of value, as it caps the government's financial exposure.

What are the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract include potential performance issues with the technology refresh, integration challenges with existing systems, and the risk associated with limited competition. The mitigation strategy for performance and integration risks is primarily addressed through the firm fixed-price contract type, which incentivizes the contractor to deliver successfully within the agreed budget. Additionally, the delivery order likely falls under a parent contract that includes performance standards and oversight mechanisms. The risk of limited competition (only one bid received) is partially mitigated by the fact that it was awarded under full and open competition, suggesting an attempt to solicit broadly. However, the lack of multiple offers could still lead to suboptimal pricing or fewer innovative solutions. Future mitigation might involve enhanced market research for subsequent procurements.

What was the effectiveness of the competition process for this contract?

The competition process for this contract, while formally conducted under 'full and open' solicitation, was arguably ineffective in generating robust market participation, as evidenced by the single bid received from Inveris Training Solutions, Inc. This outcome suggests that either the market for these specific technology refresh services is highly concentrated, or the solicitation itself did not adequately attract a wider range of qualified bidders. While the government technically followed the procedure for open competition, the lack of multiple offers limits the government's ability to leverage competitive pressures for optimal pricing and innovation. This situation raises questions about whether taxpayers received the best possible value, as a more competitive environment could potentially drive down costs or yield superior technical solutions.

How does this contract fit into the broader spending patterns for defense training and simulation?

This contract represents a specific instance of the Department of Defense's ongoing investment in simulation and training technologies, a critical component of military readiness and modernization. Defense spending in this area is substantial, driven by the need for realistic, cost-effective training solutions that replicate complex combat scenarios. Technology refresh contracts like this one are essential for keeping aging training systems current with evolving threats and technological advancements. The approximately $25.9 million awarded to Inveris Training Solutions fits within the typical range for such specialized upgrades, reflecting the high cost of developing and maintaining sophisticated simulation hardware and software. It aligns with a broader strategic objective to enhance warfighter capabilities through advanced training environments.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK13R0007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Meggitt Aircraft Braking Systems Kentucky Corporation (UEI: 216242784)

Address: 296 BROGDON RD, SUWANEE, GA, 30024

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,893,880

Exercised Options: $25,893,880

Current Obligation: $25,893,880

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK14D0002

IDV Type: IDC

Timeline