Agriculture awards $3.1M contract for enterprise learning platform to Course Avenue, LLC

Contract Overview

Contract Amount: $3,114,607 ($3.1M)

Contractor: Courseavenue, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-04-01

End Date: 2027-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AGLEARN - 508 COURSE CREATION ENTERPRISE PLATFORM SOLUTION

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80525

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.1 million to COURSEAVENUE, LLC for work described as: AGLEARN - 508 COURSE CREATION ENTERPRISE PLATFORM SOLUTION Key points: 1. The contract value represents a significant investment in digital learning infrastructure for the Department of Agriculture. 2. The sole-source award raises questions about potential missed opportunities for competitive pricing and innovation. 3. Performance risk appears moderate given the fixed-price contract type, but vendor experience is a key factor. 4. This spending supports the modernization of training and development programs within the agency. 5. The contract falls within the Software Publishers industry, a sector experiencing rapid technological advancement. 6. The duration of the contract suggests a long-term commitment to the chosen platform.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging without competitive bids. The total contract value of $3.1 million over five years averages approximately $622,921 annually. Without comparable contracts or market data for similar enterprise learning platforms, it is difficult to definitively assess if this represents excellent value for money. The fixed-price nature of the contract provides some cost certainty, but the lack of competition means the government cannot leverage market forces to potentially drive down costs or secure more favorable terms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach typically occurs when only one vendor is capable of meeting the agency's specific requirements, or in situations where a full and open competition is not feasible or practical. The lack of competition means that the Department of Agriculture did not benefit from multiple vendors bidding, which could have led to lower prices, innovative solutions, or a wider range of options. The justification for a sole-source award would need to be robust to ensure taxpayer funds are used efficiently.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government cannot rely on competitive pressures to ensure the best possible price. It also limits the opportunity for new or smaller businesses to enter the market and compete for government contracts.

Public Impact

Federal employees across the Department of Agriculture will benefit from enhanced training and development opportunities. The contract will deliver an enterprise learning platform solution, likely including course creation, management, and delivery functionalities. The geographic impact is nationwide, as federal employees across all locations will have access to the platform. This initiative supports the professional development and skill enhancement of the agricultural workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in with a long-term, single-provider solution.

Positive Signals

Addresses a clear need for an enterprise learning platform.
Fixed-price contract provides cost predictability.
Long-term contract duration suggests a strategic investment in workforce development.

Sector Analysis

The Software Publishers industry (NAICS 511210) is characterized by companies that develop, publish, and distribute software. This contract falls within this sector, specifically for an enterprise learning platform solution. The market for learning management systems (LMS) and e-learning platforms is substantial and growing, driven by the increasing need for digital training and professional development across all industries, including government. Comparable spending benchmarks for enterprise-level software solutions can vary widely based on features, user base, and customization, but multi-million dollar awards for comprehensive platforms are not uncommon.

Small Business Impact

This contract was not awarded to a small business and there is no indication of small business set-aside provisions. As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were explicitly mandated or sought through a competitive process. This could limit the direct impact on the small business ecosystem for this specific procurement, although the prime contractor may engage small businesses independently.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Office of the Chief Financial Officer and relevant program managers. Accountability measures are inherent in the fixed-price contract type, requiring the contractor to deliver the specified platform within the agreed-upon terms. Transparency regarding the sole-source justification and performance metrics would be crucial for effective oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Employee Training Programs
E-Learning and Digital Education Solutions
Government-Wide IT Modernization Initiatives

Risk Flags

Sole-source award may indicate limited competition.
Lack of detailed performance metrics in summary data.
Vendor's federal track record requires further investigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.1 million to COURSEAVENUE, LLC. AGLEARN - 508 COURSE CREATION ENTERPRISE PLATFORM SOLUTION

Who is the contractor on this award?

The obligated recipient is COURSEAVENUE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2022-04-01. End: 2027-03-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and awarded as a 'SOLE SOURCE'. A sole-source award is typically justified when only one responsible source is available or capable of meeting the agency's needs. Common reasons include unique capabilities, proprietary technology, urgent requirements where competition is impractical, or when a previous contract was awarded under specific circumstances that limit competition for follow-on work. For this specific contract, the Department of Agriculture would need to provide a formal justification (e.g., a Justification and Approval document) detailing why a full and open competition was not feasible or advantageous. Without this documentation, it is impossible to fully assess the rationale behind the sole-source decision and its implications for value for money.

How does the annual cost of this platform compare to similar enterprise learning solutions in the federal government?

The total contract value is $3,114,607.29 over 1825 days (approximately 5 years), equating to an average annual cost of roughly $622,921. Benchmarking this against similar federal contracts for enterprise learning platforms is difficult without more specific details on the platform's features, user capacity, and the scope of services included. However, federal spending on learning management systems and enterprise software can range significantly. Larger agencies often spend millions annually on comprehensive solutions. Given this is a sole-source award, a direct comparison to competitively procured systems is not possible. To assess value, one would need to compare the features and capabilities offered by Course Avenue, LLC against the market rates for comparable systems that were procured through competitive means, considering factors like user licenses, content hosting, integration capabilities, and support services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, for an enterprise learning platform, KPIs might include system uptime, user adoption rates, course completion rates, customer support response times, and data security compliance. SLAs would define the expected level of service for these metrics, often with associated penalties or remedies for non-performance. As this is a fixed-price contract, the contractor is obligated to deliver the platform and services as defined in the contract's statement of work. The effectiveness of oversight and the contractor's accountability would heavily rely on clearly defined and measurable KPIs and SLAs being established and monitored throughout the contract's duration.

What is the track record of Course Avenue, LLC in delivering similar enterprise-level software solutions to the federal government?

Information regarding the specific track record of Course Avenue, LLC in delivering similar enterprise-level software solutions to the federal government is not detailed in the provided data. As this is a sole-source award, it implies that the Department of Agriculture has determined Course Avenue, LLC is the only capable provider. Further investigation would be needed to ascertain the company's past performance on federal contracts, including the size and complexity of previous projects, client satisfaction, and adherence to schedules and budgets. A review of contract databases (like FPDS or SAM.gov) and past performance evaluations would be necessary to fully assess their capabilities and reliability for this significant five-year contract.

What is the potential impact of this contract on the broader federal IT modernization efforts?

This contract contributes to the federal government's broader IT modernization efforts by investing in a modern enterprise learning platform. Such platforms are crucial for enhancing workforce skills, facilitating compliance training, and improving the efficiency of professional development programs across agencies. By centralizing and digitizing training, the Department of Agriculture can potentially reduce costs associated with traditional training methods, improve accessibility for employees regardless of location, and ensure more consistent delivery of learning content. This aligns with government-wide initiatives aimed at leveraging technology to improve operational effectiveness and employee engagement. The success of this platform could serve as a model for other agencies seeking to upgrade their learning and development infrastructure.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 917 N. WHEATON AVENUE, WHEATON, IL, 60187

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,133,778

Exercised Options: $3,114,607

Current Obligation: $3,114,607

Actual Outlays: $2,304,230

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline