Agriculture awards $4.1M for Skillsoft eLearning software, a 5-year contract with firm fixed pricing

Contract Overview

Contract Amount: $4,094,938 ($4.1M)

Contractor: Skillsoft (US) LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-12-18

End Date: 2028-12-17

Contract Duration: 1,826 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SKILLSOFT ELEARNING SOFTWARE CATALOG POP: 12/18/2023 - 12/17/2028

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80526

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.1 million to SKILLSOFT (US) LLC for work described as: SKILLSOFT ELEARNING SOFTWARE CATALOG POP: 12/18/2023 - 12/17/2028 Key points: 1. The contract leverages a firm fixed-price model, providing cost certainty for the agency. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of 5 years allows for sustained access to eLearning resources. 4. The software publisher category indicates a focus on digital learning solutions. 5. The contract's value is relatively modest within the broader federal IT spending landscape. 6. Performance is tied to a delivery order, implying specific service requirements.

Value Assessment

Rating: good

The contract value of $4.1 million over five years for eLearning software appears reasonable, especially considering the broad applicability of such platforms across an agency. Benchmarking against similar federal software procurements would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost fluctuations. Without specific details on the scope of services or user numbers, a definitive value assessment is challenging, but the price point does not immediately suggest overpayment for a standard software catalog.

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 a bid. The number of bidders is not specified, but the competitive nature of the award process generally supports fair pricing and encourages vendors to offer their best terms. This approach allows the agency to select from a wide range of potential solutions and providers, fostering a market-driven outcome.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of quality services, ensuring federal funds are used efficiently.

Public Impact

Federal employees across the Department of Agriculture will benefit from access to Skillsoft's extensive eLearning catalog. The contract delivers software and digital learning resources to support professional development and training. The geographic impact is nationwide, as federal employees can access these resources remotely. Workforce implications include enhanced skill development and continuous learning opportunities for agency personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not considered in future procurements.
Reliance on a single vendor for critical training resources could pose a risk if the vendor's offerings become outdated or their service degrades.

Positive Signals

Provides a centralized and comprehensive platform for employee training and development.
Leverages a well-established vendor in the eLearning space, likely offering a robust and reliable service.
Firm fixed-price contract offers budget predictability for the agency.

Sector Analysis

The federal IT sector, particularly software procurement, is a significant area of government spending. This contract falls within the software publishers sub-sector, which includes companies providing licensed or subscription-based software. The market for enterprise eLearning solutions is competitive, with numerous vendors offering platforms and content libraries. Federal agencies often procure such services through established catalogs or competitive solicitations to meet diverse training needs. Spending benchmarks for similar enterprise software licenses can vary widely based on user count, content scope, and contract duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, the prime contractor, Skillsoft (US) LLC, may engage small businesses for subcontracting opportunities, though this is not explicitly detailed in the provided information. The impact on the broader small business ecosystem for eLearning solutions would depend on whether this contract limits opportunities for smaller, specialized providers to compete for similar agency needs in the future.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Office of the Chief Financial Officer, which awarded the contract. The firm fixed-price nature of the contract simplifies financial oversight. Performance monitoring would likely be managed through the delivery order process, ensuring that the services and software provided meet the agency's requirements. Transparency is supported by the public nature of federal contract awards, allowing for general observation of spending.

Related Government Programs

Federal Civilian Agency Training Software
Enterprise Resource Planning Software
Cloud-Based Software Subscriptions
Digital Learning Platforms
Government-Wide Acquisition Contracts (GWACs) for Software

Risk Flags

Potential for low user adoption if not actively promoted and integrated into agency workflows.
Risk of content becoming outdated if not continuously updated by the vendor.
Dependence on a single vendor for a critical training function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.1 million to SKILLSOFT (US) LLC. SKILLSOFT ELEARNING SOFTWARE CATALOG POP: 12/18/2023 - 12/17/2028

Who is the contractor on this award?

The obligated recipient is SKILLSOFT (US) 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 $4.1 million.

What is the period of performance?

Start: 2023-12-18. End: 2028-12-17.

What is the historical spending pattern for Skillsoft eLearning software at the Department of Agriculture?

Historical spending data for Skillsoft eLearning software at the Department of Agriculture is not directly available from the provided contract details. This specific award represents a new contract with a start date of December 18, 2023, and an end date of December 17, 2028. To understand historical patterns, one would need to access broader federal procurement databases (like USASpending.gov or FPDS) and search for previous contracts awarded to Skillsoft (US) LLC by the Department of Agriculture or its various sub-agencies. Analyzing past awards would reveal the frequency, value, and duration of previous agreements, indicating whether this current contract represents an increase, decrease, or continuation of prior spending on similar services.

How does the per-unit cost of this Skillsoft contract compare to other federal agencies or commercial market rates?

A precise per-unit cost comparison for this Skillsoft contract is challenging without knowing the specific metrics used (e.g., per user license, per course access, per module). The contract is a firm fixed-price award for a software catalog, suggesting a bundled price for access rather than granular per-unit billing. To benchmark, one would need to identify comparable federal contracts for Skillsoft or similar eLearning platforms, noting the number of users or access levels. Commercial market rates also vary significantly based on enterprise size, features, and negotiation. Generally, federal contracts aim for competitive pricing through bulk purchasing power, but direct comparisons require detailed service scope and user data, which are not provided here. The $4.1 million over five years suggests an average annual cost of $820,000, which needs to be contextualized by the scale of deployment.

What is the track record of Skillsoft (US) LLC as a federal contractor, particularly with the Department of Agriculture?

Skillsoft (US) LLC has a history of contracting with the U.S. federal government, providing eLearning software and services. While this specific award is a new delivery order, the company is a known entity in the federal space. Its track record generally involves supplying digital learning solutions to various agencies. To assess its specific performance with the Department of Agriculture, a review of past performance evaluations and contract histories within the agency's procurement systems would be necessary. Generally, companies like Skillsoft that hold numerous federal contracts often have established processes for compliance and delivery, but individual contract performance can vary. A deeper dive into past performance reviews and any reported issues or successes would provide a more accurate picture of their reliability and effectiveness as a contractor for this specific agency.

What are the key performance indicators (KPIs) used to measure the success of this eLearning contract?

The provided contract data does not explicitly list the Key Performance Indicators (KPIs) for this Skillsoft eLearning software contract. However, typical KPIs for such agreements often include metrics related to user adoption rates (e.g., percentage of employees accessing the platform), course completion rates, user satisfaction surveys, and the achievement of specific training objectives (e.g., compliance training completion, skill development milestones). The Department of Agriculture's Office of the Chief Financial Officer, as the awarding body, would likely establish these KPIs within the contract's performance work statement or associated delivery orders. Monitoring these indicators ensures the agency derives value from the software and that it effectively supports employee development goals.

Are there any known risks associated with the use of Skillsoft eLearning software by federal agencies?

Potential risks associated with using Skillsoft eLearning software, or any similar enterprise solution, can include vendor lock-in, where switching to a different provider becomes difficult or costly. There's also a risk related to the relevance and quality of the content; if the catalog is not regularly updated or doesn't meet evolving agency needs, its value diminishes. Security vulnerabilities in the software platform could pose a risk, although reputable vendors like Skillsoft typically invest heavily in cybersecurity. Furthermore, user adoption can be a challenge; if employees do not engage with the platform, the return on investment will be low. Finally, reliance on a single vendor for critical training functions carries inherent risk if the vendor experiences financial instability or service disruptions.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 INNOVATIVE WAY STE 2210, NASHUA, NH, 03062

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $7,091,332

Exercised Options: $4,094,938

Current Obligation: $4,094,938

Actual Outlays: $3,073,199

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D002B

IDV Type: FSS

Timeline