Interior Department awards $330M training contract to Deep Mile Networks LLC, a sole-source provider

Contract Overview

Contract Amount: $329,912,937 ($329.9M)

Contractor: Deep Mile Networks LLC

Awarding Agency: Department of the Interior

Start Date: 2022-12-02

End Date: 2026-10-06

Contract Duration: 1,404 days

Daily Burn Rate: $235.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EUESWS

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $329.9 million to DEEP MILE NETWORKS LLC for work described as: EUESWS Key points: 1. The contract's value of $330 million over four years suggests a significant investment in professional development. 2. The sole-source nature of this award warrants scrutiny regarding the justification for not seeking broader competition. 3. Performance risk appears moderate given the fixed-price contract type, but the duration necessitates ongoing monitoring. 4. This contract positions Deep Mile Networks as a key provider of training services within the Department of the Interior. 5. The lack of a small business set-aside indicates potential missed opportunities for smaller firms in this contract.

Value Assessment

Rating: questionable

The total award of $330 million for professional development training over approximately four years is substantial. Without comparable sole-source contracts for similar services within the Department of the Interior or other agencies, it is difficult to benchmark the value for money. The fixed-price nature of the contract provides some cost control, but the absence of competition raises concerns about whether the government is receiving the most competitive pricing possible. Further analysis would require understanding the specific services provided and their market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, specifically 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the agency may have initially considered other sources, it ultimately decided to award the contract to Deep Mile Networks LLC without a broad competitive solicitation. The rationale for excluding other sources is not detailed here but is a critical factor in assessing the procurement process. A sole-source award typically means limited price discovery and potentially higher costs compared to a fully competed contract.

Taxpayer Impact: Sole-source awards limit the opportunity for multiple vendors to bid, which can reduce competitive pressure and potentially lead to higher prices for taxpayers. It also bypasses the standard process designed to ensure the government receives the best value through open competition.

Public Impact

Federal employees within the Department of the Interior are the primary beneficiaries, receiving professional and management development training. The services delivered are focused on enhancing the skills and capabilities of the Interior workforce. The geographic impact is likely nationwide, supporting employees across various bureaus and offices within the Department. Workforce implications include improved employee performance, potential for career advancement, and enhanced organizational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award raises concerns about lack of competition and potential for inflated pricing.
The significant contract value over a multi-year period requires robust performance monitoring to ensure value.
Absence of small business participation may limit opportunities for smaller, specialized training providers.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
The contract aims to enhance the professional development of the federal workforce, which can lead to improved government services.
The award to a single entity may streamline service delivery and ensure consistent training quality.

Sector Analysis

The professional and management development training sector is a significant component of government spending on human capital. This contract falls within the broader professional services industry, which includes consulting, training, and human resources. The North American Industry Classification System (NAICS) code 611430 for Professional and Management Development Training indicates a specialized market. Benchmarking this contract's value would require comparing it to similar large-scale training initiatives within federal agencies or large private sector organizations, considering the specific nature and duration of the training provided.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. The award to Deep Mile Networks LLC, a single entity, also suggests that subcontracting opportunities for small businesses may be limited unless explicitly mandated or pursued by the prime contractor. This could represent a missed opportunity to leverage the capabilities of the small business ecosystem in providing specialized training services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and program managers. The fixed-price nature of the contract provides some level of cost control. Transparency regarding the justification for the sole-source award and ongoing performance reviews would be key oversight mechanisms. The Inspector General's office for the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Employee Training Programs
Professional Development Services
Management Training Contracts
Department of the Interior Procurement

Risk Flags

Sole-source award lacks competitive justification.
Potential for uncompetitive pricing due to sole-source nature.
Lack of transparency regarding specific training outcomes and ROI.
Absence of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $329.9 million to DEEP MILE NETWORKS LLC. EUESWS

Who is the contractor on this award?

The obligated recipient is DEEP MILE NETWORKS LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $329.9 million.

What is the period of performance?

Start: 2022-12-02. End: 2026-10-06.

What is the specific justification for awarding this contract on a sole-source basis to Deep Mile Networks LLC?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is a specific type of sole-source justification. Typically, agencies use sole-source awards when only one responsible source is available or capable of meeting the requirement. Common reasons include unique capabilities, proprietary technology, urgent needs where competition is not feasible, or when a previous contract was terminated for cause and only one other source exists. Without further documentation from the Department of the Interior, the precise reason for excluding all other sources and selecting Deep Mile Networks LLC remains unspecified in this dataset. This lack of transparency in the justification is a key area for further inquiry.

How does the per-unit cost or pricing structure of this contract compare to market rates for similar professional development training?

The provided data does not include specific per-unit costs or a detailed pricing breakdown for the services rendered under this contract. The total award amount of $330,912,937.30 is for the entire duration and scope of services. To compare pricing to market rates, one would need to identify the specific training modules, duration, number of participants, and the qualifications of instructors. Benchmarking would involve researching publicly available pricing for similar training from other providers, both government and commercial, and assessing if the rates negotiated by the Department of the Interior are competitive. Given the sole-source nature, a direct comparison is challenging without access to the contractor's detailed pricing proposal and justification.

What are the key performance indicators (KPIs) and how will the performance of Deep Mile Networks LLC be measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the detailed performance measurement plan for this contract. However, as a professional development training contract, typical KPIs might include participant satisfaction rates, knowledge or skill acquisition assessments (pre- and post-training), completion rates of training programs, and the application of learned skills in the workplace. The Department of the Interior's contracting officer and program managers are responsible for establishing and monitoring these metrics. Regular performance reviews, feedback mechanisms from trainees, and potentially surveys of supervisors on employee performance improvements would be crucial for assessing the contractor's effectiveness and ensuring the government receives the intended value.

What is the historical spending pattern for professional and management development training within the Department of the Interior?

The provided data focuses solely on this specific contract award and does not offer historical spending patterns for professional and management development training within the Department of the Interior. To analyze historical spending, one would need access to historical contract databases or budget reports from the agency. This analysis would involve identifying all contracts related to training services over several fiscal years, their values, the contractors involved, and the types of training provided. Understanding past spending trends could reveal whether this $330 million award represents an increase, decrease, or consistent level of investment in such services and whether previous training initiatives were competitively procured.

What is the track record of Deep Mile Networks LLC in delivering similar large-scale training contracts to federal agencies?

The provided data identifies Deep Mile Networks LLC as the contractor but does not offer details on their specific track record or past performance on similar federal contracts. To assess their track record, one would need to research their contract history, including past awards, performance evaluations (e.g., from the Contractor Performance Assessment Reporting System - CPARS), and any past disputes or issues. A review of their experience with large-scale, multi-year professional development training programs for federal agencies would be essential. Without this information, it is difficult to gauge their capability and reliability in fulfilling the requirements of this significant contract.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0422R0096

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1934 OLD GALLOWS RD, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $398,840,740

Exercised Options: $349,265,375

Current Obligation: $329,912,937

Actual Outlays: $290,710,837

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $29,747,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02Q16DCR0076

IDV Type: IDC

Timeline