DOJ awards $5.37M for explosives training, with 7373 labor hours expected over two years

Contract Overview

Contract Amount: $5,374,786 ($5.4M)

Contractor: Eagle Harbor, LLC

Awarding Agency: Department of Justice

Start Date: 2024-09-01

End Date: 2026-08-31

Contract Duration: 729 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: HME EXPLOSIVES TRAINING AND CREDENTIALING SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $5.4 million to EAGLE HARBOR, LLC for work described as: HME EXPLOSIVES TRAINING AND CREDENTIALING SUPPORT Key points: 1. Contract value appears reasonable given the specialized nature of explosives training and credentialing. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of two years provides a stable period for service delivery. 4. Performance is measured through labor hours, indicating a focus on effort rather than fixed deliverables. 5. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is the primary agency involved. 6. The contract is categorized under Engineering Services, though the service is training-focused.

Value Assessment

Rating: good

The contract value of $5.37 million for two years of explosives training and credentialing support seems within a reasonable range for specialized government services. Benchmarking against similar contracts is difficult without more specific details on the scope and complexity of the training. However, the use of labor hours suggests a flexible approach to service delivery, which can be cost-effective if managed efficiently. The total estimated labor hours (7373) provide a basis for evaluating the per-hour cost.

Cost Per Unit: Approximately $729 per labor hour ($5,374,785.85 / 7373 hours).

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on certain criteria. The presence of 'full and open' suggests that multiple bidders were likely considered, promoting price discovery and potentially leading to a more competitive price. The exact number of bidders is not specified, but the approach implies a deliberate effort to solicit a wide range of offers.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price, preventing potential overspending that could occur with less competitive solicitations.

Public Impact

Federal law enforcement agencies, particularly those within the Department of Justice, will benefit from enhanced explosives training and credentialing. The services delivered will support the operational readiness and effectiveness of personnel handling explosives. The geographic impact is likely national, given the nature of federal law enforcement responsibilities. Workforce implications include the training and certification of specialized personnel, enhancing their skills and qualifications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'After Exclusion of Sources' clause warrants further investigation to understand the rationale behind any exclusions and ensure fairness.
Reliance on labor hours for performance measurement could lead to cost overruns if not closely monitored for efficiency and necessity.
The categorization under 'Engineering Services' may not fully reflect the specialized nature of explosives training, potentially impacting performance metrics or oversight.

Positive Signals

The use of 'Full and Open Competition' is a positive signal for achieving competitive pricing.
The contract duration of two years provides stability for the contractor and consistent support for the agency.
The clear definition of estimated labor hours offers a basis for performance tracking and cost management.

Sector Analysis

The market for specialized training and credentialing services, particularly in sensitive areas like explosives, is a niche within the broader professional services sector. This contract fits within the government's need for expert support in areas requiring high levels of technical skill and security clearance. Comparable spending benchmarks would typically be found within contracts awarded by agencies like the Department of Homeland Security, FBI, or other entities involved in counter-terrorism and law enforcement.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the specialized nature of explosives training and credentialing, it is possible that larger, more specialized firms are better positioned to meet the requirements. Subcontracting opportunities for small businesses may exist if the prime contractor identifies specific needs that can be fulfilled by smaller entities, but this is not explicitly stated.

Oversight & Accountability

Oversight will likely be managed by the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division. Accountability measures would be tied to the performance standards outlined in the contract, focusing on the delivery of training and the accuracy of credentialing. Transparency is facilitated by the contract award notice, but detailed performance reports and audits would be internal oversight mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Law Enforcement Training
Explosives Ordnance Disposal Training
Credentialing and Certification Services
Department of Justice Training Programs
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Operations Support

Risk Flags

Potential for cost overruns due to labor hour-based payment.
Need to verify the rationale for 'Exclusion of Sources'.
Limited public information on contractor's specific experience in explosives training.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.4 million to EAGLE HARBOR, LLC. HME EXPLOSIVES TRAINING AND CREDENTIALING SUPPORT

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-08-31.

What is the specific rationale behind the 'Exclusion of Sources' in this 'Full and Open Competition' award?

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be broad, certain potential sources were deliberately excluded. The specific reasons for exclusion are not detailed in the provided data but typically relate to factors such as national security, proprietary technology, unique capabilities, or prior performance issues. Understanding these exclusions is crucial for assessing the true breadth of competition and ensuring that the government did not inadvertently limit its options or potentially pay a premium due to unnecessary restrictions. Further review of the solicitation documents and award justification would be necessary to ascertain the precise criteria for exclusion.

How does the $729 per labor hour benchmark compare to similar government contracts for specialized training?

The benchmark of approximately $729 per labor hour for explosives training and credentialing support is a significant figure. Without specific details on the exact nature of the training (e.g., basic vs. advanced, theoretical vs. hands-on, instructor-to-student ratios), direct comparisons are challenging. However, for highly specialized technical training, particularly involving sensitive materials or requiring extensive expertise and security clearances, rates in the high hundreds of dollars per hour are not uncommon in the federal contracting space. To provide a more definitive assessment, one would need to compare this rate against contracts for similar services awarded by agencies like the Department of Homeland Security, FBI, or military branches, considering factors like contract duration, scope of work, and the experience level of the personnel providing the training.

What are the potential risks associated with using labor hours as the primary performance metric?

Utilizing labor hours as the primary performance metric for this contract carries several potential risks. Firstly, it can incentivize contractors to extend the time spent on tasks rather than focusing on efficiency, potentially leading to cost overruns if not rigorously monitored. Secondly, it shifts the burden of ensuring value for money more heavily onto the government's oversight team, requiring diligent tracking of hours worked, task completion, and overall progress against objectives. Without clear milestones and deliverables tied to specific outcomes, there's a risk that the government may pay for time spent rather than for the effective achievement of training and credentialing goals. Robust government oversight and detailed reporting requirements are essential to mitigate these risks.

What is the track record of EAGLE HARBOR, LLC in providing similar explosives training and credentialing services?

Information regarding EAGLE HARBOR, LLC's specific track record in providing explosives training and credentialing services is not detailed in the provided data. As a federal contractor, their past performance would typically be a key factor in the award decision. To assess their reliability and expertise, one would need to review their contract history, client feedback, and any performance evaluations available through government databases (e.g., the Contractor Performance Assessment Reporting System - CPARS). A lack of readily available information on their specific experience in this niche area could represent a potential risk, although their selection suggests they met the agency's requirements during the solicitation process.

How does this contract's total value and duration compare to historical ATF spending on similar services?

The total value of $5.37 million over two years for explosives training and credentialing support represents a significant investment by the ATF. To compare this to historical spending, one would need access to ATF's procurement data for similar services over previous fiscal years. Analyzing historical trends would reveal whether this contract is an increase, decrease, or consistent with past expenditures. Factors such as changes in training requirements, agency growth, or shifts in budget allocations could explain any variations. Without historical data, it's difficult to definitively state whether this contract represents a new spending pattern or a continuation of established support.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15A00024Q00000064

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2702 DENALI ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,507,697

Exercised Options: $5,374,786

Current Obligation: $5,374,786

Actual Outlays: $3,395,205

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D3047

IDV Type: IDC

Timeline