Smithsonian Institution awards $8.76M contract for computer training to Futrend Technology Inc

Contract Overview

Contract Amount: $8,757,413 ($8.8M)

Contractor: Futrend Technology Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2019-06-20

End Date: 2026-04-30

Contract Duration: 2,506 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROFESSIONAL SERVICES RFQ-2019-OCIO-003

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $8.8 million to FUTREND TECHNOLOGY INC. for work described as: PROFESSIONAL SERVICES RFQ-2019-OCIO-003 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for computer training services, a critical area for workforce development. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of the contract extends over several years, indicating a long-term need. 5. Virginia-based contractor suggests potential for localized service delivery or support. 6. The award amount is moderate, not representing a massive expenditure but a significant investment in training.

Value Assessment

Rating: good

The contract value of $8.76 million over its period of performance appears reasonable for comprehensive computer training services. Benchmarking against similar government contracts for IT training and professional development suggests this is within the expected range. The firm fixed-price structure provides cost certainty for the Smithsonian Institution, mitigating the risk of cost overruns. While specific per-unit costs for individual training sessions are not detailed here, the overall value proposition seems sound given the scope of services likely required for a large institution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this requirement. A competitive process like this generally leads to better price discovery and ensures that the government receives offers from multiple vendors, potentially driving down costs and improving service quality.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the funds expended on computer training services.

Public Impact

Federal employees across the Smithsonian Institution will benefit from enhanced computer skills and training. The services delivered will likely include various IT-related training programs, improving digital literacy and technical proficiency. The geographic impact is primarily within Virginia, where the contractor is based, but training may be delivered remotely or at various Smithsonian sites. Workforce implications include upskilling and reskilling of Smithsonian staff, contributing to operational efficiency and modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if training content becomes highly specialized and proprietary.
Ensuring the quality and relevance of training content over the contract's multi-year duration.
Measuring the actual impact and ROI of the training on employee performance and institutional goals.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm fixed-price contract type helps manage budget and prevent cost overruns.
Long contract duration allows for sustained development and integration of training programs.
Focus on computer training addresses a fundamental need for digital skills in a modern workforce.

Sector Analysis

The IT training and professional development sector within the federal government is substantial, encompassing a wide range of services from basic software proficiency to advanced cybersecurity and data analytics. This contract fits within the broader category of IT services and professional development, supporting the Smithsonian Institution's need to maintain a skilled workforce capable of managing and utilizing modern technology. Comparable spending benchmarks in this sector vary widely based on the specificity and duration of training, but an $8.76 million award over several years for comprehensive training is a significant but not extraordinary investment.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. As a result, the direct impact on the small business ecosystem for this particular award is likely minimal. However, the prime contractor, Futrend Technology Inc., may engage small businesses as subcontractors, depending on their own business practices and the specific needs of the training services provided.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Smithsonian Institution's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is generally maintained through contract award databases and public reporting, although detailed performance metrics may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Training Programs
Professional Development Services
Smithsonian Institution IT Modernization Efforts
Government Workforce Training Initiatives

Risk Flags

Potential for training content obsolescence
Ensuring contractor performance meets quality standards
Measuring the return on investment for training expenditures

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $8.8 million to FUTREND TECHNOLOGY INC.. PROFESSIONAL SERVICES RFQ-2019-OCIO-003

Who is the contractor on this award?

The obligated recipient is FUTREND TECHNOLOGY INC..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2019-06-20. End: 2026-04-30.

What is the track record of Futrend Technology Inc. in delivering similar computer training services to federal agencies?

Assessing Futrend Technology Inc.'s track record requires a review of their past performance on similar federal contracts. This would involve examining contract databases for previous awards, performance evaluations (like past performance questionnaires), and any debriefings provided to unsuccessful bidders on related procurements. Key indicators would include successful completion of training objectives, client satisfaction, adherence to schedules and budgets, and the scope and complexity of training previously delivered. Without specific data on Futrend's past performance on computer training contracts, it's difficult to definitively assess their capability, but the Smithsonian's award suggests they met the agency's pre-qualification criteria.

How does the per-course or per-student cost compare to industry benchmarks for similar IT training?

Determining the precise per-course or per-student cost requires detailed breakdown of the contract's deliverables, which is not fully available in the provided data. However, the total contract value of $8.76 million over approximately 7 years (from June 2019 to April 2026) suggests an average annual spend of roughly $1.25 million. To benchmark, one would compare this average annual spend against the typical costs for IT training programs offered by private sector providers or other government contracts. Factors like the number of employees trained, the duration and intensity of each course, and the specialization of the subject matter significantly influence per-unit costs. A detailed analysis would involve comparing the number of training hours or courses delivered against the total contract value.

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

Primary risks include the potential for outdated training content as technology evolves rapidly, the contractor failing to meet performance standards, or the training not translating into measurable improvements in employee skills or productivity. Mitigation strategies likely involve robust performance work statements (PWS) clearly defining deliverables and quality standards, regular progress reviews between the Smithsonian and Futrend, and potentially incorporating clauses for content updates. The firm fixed-price nature also mitigates financial risk for the government, ensuring costs are contained. The Smithsonian's oversight mechanisms, including contract management and potentially user feedback, would also play a role in identifying and addressing issues.

What is the expected effectiveness of this contract in improving the Smithsonian's overall IT capabilities?

The effectiveness hinges on the quality and relevance of the training provided and the Smithsonian's ability to integrate the learned skills into its operations. If the training covers critical areas such as cybersecurity, data management, cloud computing, or specific software relevant to the Institution's mission, it can significantly enhance IT capabilities, improve efficiency, and support modernization efforts. Success would be measured by factors like reduced IT support tickets, successful implementation of new technologies, improved data security practices, and employee feedback on skill enhancement. The multi-year duration allows for sustained upskilling, which is crucial for adapting to evolving technological landscapes.

How does this contract's value and duration compare to historical spending on computer training by the Smithsonian Institution?

To compare this contract's value ($8.76 million over ~7 years) to historical spending, one would need access to the Smithsonian's historical procurement data for computer training services. This would involve analyzing previous contracts, their values, durations, and the scope of services provided. Without that historical data, it's challenging to definitively state if this represents an increase, decrease, or consistent level of investment. However, the duration suggests a strategic, long-term commitment to workforce development in IT, which may reflect a growing emphasis on digital skills within the institution.

What specific types of computer training are included under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code 611420, which corresponds to 'Computer Training'. This broad category typically encompasses a wide range of training programs, including software application training (e.g., Microsoft Office Suite, Adobe Creative Suite), IT support and help desk training, basic computer literacy, cybersecurity awareness, network administration fundamentals, and potentially specialized training related to specific government systems or platforms used by the Smithsonian. The exact curriculum would be detailed in the contract's Performance Work Statement (PWS).

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1660 INTERNATIONAL DR, MC LEAN, VA, 22102

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,757,413

Exercised Options: $8,757,413

Current Obligation: $8,757,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0572S

IDV Type: FSS

Timeline