VA awards $148.6K contract to University of South Florida for education cost sharing

Contract Overview

Contract Amount: $148,635 ($148.6K)

Contractor: University of South Florida

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-01

End Date: 2027-06-30

Contract Duration: 1,094 days

Daily Burn Rate: $136/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: EDUCATION COST CONTRACT PRO RATA SHARE.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33620

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $148,634.89 to UNIVERSITY OF SOUTH FLORIDA for work described as: EDUCATION COST CONTRACT PRO RATA SHARE. Key points: 1. Contract focuses on pro-rata share of education costs, indicating a specific funding allocation. 2. Sole-source award suggests limited market availability or unique capabilities required. 3. Fixed-price with economic price adjustment contract type aims to manage cost fluctuations. 4. Contract duration of 1094 days provides a long-term framework for the educational services. 5. Awarded by the Department of Veterans Affairs, likely supporting veteran education initiatives. 6. The contract value is relatively small, suggesting a focused or specialized educational component.

Value Assessment

Rating: fair

The contract value of $148.6K is modest. Without comparable contracts for similar education cost-sharing arrangements, a direct value-for-money assessment is difficult. The fixed-price with economic price adjustment structure attempts to balance cost certainty with potential market volatility. Benchmarking this specific type of cost-sharing against other VA education programs or similar university partnerships would provide better insight into its value.

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 typically occurs when a specific entity possesses unique qualifications or when the agency determines that competition is not feasible or practical. The lack of competition means that price discovery through market forces was not utilized, potentially leading to a higher cost than if multiple bids were considered.

Taxpayer Impact: For taxpayers, a sole-source award means there is less assurance that the government secured the best possible price. Oversight is crucial to ensure the awarded price is fair and reasonable given the circumstances.

Public Impact

Veterans pursuing education will likely benefit from this contract, which supports the cost-sharing arrangements for their studies. The University of South Florida is the direct recipient, providing educational services and administrative support. The geographic impact is primarily Florida, where the University of South Florida is located. This contract supports the educational workforce by funding positions and resources within the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Economic price adjustment introduces uncertainty regarding the final cost over the contract's life.
Lack of detailed performance metrics in the provided data makes assessing effectiveness challenging.

Positive Signals

Contract supports educational initiatives, aligning with VA's mission to serve veterans.
Fixed-price component offers some cost control, despite the economic adjustment clause.
Long contract duration (1094 days) suggests a stable and ongoing need for these services.

Sector Analysis

The higher education sector is a significant recipient of federal funding, often through grants, research contracts, and student support programs. This contract falls within the broader category of educational services, specifically focusing on cost-sharing for programs likely benefiting veterans. Comparable spending benchmarks would involve looking at other VA contracts with educational institutions or federal funding allocated to universities for similar purposes, which can range from millions for large research grants to thousands for specialized support services.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the awardee is the University of South Florida, a large educational institution. There is no information provided regarding subcontracting plans. The impact on the small business ecosystem is likely minimal, as the primary focus is on a large university's role in providing educational services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs. Accountability measures would be tied to the terms and conditions of the definitive contract, including adherence to the fixed-price with economic price adjustment clauses and the delivery of agreed-upon educational cost-sharing services. Transparency is facilitated by federal contract databases, though specific performance details may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

GI Bill Education Benefits
VA Vocational Rehabilitation and Employment (VR&E)
Federal Student Aid Programs
University Research Grants

Risk Flags

Sole-source award lacks competitive pricing assurance.
Economic price adjustment introduces cost uncertainty.
Limited public data on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $148,634.89 to UNIVERSITY OF SOUTH FLORIDA. EDUCATION COST CONTRACT PRO RATA SHARE.

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF SOUTH FLORIDA.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $148,634.89.

What is the period of performance?

Start: 2024-07-01. End: 2027-06-30.

What is the specific nature of the 'EDUCATION COST CONTRACT PRO RATA SHARE' and how does it benefit veterans?

The 'EDUCATION COST CONTRACT PRO RATA SHARE' likely refers to a contractual agreement where the Department of Veterans Affairs (VA) reimburses or shares a portion of the educational costs incurred by a university on behalf of veterans. This could cover expenses such as tuition, fees, or other program-related costs that are not fully covered by existing veteran education benefits like the GI Bill. The pro-rata share indicates that the VA is covering a proportional amount of these costs. This arrangement directly benefits veterans by ensuring that their educational pursuits are financially supported, potentially allowing them to access higher education or vocational training programs that might otherwise be unaffordable or administratively complex to fund through standard benefit channels. It streamlines the financial process for both the veteran and the institution.

Why was this contract awarded on a sole-source basis to the University of South Florida?

Sole-source awards are typically justified when only one responsible source is capable of providing the required service or supply. For the University of South Florida, this could be due to several factors. They might possess unique expertise in a specialized educational program critical for veterans, have an established partnership with the VA for specific veteran support services, or be the only institution in a particular geographic region offering a required course of study that the VA is funding. Alternatively, the nature of the 'pro-rata share' agreement might be so specific to their existing financial structures or veteran support infrastructure that replicating it with another institution would be impractical or excessively costly. The VA would have had to document the justification for not seeking competitive bids.

How does the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' clause impact the total cost of the contract?

The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FPEPA) clause aims to provide cost stability while acknowledging potential fluctuations in market conditions. The 'fixed price' component sets a baseline cost for the services. However, the 'economic price adjustment' allows for modifications to this price based on predefined economic factors, such as inflation rates, changes in labor costs, or material costs, as specified in the contract. This means the final amount paid could be higher or lower than the initial fixed price. For this contract, it suggests that the VA anticipates that the costs associated with providing these educational services might change over the 1094-day period. While it protects the contractor from unforeseen economic downturns that increase costs, it also introduces a degree of cost uncertainty for the VA and taxpayers, as the final expenditure may exceed the initial estimate.

What are the potential risks associated with this contract, and how might they be mitigated?

Potential risks include cost overruns due to the economic price adjustment clause, especially if inflation is higher than anticipated. Another risk is the lack of competition, which could mean the VA did not secure the most cost-effective solution. Performance risk also exists; the University of South Florida might not deliver the expected educational outcomes or administrative efficiency. Mitigation strategies could involve robust monitoring of economic indicators used for price adjustments, clear performance metrics and deliverables within the contract, and regular communication between the VA and the university to address any emerging issues proactively. The VA's contracting officers would be responsible for ensuring the economic adjustments are applied correctly and that performance standards are met.

How does this contract fit into the broader VA mission of supporting veteran education and transition?

This contract directly supports the VA's mission by facilitating access to higher education and vocational training for veterans. By covering a pro-rata share of education costs, the VA removes financial barriers that might otherwise prevent veterans from pursuing educational opportunities essential for their transition to civilian life and career development. This aligns with programs like the GI Bill and Vocational Rehabilitation and Employment, which aim to equip veterans with the skills and knowledge needed for successful employment. Such contracts enable universities to offer specialized support or programs tailored to veterans' needs, ensuring they receive the education necessary to achieve their post-service goals and contribute to the workforce.

Industry Classification

NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24824Q0405

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 4202 E FOWLER AVE, TAMPA, FL, 33620

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $212,924

Exercised Options: $148,635

Current Obligation: $148,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline