DHS FEMA awards $26.9M for training support, with 11 bidders indicating robust competition

Contract Overview

Contract Amount: $26,925,817 ($26.9M)

Contractor: TGB3 Enterprises LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-12

End Date: 2024-03-14

Contract Duration: 1,829 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CDP TRAINING SUPPORT SERVICES

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.9 million to TGB3 ENTERPRISES LLC for work described as: CDP TRAINING SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of educational support services. 2. Strong competition suggests potential for competitive pricing and value for taxpayer dollars. 3. Contract type is firm fixed price, which shifts performance risk to the contractor. 4. The contract duration of 1829 days (approx. 5 years) indicates a long-term need for these services. 5. Services fall under educational support, a critical function for agency preparedness and operations. 6. Geographic scope is Alabama, suggesting a localized but important training initiative.

Value Assessment

Rating: good

The contract value of approximately $26.9 million over five years for educational support services appears to be within a reasonable range. While direct comparisons are difficult without more specific service details, the number of bidders (11) suggests a competitive environment that likely drove a fair price. The firm fixed-price structure also indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the opportunity was broadly advertised and multiple sources were considered. The presence of 11 bidders is a strong indicator of healthy competition for this requirement. This level of competition typically leads to better price discovery and ensures the government receives competitive offers.

Taxpayer Impact: A high number of bidders means taxpayers benefit from a more competitive bidding process, likely resulting in lower prices and better value for the services rendered.

Public Impact

Federal Emergency Management Agency (FEMA) personnel benefit from enhanced training and preparedness. Services delivered include educational support, crucial for maintaining operational readiness. The geographic impact is focused on Alabama, suggesting a specific regional training program. Workforce implications include the potential for skilled instructors and training professionals to support FEMA's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements are not clearly defined and managed.
Dependence on a single contractor for critical training could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Robust competition (11 bidders) suggests a well-defined requirement and market interest.
Long-term contract (5 years) provides stability for training program continuity.

Sector Analysis

The contract falls within the Educational Support Services sector (NAICS 611710), which encompasses establishments primarily engaged in providing educational support activities. This sector is vital for government agencies to ensure their workforce is adequately trained and prepared for various operational demands. Spending in this area is often driven by the need for specialized training, compliance, and professional development. Benchmarking against similar government contracts for training support services would provide further context on pricing and scope.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this procurement. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA) contracting officers and program managers. The firm fixed-price nature of the award places performance accountability on TGB3 ENTERPRISES LLC. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

FEMA Training Programs
Emergency Management Training
Federal Workforce Development
Educational Services Contracts

Risk Flags

Contract duration may increase risk of cost escalation or performance degradation.
Lack of small business set-aside may limit opportunities for smaller specialized firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.9 million to TGB3 ENTERPRISES LLC. CDP TRAINING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TGB3 ENTERPRISES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2019-03-12. End: 2024-03-14.

What is the specific nature of the 'Educational Support Services' provided under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 611710, which corresponds to 'Educational Support Services.' This broad category can encompass a wide range of activities, including curriculum development, instructional staff training, educational consulting, and the administration of educational programs. For this specific contract with FEMA, the services likely relate to training emergency management personnel, developing response protocols, or providing specialized skills education relevant to disaster preparedness and response. Without further details on the Statement of Work (SOW), the precise nature of the support remains general, but it is clearly aimed at enhancing the capabilities and knowledge base of FEMA staff or related personnel.

How does the awarded amount of $26.9 million compare to similar training support contracts awarded by FEMA or other federal agencies?

Comparing the $26.9 million contract value requires context regarding the duration, scope, and specific services. This contract spans approximately five years (1829 days), making the annual value around $5.4 million. FEMA and other agencies frequently procure training services, ranging from basic onboarding to highly specialized technical skills. Contracts for large-scale, multi-year training initiatives can easily reach tens of millions of dollars. The presence of 11 bidders suggests that the market finds this a standard-sized requirement. To provide a precise benchmark, one would need to analyze contracts with similar NAICS codes, contract durations, and service complexities within the federal government, looking at average annual costs and per-participant expenses where applicable.

What are the primary risks associated with a firm fixed-price contract of this duration for training services?

The primary risks associated with a firm fixed-price (FFP) contract of this five-year duration for training services revolve around the contractor's ability to maintain performance and manage costs over an extended period. For the government, the main risk is that the contractor may become complacent or reduce service quality to protect profit margins if not adequately monitored. For the contractor, the risk lies in unforeseen cost increases (e.g., inflation impacting instructor salaries, material costs) or changes in government requirements that are not covered by contract modifications, potentially leading to financial losses. Additionally, if the training needs evolve significantly over five years, the FFP nature might make it more costly or complex to adapt the curriculum or delivery methods compared to a cost-reimbursement contract.

What does the competition level (11 bidders) imply about the contractor's track record and the market for these services?

A competition level of 11 bidders for this contract suggests a healthy and active market for educational support services relevant to FEMA's needs. It implies that the requirement was likely well-defined and attractive to multiple providers, indicating that TGB3 ENTERPRISES LLC likely faced significant competition to win the award. This level of interest generally suggests that the market has several capable contractors with the necessary expertise and capacity. For TGB3 ENTERPRISES LLC, winning against 10 other bidders indicates they presented a compelling offer, potentially reflecting a strong track record, competitive pricing, or a superior technical approach. It also suggests that the barrier to entry for this type of contract is not prohibitively high, allowing for a diverse range of potential bidders.

How has FEMA's spending on educational support services trended historically, and does this contract align with those patterns?

Historical spending data for FEMA's educational support services would be necessary to determine trends. However, it is reasonable to assume that spending in this area fluctuates based on agency priorities, new initiatives, regulatory changes, and the need for ongoing professional development. Contracts like this one, awarded under full and open competition, suggest a consistent, long-term need for training. If FEMA is undergoing significant modernization, expanding its mission, or facing new threats, spending on training support services would likely increase. This $26.9 million, five-year contract indicates a substantial and sustained investment, aligning with a pattern of prioritizing workforce development and operational readiness within the agency.

Industry Classification

NAICS: Educational Services › Educational Support Services › Educational Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FA2018R00000010

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3114 MCCLELLAN BLVD, ANNISTON, AL, 36201

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,105,364

Exercised Options: $31,036,491

Current Obligation: $26,925,817

Actual Outlays: $3,339,987

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline