DHS Coast Guard awards $4M for Human Performance Support & Training, with 5 bidders vying for the contract

Contract Overview

Contract Amount: $4,030,724 ($4.0M)

Contractor: Reed Integration, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-15

End Date: 2026-08-14

Contract Duration: 729 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HUMAN PERFORMANCE SUPPORT AND TRAINING (HPS&T) SYSTEM FOR WATERWAYS COMMERCE CUTTERS

Place of Performance

Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.0 million to REED INTEGRATION, INC. for work described as: HUMAN PERFORMANCE SUPPORT AND TRAINING (HPS&T) SYSTEM FOR WATERWAYS COMMERCE CUTTERS Key points: 1. The contract value of $4.03M appears reasonable for a 2-year training system, but requires benchmarking against similar HPS&T systems. 2. Full and open competition after exclusion of sources suggests a deliberate effort to ensure broad market access, potentially leading to better pricing. 3. The fixed-price contract type shifts performance risk to the contractor, REED INTEGRATION, INC. 4. The contract duration of 729 days (2 years) is standard for this type of service. 5. The North American Industry Classification System (NAICS) code 611430 indicates a focus on professional and management development training. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of approximately $4.03 million for a two-year period for a Human Performance Support and Training (HPS&T) system seems within a reasonable range for specialized government training services. Without specific details on the scope of training, the number of personnel to be trained, and the complexity of the system, a precise value-for-money assessment is challenging. However, the fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. Benchmarking against similar HPS&T systems for other maritime or defense agencies would provide a clearer picture of its cost-effectiveness.

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.' This indicates that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria, possibly related to existing contracts or specialized capabilities. With five bidders participating, the level of competition appears adequate, suggesting that the government received multiple proposals and had a choice. This level of competition generally supports price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The adequate competition level suggests that taxpayer funds were likely used efficiently, as multiple companies vied to offer their best pricing and solutions. This process helps ensure that the government is not overpaying for the required training and support services.

Public Impact

The primary beneficiaries are U.S. Coast Guard personnel who will receive enhanced training and support for operating and maintaining waterways commerce systems. The services delivered will likely improve the operational effectiveness and safety of the Coast Guard's waterways commerce cutters. The geographic impact is primarily within the United States, where Coast Guard cutters operate, and potentially at training facilities. Workforce implications include upskilling Coast Guard personnel and ensuring they have the necessary expertise to manage complex systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the HPS&T system requirements are not precisely defined, leading to cost increases beyond the initial award.
Risk of contractor performance not meeting the Coast Guard's specific operational needs if the training is not tailored effectively.
Dependence on REED INTEGRATION, INC. for critical training functions could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

The use of full and open competition suggests a robust selection process, increasing the likelihood of selecting a capable contractor.
The firm-fixed-price contract type incentivizes the contractor to manage costs effectively and deliver within budget.
The contract is for a delivery order, implying it may be part of a larger, established framework, potentially indicating prior vetting of the contractor or system.

Sector Analysis

The Human Performance Support and Training (HPS&T) sector within the professional and management development training industry is crucial for government agencies, particularly those with complex operational systems like the Coast Guard. This contract fits within the broader market for defense and public safety training solutions. Comparable spending benchmarks for similar HPS&T systems can vary widely based on the complexity of the technology, the number of users, and the duration of the training program. The NAICS code 611430 encompasses establishments primarily engaged in offering educational programs for personal or professional development, which aligns with the nature of this contract.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. Furthermore, 'sb' being false suggests there are no explicit subcontracting requirements for small businesses mandated within this specific award. This means that opportunities for small businesses to participate in this contract are likely limited to those that might be identified and engaged by the prime contractor, REED INTEGRATION, INC., on a voluntary basis. The impact on the small business ecosystem is therefore minimal unless the prime contractor actively seeks out small business partners.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office and program managers responsible for the HPS&T system. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified training and support. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Coast Guard Training and Readiness Programs
Department of Homeland Security Workforce Development
Maritime Training Systems
Professional Development Services for Federal Agencies
Defense Human Performance Technology

Risk Flags

Potential for inadequate training if system complexity is underestimated.
Risk of contractor underperformance impacting operational readiness.
Dependency on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.0 million to REED INTEGRATION, INC.. HUMAN PERFORMANCE SUPPORT AND TRAINING (HPS&T) SYSTEM FOR WATERWAYS COMMERCE CUTTERS

Who is the contractor on this award?

The obligated recipient is REED INTEGRATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-08-14.

What is the specific scope and complexity of the Human Performance Support and Training (HPS&T) system being procured?

The specific scope and complexity of the HPS&T system are not detailed in the provided data. However, the contract is for 'HUMAN PERFORMANCE SUPPORT AND TRAINING (HPS&T) SYSTEM FOR WATERWAYS COMMERCE CUTTERS.' This suggests the system will likely involve training modules, simulation tools, performance monitoring, and support services tailored to the operational environment of Coast Guard cutters involved in commerce oversight. The complexity would depend on the sophistication of the technology, the number of users, the types of skills being trained (e.g., technical, operational, leadership), and the integration requirements with existing Coast Guard systems. A more detailed statement of work (SOW) would be necessary to fully understand the system's intricacies.

How does the awarded price of $4.03M compare to similar HPS&T systems procured by other federal agencies?

A direct comparison of the $4.03 million award for this HPS&T system to similar procurements is challenging without access to a comprehensive database of comparable contracts. Factors such as the duration of the contract (729 days), the number of personnel to be trained, the specific technologies involved (e.g., simulators, virtual reality), and the level of customization required significantly influence pricing. Generally, specialized training systems for complex operational environments can range from hundreds of thousands to several million dollars. The fact that this was a full and open competition with five bidders suggests that the pricing was likely competitive. Further analysis would require identifying contracts with similar NAICS codes (611430) and service scopes within defense or maritime sectors.

What are the key performance indicators (KPIs) that REED INTEGRATION, INC. must meet under this contract?

The provided data does not specify the key performance indicators (KPIs) that REED INTEGRATION, INC. must meet. However, for an HPS&T system contract, typical KPIs would likely focus on training effectiveness, user satisfaction, system uptime and reliability, adherence to training schedules, and the achievement of specific learning objectives by trainees. Performance would also be assessed against the requirements outlined in the contract's Statement of Work (SOW). The Coast Guard would monitor these KPIs to ensure the contractor is delivering the required level of support and training, and to assess the overall value and impact of the system.

What is the track record of REED INTEGRATION, INC. in providing similar human performance support and training services to the federal government?

Information regarding the specific track record of REED INTEGRATION, INC. in providing similar HPS&T services to the federal government is not included in the provided data. To assess their track record, one would typically review their past performance on federal contracts, including client feedback, past performance evaluations, and any history of contract disputes or awards. Their success in winning this 'Full and Open Competition After Exclusion of Sources' award with five bidders suggests they possess the necessary qualifications and capabilities deemed acceptable by the U.S. Coast Guard. Further due diligence would involve searching federal contract databases for their past performance history.

What is the historical spending pattern for HPS&T systems by the U.S. Coast Guard or Department of Homeland Security?

Historical spending patterns for HPS&T systems by the U.S. Coast Guard or the Department of Homeland Security are not detailed in the provided data. To analyze this, one would need to examine past contract awards for similar training and performance support systems over several fiscal years. This would involve looking at the total amount spent, the types of systems procured, the primary contractors, and the trends in spending. Understanding historical spending can help contextualize the current $4.03 million award, indicating whether it represents an increase, decrease, or stable level of investment in such capabilities.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7007 HARBOUR VIEW BLVD STE 117, SUFFOLK, VA, 23435

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,914,722

Exercised Options: $4,030,724

Current Obligation: $4,030,724

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $303,974

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QREB19D0017

IDV Type: IDC

Timeline