DHS awards $30.8M contract for professional development training, raising questions on competition and value

Contract Overview

Contract Amount: $30,875 ($30.9K)

Contractor: Design-Build Institute of America

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-23

End Date: 2025-09-26

Contract Duration: 3 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DESIGN BUILD TRAINING

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23513

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30,875 to DESIGN-BUILD INSTITUTE OF AMERICA for work described as: DESIGN BUILD TRAINING Key points: 1. Contract awarded via purchase order, indicating a streamlined but potentially less competitive process. 2. The short duration of the contract (3 days) suggests a focused, specific training need. 3. The lack of competition raises concerns about achieving the best possible price and service. 4. Analysis needed to benchmark the per-unit cost against similar professional development programs. 5. The contract's value is significant for a short-term training engagement. 6. Oversight will be crucial to ensure effective delivery and taxpayer value.

Value Assessment

Rating: questionable

The contract value of $30.8 million for a 3-day training program appears exceptionally high. Without detailed scope of work and attendee numbers, it's difficult to benchmark. However, typical professional development training costs are significantly lower per participant. This high value necessitates a thorough review of the services provided to ensure it aligns with market rates and delivers commensurate value. The 'PURCHASE ORDER' award type, while efficient, often bypasses the rigorous price scrutiny of more competitive solicitations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED' via a Purchase Order, indicating a sole-source or limited competition scenario. The absence of a competitive bidding process means that the U.S. Coast Guard did not solicit offers from multiple vendors. This limits the government's ability to explore a wider range of solutions and potentially secure more favorable pricing through market forces. The justification for not competing is not provided, which is a key area for scrutiny.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution. Without competitive pressure, the awarded price might be higher than what could have been achieved through an open solicitation.

Public Impact

The primary beneficiaries are likely U.S. Coast Guard personnel requiring professional and management development. The services delivered are professional and management development training, crucial for enhancing skills and leadership within the agency. The geographic impact is centered in Virginia, where the training is presumably conducted or managed. Workforce implications include the potential upskilling of Coast Guard members, leading to improved operational effectiveness and career development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short-term training program raises concerns about cost-effectiveness.
Sole-source award limits transparency and potential for competitive pricing.
Lack of detailed justification for 'not competed' award requires further investigation.
Short contract duration (3 days) for such a large sum warrants scrutiny of the scope and deliverables.

Positive Signals

Contract addresses a specific need for professional and management development training.
Awarding agency is a critical component of Homeland Security, implying importance of the training.
Firm Fixed Price contract type provides cost certainty once awarded.

Sector Analysis

This contract falls within the Professional and Management Development Training sector, a segment of the broader government services market. This sector encompasses a wide range of training providers, from specialized niche firms to large educational institutions. Government spending in this area is consistent, driven by the need for continuous professional development and compliance training across various agencies. Benchmarking this contract's value against similar large-scale, short-duration training programs is essential for assessing its market alignment.

Small Business Impact

The data indicates this contract was not competed and the small business set-aside flag is false. There is no explicit information regarding subcontracting plans for small businesses. Given the sole-source nature and the high dollar value, it is unlikely that small businesses were specifically targeted for this award, potentially missing an opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices within the Department of Homeland Security. Accountability measures would be tied to the contract's performance standards and deliverables. Transparency is limited due to the sole-source award and the lack of a detailed public justification. Inspector General jurisdiction may be invoked if performance issues or potential fraud are suspected.

Related Government Programs

Professional Development Training
Management Training Services
Government Employee Training
Department of Homeland Security Contracts
U.S. Coast Guard Procurement

Risk Flags

High contract value for short duration
Sole-source award without clear justification
Potential lack of competition impacting price discovery
Contractor's primary focus may not align with broad professional development needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30,875 to DESIGN-BUILD INSTITUTE OF AMERICA. DESIGN BUILD TRAINING

Who is the contractor on this award?

The obligated recipient is DESIGN-BUILD INSTITUTE OF AMERICA.

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 $30,875.

What is the period of performance?

Start: 2025-09-23. End: 2025-09-26.

What specific professional and management development training services are being procured under this contract?

The contract identifies the North American Industry Classification System (NAICS) code 611430, which pertains to Professional and Management Development Training. This category typically includes programs designed to enhance skills in areas such as leadership, project management, communication, strategic planning, and technical management. However, the specific curriculum, delivery methods (e.g., in-person, online, hybrid), duration per participant, and learning objectives are not detailed in the provided data. Understanding these specifics is crucial for evaluating the appropriateness of the $30.8 million award value and the 3-day timeframe.

How does the $30.8 million contract value compare to typical costs for similar government training programs?

A contract value of $30.8 million for a 3-day training program is exceptionally high and warrants significant scrutiny. Typical government professional development training costs can range from a few hundred to a few thousand dollars per participant, depending on the subject matter, duration, and provider. For a program costing $30.8 million over just three days, this would imply an extraordinarily high number of participants or extremely specialized, high-cost instruction. Without knowing the number of attendees or the specific nature of the training, a direct comparison is difficult, but the cost per participant is likely to be orders of magnitude higher than standard training offerings.

What is the justification for awarding this contract on a sole-source basis ('NOT COMPETED')?

The provided data states the contract was 'NOT COMPETED,' indicating a sole-source award. Government procurement regulations typically require full and open competition unless specific exceptions apply, such as the existence of only one responsible source, urgent and compelling needs, or specific statutory authorities. The justification for this sole-source award is not included in the data. A thorough review would require accessing the contract file to understand the rationale provided by the U.S. Coast Guard for bypassing the competitive bidding process. This is a critical transparency and accountability issue.

What are the expected outcomes and performance metrics for this training contract?

The provided data does not specify the expected outcomes or performance metrics for this training contract. Typically, a contract of this magnitude would include detailed performance work statements (PWS) outlining specific learning objectives, desired skill improvements, and measurable results. Performance metrics might include post-training assessments, participant feedback surveys, or observed changes in job performance. Without these details, it is challenging to assess whether the training will be effective or if the significant investment will yield the intended benefits for the U.S. Coast Guard personnel.

What is the track record of the contractor (DESIGN-BUILD INSTITUTE OF AMERICA) in delivering professional development training to the federal government?

The provided data lists 'DESIGN-BUILD INSTITUTE OF AMERICA' (DBIA) as the contractor. While DBIA is known for its expertise in design-build project delivery, its primary focus is typically on industry best practices, standards, and education related to the design and construction industry, rather than broad professional and management development training for diverse government workforces. It is essential to verify if DBIA has a substantial track record and the necessary qualifications to deliver the specific professional and management development training required by the U.S. Coast Guard, especially at this significant price point.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1001 PENNSYLVANIA AVE, NW STE 410, WASHINGTON, DC, 20004

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,875

Exercised Options: $30,875

Current Obligation: $30,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline