HHS awards $184K for boiler operator training, highlighting a niche service need

Contract Overview

Contract Amount: $184,350 ($184.3K)

Contractor: Thermal System Training, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-02-06

End Date: 2026-04-02

Contract Duration: 1,151 days

Daily Burn Rate: $160/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ASOPE BOILER OPERATOR TRAINING FY 23-FY24. INCLUDES INSTRUCTION AND MATERIALS. 2 BASIC COURSES, 2 INTERMEDIATE COURSES - J.W. HOLMES [23-001110]

Place of Performance

Location: CHRISTIANSBURG, MONTGOMERY County, VIRGINIA, 24073

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $184,350 to THERMAL SYSTEM TRAINING, LLC for work described as: ASOPE BOILER OPERATOR TRAINING FY 23-FY24. INCLUDES INSTRUCTION AND MATERIALS. 2 BASIC COURSES, 2 INTERMEDIATE COURSES - J.W. HOLMES [23-001110] Key points: 1. The contract addresses a specific training requirement for boiler operations, indicating a specialized skill set demand. 2. Limited competition suggests potential for higher pricing or a lack of readily available alternative providers. 3. The fixed-price nature of the contract provides cost certainty for the government. 4. Training duration spans over two years, allowing for phased delivery and integration into operations. 5. The award to a single vendor warrants scrutiny regarding market availability and potential for future competition. 6. Focus on basic and intermediate courses suggests a foundational approach to skill development.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the specialized nature of boiler operator training and the limited public data available for comparable services. The total award of $184,350 for a two-year period, covering multiple courses and materials, appears reasonable on its face for a niche training requirement. However, without more information on the scope of each course, the number of trainees, and the specific content covered, a definitive value assessment is difficult. Comparing it to broader professional development or technical training contracts would not be apples-to-apples.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis or through a limited competition not publicly advertised. The absence of a competitive process means that the government did not solicit bids from multiple vendors. This approach is typically used when only one vendor can provide the required service, or in specific circumstances where competition is not feasible or practical.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition removes the incentive for vendors to offer their lowest possible prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are likely facilities management and maintenance staff within the National Institutes of Health (NIH) who operate and maintain boiler systems. The services delivered include essential training and instructional materials for basic and intermediate boiler operations. The geographic impact is primarily within Virginia, where the contractor is located and likely where the training will be conducted or supported. Workforce implications include enhancing the skills and certifications of personnel responsible for critical building infrastructure, ensuring safe and efficient operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about whether the government secured the best possible price and value.
Limited public information on the specific curriculum and trainee numbers makes it difficult to assess the depth and effectiveness of the training.
The sole-source nature of the award could indicate a lack of market research or a reliance on a single provider without exploring alternatives.

Positive Signals

The contract addresses a clear need for specialized technical training, ensuring operational readiness.
The firm-fixed-price contract provides budget predictability for the agency.
The multi-year duration allows for sustained skill development and integration into operational workflows.

Sector Analysis

The professional, scientific, and technical services sector, specifically the sub-sector for training services, is diverse. This contract falls under the 'Exam Preparation and Tutoring' NAICS code (611691), which encompasses a wide range of educational support services. While the overall market for training is substantial, specialized industrial and technical training, such as boiler operations, represents a niche within this broader category. Comparable spending benchmarks are difficult to establish without more granular data on the specific type and duration of training provided.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Thermal System Training, LLC, a single entity, does not inherently indicate opportunities or challenges for the small business ecosystem unless further subcontracting plans are in place. Without explicit set-aside provisions, small businesses may not have had a direct opportunity to compete for this specific requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS), specifically the National Institutes of Health (NIH). As a purchase order, it is subject to internal agency procurement policies and financial controls. Transparency is limited due to the sole-source nature and lack of public competition details. There is no specific mention of an Inspector General (IG) being directly involved in overseeing this particular training contract, though the HHS OIG has broad jurisdiction over agency programs and spending.

Related Government Programs

Federal Facilities Management Training
Technical Skills Development Programs
Workforce Training and Education
Government Operations and Maintenance Support

Risk Flags

Sole-source award without clear justification
Lack of transparency in competition process
Potential for uncompetitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $184,350 to THERMAL SYSTEM TRAINING, LLC. ASOPE BOILER OPERATOR TRAINING FY 23-FY24. INCLUDES INSTRUCTION AND MATERIALS. 2 BASIC COURSES, 2 INTERMEDIATE COURSES - J.W. HOLMES [23-001110]

Who is the contractor on this award?

The obligated recipient is THERMAL SYSTEM TRAINING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $184,350.

What is the period of performance?

Start: 2023-02-06. End: 2026-04-02.

What is the specific curriculum and learning objectives for the basic and intermediate boiler operator courses?

The provided data does not detail the specific curriculum or learning objectives for the basic and intermediate boiler operator courses. Typically, such training would cover boiler system fundamentals, operation procedures, safety protocols, maintenance checks, and emergency response. The 'Exam Preparation and Tutoring' NAICS code suggests a focus on preparing individuals to pass relevant certifications or demonstrate proficiency. To fully assess the value and scope, a review of the course syllabi, expected learning outcomes, and the qualifications of the instructors would be necessary. The contract mentions 'instruction and materials,' implying a comprehensive package, but the specifics remain undisclosed in the summary data.

How many individuals are expected to receive training under this contract?

The provided data does not specify the number of individuals expected to receive training under this contract. The total award amount of $184,350 is for the overall training program, which includes two basic and two intermediate courses, along with materials, over a period of approximately two years. Without knowing the number of trainees per course or the frequency of course offerings, it is difficult to calculate a precise per-person cost. This information is crucial for benchmarking the cost-effectiveness of the training against industry standards and determining the overall reach of the program within the agency.

What is the track record of Thermal System Training, LLC in providing similar government or private sector training?

Information regarding the specific track record of Thermal System Training, LLC in providing similar government or private sector training is not detailed in the provided data. As the contract was awarded on a sole-source basis, it suggests that either the agency identified this vendor as uniquely qualified, or potentially, the vendor has prior experience with the agency or a strong reputation in this niche field. A comprehensive assessment would require reviewing past performance evaluations, client testimonials, or other contracts awarded to this company. Understanding their history would help validate the decision to award this contract without competition and ensure the quality of the training provided.

Are there any plans for future competition or re-solicitation of this boiler operator training requirement?

The provided data does not indicate whether there are plans for future competition or re-solicitation of this boiler operator training requirement. Given that the current contract was awarded on a sole-source basis and extends until April 2026, the agency may be evaluating the performance and necessity of this training. If the need for such specialized training is ongoing and the market has evolved, the agency could consider a competitive solicitation in the future to potentially achieve better pricing and broader vendor participation. However, without explicit statements from the agency, this remains speculative.

How does the pricing of this contract compare to market rates for similar industrial training services?

Directly comparing the pricing of this contract to market rates for similar industrial training services is challenging without more specific details on the training content, duration, and number of participants. The total award of $184,350 over approximately two years covers multiple courses and materials. If this serves a small group of employees, the per-person cost might be high. Conversely, if it trains a larger cohort or involves extensive, specialized content, it could be competitive. The lack of competition suggests that a thorough market price analysis may not have been conducted or that the vendor's pricing was deemed acceptable under the sole-source justification. Further investigation into industry training providers' pricing structures would be needed for a robust comparison.

Industry Classification

NAICS: Educational Services › Other Schools and Instruction › Exam Preparation and Tutoring

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 95 BELMONT DR, CHRISTIANSBURG, VA, 24073

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $184,350

Exercised Options: $184,350

Current Obligation: $184,350

Actual Outlays: $176,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline