DOE awards $981K for IT training to SANS Institute, bypassing competition

Contract Overview

Contract Amount: $98,150 ($98.2K)

Contractor: THE Escal Institute of Advanced Technologies, Inc.

Awarding Agency: Department of Energy

Start Date: 2026-04-07

End Date: 2027-09-22

Contract Duration: 533 days

Daily Burn Rate: $184/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY PURCHASE FOR PORTSMOUTH PADUCAH PROJECT OFFICE - SANS TRAINING

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40513

State: Kentucky Government Spending

Plain-Language Summary

Department of Energy obligated $98,150 to THE ESCAL INSTITUTE OF ADVANCED TECHNOLOGIES, INC. for work described as: INFORMATION TECHNOLOGY PURCHASE FOR PORTSMOUTH PADUCAH PROJECT OFFICE - SANS TRAINING Key points: 1. Significant contract value for specialized IT training. 2. Sole-source award raises questions about competition and potential cost savings. 3. Risk of limited market exploration and potentially higher prices. 4. IT services sector, specifically cybersecurity training, is a growing area.

Value Assessment

Rating: questionable

The contract value of $981,500 for specialized IT training appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is fair market value compared to similar training offerings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible price through a competitive bidding process.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competition, potentially missing out on cost efficiencies.

Public Impact

Specialized cybersecurity training is crucial for government IT security. Lack of competition could lead to higher costs for taxpayers. Ensuring effective training delivery is key to realizing the value of this investment. Transparency in sole-source justifications is important for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically focusing on advanced cybersecurity training. Spending in this area has increased significantly due to the growing threat landscape. Benchmarks for similar specialized training can vary widely.

Small Business Impact

The awardee is not identified as a small business. The sole-source nature of this award means small businesses were not given an opportunity to compete, potentially limiting their access to this contract.

Oversight & Accountability

Oversight is needed to ensure the training is delivered effectively and meets the stated objectives. The justification for the sole-source award should be thoroughly reviewed to ensure it aligns with federal procurement regulations.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-energy, ky, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $98,150 to THE ESCAL INSTITUTE OF ADVANCED TECHNOLOGIES, INC.. INFORMATION TECHNOLOGY PURCHASE FOR PORTSMOUTH PADUCAH PROJECT OFFICE - SANS TRAINING

Who is the contractor on this award?

The obligated recipient is THE ESCAL INSTITUTE OF ADVANCED TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $98,150.

What is the period of performance?

Start: 2026-04-07. End: 2027-09-22.

What is the specific justification for awarding this contract on a sole-source basis, and were alternative training providers evaluated?

The justification for a sole-source award typically involves unique capabilities, critical urgency, or a lack of other qualified sources. Without further details on the justification, it's difficult to assess if alternative providers were truly unavailable or if market research was insufficient. A thorough review of the sole-source justification is essential to ensure fair and efficient use of taxpayer funds.

How does the cost of this training compare to industry benchmarks for similar specialized cybersecurity courses, especially considering the lack of competition?

Without competitive bids, it is challenging to establish a precise benchmark. However, the absence of competition raises concerns that the $981,500 price may not reflect the best value. Agencies should conduct robust market research to compare pricing with similar specialized training programs offered by other reputable providers to ensure cost-effectiveness.

What metrics will be used to measure the effectiveness of the SANS training and ensure it meets the specific needs of the Portsmouth Paducah Project Office?

Effectiveness should be measured through pre- and post-training assessments, skill validation exercises, and feedback from participants and their supervisors. Key performance indicators should be established to track improvements in cybersecurity knowledge and practical application relevant to the project office's mission. Regular reporting on these metrics will ensure accountability and demonstrate the value of the training investment.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: 11200 ROCKVILLE PIKE STE 200, ROCKVILLE, MD, 20852

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

Financial Breakdown

Contract Ceiling: $98,150

Exercised Options: $98,150

Current Obligation: $98,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2026-04-07

Current End Date: 2027-09-22

Potential End Date: 2027-09-22 00:00:00

Last Modified: 2026-04-07

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