DoD Awards $18.6M Virtual Reality Training Contract to Mass Virtual, Inc
Contract Overview
Contract Amount: $18,591,957 ($18.6M)
Contractor: Mass Virtual, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-07-15
End Date: 2025-09-26
Contract Duration: 804 days
Daily Burn Rate: $23.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 365 TRS AVIONICS VIRTUAL REALITY
Place of Performance
Location: SHEPPARD AFB, WICHITA County, TEXAS, 76311
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $18.6 million to MASS VIRTUAL, INC. for work described as: 365 TRS AVIONICS VIRTUAL REALITY Key points: 1. Contract awarded for virtual reality training services. 2. Sole-source award to Mass Virtual, Inc. 3. Potential for high cost if not properly managed. 4. Training sector, specifically professional development.
Value Assessment
Rating: questionable
The contract value of $18.6 million for 804 days of service appears high for virtual reality training. Benchmarking against similar VR training contracts is difficult due to the specialized nature, but the per-unit cost needs careful scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no competition. This significantly limits price discovery and may lead to a higher price than if multiple vendors had competed.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may have overpaid for these services.
Public Impact
Pilots and aircrew may receive advanced VR training. Potential for enhanced skill development and retention. Taxpayers may bear a higher cost due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award lacks competition.
- High contract value for VR training.
- Limited transparency on pricing justification.
Positive Signals
- Utilizes advanced virtual reality technology.
- Addresses critical training needs for the Air Force.
Sector Analysis
This contract falls within the professional and management development training sector, specifically utilizing virtual reality technology. Benchmarks for VR training are still emerging, but significant investments are being made across government and industry.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and effective service delivery. The Department of the Air Force needs to rigorously monitor performance and costs.
Related Government Programs
- Professional and Management Development Training
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Potential for vendor lock-in with sole-source.
- Difficulty in benchmarking specialized VR training costs.
- Need for robust performance monitoring to ensure value.
Tags
professional-and-management-development-, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.6 million to MASS VIRTUAL, INC.. 365 TRS AVIONICS VIRTUAL REALITY
Who is the contractor on this award?
The obligated recipient is MASS VIRTUAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $18.6 million.
What is the period of performance?
Start: 2023-07-15. End: 2025-09-26.
What is the specific justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further documentation, it's impossible to confirm the specific reason. The price reasonableness determination would normally involve market research or cost analysis, which is not detailed here, making it difficult to assess taxpayer value.
What are the key performance indicators (KPIs) for this virtual reality training, and how will their achievement be measured?
Key performance indicators for VR training could include skill acquisition rates, knowledge retention scores, simulation fidelity, and user feedback. The contract should clearly define these metrics and the methods for measuring them to ensure the training is effective and meets the Air Force's objectives.
What is the long-term strategy for adopting and scaling virtual reality training within the Department of Defense?
The long-term strategy would involve assessing the return on investment of this initial contract, identifying other areas where VR training can be beneficial, and developing standardized platforms and content. It also includes considering the total cost of ownership, including hardware, software, maintenance, and instructor training.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2501 DISCOVERY DR STE 100, ORLANDO, FL, 32826
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,591,957
Exercised Options: $18,591,957
Current Obligation: $18,591,957
Actual Outlays: $236,720
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA850120D0002
IDV Type: IDC
Timeline
Start Date: 2023-07-15
Current End Date: 2025-09-26
Potential End Date: 2025-09-26 00:00:00
Last Modified: 2025-07-01
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