DoD's $20.5M contract for softs instructors awarded to Threat Tec, LLC, with 18 bids received

Contract Overview

Contract Amount: $20,477,041 ($20.5M)

Contractor: Threat TEC, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-25

End Date: 2026-06-24

Contract Duration: 1,460 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: LH - LREC SOFTS INSTRUCTORS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to THREAT TEC, LLC for work described as: LH - LREC SOFTS INSTRUCTORS Key points: 1. Value for money assessed through competitive bidding and comparison to similar services. 2. Competition dynamics indicate a robust market with significant bidder interest. 3. Risk indicators include contract duration and potential for cost overruns. 4. Performance context relies on instructor quality and effectiveness in training. 5. Sector positioning within defense training services, a critical area for SOCOM. 6. Contract type suggests a focus on specialized instruction rather than broad services.

Value Assessment

Rating: good

The contract value of $20.5 million over four years for specialized instruction appears reasonable given the context of U.S. Special Operations Command (SOCOM) needs. Benchmarking against similar training contracts within the defense sector is challenging due to the highly specialized nature of SOF (Special Operations Forces) training. However, the presence of 18 bids suggests a competitive environment that likely drove pricing towards market rates. The labor hour pricing model allows for flexibility, but requires diligent oversight to ensure efficient use of resources and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, specific exclusions were applied. The fact that 18 bids were received suggests that the market for these specialized instructor services is active and that the exclusions did not unduly limit the pool of qualified offerors. A high number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The robust competition, despite some source exclusions, is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source award. The government secured multiple offers, increasing the likelihood of obtaining best value.

Public Impact

Special Operations Forces (SOF) personnel will benefit from enhanced training in soft skills, improving operational effectiveness. The services delivered include specialized instruction crucial for mission readiness and personnel development. The geographic impact is primarily within Florida, where the contractor is based and likely where training will occur. Workforce implications include the employment of skilled instructors by Threat Tec, LLC, contributing to the defense support industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of four years could lead to potential price increases over time if not managed effectively.
Reliance on labor hours necessitates careful monitoring to ensure efficient service delivery and prevent overbilling.
The specialized nature of the training requires continuous assessment of instructor qualifications and training effectiveness.

Positive Signals

Awarded under full and open competition, indicating a healthy market and multiple interested parties.
A significant number of bids (18) suggests strong interest and a competitive pricing environment.
The contract supports critical training needs for U.S. Special Operations Command, aligning with national security priorities.

Sector Analysis

The defense training sector is a significant market, with substantial government spending dedicated to ensuring personnel are adequately prepared for complex missions. This contract falls within the administrative and management consulting services category, specifically focusing on specialized instruction. Comparable spending benchmarks are difficult to establish precisely due to the unique requirements of SOF training, but the overall defense training market is valued in the billions annually. This contract represents a focused investment in human capital development within a critical niche.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Threat Tec, LLC, is not explicitly identified as a small business in this context. There is no direct information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Threat Tec, LLC engages small businesses for subcontracting opportunities, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Special Operations Command contracting and program management offices. Accountability measures would include performance reviews, adherence to delivery schedules, and quality of instruction. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Special Operations Forces Training Programs
Defense Contractor Services
Management and Administrative Consulting
Federal Training Services

Risk Flags

Potential for cost overruns due to labor-hour contract type and long duration.
Ensuring consistent quality and effectiveness of specialized instruction over the contract period.
Dependency on specific instructor expertise which may be subject to market fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to THREAT TEC, LLC. LH - LREC SOFTS INSTRUCTORS

Who is the contractor on this award?

The obligated recipient is THREAT TEC, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2022-06-25. End: 2026-06-24.

What is the track record of Threat Tec, LLC in delivering similar specialized training services to government entities?

Threat Tec, LLC has a history of providing specialized training and technical services, often within the defense sector. While specific details on past performance for this exact type of 'softs instructor' role are not provided in the summary data, their general experience suggests a capability to meet demanding requirements. A deeper dive into their contract history, past performance evaluations, and any awards or penalties would be necessary to fully assess their track record. Government databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would contain more granular information on their past performance and client satisfaction.

How does the awarded price compare to market rates for similar specialized instructor services?

Directly comparing the awarded price of $20.5 million for specialized softs instructors to precise market rates is challenging due to the niche nature of Special Operations Forces (SOF) training. However, the fact that the contract was awarded under 'Full and Open Competition After Exclusion of Sources' and received 18 bids suggests a competitive environment. This level of competition typically drives prices towards market equilibrium. Without access to specific labor hour rates or detailed scope of work benchmarks from other similar contracts, a definitive price-to-market comparison is difficult. The government likely benchmarked against internal estimates and other available data points during the procurement process.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include the potential for instructor quality to vary, leading to suboptimal training outcomes, and the possibility of cost overruns given the four-year duration and labor-hour pricing. Mitigation strategies likely involve rigorous instructor vetting and performance monitoring by SOCOM, clear performance metrics, and regular contract reviews. The competitive award process itself helps mitigate the risk of overpaying. Additionally, the contract's specific deliverables and performance standards, though not detailed here, would form the basis for performance management and risk mitigation.

How effective is the current training program, and what metrics are used to measure its success?

The provided data does not include specific metrics for measuring the effectiveness of the training program. Success is typically measured through post-training assessments, feedback from trainees and their supervisors, and ultimately, the observed performance of SOF personnel in operational environments. The effectiveness of this contract hinges on the quality of instruction provided by Threat Tec, LLC and how well that instruction translates into improved skills and mission readiness for the operators. SOCOM would have established Key Performance Indicators (KPIs) and quality assurance surveillance plans (QASPs) to monitor training effectiveness.

What are the historical spending patterns for similar softs instructor services within the Department of Defense or SOCOM?

Historical spending patterns for specialized softs instructor services within the Department of Defense (DoD) and U.S. Special Operations Command (SOCOM) are not detailed in the summary data. However, it is understood that SOCOM invests significantly in training to maintain the readiness and effectiveness of its elite forces. Such specialized training requirements often lead to dedicated contracts, the value and frequency of which would depend on evolving operational needs and strategic priorities. Analyzing past contract awards for similar services over several fiscal years would provide insight into spending trends and budget allocations for this specific capability.

What is the potential impact of the 'Exclusion of Sources' clause on the overall competitiveness and cost-effectiveness of this award?

The 'Exclusion of Sources' clause, when used in conjunction with 'Full and Open Competition,' allows the government to exclude specific sources from consideration while still broadly competing the requirement. This is typically done for reasons such as national security, export control, or to ensure specific capabilities are met. While it narrows the field from truly 'full and open,' the fact that 18 bids were received indicates that the exclusions did not significantly stifle competition for this particular contract. The impact on cost-effectiveness depends on the justification for the exclusions; if they were necessary to ensure specialized expertise, the resulting price might be higher but justified by the quality and relevance of the offerors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: H9240019R0003

Offers Received: 18

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 34 RESEARCH DR STE 100, HAMPTON, VA, 23666

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,132,678

Exercised Options: $20,477,041

Current Obligation: $20,477,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240020D0042

IDV Type: IDC

Timeline