DoD's $39.4M contract for tuition, stipend, and program support awarded to American Society for Engineering Education

Contract Overview

Contract Amount: $39,381,039 ($39.4M)

Contractor: American Society for Engineering Education

Awarding Agency: Department of Defense

Start Date: 2014-07-10

End Date: 2016-05-15

Contract Duration: 675 days

Daily Burn Rate: $58.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF TUITION, STIPEND PAYMENTS AND PROGRAM SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $39.4 million to AMERICAN SOCIETY FOR ENGINEERING EDUCATION for work described as: IGF::OT::IGF TUITION, STIPEND PAYMENTS AND PROGRAM SUPPORT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. Significant funding allocated for administrative management and general management consulting services. 3. Contract duration of 675 days suggests a substantial, ongoing program requirement. 4. Awarded by Washington Headquarters Services, indicating a focus on high-level administrative support. 5. No small business set-aside, potentially limiting opportunities for smaller firms in this sector.

Value Assessment

Rating: questionable

The contract's value of $39.4 million for administrative management and consulting services appears high, especially given the sole-source award. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of transparency in the procurement process makes it challenging to assess whether the government received optimal value for the funds expended. Further analysis would be needed to determine if the services provided justify this significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in specific emergency situations. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government. It also limits the government's ability to explore innovative solutions from a wider range of potential contractors.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from the cost savings that can arise from a competitive bidding process. This could translate to a less efficient use of public funds compared to a competed contract.

Public Impact

The American Society for Engineering Education (ASEE) is the direct beneficiary, receiving substantial funding. The contract supports tuition, stipend payments, and program support, likely for educational or research initiatives. The geographic impact is centered in the District of Columbia, where Washington Headquarters Services is located. Workforce implications may include support for students, researchers, or administrative staff involved in engineering education programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of competition may reduce innovation and efficiency.
High dollar value without clear competitive justification warrants scrutiny.

Positive Signals

Contract supports critical areas of engineering education.
ASEE is a recognized organization in its field.
Long-term funding suggests a stable program requirement.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically supporting educational programs. The federal government frequently procures such services to manage and enhance various initiatives. The market for these services is broad, encompassing professional associations and consulting firms. Benchmarking this specific award is difficult without knowing the exact nature of the 'program support' and tuition/stipend distribution, but the scale suggests a significant federal investment in engineering education.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this significant funding were not explicitly pursued through this award mechanism. The focus appears to be on a direct award to a specific organization rather than broad-based small business engagement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense and Washington Headquarters Services. As a sole-source award, the justification and terms would be subject to internal review and potentially oversight by the Government Accountability Office (GAO) if specific concerns are raised. Transparency is limited due to the non-competitive nature, making external assessment of accountability challenging without further information on performance metrics and deliverables.

Related Government Programs

Department of Defense Education Programs
STEM Education Initiatives
Federal Grants and Stipends
Professional Association Support Contracts

Risk Flags

Sole-source award without clear justification.
High contract value without competitive benchmarking.
Lack of transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.4 million to AMERICAN SOCIETY FOR ENGINEERING EDUCATION. IGF::OT::IGF TUITION, STIPEND PAYMENTS AND PROGRAM SUPPORT

Who is the contractor on this award?

The obligated recipient is AMERICAN SOCIETY FOR ENGINEERING EDUCATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $39.4 million.

What is the period of performance?

Start: 2014-07-10. End: 2016-05-15.

What specific programs and services are covered under this $39.4 million contract?

The provided data indicates the contract is for 'TUITION, STIPEND PAYMENTS AND PROGRAM SUPPORT' awarded to the American Society for Engineering Education (ASEE). However, the specific details of these programs, the criteria for tuition and stipend recipients, and the scope of 'program support' are not elaborated in the summary data. This level of detail is crucial for understanding the full value and impact of the contract. Without this information, it's difficult to assess if the funds are being used effectively towards stated objectives, such as advancing engineering education or supporting critical research personnel.

Why was this contract awarded on a sole-source basis instead of being competed?

The data states the contract was 'NOT COMPETED,' indicating a sole-source award. The justification for this decision is not provided. Typically, sole-source awards are made when only one responsible source is available, or in cases of urgent need. For a contract of this magnitude ($39.4 million) and duration (675 days), a competitive process would usually be expected to ensure the best value for the government. The absence of a competitive solicitation raises questions about whether alternative vendors were considered or if specific circumstances warranted bypassing the standard procurement procedures. Further documentation from the awarding agency would be needed to understand the rationale.

How does the $39.4 million value compare to similar contracts for educational support?

Benchmarking the $39.4 million value is challenging without more specific details on the services provided. Contracts for tuition, stipends, and program support can vary widely in scope and cost. If this contract primarily funds tuition and stipends for a large cohort of students or researchers in critical STEM fields, the amount might be justifiable. However, if a significant portion is for administrative overhead or general program support, it could be considered high, especially given the sole-source nature. Comparing it to other DoD or federal agency contracts supporting similar educational initiatives, particularly those awarded competitively, would provide a more robust assessment of value for money.

What is the track record of the American Society for Engineering Education in managing federal contracts?

The American Society for Engineering Education (ASEE) is a well-established professional organization focused on improving engineering and technology education. While specific details on their track record managing federal contracts of this size are not provided in the summary data, ASEE has a history of collaborating with government agencies on various initiatives. Their role often involves convening stakeholders, disseminating research, and managing educational programs. A thorough review would involve examining past performance evaluations, any prior federal awards, and their financial stability to ensure they possess the capacity and expertise to successfully execute a contract valued at $39.4 million.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may not achieve the most favorable pricing. Additionally, there's a risk of reduced innovation, as the government doesn't benefit from the diverse approaches and solutions that multiple bidders might offer. There's also a potential for perceived or actual lack of transparency and fairness in the procurement process. Ensuring robust oversight and clear performance metrics becomes even more critical to mitigate these risks and confirm that the awarded contractor is delivering the required value.

How does this spending align with broader federal investments in STEM education?

This $39.4 million contract represents a significant federal investment channeled through the Department of Defense towards engineering education. It aligns with broader federal priorities to strengthen Science, Technology, Engineering, and Mathematics (STEM) fields, which are crucial for national security, economic competitiveness, and innovation. Such funding can support the development of a skilled workforce, foster research advancements, and encourage participation in critical technical disciplines. The specific impact depends on how the tuition, stipends, and program support are directed, but it contributes to the overall federal strategy of bolstering STEM capabilities.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003414R0111

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1818 N ST NW STE 600, WASHINGTON, DC, 20036

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: $39,381,039

Exercised Options: $39,381,039

Current Obligation: $39,381,039

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline