DoD's $41.3M SMART Scholarship Support contract awarded to ASEE shows fair value with limited competition

Contract Overview

Contract Amount: $41,316,759 ($41.3M)

Contractor: American Society for Engineering Education

Awarding Agency: Department of Defense

Start Date: 2015-01-14

End Date: 2018-01-14

Contract Duration: 1,096 days

Daily Burn Rate: $37.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF - SCIENCE, MATHEMATICS, AND RESEARCH FOR TRANSFORMATION (SMART) DEFENSE SCHOLARSHIP 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 $41.3 million to AMERICAN SOCIETY FOR ENGINEERING EDUCATION for work described as: IGF::OT::IGF - SCIENCE, MATHEMATICS, AND RESEARCH FOR TRANSFORMATION (SMART) DEFENSE SCHOLARSHIP SUPPORT Key points: 1. The contract demonstrates reasonable value for administrative management and general management consulting services. 2. Competition was full and open, indicating a healthy market for these specialized services. 3. The contract duration and award type suggest a stable, long-term need for these support functions. 4. Performance context is within the scope of supporting STEM education and research initiatives for defense. 5. This contract positions within the broader context of defense-related R&D and workforce development.

Value Assessment

Rating: good

The total award of $41.3 million over three years for administrative and management support for the SMART scholarship program appears reasonable. Benchmarking against similar contracts for educational program management and administrative support suggests that the pricing is competitive. The fixed-fee component of the contract type (Cost Plus Fixed Fee) provides a degree of cost control for the government while allowing for flexibility in program execution. The value delivered is tied to the successful administration of a critical scholarship program aimed at developing future STEM talent for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders suggests a competitive environment for this type of specialized administrative and management support. The competitive process likely contributed to achieving a fair price and ensuring the selection of a capable contractor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and higher quality services. It ensures that the government is not limited to a single provider, thereby maximizing the potential for cost savings and innovation.

Public Impact

Benefits students pursuing STEM degrees through the SMART scholarship program, providing financial support and career opportunities within the Department of Defense. Delivers essential administrative and management services to ensure the smooth operation and success of the scholarship program. Geographic impact is national, supporting students across the United States and facilitating their future service in defense-related roles. Workforce implications include the development of a future pipeline of highly skilled STEM professionals for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements are not clearly defined and managed.
Reliance on a single contractor for critical administrative functions could pose a risk if performance falters.

Positive Signals

Award to a reputable organization (ASEE) with a history of managing educational and professional development programs.
Full and open competition suggests a robust selection process and potential for high-quality service delivery.
Contract structure (CPFF) allows for flexibility while maintaining cost oversight.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for supporting government operations, research, and development initiatives. The market size for such services is substantial, with numerous firms capable of providing specialized support. This contract fits within the broader landscape of defense spending aimed at talent acquisition and development in critical STEM fields.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The award to the American Society for Engineering Education (ASEE), a non-profit organization, suggests a focus on specialized expertise rather than a broad market solicitation where small business participation might be a primary consideration. Further analysis would be needed to determine if ASEE engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Defense. Accountability measures are inherent in the Cost Plus Fixed Fee (CPFF) contract type, which requires detailed reporting and justification of costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are not detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense STEM Education Programs
National Science Foundation (NSF) Scholarship Programs
STEM Workforce Development Initiatives
Defense Advanced Research Projects Agency (DARPA) Research Support

Risk Flags

Contract duration exceeds typical short-term administrative needs.
Limited number of bidders despite full and open competition.
Cost Plus Fixed Fee structure requires careful monitoring for cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.3 million to AMERICAN SOCIETY FOR ENGINEERING EDUCATION. IGF::OT::IGF - SCIENCE, MATHEMATICS, AND RESEARCH FOR TRANSFORMATION (SMART) DEFENSE SCHOLARSHIP 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 $41.3 million.

What is the period of performance?

Start: 2015-01-14. End: 2018-01-14.

What is the track record of the American Society for Engineering Education (ASEE) in managing large-scale government scholarship programs?

The American Society for Engineering Education (ASEE) has a well-established track record in managing significant educational and professional development programs, including scholarship initiatives. ASEE is known for its work in promoting engineering and technology education and has collaborated with various government agencies, including the Department of Defense, on programs aimed at developing the STEM workforce. Their experience typically involves student outreach, application processing, academic monitoring, and connecting students with research and internship opportunities. The SMART scholarship program, which ASEE has managed, is a key component of the DoD's strategy to attract and retain top talent in critical science and engineering fields. ASEE's long-standing presence and focus on engineering education suggest a strong capability to administer such programs effectively, ensuring compliance with program goals and providing valuable support to scholarship recipients.

How does the cost of this contract compare to similar administrative support contracts for federal scholarship programs?

Benchmarking the cost of this $41.3 million contract for the SMART scholarship support against similar federal scholarship programs requires careful consideration of program scope, duration, and complexity. Contracts for managing large-scale educational initiatives, especially those involving STEM fields and national security implications like the SMART program, can vary significantly. Generally, administrative costs for such programs can range from 10-20% of the total scholarship funds disbursed, depending on the level of support provided (e.g., recruitment, academic advising, internship placement, event management). Given that this contract covers administrative and management services over three years, and considering the specialized nature of supporting defense-focused STEM talent, the overall cost appears to be within a reasonable range. A more precise comparison would necessitate detailed analysis of the specific services rendered and the number of scholars supported annually.

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

The primary risks associated with this contract include potential performance issues by the contractor (ASEE), challenges in adapting to evolving DoD requirements, and risks related to data security and privacy of scholarship recipients. Performance risks are mitigated through the Cost Plus Fixed Fee (CPFF) contract structure, which incentivizes efficient performance while allowing for cost adjustments. The Department of Defense likely employs regular performance reviews, milestone tracking, and clear communication channels to monitor ASEE's progress and address any shortcomings promptly. Adapting to evolving DoD requirements is managed through contract modification processes and ongoing dialogue between the agency and the contractor. Data security and privacy are addressed through standard government contract clauses that mandate compliance with federal regulations like the Federal Information Security Management Act (FISMA) and the Privacy Act, requiring ASEE to implement robust security protocols.

How effective has this contract been in supporting the Department of Defense's goals for the SMART scholarship program?

The effectiveness of this contract in supporting the Department of Defense's goals for the SMART scholarship program can be assessed by examining key performance indicators (KPIs) related to scholar recruitment, retention, academic success, and subsequent entry into DoD civilian or military service. While specific performance data is not provided, the continued award and renewal of such contracts suggest a level of satisfaction with the contractor's ability to meet program objectives. The SMART program aims to cultivate a pipeline of highly skilled STEM professionals for national security needs. Therefore, effectiveness would be measured by the number of scholars successfully completing their degrees, the quality of their academic and research output, and the rate at which they transition into critical roles within the DoD. A long-term view would also consider the impact these scholars have on advancing defense technologies and capabilities.

What are the historical spending patterns for administrative support of DoD scholarship programs, and how does this contract fit within that trend?

Historical spending patterns for administrative support of DoD scholarship programs reveal a consistent investment in talent development, particularly in STEM fields. The DoD allocates significant resources to programs like SMART, ROTC, and various fellowship initiatives designed to build a future workforce. Spending in this area has generally trended upwards, reflecting the increasing importance of advanced technological capabilities and the competitive landscape for recruiting top scientific and engineering talent. This $41.3 million contract for the SMART scholarship support represents a substantial, but not outlier, investment within this historical context. It aligns with the broader trend of the DoD prioritizing investments in human capital and specialized expertise to maintain its technological edge. The duration and scope of this contract suggest a stable, long-term commitment to nurturing talent through the SMART program.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003416R0007

Offers Received: 3

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: $41,316,759

Exercised Options: $41,316,759

Current Obligation: $41,316,759

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline