DoD's $27.7M Lean Six Sigma Training Contract with NOVACES, LLC Awarded via Full and Open Competition

Contract Overview

Contract Amount: $27,671,409 ($27.7M)

Contractor: Novaces, LLC

Awarding Agency: Department of Defense

Start Date: 2017-07-01

End Date: 2021-09-30

Contract Duration: 1,552 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF LEAN SIX SIGMA SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to NOVACES, LLC for work described as: IGF::OT::IGF LEAN SIX SIGMA SERVICES Key points: 1. The contract awarded to NOVACES, LLC for Lean Six Sigma services represents a significant investment in professional development within the Department of Defense. 2. Competition was conducted under a 'Full and Open Competition After Exclusion of Sources' method, suggesting a deliberate selection process. 3. The contract's duration of over 1500 days indicates a long-term need for these specialized training services. 4. The 'VA' (Veterans Affairs) status code might imply a focus on veteran training or support, though the agency is DoD. 5. The absence of small business participation is noted.

Value Assessment

Rating: fair

The contract value of $27.7 million over approximately four years for specialized training services appears within a reasonable range for large-scale government professional development programs. Benchmarking against similar large-scale training contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This method implies that while the competition was open, specific sources were initially excluded, potentially for specialized qualifications, before a broader competition was opened. This could impact price discovery by narrowing the initial pool.

Taxpayer Impact: The use of full and open competition generally promotes competitive pricing, potentially leading to better value for taxpayers. However, the specific exclusion of sources warrants further examination to ensure maximum cost-effectiveness.

Public Impact

Enhances workforce skills in process improvement methodologies like Lean Six Sigma, potentially leading to greater efficiency in military operations. Supports the professional development of military and civilian personnel within the Department of Defense. The contract's significant value suggests a substantial impact on the training services market. The lack of small business participation may limit opportunities for smaller, specialized training firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Complexity of 'Exclusion of Sources' competition method.

Positive Signals

Awarded via full and open competition.
Focus on valuable process improvement training.

Sector Analysis

The sector involves professional and management development training, specifically Lean Six Sigma. Government spending in this area supports workforce development and operational efficiency. Benchmarks for similar large-scale training contracts would typically range from millions to tens of millions annually, depending on scope and duration.

Small Business Impact

The data indicates that small businesses were not involved in this contract (sb: false). This suggests that the prime contractor, NOVACES, LLC, is likely a larger entity, and opportunities for small business subcontracting may have been missed.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve contract management offices ensuring performance, quality, and adherence to terms. The 'VA' status code warrants clarification regarding its specific meaning in this DoD context.

Related Government Programs

Professional and Management Development Training
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of small business participation.
Unclear rationale for 'Exclusion of Sources'.
No performance or effectiveness metrics provided.
Potential for higher costs due to limited initial competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to NOVACES, LLC. IGF::OT::IGF LEAN SIX SIGMA SERVICES

Who is the contractor on this award?

The obligated recipient is NOVACES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2017-07-01. End: 2021-09-30.

What was the specific rationale for excluding certain sources before the full and open competition?

The rationale for excluding specific sources prior to the full and open competition is not detailed in the provided data. Typically, such exclusions are based on unique qualifications, specialized expertise, or prior performance requirements deemed essential for the specific training needs. Understanding this rationale is crucial to assessing whether the competition was truly optimized for both specialized capability and cost-effectiveness.

How does the per-unit cost of this training compare to industry benchmarks for Lean Six Sigma certification?

A precise per-unit cost benchmark is not available without more granular data on the number of trainees and specific course levels. However, given the contract's total value and duration, the average cost per participant is likely substantial, reflecting comprehensive program delivery. Comparing this to industry averages for similar certifications (e.g., Black Belt, Green Belt) would be necessary for a definitive assessment of value.

What measurable improvements in efficiency or cost savings have been attributed to this training program within the DoD?

The provided data does not include metrics on the effectiveness or return on investment of the Lean Six Sigma training. To assess the true value, reports or case studies detailing specific process improvements, cost savings, or efficiency gains achieved by personnel trained under this contract would be required. Without such data, the impact remains qualitative.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018917RZ008

Offers Received: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 650 POYDRAS ST STE 2523, NEW ORLEANS, LA, 70130

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

Financial Breakdown

Contract Ceiling: $31,030,118

Exercised Options: $27,746,529

Current Obligation: $27,671,409

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline