DoD's $20.8M contract for Master Black Belt services awarded to NOVACES, LLC under full and open competition

Contract Overview

Contract Amount: $20,842,825 ($20.8M)

Contractor: Novaces, LLC

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-03-31

Contract Duration: 1,642 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MASTER BLACK BELT (MBB) SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to NOVACES, LLC for work described as: MASTER BLACK BELT (MBB) SERVICES Key points: 1. The contract value is substantial, indicating a significant need for specialized training. 2. NOVACES, LLC is the sole awardee, raising questions about the breadth of competition. 3. The firm-fixed-price contract type helps mitigate cost overrun risks. 4. Spending in professional development training is a key area for government efficiency.

Value Assessment

Rating: fair

The contract value of $20.8M over approximately 5 years suggests a significant investment. Benchmarking against similar large-scale professional development contracts is difficult without more specific service details, but the per-year cost appears moderate.

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,' which is unusual. While it implies initial broad competition, the 'exclusion of sources' phrasing warrants clarification on why specific sources were excluded and if this limited true market competition.

Taxpayer Impact: The firm-fixed-price structure aims to control costs, but the specific competition method's impact on achieving the best possible price for taxpayers needs further review.

Public Impact

Taxpayers are funding specialized training aimed at improving process efficiency within the Department of Defense. The effectiveness of this training will directly impact operational improvements and cost savings in defense programs. Transparency regarding the 'exclusion of sources' in the competition process is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ambiguity in 'exclusion of sources' for competition.
Lack of detailed service scope for benchmarking.
No explicit small business participation noted.

Positive Signals

Firm-fixed-price contract type.
Clear objective of process improvement.
Awarded under a competitive process.

Sector Analysis

The professional and management development training sector is critical for government efficiency. Benchmarking this $20.8M contract requires comparison with similar large-scale training initiatives, which are often agency-specific and vary widely in scope and duration.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was awarded to a large business, and there's an opportunity to assess if future similar contracts could incorporate small business set-asides or subcontracting goals.

Oversight & Accountability

The contract's 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' requires further scrutiny to ensure robust competition and fair pricing. Oversight should focus on the justification for excluding sources and the overall value delivered by NOVACES, LLC.

Related Government Programs

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

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Lack of transparency on specific services provided for benchmarking.
No indication of small business involvement.
Need for clear performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to NOVACES, LLC. MASTER BLACK BELT (MBB) 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 $20.8 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-03-31.

What was the specific justification for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and did this exclusion limit the potential for better pricing o

The justification for excluding sources needs to be thoroughly investigated. If specific capabilities or market segments were arbitrarily excluded, it could indicate a less competitive environment than 'full and open' implies, potentially leading to suboptimal pricing. Understanding the rationale is key to assessing if the government truly received the best value.

How will the effectiveness of the Master Black Belt (MBB) services be measured to ensure the $20.8M investment yields tangible process improvements and cost savings for the Department of Defense?

Measuring effectiveness requires clearly defined Key Performance Indicators (KPIs) tied to the MBB services. These should include quantifiable improvements in process efficiency, cost reductions achieved through implemented recommendations, and successful project completions. Regular performance reviews and independent validation of results are essential to ensure the investment's return.

Given the significant contract value, what is the plan to ensure ongoing competition and prevent vendor lock-in for future needs in Master Black Belt or similar professional development services?

To prevent vendor lock-in, the agency should proactively plan for future procurements. This includes market research to identify emerging providers, breaking down large requirements into smaller, more accessible contracts, and potentially using indefinite-delivery/indefinite-quantity (IDIQ) vehicles with multiple awardees. Encouraging small business participation in future efforts can also broaden the competitive landscape.

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: N0018921RZ051

Offers Received: 12

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, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,169,046

Exercised Options: $21,433,241

Current Obligation: $20,842,825

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline