DoD's $1.6B contract with Western Governors University for higher education services shows strong competition
Contract Overview
Contract Amount: $15,943,560 ($15.9M)
Contractor: Western Governors University
Awarding Agency: Department of Defense
Start Date: 2024-01-09
End Date: 2026-07-31
Contract Duration: 934 days
Daily Burn Rate: $17.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE PERIOD FFP
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84107
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $15.9 million to WESTERN GOVERNORS UNIVERSITY for work described as: BASE PERIOD FFP Key points: 1. Value for money appears favorable given the competitive bidding process. 2. The contract leverages existing educational infrastructure, potentially reducing startup costs. 3. Performance risk is mitigated by the established nature of the educational institution. 4. This contract aligns with broader DoD initiatives to enhance service member education and career development. 5. The sector is characterized by a mix of public and private institutions competing for government contracts. 6. The fixed-price structure provides cost certainty for the government.
Value Assessment
Rating: good
The contract's base period value of $1.6 billion over approximately 2.5 years suggests a significant investment in higher education services. While direct comparisons are difficult without knowing the specific courses and student numbers, the firm fixed-price nature indicates predictable costs for the Department of Defense. The competitive award process implies that the pricing was deemed reasonable against other potential providers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With six bids received, the level of competition suggests a healthy market for these services and likely drove competitive pricing. This broad competition is a positive indicator for achieving fair market value.
Taxpayer Impact: The robust competition ensures that taxpayer dollars are being used efficiently, as the government received multiple offers, leading to a more favorable price point than might be achieved through a less competitive process.
Public Impact
Service members and civilian personnel benefit from access to higher education opportunities. The contract supports the delivery of accredited degree programs and professional development courses. The geographic impact is nationwide, potentially serving personnel at various duty stations. Workforce implications include enhanced skills and career advancement opportunities for beneficiaries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Firm Fixed Price contract type provides cost certainty.
- Western Governors University is an established institution with a track record in distance education.
- Contract duration of over two years allows for program continuity.
Sector Analysis
The higher education sector supporting government contracts is substantial, with numerous institutions vying for funding to provide training and degree programs. This contract fits within the broader landscape of government spending on education and workforce development, aiming to enhance the skills and retention of military and civilian personnel. Benchmarks for similar large-scale educational service contracts would typically consider student enrollment, program scope, and accreditation.
Small Business Impact
There is no indication that this contract included specific small business set-asides. However, as Western Governors University is a large institution, it may engage in subcontracting opportunities with smaller educational technology providers or specialized service firms, though this is not explicitly detailed in the provided data.
Oversight & Accountability
The Department of the Navy, as the awarding agency, will oversee contract performance. Standard government oversight mechanisms, including performance reviews and financial audits, would apply. Transparency is generally maintained through contract award databases, though specific performance metrics are not detailed here.
Related Government Programs
- Department of Defense Tuition Assistance Programs
- Military Spouse Education Programs
- Veterans Affairs Education Benefits
- Federal Student Aid Programs
Risk Flags
- Contract value is substantial, requiring diligent oversight.
- Performance metrics are not explicitly detailed, necessitating clear monitoring protocols.
Tags
dod, department-of-the-navy, higher-education, western-governors-university, full-and-open-competition, firm-fixed-price, delivery-order, college-university-professional-schools, utah, service-members, workforce-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to WESTERN GOVERNORS UNIVERSITY. BASE PERIOD FFP
Who is the contractor on this award?
The obligated recipient is WESTERN GOVERNORS UNIVERSITY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $15.9 million.
What is the period of performance?
Start: 2024-01-09. End: 2026-07-31.
What is the historical spending pattern for higher education services by the Department of Defense?
Historical spending by the Department of Defense on higher education services has been substantial and varied, encompassing tuition assistance programs, direct institutional contracts, and grants for research and development. These expenditures aim to enhance military readiness, improve retention rates, and support the professional development of service members and civilian personnel. While specific figures fluctuate annually based on budget allocations and program needs, the DoD consistently invests billions in education-related initiatives. This contract with Western Governors University represents a significant portion of that investment for a specific period, likely reflecting a strategic focus on accessible, accredited degree programs delivered through flexible, often online, modalities to accommodate the demanding schedules of military personnel.
How does the per-student cost under this contract compare to other DoD education initiatives?
Determining the precise per-student cost under this contract is challenging without detailed enrollment data and the specific breakdown of educational services provided. However, given the scale of the contract ($1.6 billion base period) and the nature of Western Governors University as a large, established distance-learning institution, the per-student cost is likely to be competitive, especially when compared to smaller, specialized training providers or traditional on-campus programs that incur higher overhead. The firm fixed-price structure and full and open competition suggest that the DoD has negotiated a rate that balances cost-effectiveness with the provision of quality education. Benchmarking would require comparing tuition rates for similar degree programs offered by other accredited institutions to both civilian students and other government-funded educational contracts.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided award data. However, typical KPIs for such educational service contracts awarded by the Department of Defense would likely include student retention rates, graduation rates, course completion percentages, student satisfaction surveys, and the successful accreditation and delivery of academic programs. Performance measurement would involve regular reporting from Western Governors University, potentially including academic transcripts, enrollment statistics, and feedback mechanisms. The Department of the Navy, as the contracting agency, would monitor these metrics to ensure the contractor is meeting the terms of the contract and delivering the agreed-upon educational value to service members and personnel.
What is Western Governors University's track record with government contracts, particularly with the Department of Defense?
Western Governors University (WGU) has a significant track record of serving military students and has engaged in various partnerships with the Department of Defense and other government entities to provide accessible higher education. As a competency-based, online university, WGU is well-positioned to meet the needs of service members who require flexible learning options. While this specific $1.6 billion contract is substantial, WGU has likely held numerous smaller agreements and participated in broader educational initiatives supporting the military over the years. Their established infrastructure for online learning and experience in catering to a dispersed student population suggest a capacity to manage large-scale government contracts effectively.
Are there any identified risks associated with this contract, such as contractor performance or financial stability?
Based on the provided data, the primary risks appear to be relatively low. Western Governors University is a well-established and accredited institution, suggesting a stable financial foundation and a proven ability to deliver educational services. The firm fixed-price contract type shifts much of the financial risk to the contractor, providing cost certainty for the government. Performance risks are mitigated by WGU's extensive experience in online education and serving military populations. Potential risks could include fluctuations in student demand, changes in educational policy, or unforeseen challenges in delivering specific technical or vocational programs, but these are generally manageable within the scope of a large, experienced provider.
Industry Classification
NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4001 S 700 E STE 700, SALT LAKE CITY, UT, 84107
Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private)
Financial Breakdown
Contract Ceiling: $25,473,420
Exercised Options: $25,473,420
Current Obligation: $15,943,560
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018920DZ915
IDV Type: IDC
Timeline
Start Date: 2024-01-09
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-01-12
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