DoD's $3M courseware revisions contract awarded to CT3I II LLC raises questions on competition and value

Contract Overview

Contract Amount: $2,999,469 ($3.0M)

Contractor: CT3I II LLC

Awarding Agency: Department of Defense

Start Date: 2025-07-31

End Date: 2027-07-30

Contract Duration: 729 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RRL COURSEWARE REVISIONS

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89135

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $3.0 million to CT3I II LLC for work described as: RRL COURSEWARE REVISIONS Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The fixed-price contract type offers some cost certainty but doesn't mitigate sole-source risks. 3. Performance period of two years suggests a focused scope for courseware revisions. 4. The engineering services NAICS code indicates a need for specialized technical expertise. 5. Lack of competition is a significant risk indicator for value for money. 6. The contract's value is relatively small in the context of large defense spending.

Value Assessment

Rating: questionable

Benchmarking the value of this $3 million contract is challenging due to the lack of competitive bids. Without comparison to other offers or market rates for similar courseware revision services, it's difficult to definitively assess if the price is fair. The firm-fixed-price structure provides some predictability, but the absence of competition means the government may not have secured the best possible price. Further analysis would require understanding the specific deliverables and comparing them to industry standards for similar engineering and training development services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required services. However, it significantly limits the government's ability to solicit and evaluate multiple offers, which is crucial for ensuring competitive pricing and identifying the most capable contractor. The lack of competition here means taxpayers may not benefit from the cost savings typically achieved through a bidding process.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions that often result from a competitive bidding process. This can lead to higher overall spending for government services.

Public Impact

Personnel within the Department of Defense, specifically the Department of the Navy, will benefit from updated courseware. The services delivered involve revisions to existing courseware, likely aimed at improving training effectiveness or updating content. The geographic impact is primarily within the Department of the Navy's training infrastructure, with potential national implications for naval readiness. Workforce implications may include the need for specialized instructional designers, technical writers, and subject matter experts to perform the revisions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Lack of transparency in the selection process due to sole-source nature.
Difficulty in benchmarking value without comparable contract data.
Potential for scope creep if requirements are not tightly defined in a sole-source environment.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a specific contractor (CT3I II LLC) suggests they possess unique capabilities or existing knowledge.
Contract duration of two years allows for focused execution of courseware revisions.

Sector Analysis

The defense sector relies heavily on specialized engineering and technical services for training and operational readiness. This contract falls within the broader engineering services market, which includes the development, revision, and maintenance of training materials and courseware. The market for defense-related courseware development is significant, driven by the need for continuous updates to reflect evolving threats, technologies, and operational doctrines. Benchmarking this contract's value is difficult without specific details, but similar contracts for specialized technical writing and instructional design can range widely in cost.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award to CT3I II LLC, without specific size information provided, suggests it may not be a small business prime contractor for this particular award. There is no explicit information regarding subcontracting plans for small businesses, which could represent missed opportunities for the small business ecosystem to participate in this defense contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, scrutiny might be higher to ensure the justification for non-competition is valid and that the contractor meets performance expectations. Transparency is limited due to the lack of a competitive bidding process. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or execution.

Related Government Programs

Defense Training and Simulation
Instructional Design Services
Technical Documentation
Engineering Services Contracts
Naval Education and Training Command

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.0 million to CT3I II LLC. RRL COURSEWARE REVISIONS

Who is the contractor on this award?

The obligated recipient is CT3I II 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 $3.0 million.

What is the period of performance?

Start: 2025-07-31. End: 2027-07-30.

What specific courseware is being revised under this contract, and what is the justification for the revisions?

The provided data does not specify the exact courseware modules or systems undergoing revision. The justification for revisions typically stems from factors such as outdated information, changes in technology or doctrine, identified training deficiencies, or the need to incorporate lessons learned from recent operations. For this contract, the Department of the Navy would have a specific rationale, likely documented in the sole-source justification, detailing why these particular revisions are necessary for naval readiness and operational effectiveness. Without access to that documentation, the precise drivers remain unknown.

How does the $3 million cost compare to similar courseware revision projects within the Department of Defense or other military branches?

Direct comparison of the $3 million cost is difficult without detailed scope and deliverable information. However, courseware development and revision projects within the Department of Defense can vary significantly in price based on complexity, subject matter, required media (e.g., interactive simulations vs. text-based manuals), and the number of modules involved. A $3 million contract for two years suggests a substantial undertaking, potentially involving complex technical subjects or a significant volume of material. Generally, sole-source contracts are more susceptible to higher pricing than competitively awarded ones, making direct benchmarking against similar, competitively bid projects challenging and potentially misleading.

What are the key performance indicators (KPIs) or metrics used to evaluate CT3I II LLC's performance on this contract?

Key performance indicators for a courseware revision contract typically focus on adherence to schedule, quality of the revised content, accuracy of technical information, effectiveness of instructional design, and user feedback. Specific metrics might include on-time delivery of draft and final revisions, pass rates for quality assurance reviews, successful integration into existing learning management systems, and positive evaluations from pilot testing groups or end-users. The firm-fixed-price nature of the contract implies that meeting these defined performance standards is crucial for successful completion, though the exact KPIs would be detailed in the contract's statement of work and performance clauses.

What is the track record of CT3I II LLC in performing similar engineering or courseware development services for the federal government?

Information regarding CT3I II LLC's specific track record for federal contracts, particularly in courseware development and engineering services, is not detailed in the provided data. A thorough assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any publicly available project portfolios. Understanding their history with similar sole-source or competitively awarded contracts, their performance ratings, and their experience with the Department of the Navy would provide crucial context for evaluating their capability and the appropriateness of this award.

What is the historical spending trend for 'RRL COURSEWARE REVISIONS' or similar categories within the Department of the Navy?

The provided data snippet focuses on a single contract award and does not offer historical spending trends for 'RRL COURSEWARE REVISIONS' or related categories within the Department of the Navy. To analyze historical spending, one would need access to broader federal procurement databases (like USASpending.gov) to track spending patterns over multiple fiscal years for relevant NAICS codes (e.g., 541330 - Engineering Services, or potentially others related to education and training services). This would reveal if spending on courseware revisions has been consistent, increasing, or decreasing, and whether this contract represents a typical investment or an anomaly.

What are the potential risks associated with awarding a sole-source contract for engineering services like courseware revisions?

Sole-source awards for engineering services like courseware revisions carry several inherent risks. The primary risk is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved through a competitive process. This can result in less value for taxpayer money. Another risk is reduced incentive for the contractor to innovate or perform exceptionally, as they face no direct competition for future work related to this specific contract. Furthermore, sole-source justifications can sometimes be susceptible to challenges if not properly documented, and they limit opportunities for new or smaller businesses to enter the market and demonstrate their capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11331 GRAVITATION DR, LAS VEGAS, NV, 89135

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,999,469

Exercised Options: $2,999,469

Current Obligation: $2,999,469

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134025D0008

IDV Type: IDC

Timeline