State Department's $30M eLearning contract to Ventura Group Inc. awarded via full and open competition

Contract Overview

Contract Amount: $30,228,108 ($30.2M)

Contractor: THE Ventura Group Inc

Awarding Agency: Department of State

Start Date: 2014-11-19

End Date: 2019-09-15

Contract Duration: 1,761 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS ELEARNING DEVELOPMENT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $30.2 million to THE VENTURA GROUP INC for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS ELEARNING DEVELOPMENT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1761 days (approx. 4.8 years) indicates a long-term need for eLearning services. 3. The contract was awarded as a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle. 4. The primary service category is 'Other Computer Related Services', with a specific NAICS code of 541519. 5. The contract was awarded to The Ventura Group Inc., a single contractor. 6. The contract utilized a Labor Hours pricing mechanism.

Value Assessment

Rating: fair

The total award amount of $30.2 million over nearly five years averages to approximately $6.3 million per year. Benchmarking this against similar government-wide eLearning development contracts is challenging without more specific service details. However, the use of labor hours suggests that the final cost is dependent on the actual effort expended. Without knowing the specific labor rates or the volume of work performed, a precise value-for-money assessment is difficult. The fact that it was competed suggests an attempt to achieve fair market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 7 bidders suggests a reasonably competitive landscape for these eLearning development services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the competition, such as the evaluation criteria and the number of proposals received, are not provided here.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives offers from a wide range of qualified vendors, potentially leading to better value.

Public Impact

The primary beneficiary is the Department of State, which receives eLearning development services to support its training and educational initiatives. The services delivered likely include the design, development, and maintenance of online learning modules and platforms for State Department personnel. The geographic impact is primarily within the Department of State's operations, which are global, though the development work itself may be localized. Workforce implications could include the need for specialized instructional designers, multimedia developers, and IT support staff, both within the contractor's organization and potentially within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and quality of the eLearning services provided.
The reliance on labor hours can lead to cost overruns if not managed carefully and if the scope of work is not well-defined.
Without specific details on the competition, it's hard to confirm if the lowest price technically acceptable or best value approach was truly optimized.
The long duration of the contract could lead to technology obsolescence if not actively managed and updated.
Limited information on the specific types of eLearning content developed hinders a deeper analysis of its impact and relevance.

Positive Signals

Awarded through full and open competition, indicating a commitment to maximizing vendor participation and competitive pricing.
The contract was awarded to a single entity, potentially allowing for streamlined communication and project management.
The contract duration suggests a stable, long-term relationship, which can foster expertise and efficiency.
The NAICS code points to a specific area of IT services, suggesting a focused requirement.
The contract was awarded by the Department of State, a major federal agency with significant training needs.

Sector Analysis

The IT services sector, specifically custom computer programming services and related activities (NAICS 541519), is a large and dynamic market. Government spending in this area is substantial, covering a wide range of needs from software development to IT consulting and support. eLearning development falls within this broader category, addressing the growing demand for digital training solutions across federal agencies. Comparable spending benchmarks would typically involve analyzing other large-scale government contracts for IT training development or custom software solutions, considering factors like contract type, duration, and scope.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The contract was awarded under full and open competition. There is no explicit information provided regarding subcontracting plans or goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract award is likely minimal unless the prime contractor voluntarily engages small businesses in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures would be defined in the contract's statement of work, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or identified.

Related Government Programs

IT Services Contracts
E-Learning Development
Training and Education Services
Department of State IT Procurement
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for cost overruns due to labor-hour pricing.
Risk of technology obsolescence over the contract's duration.
Need for strong government oversight to manage scope and performance.
Limited transparency on specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $30.2 million to THE VENTURA GROUP INC. IGF::OT::IGF FOR OTHER FUNCTIONS ELEARNING DEVELOPMENT SERVICES

Who is the contractor on this award?

The obligated recipient is THE VENTURA GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $30.2 million.

What is the period of performance?

Start: 2014-11-19. End: 2019-09-15.

What was the specific nature of the eLearning services provided under this contract?

The contract falls under NAICS code 541519 (Other Computer Related Services), and was awarded for 'ELEARNING DEVELOPMENT SERVICES'. This suggests the services involved the design, development, implementation, and potentially maintenance of online learning content and platforms. This could range from creating interactive courses, developing learning management system (LMS) integrations, producing multimedia training materials (videos, simulations), to providing technical support for the eLearning infrastructure. The Department of State likely utilized these services for professional development, policy training, security awareness, or other mission-critical educational needs for its employees.

How does the awarded price compare to market rates for similar eLearning development services?

Assessing the precise value-for-money is challenging without detailed service specifications and labor rates. The contract was awarded under full and open competition with 7 bidders, which generally promotes competitive pricing. However, the use of 'LABOR HOURS' as the pricing mechanism means the final cost is variable and dependent on the actual hours worked. To benchmark effectively, one would need to compare the contractor's labor rates (e.g., hourly rates for different skill sets like instructional designers, developers) against industry averages for government contractors performing similar work in the Washington D.C. metropolitan area or nationally. Without this granular data, a definitive comparison to market rates is speculative, though the competitive award process suggests an effort to achieve fair pricing.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to measure the success of this eLearning development contract. Typically, for such contracts, KPIs might include metrics related to course completion rates, learner satisfaction scores, knowledge retention improvements (measured through assessments), on-time delivery of modules, adherence to budget, and technical performance of the learning platforms. The effectiveness of the oversight by the Department of State's contracting officer and program managers would be crucial in monitoring these potential KPIs and ensuring the contractor meets the required performance standards outlined in the contract's Statement of Work.

What is the track record of The Ventura Group Inc. in delivering federal eLearning contracts?

The provided data indicates that The Ventura Group Inc. was awarded this $30.2 million contract by the Department of State. To assess their track record, further investigation into their past performance on federal contracts, particularly those involving eLearning development or related IT services, would be necessary. This would involve reviewing contract histories, performance evaluations (if publicly available), and any reported issues or successes on previous government engagements. Without this additional context, it's difficult to definitively characterize their overall track record specifically for federal eLearning projects.

How has the Department of State's spending on eLearning development evolved over time?

This specific contract, awarded in late 2014 and ending in late 2019, represents a significant investment in eLearning development services for the Department of State during that period. To understand the evolution of spending, one would need to analyze historical procurement data for the Department of State, looking at prior and subsequent contracts for similar services. This analysis would reveal trends in spending levels, shifts in technology adoption (e.g., from basic modules to more interactive simulations or virtual reality), and changes in contracting approaches (e.g., from sole-source to competitive awards). The $30.2 million figure provides a data point for this period, but a broader trend analysis requires more extensive historical data.

What are the potential risks associated with a long-term, labor-hour based eLearning contract?

Long-term, labor-hour based contracts present several risks. Firstly, cost control can be challenging, as the total expenditure is directly tied to the hours worked, potentially leading to budget overruns if the scope is not tightly managed or if inefficiencies arise. Secondly, there's a risk of scope creep, where requirements may expand over the contract's life without corresponding adjustments to cost or schedule, especially if the initial statement of work was not sufficiently detailed. Thirdly, technology can become obsolete over a multi-year period; if the contract doesn't include mechanisms for incorporating new technologies or updating content effectively, the delivered eLearning solutions might fall behind current standards. Finally, ensuring consistent quality and performance over an extended period requires robust government oversight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SFSIAQ14R0002

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 20110 ASHBROOK PL, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $63,608,631

Exercised Options: $30,976,222

Current Obligation: $30,228,108

Actual Outlays: $-3,532

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0647T

IDV Type: FSS

Timeline