DoD's $13.8M contract for communications training support awarded to Professional Solutions1 LLC

Contract Overview

Contract Amount: $13,787,217 ($13.8M)

Contractor: Professional Solutions1 LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-11

End Date: 2011-06-03

Contract Duration: 995 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: COMMUNICATIONS TRAINING CENTER SUPPORT

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to PROFESSIONAL SOLUTIONS1 LLC for work described as: COMMUNICATIONS TRAINING CENTER SUPPORT Key points: 1. Contract value represents a significant investment in specialized training infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of nearly 1000 days indicates a long-term need for these services. 4. The 'Engineering Services' NAICS code suggests a technical and specialized nature of the support. 5. Award type 'DO' (Defense Order) implies a priority for this procurement within the DoD. 6. The contract was awarded under full and open competition, indicating broad market access.

Value Assessment

Rating: fair

The total contract value of $13.8 million over approximately 3 years (995 days) for communications training center support appears to be within a reasonable range for specialized defense services. Benchmarking against similar contracts is challenging without more specific details on the scope of services. However, the cost-plus-fixed-fee (CPFF) structure suggests that while the contractor's fee is fixed, the direct costs are reimbursed, which can introduce some cost variability. Further analysis would be needed to compare the labor rates and overhead applied to this contract against industry standards for engineering and training support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates there were 4 bidders, suggesting a moderate level of competition for this requirement. A competitive process like this generally allows for price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios. The presence of multiple bidders implies that the market has the capacity to provide these specialized services.

Taxpayer Impact: Taxpayers benefit from the government seeking the best value through a competitive process, which aims to drive down costs and ensure the quality of services received for the allocated funds.

Public Impact

Personnel within the Department of Defense, specifically the Department of the Navy, are the primary beneficiaries of the enhanced communications training capabilities. The services delivered likely involve the maintenance, operation, and potentially upgrade of communications training facilities and equipment. Geographic impact is centered around the training facilities supported, likely within a specific naval installation. Workforce implications may include the need for skilled technicians, instructors, and support staff to operate and maintain the training centers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not closely monitored.
The specific nature of 'Engineering Services' for training centers requires detailed oversight to ensure alignment with evolving communication technologies.
Reliance on a single contractor for an extended period (995 days) could pose a risk if performance degrades or if the contractor faces financial instability.

Positive Signals

Awarded under full and open competition with four bidders indicates a healthy market response.
The contract's duration suggests a stable and ongoing requirement, allowing for efficient resource planning.
The 'DO' award type signifies a priority within the Department of Defense, potentially indicating critical mission support.

Sector Analysis

The Information Technology and Professional Services sector encompasses a wide range of support functions for government agencies. This contract falls within the specialized engineering and training services sub-sector, which is crucial for maintaining operational readiness in defense organizations. The market for such services is competitive, with numerous firms offering expertise in technical training, simulation, and facility support. Comparable spending benchmarks for similar defense training support contracts can vary significantly based on the scale and complexity of the training provided.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award appears minimal. However, larger prime contractors often engage small businesses for specialized support, so indirect opportunities may exist depending on the prime contractor's sourcing strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, financial reviews, and adherence to contract terms are key oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Training and Simulation
Military Communications Infrastructure
Engineering Services for Government
Professional Support Services Contracts
Department of the Navy Procurement

Risk Flags

Cost-Plus-Fixed-Fee contract requires diligent cost oversight.
Extended contract duration may pose risks of obsolescence or performance degradation.
Need for detailed technical oversight due to 'Engineering Services' classification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to PROFESSIONAL SOLUTIONS1 LLC. COMMUNICATIONS TRAINING CENTER SUPPORT

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL SOLUTIONS1 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 $13.8 million.

What is the period of performance?

Start: 2008-09-11. End: 2011-06-03.

What is the specific scope of 'Communications Training Center Support' provided under this contract?

The provided data indicates the contract is for 'COMMUNICATIONS TRAINING CENTER SUPPORT' under NAICS code 541330 (Engineering Services). While the exact services are not detailed, this typically involves the operation, maintenance, and potentially the upgrade or development of facilities and systems used for training military personnel in communications technologies and procedures. This could include managing simulation equipment, maintaining communication networks within training environments, providing technical expertise for training curriculum development, and ensuring the readiness of training infrastructure. The 'DO' award type suggests it's a priority defense order.

How does the cost-plus-fixed-fee (CPFF) pricing structure impact the value for money in this contract?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve. For value for money, it necessitates robust oversight to ensure that costs are reasonable and allocable to the contract. While the fee is fixed, the total cost can fluctuate based on actual expenses. This can be advantageous if it allows flexibility to adapt to unforeseen technical challenges, but it also carries a risk of cost overruns if cost control is not diligently managed by the government.

What are the potential risks associated with the 995-day duration of this contract?

A contract duration of 995 days (approximately 2.7 years) presents several potential risks. Firstly, there's the risk of contractor performance degradation over an extended period; initial high performance may wane without continuous monitoring. Secondly, technological obsolescence is a concern, especially in communications; the training systems and support provided might become outdated if the contract doesn't include mechanisms for adaptation. Thirdly, the contractor's financial stability over such a long term could be a risk. Finally, a long-term commitment might reduce the government's flexibility to pivot to new technologies or different support models if needs change significantly.

What does the 'Engineering Services' NAICS code (541330) imply about the nature of the support provided?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' indicates that the support provided under this contract requires specialized technical expertise. This goes beyond basic facility maintenance or administrative support. It suggests that Professional Solutions1 LLC is expected to provide services involving the application of engineering principles to the communications training center. This could include designing, developing, analyzing, or managing complex communication systems, simulations, or training environments, ensuring they meet specific technical requirements and operational standards for the Department of Defense.

How does the 'DO' award type influence the interpretation of this contract's priority and importance?

The 'DO' rating signifies a priority rating assigned by the Department of Defense (DoD) under the Defense Priorities and Allocations System (DPAS). A 'DO' rating generally means that the contractor is authorized to receive the necessary materials, equipment, and services to fulfill the contract on time. This indicates that the communications training center support is considered critical to national defense, requiring preferential treatment in the supply chain. It suggests that the DoD views this requirement as essential for maintaining military readiness and capabilities, justifying its priority over less critical procurements.

What is the historical spending pattern for 'COMMUNICATIONS TRAINING CENTER SUPPORT' within the Department of the Navy?

The provided data only pertains to this specific contract awarded in 2008. To understand historical spending patterns for 'COMMUNICATIONS TRAINING CENTER SUPPORT' within the Department of the Navy, a broader analysis of historical contract awards would be necessary. This would involve querying federal procurement databases for similar contracts over multiple fiscal years, looking at the total obligated amounts, contract durations, and the number of awards made. Such an analysis would reveal trends in spending, identify key contractors, and indicate whether this $13.8 million award is representative of typical investment levels in this area.

Industry Classification

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

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

Solicitation ID: N0002408R3335

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4809 B EISENHOWER AVE, ALEXANDRIA, VA, 08

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,458,556

Exercised Options: $14,458,556

Current Obligation: $13,787,217

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4508

IDV Type: IDC

Timeline