Serco Inc. awarded $20.8M for Defense Ammunition Center distance learning support

Contract Overview

Contract Amount: $20,852,578 ($20.9M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2018-09-13

End Date: 2024-03-23

Contract Duration: 2,018 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF LMP DISTANCE LEARNING SUPPORT FOR DEFENSE AMMUNITION CENTER AND JOINT MUNITIONS COMMAND HQ.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to SERCO INC for work described as: IGF::OT::IGF LMP DISTANCE LEARNING SUPPORT FOR DEFENSE AMMUNITION CENTER AND JOINT MUNITIONS COMMAND HQ. Key points: 1. Contract provides educational support services for critical defense logistics. 2. Firm Fixed Price contract type suggests predictable cost outcomes. 3. Long duration (2018-2024) indicates sustained need for these services. 4. Delivery Order under a larger contract structure implies potential for follow-on work. 5. No small business set-aside indicates focus on larger prime contractors. 6. Virginia location suggests potential for regional economic impact.

Value Assessment

Rating: good

The total award of $20.8M over approximately six years for distance learning support appears reasonable given the specialized nature of defense logistics training. Benchmarking against similar educational support contracts for government agencies is challenging without more specific service details. However, the firm fixed-price structure helps control costs for the government, and the duration suggests a stable, ongoing requirement that Serco Inc. has been able to meet.

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 were likely considered. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The fact that it resulted in a single delivery order suggests that Serco Inc. was the selected vendor for this specific requirement, potentially after a broader solicitation.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices.

Public Impact

Personnel at the Defense Ammunition Center and Joint Munitions Command HQ benefit from enhanced training capabilities. Improved distance learning infrastructure supports readiness and operational effectiveness for military logistics personnel. The services delivered contribute to the professional development and skill enhancement of the defense workforce. Geographic impact is primarily centered around the training facilities, with potential for broader reach through online delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly beyond initial projections.
Reliance on a single vendor for critical training infrastructure could pose a risk if performance falters.

Positive Signals

Long-term contract indicates successful performance and satisfaction with Serco Inc.'s services.
Firm Fixed Price contract provides cost certainty for the government.
Full and open competition suggests a robust initial selection process.

Sector Analysis

This contract falls within the broader educational support services sector, specifically catering to specialized government training needs. The market for defense-related education and training is substantial, driven by the continuous need for skilled personnel in complex operational environments. Serco Inc., as a large government contractor, is well-positioned to compete for and deliver such services. Comparable spending benchmarks would typically be found within the broader professional services category for government agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This suggests that the primary focus was on securing the best overall solution from capable contractors, rather than specifically promoting small business participation at the prime contract level. Further analysis would be needed to determine if Serco Inc. has a subcontracting plan that includes small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and the Defense Contract Management Agency (DCMA). The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Ammunition Center Operations
Joint Munitions Command Training Programs
DoD Distance Learning Initiatives
Government Educational Services Contracts

Risk Flags

Long contract duration may increase risk of vendor lock-in.
Performance data not publicly available to assess effectiveness.
Potential for evolving training needs not fully captured by current scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to SERCO INC. IGF::OT::IGF LMP DISTANCE LEARNING SUPPORT FOR DEFENSE AMMUNITION CENTER AND JOINT MUNITIONS COMMAND HQ.

Who is the contractor on this award?

The obligated recipient is SERCO INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2018-09-13. End: 2024-03-23.

What is Serco Inc.'s track record with similar government contracts, particularly in educational support and defense logistics?

Serco Inc. has a significant history of performing various services for the U.S. government, including IT, logistics, and professional services. While specific details on their educational support contracts for defense logistics are not provided here, their extensive experience with government contracts suggests a capacity to manage complex requirements. A deeper dive into their contract history, performance evaluations (e.g., CPARS), and any past issues would provide a more comprehensive understanding of their track record in this specific niche. Their ability to secure a multi-year contract like this one implies a generally positive performance history with the awarding agency.

How does the $20.8M award compare to the typical cost of similar distance learning support services for defense organizations?

Benchmarking the $20.8M award for distance learning support is challenging without granular data on the scope, duration, and specific technologies involved. However, considering the six-year period (2018-2024), this averages to approximately $3.47 million per year. This figure needs to be evaluated against the complexity of the curriculum, the number of users supported, the platform's sophistication, and the level of instructional design and technical support provided. For specialized defense training, which often involves sensitive content and rigorous security protocols, costs can be higher than general corporate e-learning solutions. Without comparable contract data, it's difficult to definitively state if this represents excellent or questionable value.

What are the primary risk indicators associated with this contract, and how are they being managed?

Key risk indicators for this contract include potential vendor lock-in due to the long duration and specialized nature of the services, the risk of performance degradation over time, and the possibility of evolving training needs that may not be fully captured by the current contract scope. The firm fixed-price structure mitigates financial risk for the government. Management of these risks likely involves regular performance reviews, clear communication channels between the government and Serco Inc., and potentially contract modification processes to address evolving requirements. The initial full and open competition also suggests a thorough vetting of the contractor's capabilities.

How effective has this distance learning support been in achieving its stated objectives for the Defense Ammunition Center and Joint Munitions Command?

The effectiveness of the distance learning support is not directly quantifiable from the provided data. Success would typically be measured by metrics such as improved training completion rates, enhanced knowledge retention among personnel, reduced training costs compared to traditional methods, and increased operational readiness stemming from better-trained staff. Anecdotal evidence or formal program reviews would be necessary to assess the program's effectiveness. The renewal or continuation of such a long-term contract suggests a degree of perceived effectiveness by the government.

What are the historical spending patterns for distance learning support services within the Department of Defense or similar agencies?

Historical spending on distance learning support within the Department of Defense (DoD) has generally trended upwards, reflecting a strategic shift towards more flexible, accessible, and cost-effective training solutions. Agencies increasingly leverage technology to deliver standardized training across geographically dispersed units and to manage evolving skill requirements. While specific figures for 'distance learning support' can vary based on categorization, the overall investment in defense education and training technology is substantial. This contract represents a portion of that broader investment, likely driven by the specific needs of the ammunition logistics commands.

Are there any specific performance metrics or KPIs tied to this contract that indicate success or areas for improvement?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, government contracts of this nature would include clauses outlining expected performance standards, such as uptime for the learning platform, response times for technical support, quality of instructional materials, and user satisfaction rates. These metrics are crucial for assessing the contractor's performance and ensuring the government receives the intended value. Without access to the contract details or performance reports, a definitive assessment of success based on KPIs is not possible.

Industry Classification

NAICS: Educational Services › Educational Support Services › Educational Support 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: W52P1J18Q0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,852,578

Exercised Options: $20,852,578

Current Obligation: $20,852,578

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $513,492

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QREA18D0007

IDV Type: FSS

Timeline