Army awards $12.9M for research and training development to Tipping Point Solutions, Inc

Contract Overview

Contract Amount: $12,930,993 ($12.9M)

Contractor: Tipping Point Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-13

End Date: 2026-08-14

Contract Duration: 731 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THIS ACTION IS FOR A NEW TASK ORDER TO PROVIDE THE UNITED STATES ARMY INTELLIGENCE CENTER OF EXCELLENCE WITH RESEARCH SUPPORT, DEVELOPMENT SUPPORT FOR INSTRUCTION, INSTRUCTIONAL PRODUCTS, TRAINING INNOVATION.

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to TIPPING POINT SOLUTIONS, INC. for work described as: THIS ACTION IS FOR A NEW TASK ORDER TO PROVIDE THE UNITED STATES ARMY INTELLIGENCE CENTER OF EXCELLENCE WITH RESEARCH SUPPORT, DEVELOPMENT SUPPORT FOR INSTRUCTION, INSTRUCTIONAL PRODUCTS, TRAINING INNOVATION. Key points: 1. Contract focuses on critical research, development, and training innovation for the Army. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is two years, indicating a medium-term engagement. 4. The awardee, Tipping Point Solutions, Inc., will provide specialized support. 5. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 6. This award falls under professional and management development training services.

Value Assessment

Rating: fair

The contract value of $12.9 million over two years for specialized research and training development appears within a reasonable range for such services. However, without specific benchmarks for comparable research and development support for training institutions, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee structure means the government reimburses costs plus a predetermined profit, which can sometimes lead to higher overall costs if not managed carefully. Further analysis of the contractor's proposed costs against industry standards would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which is a complex designation. Typically, 'full and open' implies broad competition. However, the 'after exclusion of sources' part suggests that certain potential bidders may have been excluded prior to the main competition, which could limit the overall pool of competitors. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by encouraging multiple bids and potentially driving down prices. However, the exclusion of sources, if not well-justified, could limit this benefit.

Public Impact

The United States Army Intelligence Center of Excellence will benefit from enhanced research and development support. Personnel at the center will receive improved training products and instructional development. The contract supports innovation in training methodologies and instructional delivery. This award contributes to the professional development and readiness of Army intelligence personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type warrants further investigation to ensure fair opportunity.
Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively and prevent overruns.
The specific deliverables and performance metrics need clear definition to ensure successful outcomes.

Positive Signals

The use of full and open competition, even with exclusions, indicates an effort to secure competitive pricing.
The contract addresses critical needs for research and development in training, supporting Army modernization.
The awardee, Tipping Point Solutions, Inc., is tasked with providing specialized expertise.

Sector Analysis

This contract falls within the Professional and Management Development Training sector, a segment of the broader education and training services industry. This sector is characterized by specialized providers offering tailored learning solutions. The market size for government training services is substantial, with significant spending allocated to military and defense-related training. This contract represents a specific investment in enhancing the capabilities of a key Army training institution.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from this award as a set-aside. Future analysis could explore if Tipping Point Solutions, Inc. has a history of subcontracting with small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures will be tied to the performance metrics and deliverables outlined in the task order. Transparency will depend on the public availability of contract details and performance reports. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Training and Doctrine Command (TRADOC) initiatives
Intelligence, Surveillance, and Reconnaissance (ISR) training programs
Defense contractor research and development services
Professional development and education services for military personnel

Risk Flags

Potential for cost overruns due to CPFF structure.
Ambiguity in 'after exclusion of sources' competition type requires clarification.
Need for clear performance metrics to ensure successful R&D outcomes.
Contractor's specific experience in advanced intelligence training R&D needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to TIPPING POINT SOLUTIONS, INC.. THIS ACTION IS FOR A NEW TASK ORDER TO PROVIDE THE UNITED STATES ARMY INTELLIGENCE CENTER OF EXCELLENCE WITH RESEARCH SUPPORT, DEVELOPMENT SUPPORT FOR INSTRUCTION, INSTRUCTIONAL PRODUCTS, TRAINING INNOVATION.

Who is the contractor on this award?

The obligated recipient is TIPPING POINT SOLUTIONS, 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 $12.9 million.

What is the period of performance?

Start: 2024-08-13. End: 2026-08-14.

What is the track record of Tipping Point Solutions, Inc. in delivering similar research and development support for military training institutions?

A review of Tipping Point Solutions, Inc.'s contract history would be necessary to assess their track record. Specifically, one would look for prior awards related to research support, development of instructional products, and training innovation for government entities, particularly within the Department of Defense. Analyzing past performance evaluations, contract modifications, and any reported issues or successes would provide insight into their capabilities and reliability in fulfilling complex training development requirements. Without specific data on their past performance in this niche, it is difficult to definitively gauge their suitability beyond the current award.

How does the $12.9 million value compare to similar Army training development contracts over a two-year period?

Benchmarking this $12.9 million contract against similar Army training development contracts requires access to a database of historical awards with comparable scope and duration. Factors such as the specific subject matter (intelligence training), the level of research and development involved, and the complexity of instructional products would influence cost. Generally, specialized R&D and advanced instructional design for niche military sectors can command higher prices. A detailed comparison would involve identifying contracts with similar service descriptions, contract types (e.g., CPFF), and award values within the last 3-5 years to establish a relevant market rate.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for research and development services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D services, revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a predictable profit margin, the government bears the risk of cost overruns. If the contractor's actual costs exceed estimates, the government still reimburses these costs, potentially leading to a higher total contract price than initially anticipated. For R&D, where outcomes can be uncertain, this risk is amplified. Effective oversight, detailed cost tracking, and clear scope management are crucial to mitigate these risks and ensure the government receives good value.

How effective is the 'Full and Open Competition after Exclusion of Sources' method in ensuring optimal value for taxpayers?

The effectiveness of 'Full and Open Competition after Exclusion of Sources' in ensuring optimal value for taxpayers is nuanced. 'Full and Open Competition' is generally the preferred method for maximizing competition and achieving competitive pricing. However, the 'after exclusion of sources' component implies that certain potential offerors were deemed ineligible or were not solicited. If these exclusions are well-justified (e.g., based on specific capabilities or past performance issues), the remaining competition might still yield good value. Conversely, if exclusions are arbitrary or overly restrictive, it could limit the competitive landscape, potentially leading to higher prices than if a broader competition were held. The justification for exclusions is key to assessing taxpayer value.

What are the historical spending patterns for research and development support within the Army Intelligence Center of Excellence?

Analyzing historical spending patterns for R&D support at the Army Intelligence Center of Excellence would involve examining past contract awards and task orders over several fiscal years. This would reveal trends in the types of services procured, the average contract values, the primary contractors utilized, and the overall budget allocated to R&D and training development. Understanding these patterns can help identify periods of increased or decreased investment, shifts in procurement strategies, and potential areas for cost savings or efficiency improvements. Without specific historical data, it's challenging to provide concrete figures, but such analysis is vital for strategic planning and budget justification.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK23R0041

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9092 RIDGELINE BLVD, HIGHLANDS RANCH, CO, 80129

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,444,285

Exercised Options: $13,646,497

Current Obligation: $12,930,993

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK24D0024

IDV Type: IDC

Timeline