Interior Department awards $400K VR training system contract to Street Smarts VR Inc

Contract Overview

Contract Amount: $400,000 ($400.0K)

Contractor: Street Smarts VR Inc

Awarding Agency: Department of the Interior

Start Date: 2022-09-14

End Date: 2025-09-13

Contract Duration: 1,095 days

Daily Burn Rate: $365/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VR TRAINING SYSTEM

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02203

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Interior obligated $400,000 to STREET SMARTS VR INC for work described as: VR TRAINING SYSTEM Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm-fixed-price contract type suggests predictable costs for the government. 3. Contract duration of 1095 days (3 years) indicates a long-term need. 4. The North American Industry Classification System (NAICS) code 511210 points to software publishing. 5. The Product Service Code (PSC) is not specified, hindering detailed analysis. 6. No small business set-aside was applied to this procurement.

Value Assessment

Rating: questionable

The contract value of $400,000 for a VR training system is difficult to benchmark without more specific details on the system's capabilities and scope. As a sole-source award, there is no direct comparison to similar contracts obtained through competitive bidding. The firm-fixed-price structure provides cost certainty, but the absence of competition raises concerns about whether the government secured the best possible value. Further analysis would require understanding the specific training modules and user base.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition means that the Department of the Interior did not benefit from the price discovery and innovation that typically arises from a competitive bidding process. This can potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, it is harder to ensure that the price reflects fair market value.

Public Impact

Federal employees within the Department of the Interior will benefit from enhanced training capabilities. The contract will deliver a Virtual Reality (VR) training system, likely for skill development or simulation. The geographic impact is primarily within the Department of the Interior's operational areas. Workforce implications include the potential need for training on the new VR system and its integration into existing workflows.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for money.
Lack of detailed specifications for the VR system makes it difficult to assess true value.
Absence of small business participation raises questions about broader economic impact.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract duration suggests a sustained need for the VR training solution.
Award to a specific VR company indicates a focus on specialized technology.

Sector Analysis

The Virtual Reality (VR) training market is a rapidly growing segment within the broader technology and software sector. This contract falls under the software publishers' industry (NAICS 511210), focusing on specialized applications for training and simulation. While the overall market size for VR training solutions is expanding, driven by demand for immersive and effective learning experiences across various industries, this specific award represents a niche application within a federal agency. Comparable spending benchmarks are difficult to establish without more granular data on the VR system's features and intended use.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a single vendor without a competitive process further limits opportunities for small businesses to participate in this specific procurement. This could mean that the direct economic benefit to the small business ecosystem from this particular contract is minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's internal procurement and program management offices. Accountability measures would be tied to the delivery of the VR training system according to the contract's specifications and timeline. Transparency is limited due to the sole-source nature of the award, with fewer public details available compared to a competed contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal employee training programs
Immersive technology procurement
Software and simulation systems

Risk Flags

Sole-source award
Lack of competition
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $400,000 to STREET SMARTS VR INC. VR TRAINING SYSTEM

Who is the contractor on this award?

The obligated recipient is STREET SMARTS VR INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $400,000.

What is the period of performance?

Start: 2022-09-14. End: 2025-09-13.

What specific training capabilities does the VR system provide, and how do they align with the Department of the Interior's mission needs?

The provided data does not specify the exact training capabilities of the VR system. However, given the Department of the Interior's diverse responsibilities, potential applications could include safety training (e.g., for field operations, hazardous environments), equipment operation simulation, procedural training, or even skills development for administrative tasks. To fully assess the value, a detailed breakdown of the training modules, learning objectives, and target user groups would be necessary. Understanding how these capabilities directly support the agency's operational efficiency, safety protocols, or employee development is crucial for evaluating the contract's effectiveness beyond its stated value.

How was the sole-source justification determined, and what alternatives were considered?

The data indicates the contract was 'NOT COMPETED,' implying a sole-source justification was invoked. Typically, sole-source awards require a formal justification and approval (J&A) process, outlining why competition is not feasible or advantageous. Reasons can include unique capabilities of a single source, urgent and compelling needs, or specific follow-on work. Without access to the J&A document, it's impossible to know the specific rationale or what alternatives, if any, were evaluated. This lack of transparency in the procurement process is a key area for further investigation.

What is the typical cost range for similar VR training systems in the federal government or private sector?

Benchmarking the cost of VR training systems is challenging due to the wide variation in complexity, features, and customization. Basic VR training modules or off-the-shelf solutions might range from tens of thousands to low hundreds of thousands of dollars. However, highly customized, complex simulation systems with advanced hardware integration and extensive content development can easily run into millions. For a $400,000 contract, it suggests a moderately complex system, possibly with some customization, but likely not a full-scale, enterprise-wide simulation platform. A more precise comparison would require detailed specifications of the system's hardware, software, content, and user licenses.

What is the track record of Street Smarts VR Inc. in delivering government contracts, particularly VR solutions?

Information regarding the track record of Street Smarts VR Inc. specifically with government contracts, and particularly VR solutions, is not provided in the initial data. A thorough analysis would require searching federal procurement databases (like SAM.gov or FPDS) for past performance history, contract awards, and any reported issues or successes. Understanding their experience with similar projects, their past performance ratings, and their financial stability would be critical in assessing the risk associated with this award and the likelihood of successful delivery.

What are the potential risks associated with a sole-source award for a technology system like VR training?

The primary risk of a sole-source award for a technology system is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not be getting the best possible value for its money. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting future flexibility, innovation, or cost-effective upgrades. Furthermore, if the sole-source vendor has performance issues, the agency has limited recourse without renegotiating or terminating the contract, which can be complex and costly. Finally, the lack of transparency in the procurement process can raise concerns about fairness and efficiency.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44 WALL ST STE 702, NEW YORK, NY, 10005

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $542,500

Exercised Options: $400,000

Current Obligation: $400,000

Actual Outlays: $400,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline