Transportation training support contract awarded to FEDTEC LLC for over $3.5M

Contract Overview

Contract Amount: $3,588,852 ($3.6M)

Contractor: Fedtec LLC

Awarding Agency: Department of Transportation

Start Date: 2023-09-23

End Date: 2026-09-22

Contract Duration: 1,095 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRAINING SUPPORT FOR TRAINING CENTER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.6 million to FEDTEC LLC for work described as: TRAINING SUPPORT FOR TRAINING CENTER Key points: 1. Contract focuses on administrative and management consulting services for training. 2. Awarded as a definitive contract with a firm fixed price. 3. Duration of the contract is 1095 days. 4. The contract is not competitively procured. 5. The primary place of performance is Washington D.C.

Value Assessment

Rating: questionable

The contract value of $3.59 million for training support services appears high given the limited scope of administrative and management consulting. Without more detailed performance metrics or a comparison to similar training support contracts, it is difficult to definitively assess value for money. The lack of competition further complicates a robust value assessment, as there is no market benchmark to compare against.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government did not leverage market forces to ensure cost-effectiveness.

Public Impact

The primary beneficiary is the Department of Transportation, specifically the Pipeline and Hazardous Materials Safety Administration, which will receive training support. The services delivered are administrative management and general management consulting, focused on training. The geographic impact is primarily within Washington D.C., where the contract is to be performed. Workforce implications are likely internal to the agency, focusing on enhancing training capabilities and administrative efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
Sole-source awards can limit opportunities for new or smaller businesses to enter the federal contracting space.
The specific nature of 'training support' within administrative consulting could be subject to broader market availability, making the sole-source justification warrant further scrutiny.

Positive Signals

The contract is a definitive contract, suggesting a clear scope and commitment.
Firm fixed price structure provides cost certainty for the government.
The contract duration is clearly defined, allowing for long-term planning of training support.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is broad and encompasses a wide range of services supporting government operations. Benchmarking this specific training support contract against broader industry spending is challenging without more granular data on the services provided. However, federal spending on management and consulting services is substantial, with agencies frequently procuring expertise to enhance efficiency and effectiveness.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits the direct impact on the small business ecosystem, as opportunities were not broadly advertised or competed. Without explicit small business participation goals, the direct benefit to small businesses is likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the Pipeline and Hazardous Materials Safety Administration. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature, but contract performance should be monitored to ensure adherence to the firm fixed price and delivery schedule. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Workforce Training Programs
Management and Consulting Services
Administrative Support Contracts
Department of Transportation Procurement

Risk Flags

Sole-source procurement limits competition and price discovery.
Potential for higher costs due to lack of competitive bidding.
Limited transparency regarding the justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.6 million to FEDTEC LLC. TRAINING SUPPORT FOR TRAINING CENTER

Who is the contractor on this award?

The obligated recipient is FEDTEC LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Pipeline and Hazardous Materials Safety Administration).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2023-09-23. End: 2026-09-22.

What is the specific nature of the training support being provided by FEDTEC LLC?

The provided data indicates the contract is for 'TRAINING SUPPORT FOR TRAINING CENTER' and falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. This suggests FEDTEC LLC is likely providing services related to the planning, development, implementation, or management of training programs and administrative processes within a training center. This could include curriculum development support, logistical coordination for training events, administrative process optimization for training delivery, or consulting on best practices for training management. Without more detailed contract line item numbers (CLINs) or a statement of work (SOW), the precise deliverables remain general.

How does the contract value compare to similar training support contracts within the federal government?

Direct comparison of this $3.59 million contract for training support is difficult without access to a comprehensive database of similar sole-source or competed contracts for administrative and management consulting services specifically for training centers. Generally, the cost of training support can vary significantly based on the complexity of the training, the number of personnel involved, the duration, and the specific consulting services required. Given the sole-source nature, there is no direct market benchmark from this award. A broader analysis would require comparing it to other contracts awarded under NAICS 541611, potentially filtering for those with 'training' in their description, and assessing the number of bidders and final award prices.

What are the potential risks associated with a sole-source award for this type of service?

The primary risk of a sole-source award is the potential for reduced value for money due to the lack of competition. Without competing offers, the government may pay a higher price than if multiple vendors had bid. There's also a risk that the chosen contractor may not be the most innovative or best-suited vendor available in the market. Furthermore, sole-source awards can create a perception of favoritism and may limit opportunities for other qualified businesses, including small businesses, to secure federal contracts. Ensuring the justification for the sole-source award was robust and that the contractor's pricing is fair and reasonable becomes critical.

What is FEDTEC LLC's track record with federal contracts, particularly within the Department of Transportation?

Information on FEDTEC LLC's specific track record with federal contracts, especially within the Department of Transportation, is not detailed in the provided data. A thorough assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past awards to FEDTEC LLC. This would reveal their history of performance, contract types, agencies served, and any reported issues or successes. Understanding their past performance is crucial for evaluating the risk associated with this new $3.59 million definitive contract, particularly given its sole-source nature.

What are the historical spending patterns for training support services within the Pipeline and Hazardous Materials Safety Administration?

The provided data only includes details for this single contract. To understand historical spending patterns for training support services within the Pipeline and Hazardous Materials Safety Administration (PHMSA), one would need to analyze PHMSA's procurement history over several fiscal years. This analysis should identify all contracts related to training support, management consulting, or administrative services, noting their value, duration, procurement method (competed vs. sole-source), and the contractors involved. Such a review would help determine if this $3.59 million contract represents an increase, decrease, or consistent level of spending for these types of services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

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: 8260 GREENSBORO DR, MC LEAN, VA, 22102

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,588,852

Exercised Options: $3,588,852

Current Obligation: $3,588,852

Actual Outlays: $2,804,792

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline