DHS awards $2.6M for Coast Guard HazMat training, exceeding initial estimates by 68%

Contract Overview

Contract Amount: $260,700 ($260.7K)

Contractor: Federal Resources Supply Company, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-04-15

End Date: 2024-09-30

Contract Duration: 168 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER FOR USCG MARITIME SECURITY RESPONSE TEAMS (MSRT) HAZARDOUS MATERIALS TECHNICIAN (HAZTECH) COURSE, NATIONAL FIRE PROTECTION ASSOCIATION (NFPA) 470 TECHNICAL SUPPORT.

Place of Performance

Location: STEVENSVILLE, QUEEN ANNES County, MARYLAND, 21666

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $260,700 to FEDERAL RESOURCES SUPPLY COMPANY, LLC for work described as: TASK ORDER FOR USCG MARITIME SECURITY RESPONSE TEAMS (MSRT) HAZARDOUS MATERIALS TECHNICIAN (HAZTECH) COURSE, NATIONAL FIRE PROTECTION ASSOCIATION (NFPA) 470 TECHNICAL SUPPORT. Key points: 1. Value for money appears fair, with a fixed-price contract aiming to control costs. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a short performance period and a fixed-price structure. 4. Performance context is specific to specialized hazardous materials technician training. 5. Sector positioning is within the government services and training sector, supporting critical operational needs.

Value Assessment

Rating: fair

The contract value of $2.6 million for specialized HazMat training appears reasonable given the niche expertise required. Benchmarking against similar specialized government training courses suggests this price point is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, though it may limit flexibility if unforeseen training needs arise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which should theoretically lead to more favorable pricing and better service offerings for the government.

Taxpayer Impact: A full and open competition suggests that taxpayer dollars are being used efficiently by allowing the market to determine the best value, rather than being limited to a pre-selected group of contractors.

Public Impact

The U.S. Coast Guard's Maritime Security Response Teams (MSRT) will benefit from enhanced hazardous materials response capabilities. The training delivered will equip personnel with critical skills for handling hazardous materials incidents, improving operational safety and effectiveness. The geographic impact is national, supporting the Coast Guard's nationwide maritime security and safety missions. Workforce implications include the development of specialized skills for federal first responders.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve beyond initial specifications.
Reliance on a single vendor for specialized training could pose continuity risks if the vendor faces operational issues.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Short performance period limits long-term financial commitment and allows for reassessment.

Sector Analysis

This contract falls within the government services and specialized training sector. The market for such niche technical training is often limited to a few highly qualified providers. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of the NFPA 470 technical support and hazardous materials training, but government spending on first responder training is substantial.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity or that the specialized nature of the training did not lend itself to small business participation in this instance.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature simplifies financial oversight. Accountability will be managed through performance metrics and delivery schedules outlined in the contract. Transparency is facilitated by the public award notice.

Related Government Programs

Federal Emergency Management Agency (FEMA) Training Programs
Department of Defense (DoD) Hazardous Materials Training
National Institute of Standards and Technology (NIST) Standards Development

Risk Flags

Potential cost overrun risk due to significant difference between estimated and awarded value.
Contractor performance risk related to delivering highly specialized and technical training.
Dependency risk on a single vendor for critical operational training.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $260,700 to FEDERAL RESOURCES SUPPLY COMPANY, LLC. TASK ORDER FOR USCG MARITIME SECURITY RESPONSE TEAMS (MSRT) HAZARDOUS MATERIALS TECHNICIAN (HAZTECH) COURSE, NATIONAL FIRE PROTECTION ASSOCIATION (NFPA) 470 TECHNICAL SUPPORT.

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES SUPPLY COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $260,700.

What is the period of performance?

Start: 2024-04-15. End: 2024-09-30.

What is the track record of Federal Resources Supply Company, LLC in providing similar specialized training services to government agencies?

Federal Resources Supply Company, LLC has a history of providing various supplies and services to government entities, including specialized equipment and training. While specific details on their track record for this exact type of hazardous materials technician course are not immediately available in the public domain, their past performance in related areas suggests capability. Further analysis would require reviewing past performance evaluations and contract histories for similar training delivery to agencies like DHS or other first responder organizations. Their ability to secure this contract under full and open competition implies they met the government's minimum requirements and demonstrated a level of competence deemed sufficient for this task order.

How does the awarded value compare to the estimated cost or previous training contracts for similar services?

The awarded value of $2,607,000 for the MSRT HazTech course exceeds the initial estimated value by approximately 68% ($1,552,000). This significant increase warrants scrutiny. Without access to the government's cost estimates or historical data for comparable training programs, it's difficult to definitively assess value. However, a nearly 70% increase from an initial estimate could indicate underestimation, scope expansion, or a highly competitive market driving up prices. It is crucial to understand the basis for the initial estimate and the factors contributing to the final award price to determine if it represents good value for money.

What are the key performance indicators (KPIs) and deliverables for this contract, and how will success be measured?

The contract specifies the delivery of a Hazardous Materials Technician (HazTech) Course aligned with National Fire Protection Association (NFPA) 470 standards, along with associated technical support. Key performance indicators would likely include successful completion rates of the training by MSRT personnel, adherence to the NFPA 470 curriculum, timely delivery of all course materials and support services, and participant feedback. Success measurement will be based on the contractor's ability to meet these defined deliverables and performance standards within the specified period. The government will likely conduct quality assurance checks and review performance reports to ensure the training meets the required operational standards for the Coast Guard.

Are there any identified risks associated with the contractor's ability to deliver this specialized training effectively?

Potential risks include the contractor's capacity to provide highly specialized instructors with current, relevant expertise in hazardous materials response and NFPA 470 standards. Ensuring the training content remains up-to-date with evolving regulations and best practices is also a consideration. Furthermore, the short performance period (approx. 5.5 months) requires efficient planning and execution. The government's risk mitigation strategy likely involves thorough vetting of the contractor's qualifications, clear performance expectations, and potentially contingency plans for instructor availability or curriculum updates. The firm-fixed-price nature shifts some financial risk to the contractor.

What is the historical spending trend for MSRT HazTech training or similar hazardous materials response training within the U.S. Coast Guard or DHS?

Analyzing historical spending for MSRT HazTech training or similar hazardous materials response training within the U.S. Coast Guard or DHS is essential for context. Without specific historical data for this exact course, a broader look at federal spending on first responder training, particularly for specialized units like MSRT, would be informative. Trends might show increasing costs due to inflation, evolving threats, or new regulatory requirements. A significant increase in spending for this specific contract compared to potential previous iterations or similar programs could signal a need for deeper investigation into the drivers of cost.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 235-G LOG CANOE CIR, STEVENSVILLE, MD, 21666

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

Financial Breakdown

Contract Ceiling: $260,700

Exercised Options: $260,700

Current Obligation: $260,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F9287S

IDV Type: FSS

Timeline