DOT's $18.9M Professional Development Contract Awarded to Sevatec LLC
Contract Overview
Contract Amount: $18,912,775 ($18.9M)
Contractor: Sevatec LLC
Awarding Agency: Department of Transportation
Start Date: 2007-12-19
End Date: 2013-11-15
Contract Duration: 2,158 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: PROFESSIONAL AND MANAGEMENT DEVELOPMENT SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $18.9 million to SEVATEC LLC for work described as: PROFESSIONAL AND MANAGEMENT DEVELOPMENT SERVICES Key points: 1. Contract awarded to Sevatec LLC for professional and management development services. 2. Totaling $18.9 million, the contract spans over 6 years. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract type is Cost Plus Award Fee. 5. This falls under the Professional and Management Development Training sector.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure can lead to higher costs if not managed carefully, as it incentivizes performance beyond a baseline. Without specific performance metrics and benchmarks, assessing the value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources', indicating a competitive process but with specific exclusions. This method aims for fair competition while potentially narrowing the field of bidders.
Taxpayer Impact: The competitive nature of the award suggests an effort to secure reasonable pricing, but the CPAF structure introduces potential for cost overruns if performance incentives are not tightly controlled.
Public Impact
Federal employees receive specialized training to enhance management and professional skills. The Department of Transportation aims to improve agency efficiency and effectiveness through workforce development. Contractor Sevatec LLC plays a role in shaping the skills of federal personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can inflate costs.
- Exclusion of sources in competition may limit optimal pricing.
- Contract duration is lengthy, increasing long-term cost exposure.
Positive Signals
- Full and open competition was utilized.
- Contract aims to improve federal workforce capabilities.
- Award fee structure incentivizes contractor performance.
Sector Analysis
This contract falls within the Professional and Management Development Training sector, which supports government agencies in enhancing employee skills and leadership capabilities. Spending in this sector is crucial for maintaining a competent federal workforce.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought through subcontracting opportunities.
Oversight & Accountability
The use of a Cost Plus Award Fee contract requires robust oversight from the Federal Highway Administration to ensure that award fees are justified by performance and that costs remain reasonable.
Related Government Programs
- Professional and Management Development Training
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Limited competition due to source exclusion.
- Lack of transparency on specific performance metrics for award fees.
- Long contract duration increases long-term financial commitment.
Tags
professional-and-management-development-, department-of-transportation, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $18.9 million to SEVATEC LLC. PROFESSIONAL AND MANAGEMENT DEVELOPMENT SERVICES
Who is the contractor on this award?
The obligated recipient is SEVATEC LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Highway Administration).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2007-12-19. End: 2013-11-15.
What specific performance metrics were used to determine award fees for Sevatec LLC under this CPAF contract?
The specific performance metrics used to determine award fees are not detailed in the provided data. Typically, CPAF contracts outline key performance indicators (KPIs) related to training quality, participant satisfaction, achievement of learning objectives, and adherence to schedules and budgets. The Federal Highway Administration would have established these metrics to ensure the award fee accurately reflected Sevatec's value beyond the baseline cost.
How did the 'exclusion of sources' in the competition process potentially impact the final contract price?
Excluding certain sources from the competition, even under a full and open umbrella, can limit the number of competitive bids received. If highly competitive firms were excluded, the remaining bidders might face less pressure to offer the lowest possible price, potentially leading to a higher contract cost than if a broader competition had occurred. The extent of this impact depends on the nature of the excluded sources and the competitiveness of the remaining bidders.
What is the long-term effectiveness of professional development services provided under this contract in improving agency performance?
The long-term effectiveness is difficult to ascertain solely from contract data. It depends on the quality of the training, its relevance to agency needs, and the subsequent application of learned skills by federal employees. While the contract aims to improve performance, measuring this impact requires post-training evaluations, employee performance reviews, and assessments of agency-wide productivity gains attributable to the development services.
Industry Classification
NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 8
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Octo Consulting Group LLC
Address: 2300 WILSON BOULEVARD, ARLINGTON, VA, 22201
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $21,299,738
Exercised Options: $18,912,775
Current Obligation: $18,912,775
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-12-19
Current End Date: 2013-11-15
Potential End Date: 2013-11-15 00:00:00
Last Modified: 2023-10-02
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