DoD's $26.1M Human Performance Optimization contract awarded to Bering Global Solutions, LLC

Contract Overview

Contract Amount: $26,146,493 ($26.1M)

Contractor: Bering Global Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-01

End Date: 2026-02-28

Contract Duration: 545 days

Daily Burn Rate: $48.0K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HUMAN PERFORMANCE OPTIMIZATION - 19AF

Place of Performance

Location: LUKE AFB, MARICOPA County, ARIZONA, 85309

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to BERING GLOBAL SOLUTIONS, LLC for work described as: HUMAN PERFORMANCE OPTIMIZATION - 19AF Key points: 1. Contract value of $26.1 million over 545 days. 2. Awarded on a sole-source basis, raising questions about price discovery. 3. Performance period spans from September 2024 to February 2026. 4. The contract falls under the 'Other Technical and Trade Schools' NAICS code. 5. No small business set-aside was utilized for this award. 6. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The firm fixed price structure offers cost certainty to the government, but without comparison to other offers, it's difficult to assess if the pricing is optimal. The total contract value of $26.1 million for a 545-day period suggests a significant investment in human performance optimization services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means only one vendor, Bering Global Solutions, LLC, was solicited for this requirement. The lack of competition limits the government's ability to explore alternative solutions and potentially secure more favorable pricing through a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no market pressure to drive down prices. The absence of competition means the government may not be receiving the best possible value for its investment.

Public Impact

The primary beneficiaries are likely Department of Defense personnel, specifically within the Air Force, who will receive enhanced human performance optimization services. Services delivered are expected to improve the physical, cognitive, and mental well-being and readiness of military members. The contract has a geographic impact primarily in Arizona (ST: AZ, SN: ARIZONA), where the services will be performed. Workforce implications include potential employment opportunities for instructors, trainers, and support staff associated with Bering Global Solutions, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value.
Lack of transparency in the procurement process due to sole-source nature.
Potential for cost overruns if pricing was not adequately vetted without competition.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Focus on human performance optimization can lead to improved military readiness.
Award to a single vendor may indicate specialized capabilities required.

Sector Analysis

The human performance optimization sector within the defense industry is growing, focusing on enhancing military readiness through physical, mental, and cognitive training. This contract aligns with broader DoD initiatives to ensure personnel are equipped for complex operational environments. Comparable spending in this niche area can vary widely based on the scope and duration of services, but significant investments are common for specialized training and readiness programs.

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 absence of these provisions means that opportunities for small businesses to participate in this specific contract are limited, potentially impacting the small business ecosystem in the relevant sectors.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon budget. Transparency is limited due to the sole-source nature of the award, but contract performance and payment data are typically available through federal procurement databases.

Related Government Programs

Military Readiness Programs
Defense Training and Education
Human Factors Engineering
Specialized Technical Training

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to BERING GLOBAL SOLUTIONS, LLC. HUMAN PERFORMANCE OPTIMIZATION - 19AF

Who is the contractor on this award?

The obligated recipient is BERING GLOBAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-02-28.

What is the track record of Bering Global Solutions, LLC in providing human performance optimization services to the federal government?

Bering Global Solutions, LLC has a history of performing various services for the federal government. While specific details on their track record in 'human performance optimization' require deeper investigation into their past performance reports and contract history, their award of this significant contract by the Department of Defense suggests they possess the necessary qualifications and capabilities. Further analysis would involve reviewing past performance evaluations, any awards or commendations received, and any documented instances of contract failures or disputes to fully assess their reliability and expertise in this specialized area. The sole-source nature of this award implies that the agency may have pre-existing knowledge of their capabilities or that they were identified as the only capable source.

How does the per-unit cost of this contract compare to similar human performance optimization contracts awarded by the DoD?

Directly comparing the per-unit cost is difficult without knowing the specific units of service being procured (e.g., per trainee, per hour of training, per module). The contract is for 'HUMAN PERFORMANCE OPTIMIZATION' and awarded as a Delivery Order under a larger contract vehicle, with a total value of $26,146,493.12 over 545 days. Since this was a sole-source award, there are no competing bids to establish a market benchmark for pricing. To perform a robust comparison, one would need to identify similar contracts for human performance optimization services, analyze their scope, duration, and pricing structures, and then attempt to normalize the data to account for differences in service delivery, geographic location, and contractor overhead. Without this comparative data, assessing the value-for-money of this specific contract's pricing is speculative.

What are the primary risks associated with a sole-source award for human performance optimization services?

The primary risks associated with a sole-source award for human performance optimization services include potential overpricing due to the lack of competition, limited innovation from a single provider, and a reduced incentive for the contractor to achieve optimal performance if their position is guaranteed. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, the government might miss out on potentially better or more cost-effective solutions that other vendors could have offered. There's also a risk that the selected vendor may not have the most cutting-edge or comprehensive approach if alternatives were not explored. Ensuring adequate oversight and performance management becomes even more critical in sole-source situations to mitigate these risks.

What is the expected effectiveness of these human performance optimization services in improving military readiness?

The expected effectiveness of these human performance optimization services hinges on the specific methodologies and programs implemented by Bering Global Solutions, LLC, and the commitment of the participating military personnel. Human performance optimization typically aims to enhance physical conditioning, cognitive function, mental resilience, and overall well-being, all of which are critical components of military readiness. If the program is well-designed, evidence-based, and tailored to the operational demands faced by the Air Force personnel, it could lead to measurable improvements in areas such as reduced injury rates, enhanced decision-making under stress, improved focus, and faster recovery times. The success will ultimately be evaluated through performance metrics defined in the contract and observed changes in operational effectiveness and personnel health.

How does current spending on human performance optimization compare to historical trends within the Department of Defense?

Spending on human performance optimization within the Department of Defense has seen a notable increase in recent years, reflecting a growing recognition of its importance for military effectiveness and personnel welfare. Historically, such initiatives may have been fragmented or less formally structured. However, with advancements in sports science, cognitive psychology, and data analytics, the DoD has increasingly invested in comprehensive programs. This $26.1 million contract for Bering Global Solutions, LLC is indicative of this trend. To provide a precise historical comparison, one would need to analyze aggregate spending data for similar services across different fiscal years, identifying specific program investments and their evolution. This contract represents a significant, albeit specific, allocation towards enhancing human capabilities within the Air Force.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C STREET, SUITE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,146,493

Exercised Options: $26,146,493

Current Obligation: $26,146,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA488719DA005

IDV Type: IDC

Timeline