DoD's $103M training contract awarded to Cubic Global Defense, Inc. for Special Operations Command

Contract Overview

Contract Amount: $29,280,015 ($29.3M)

Contractor: Cubic Global Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-01

End Date: 2010-04-30

Contract Duration: 1,702 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200512!000878!9700!H92239!USSOCOM, USASOC !GS02F0171R !C!N! !N!H9223905F0326! !20050901!20060818!103450347!103450347!103450347!N!NEK ADVANCED SECURITIES GROUP !2403 SAN MATEO BLVD NE P8 !ALBUQUERQUE !NM!87110!24260!051!37!FORT BRAGG !CUMBERLAND !N CAROLINA!+000000523696!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !S1 !SERVICES !000 !* !561990!E! !6! ! ! ! ! !20200930!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!N!N! !A! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307, UNITED STATES OF AMERICA

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to CUBIC GLOBAL DEFENSE, INC. for work described as: 200512!000878!9700!H92239!USSOCOM, USASOC !GS02F0171R !C!N! !N!H9223905F0326! !20050901!20060818!103450347!103450347!103450347!N!NEK ADVANCED SECURITIES GROUP !2403 SAN MATEO BLVD NE P8 !ALBUQUERQUE !NM!87110!24260!051!37!FORT BRAGG !CUMBERLAND !N CAROLINA!+000000523696!N!N!00000… Key points: 1. Contract value of $103.45M over 5 years suggests a significant investment in specialized training. 2. Awarded under full and open competition, indicating a broad market search for qualified vendors. 3. The contract's duration of 1702 days (approx. 4.6 years) points to a long-term need for these services. 4. The primary service category is 'Professional and Management Development Training', highlighting a focus on skill enhancement. 5. The contract was awarded to a single vendor, Cubic Global Defense, Inc., despite open competition. 6. The contract's performance period spans from September 2005 to April 2010.

Value Assessment

Rating: good

The contract value of $103.45M over approximately 4.6 years averages to about $22.5M annually. Without specific benchmarks for Special Operations Command training, it's difficult to definitively assess value for money. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. The contract was awarded under full and open competition, which typically drives competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' meaning all responsible sources were permitted to submit a bid. The data indicates one award was made, suggesting that while multiple entities may have bid, Cubic Global Defense, Inc. was selected as the most advantageous offer. The level of competition is not explicitly detailed beyond the 'full and open' designation, but this approach generally fosters price discovery and encourages competitive proposals.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the best value by allowing a wide range of potential contractors to compete, potentially driving down costs through market forces.

Public Impact

Special Operations Command personnel are the primary beneficiaries, receiving advanced training to enhance operational capabilities. The services delivered likely include specialized professional and management development, crucial for high-stakes military operations. The contract's geographic impact is centered around Fort Bragg, North Carolina, a major hub for U.S. Army Special Operations Command. Workforce implications include the potential for job creation and skill development within the defense contracting sector, particularly in areas supporting specialized training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition metrics beyond 'full and open' makes it hard to gauge the intensity of bidding.
The contract's duration could lead to vendor lock-in if not managed carefully.
Specific performance metrics and quality assurance details are not provided in the summary data.

Positive Signals

Awarded under full and open competition, suggesting a robust search for qualified vendors.
Firm-fixed-price contract type shifts cost risk to the contractor.
The contract supports critical training needs for U.S. Special Operations Command.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on training and professional development services. The market for defense training is substantial, driven by the continuous need for military personnel to maintain and enhance specialized skills. Cubic Global Defense, Inc. operates in this competitive landscape, providing solutions that support national security objectives. Benchmarking this specific contract's value against similar large-scale training initiatives within the DoD would provide further context on its cost-effectiveness.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors to Cubic Global Defense, Inc., depending on the prime contractor's subcontracting plan and the specific nature of the training services required.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the U.S. Special Operations Command (USSOCOM) contracting officer and administrative contracting officer. Performance monitoring, quality assurance surveillance plans, and regular progress reviews are standard oversight measures. Transparency is facilitated through contract awards databases, though detailed performance reports are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Special Operations Forces Training Programs
Defense Contractor Training Services
Professional Development Contracts
Military Simulation and Training
USSOCOM Procurement

Risk Flags

Contract Duration
Single Award Competition
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to CUBIC GLOBAL DEFENSE, INC.. 200512!000878!9700!H92239!USSOCOM, USASOC !GS02F0171R !C!N! !N!H9223905F0326! !20050901!20060818!103450347!103450347!103450347!N!NEK ADVANCED SECURITIES GROUP !2403 SAN MATEO BLVD NE P8 !ALBUQUERQUE !NM!87110!24260!051!37!FORT BRAGG !CUMBERLAND !N CAROLINA!+000000523696!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !S1 !SERVICES !000 !* !561990!E! !6! ! ! ! ! !20200930!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!N!N! !A! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is CUBIC GLOBAL DEFENSE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2005-09-01. End: 2010-04-30.

What was the specific nature of the 'Professional and Management Development Training' provided under this contract?

The provided data categorizes the contract under NAICS code 611430 ('Professional and Management Development Training') and PSC code U099 ('Other Education & Training Services'). While the exact curriculum is not detailed, this typically encompasses advanced skill development, leadership training, strategic planning, and operational management techniques tailored for military personnel, particularly those in specialized roles within U.S. Special Operations Command. Such training is crucial for preparing individuals for complex missions and leadership responsibilities in high-risk environments. The training likely involved a combination of classroom instruction, simulations, and practical exercises designed to enhance cognitive and practical abilities.

How did Cubic Global Defense, Inc. compare to other bidders in the 'Full and Open Competition' process?

The data indicates that the contract was awarded under 'Full and Open Competition' with one award (no: 1) to Cubic Global Defense, Inc. While the designation 'Full and Open Competition' signifies that all responsible sources were encouraged to bid, the specific number of bids received or the comparative strengths of the proposals are not detailed in the provided summary. Cubic Global Defense, Inc. was selected as the winner, implying their proposal was deemed the most advantageous based on the evaluation criteria outlined in the solicitation. Without access to the source selection decision document or debriefings, a detailed comparison of Cubic's offering against competitors is not possible from this data alone.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration?

A significant risk with firm-fixed-price (FFP) contracts, especially those of long duration like this 4.6-year, $103M award, is that the contractor may face unforeseen cost increases that erode their profit margin. If the contractor underestimated costs or experienced significant inflation, they might seek contract modifications or face financial strain. Conversely, the government's risk is that the contractor, in an effort to protect their profit, might cut corners on quality or scope if oversight is not rigorous. For the government, the primary risk is ensuring that the fixed price remains fair and that the contractor delivers the full scope of services to the required quality standards throughout the contract's life.

What is the historical spending pattern for similar training services by USSOCOM?

The provided data focuses on a single contract award from 2005-2010. To understand historical spending patterns for similar training services by USSOCOM, one would need to analyze contract awards over a longer period, looking at various contractors, contract types, and service descriptions within the 'Education and Training Services' or related categories (e.g., Professional and Management Development Training). Analyzing trends in annual spending, average contract values, and the prevalence of different contract types (FFP, Cost-Plus, etc.) would reveal patterns. Without this broader dataset, it's impossible to establish a historical context for this specific $103M contract relative to USSOCOM's overall training expenditures.

How does the $103.45M contract value compare to the typical size of training contracts for Special Operations Forces?

The $103.45M value over approximately 4.6 years represents an average annual value of roughly $22.5M. This is a substantial sum, indicating a significant and ongoing requirement for specialized training within USSOCOM. To determine if this is typical, one would need to benchmark it against other large-scale training contracts awarded to Special Operations Commands or similar elite military units. Factors influencing contract size include the number of personnel requiring training, the complexity and duration of the training programs, and the specific technologies or methodologies employed. This contract appears to be a major award, suggesting it covers extensive or highly specialized training needs.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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: 2280 HISTORIC DECATUR RD STE 200, SAN DIEGO, CA, 92106

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Parent Contract

Parent Award PIID: GS02F0171R

IDV Type: FSS

Timeline