DoD awards $10.7M for training development, with Black & Veatch leading a 5-bidder competition
Contract Overview
Contract Amount: $10,686,436 ($10.7M)
Contractor: Black & Veatch Special Projects Corp.
Awarding Agency: Department of Defense
Start Date: 2022-01-18
End Date: 2027-01-18
Contract Duration: 1,826 days
Daily Burn Rate: $5.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TRAINING DEVELOPMENT AND EXECUTION SERVICES
Plain-Language Summary
Department of Defense obligated $10.7 million to BLACK & VEATCH SPECIAL PROJECTS CORP. for work described as: TRAINING DEVELOPMENT AND EXECUTION SERVICES Key points: 1. The contract value represents a significant investment in specialized training capabilities. 2. Competition dynamics suggest a healthy market for these services, potentially driving competitive pricing. 3. The Cost Plus Fixed Fee contract type requires careful monitoring of cost overruns. 4. Performance duration of five years allows for sustained development and execution. 5. This award falls within the broad category of professional, scientific, and technical services. 6. The Defense Threat Reduction Agency is the primary beneficiary of these specialized services.
Value Assessment
Rating: good
Benchmarking this specific contract's value is challenging without granular data on comparable training development projects. However, the total award of $10.7 million over five years suggests a moderate annual spend. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to ensure costs remain reasonable and the fixed fee is justified by the scope of work. Compared to other large-scale professional services contracts, this appears to be within a typical range for specialized defense training.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With five bidders participating, the competition level appears robust, suggesting that the agency received a range of proposals and pricing. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple contractors.
Public Impact
The primary beneficiaries are military personnel who will receive enhanced training. Services delivered include the development and execution of specialized training programs. The geographic impact is likely global, supporting various DoD operational needs. Workforce implications include the potential for skilled training professionals and subject matter experts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
- The long performance period requires sustained government oversight to ensure continued value and alignment with evolving needs.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace.
- Multiple bidders (5) participated, suggesting a healthy level of interest and capability in the market.
- The contract duration allows for long-term development and refinement of training programs.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990). This broad category encompasses a wide range of specialized services. The defense training market is a significant segment within this sector, driven by the continuous need for advanced and realistic training scenarios for military personnel. Comparable spending benchmarks are difficult to establish without more specific service details, but large-scale training development contracts can range from millions to hundreds of millions of dollars.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Black & Veatch Special Projects Corp., there is no explicit information on subcontracting plans for small businesses. Further investigation into the subcontracting goals and actual performance would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Defense, specifically the Defense Threat Reduction Agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated cost and ensure the fixed fee remains appropriate. Transparency will depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Training Programs
- Professional and Technical Services
- Specialized Military Support
- Threat Reduction Initiatives
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent cost monitoring.
- Long contract duration necessitates adaptability to evolving requirements.
Tags
defense, department-of-defense, training-development, professional-scientific-technical-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, black-and-veatch-special-projects-corp, defense-threat-reduction-agency, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.7 million to BLACK & VEATCH SPECIAL PROJECTS CORP.. TRAINING DEVELOPMENT AND EXECUTION SERVICES
Who is the contractor on this award?
The obligated recipient is BLACK & VEATCH SPECIAL PROJECTS CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $10.7 million.
What is the period of performance?
Start: 2022-01-18. End: 2027-01-18.
What is the track record of Black & Veatch Special Projects Corp. with similar DoD training development contracts?
Black & Veatch Special Projects Corp. has a history of performing complex projects for the Department of Defense, often involving engineering, construction, and technical services. While specific details on their past performance in direct training development and execution services for the DoD are not provided in this data snippet, their broader experience suggests a capability to manage large-scale, technically demanding contracts. A deeper dive into their contract history, past performance evaluations, and any relevant awards or disputes would be necessary to fully assess their track record specifically for training development and execution.
How does the $10.7 million value compare to other DoD training development contracts awarded over the past five years?
The $10.7 million total contract value for training development and execution services awarded to Black & Veatch Special Projects Corp. is a moderate figure within the broader landscape of DoD spending. The DoD frequently awards larger, multi-year contracts for training systems, simulation development, and large-scale training exercises that can easily exceed hundreds of millions of dollars. However, for a specific focus on the development and execution of particular training programs, $10.7 million over five years represents a substantial, yet not exceptionally large, investment. The annual average of approximately $2.14 million suggests a focused scope of work rather than a comprehensive training infrastructure overhaul.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for training development?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like this one, is the potential for cost escalation. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This structure can sometimes incentivize contractors to incur higher costs, as their profit is guaranteed regardless of cost efficiency, provided the work is completed. For the government, the risk lies in ensuring that costs are reasonable, allocable, and allowable, and that the fixed fee accurately reflects the effort and risk involved. Effective government oversight, detailed cost accounting, and clear performance metrics are essential to mitigate these risks and ensure value for money.
How effective is the Defense Threat Reduction Agency (DTRA) in managing and overseeing training development contracts?
The effectiveness of the Defense Threat Reduction Agency (DTRA) in managing and overseeing training development contracts is generally considered robust, given its critical mission. DTRA is responsible for a wide array of complex programs aimed at reducing threats to U.S. interests, which inherently requires sophisticated training solutions. While specific performance metrics for DTRA's contract management are not publicly detailed in this data, the agency's continued operation and its role in sensitive areas suggest a capacity for effective oversight. However, like any large organization, effectiveness can vary depending on the specific program, contract type, and the resources allocated to oversight.
What is the historical spending trend for 'All Other Professional, Scientific, and Technical Services' by the Department of Defense?
The Department of Defense is consistently one of the largest federal agencies awarding contracts within the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category. Historical spending trends show a significant and often increasing volume of contracts in this area, reflecting the DoD's reliance on external expertise for a vast range of specialized support, research, analysis, and technical services. Annual spending in this category by the DoD can reach billions of dollars, driven by evolving mission requirements, technological advancements, and the need for specialized skills not always available in-house. This specific $10.7 million award represents a small fraction of the DoD's overall expenditure in this broad service category.
What are the implications of awarding a 5-year contract for training development in a rapidly evolving threat landscape?
Awarding a 5-year contract for training development in a rapidly evolving threat landscape presents both opportunities and challenges. The extended duration allows for the development of comprehensive, integrated training programs and fosters a deeper partnership between the government and the contractor, potentially leading to more tailored and effective solutions. It also provides stability for planning and resource allocation. However, the risk is that the training developed may become outdated or less relevant if the threat landscape shifts significantly over the contract period. To mitigate this, the contract should include robust mechanisms for adaptation, incorporating regular reviews, performance-based incentives for incorporating new intelligence, and flexibility to modify training content and delivery methods.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
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
Solicitation ID: HDTRA116R0027
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6800 W 115TH STREET SUITE 2200, OVERLAND PARK, KS, 66211
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,296,734
Exercised Options: $13,296,734
Current Obligation: $10,686,436
Actual Outlays: $3,462,947
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $5,459,528
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA118D0003
IDV Type: IDC
Timeline
Start Date: 2022-01-18
Current End Date: 2027-01-18
Potential End Date: 2027-01-18 00:00:00
Last Modified: 2026-03-25
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