Army National Guard training contract awarded to SRI International for $155.5M, utilizing full and open competition

Contract Overview

Contract Amount: $155,536,765 ($155.5M)

Contractor: SRI International

Awarding Agency: Department of the Interior

Start Date: 2012-05-01

End Date: 2014-10-31

Contract Duration: 913 days

Daily Burn Rate: $170.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF - NEW AWARD TO SUPPORT THE ARMY NATIONAL GUARD EXPORTABLE COMBAT TRAINING CAPABILITY (XCTC)

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $155.5 million to SRI INTERNATIONAL for work described as: IGF::OT::IGF - NEW AWARD TO SUPPORT THE ARMY NATIONAL GUARD EXPORTABLE COMBAT TRAINING CAPABILITY (XCTC) Key points: 1. The contract's value of $155.5 million over its period of performance suggests a significant investment in training capabilities. 2. Full and open competition was utilized, indicating a potentially robust bidding process and competitive pricing. 3. The contract's duration of 913 days (approximately 2.5 years) allows for sustained support and development of training systems. 4. The primary service category, 'Other Computer Related Services,' points to a focus on technology-enabled training solutions. 5. The award was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a pre-existing framework. 6. The fixed-price contract type aims to control costs by establishing a set price for the services rendered.

Value Assessment

Rating: good

The contract value of $155.5 million for approximately 2.5 years of support for the Army National Guard's Exportable Combat Training Capability (XCTC) appears reasonable given the scope of providing advanced training solutions. Benchmarking against similar large-scale simulation and training contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage costs effectively, though the ultimate value depends on the successful delivery of the specified training capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all responsible sources. This method is designed to foster a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the use of this procurement method suggests that multiple companies had the opportunity to compete for the award, contributing to price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a wider range of offers, which can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the Army National Guard units that will receive enhanced combat training capabilities, improving their readiness and effectiveness. The services delivered are expected to include the development, implementation, and support of advanced training systems and scenarios. The geographic impact is likely nationwide, supporting National Guard units across various states and training locations. Workforce implications may include the need for specialized technical and training personnel to support the XCTC program, both within the contractor's organization and potentially within the Guard itself.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly beyond the initial contract parameters.
Dependence on contractor expertise for critical training system development and maintenance.
Ensuring continuous technological relevance in a rapidly evolving defense training landscape.

Positive Signals

The use of full and open competition suggests a strong market assessment and a desire for best-value solutions.
The firm fixed-price contract type provides cost certainty for the government.
The established period of performance allows for sustained development and integration of training capabilities.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on training and simulation technologies. The market for defense training solutions is substantial, driven by the continuous need for military readiness and the increasing complexity of modern warfare. Companies like SRI International compete in this space by offering specialized expertise in areas such as simulation, virtual reality, and advanced instructional design. Comparable spending benchmarks would involve looking at other large-scale simulation and training contracts awarded by the Department of Defense.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields are false) was not a specific set-aside requirement for this contract. Therefore, the primary focus was likely on large, capable contractors. There is no explicit information on subcontracting plans for small businesses, which means their involvement would depend on SRI International's procurement strategy. This contract may not directly benefit the small business ecosystem unless subcontracting opportunities are actively pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Army National Guard or the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and capabilities. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are often internal to the agency.

Related Government Programs

Army National Guard Training Programs
Combat Training Systems Development
Simulation and Virtual Training
Exportable Combat Training Capability (XCTC)
Department of Defense Training Contracts

Risk Flags

Potential for technological obsolescence
Contractor performance risk
Scope definition and management

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $155.5 million to SRI INTERNATIONAL. IGF::OT::IGF - NEW AWARD TO SUPPORT THE ARMY NATIONAL GUARD EXPORTABLE COMBAT TRAINING CAPABILITY (XCTC)

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $155.5 million.

What is the period of performance?

Start: 2012-05-01. End: 2014-10-31.

What is SRI International's track record with similar large-scale defense training contracts?

SRI International has a long history of supporting government research, development, and technology initiatives, including those in defense. While specific details on their past performance for contracts of this exact magnitude and scope (XCTC) are not provided in the summary data, SRI is known for its expertise in areas like advanced simulation, artificial intelligence, and educational technology. Their broader portfolio includes work on complex systems integration and technology development for various government agencies. A deeper dive into their contract history, performance reviews, and past performance questionnaires (PPQs) would be necessary to fully assess their track record for this specific type of award.

How does the $155.5 million contract value compare to other Army National Guard training initiatives?

The $155.5 million contract value represents a substantial investment in the Army National Guard's training capabilities over its 913-day performance period. To benchmark this value, one would need to compare it against the average cost of similar large-scale training system development and support contracts awarded by the Army National Guard or other branches of the military. Factors such as the complexity of the training, the technology involved (e.g., simulation, virtual reality), and the duration of support significantly influence contract values. Without specific comparative data on other XCTC-related procurements or similar training modernization efforts, it's challenging to definitively state whether this represents a high, low, or average investment, but its scale indicates a significant program.

What are the primary risks associated with this firm fixed-price contract for training services?

For a firm fixed-price contract, the primary risk for the government often lies in the contractor's potential to cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. Conversely, the contractor bears the risk of cost overruns. Specific risks for this training contract could include the rapid evolution of technology rendering the training systems obsolete before their lifecycle ends, challenges in accurately defining and measuring training effectiveness, potential delays in delivery, and the contractor's ability to retain specialized personnel. Ensuring robust performance metrics and clear deliverables is crucial for mitigating these risks.

How effective is the Exportable Combat Training Capability (XCTC) program in enhancing National Guard readiness?

The Exportable Combat Training Capability (XCTC) program is designed to provide National Guard units with realistic, challenging, and relevant training opportunities that simulate full-spectrum operations. Its effectiveness is generally measured by improvements in unit readiness levels, soldier proficiency in critical tasks, and the ability to deploy and operate effectively in complex environments. While this specific contract supports the XCTC program, its direct effectiveness relies on the quality of the training systems and services provided by SRI International, as well as the integration of this training into the broader National Guard readiness framework. Formal evaluations and after-action reviews from participating units would provide the most direct evidence of the program's impact.

What are the historical spending patterns for training and simulation services within the Army National Guard?

Historical spending patterns for training and simulation services within the Army National Guard, and the broader Department of Defense, have generally shown a consistent and significant allocation of resources. As technology advances, there's a trend towards increased investment in simulation, virtual reality, and networked training environments to provide cost-effective and realistic training. Specific figures for the Army National Guard's training budget fluctuate annually based on defense priorities and appropriations. Contracts like this one for XCTC represent a portion of that overall investment, reflecting a strategic focus on modernizing training methodologies to meet evolving operational demands.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $218,495,316

Exercised Options: $158,166,498

Current Obligation: $155,536,765

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F5537H

IDV Type: FSS

Timeline