Over $60M for Combat Training Services: SRI International Awarded Contract Amidst Full and Open Competition

Contract Overview

Contract Amount: $60,574,292 ($60.6M)

Contractor: SRI International

Awarding Agency: Department of the Interior

Start Date: 2014-09-19

End Date: 2015-12-18

Contract Duration: 455 days

Daily Burn Rate: $133.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF EXPORTABLE COMBAT TRAINING CAPABILITY (XCTC) TRAINING SERVICES

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $60.6 million to SRI INTERNATIONAL for work described as: IGF::OT::IGF EXPORTABLE COMBAT TRAINING CAPABILITY (XCTC) TRAINING SERVICES Key points: 1. Value for money assessed through comparison to similar training services and market rates. 2. Competition dynamics indicate a robust bidding process, potentially leading to favorable pricing. 3. Risk indicators are monitored through performance metrics and contractor's past performance. 4. Performance context is framed by the specific needs of combat training exercises. 5. Sector positioning places this contract within the broader defense and training services industry.

Value Assessment

Rating: good

The contract value of approximately $60.6 million for training services appears reasonable when benchmarked against similar large-scale training exercises. While specific per-unit cost data is not provided, the firm-fixed-price structure suggests that the government has a clear understanding of the total cost. Comparisons with other multi-year training contracts indicate that pricing is generally in line with market expectations for specialized services of this nature. Further analysis would require detailed breakdowns of the services provided and their associated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, though the exact number is not specified, generally fosters a competitive environment that can drive down prices and improve the quality of services offered. This approach is favored for ensuring the government receives the best value by leveraging the widest possible pool of qualified contractors.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure services at the most advantageous price point, preventing potential overspending that could occur with less competitive solicitations.

Public Impact

The primary beneficiaries are military personnel who receive essential combat readiness training. Services delivered include specialized training scenarios and support for combat exercises. Geographic impact is concentrated in training areas, potentially including remote or specialized facilities. Workforce implications involve the employment of trainers, support staff, and simulation specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly during the contract period.
Dependence on contractor's ability to maintain highly specialized and up-to-date training equipment.
Ensuring consistent quality of training across all exercises and instructors.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Contract duration allows for sustained training support and development of expertise.

Sector Analysis

This contract falls within the broader defense and government services sector, specifically focusing on training and simulation. The market for such specialized training is significant, driven by ongoing defense needs and the increasing complexity of modern warfare. Comparable spending benchmarks would include other large-scale military training exercises and simulation contracts, which often represent substantial investments due to the specialized personnel, technology, and infrastructure required.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it is unlikely that small businesses were exclusively targeted. However, the prime contractor, SRI International, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the small business ecosystem. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency, likely the Department of the Interior's relevant oversight body, and potentially the Department of Defense if the training is for military purposes. Accountability measures would include performance reviews, adherence to contract terms, and delivery of specified training outcomes. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are often internal.

Related Government Programs

Combat Training Systems
Military Simulation and Training
Defense Readiness Programs
Specialized Training Services

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Dependence on specialized contractor expertise.
Ensuring training realism meets evolving combat needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $60.6 million to SRI INTERNATIONAL. IGF::OT::IGF EXPORTABLE COMBAT TRAINING CAPABILITY (XCTC) TRAINING SERVICES

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 $60.6 million.

What is the period of performance?

Start: 2014-09-19. End: 2015-12-18.

What is SRI International's track record with similar government training contracts?

SRI International has a long history of performing research, development, and technical services for government agencies, including the Department of Defense. Their experience spans various complex projects, often involving advanced technology and specialized expertise. While specific details on past combat training contracts awarded to SRI would require a deeper dive into federal procurement databases, their general profile suggests a capacity to handle large, technically demanding service contracts. Performance history on previous contracts, including any past performance evaluations or awards, would be crucial for a comprehensive assessment of their suitability for this specific XCTC training capability.

How does the $60.6 million contract value compare to similar combat training exercises?

Benchmarking the $60.6 million contract value requires comparing it to similar large-scale combat training exercises, such as those conducted by the Army's Combat Training Center (CTC) programs like the National Training Center (NTC) or Joint Readiness Training Center (JRTC). These programs often involve extensive logistical support, scenario development, and live-fire exercises, leading to multi-year contracts that can range from tens to hundreds of millions of dollars. The "Exportable Combat Training Capability (XCTC)" designation suggests a potentially more modular or deployable training solution compared to fixed-site installations. Without specific details on the scope, duration, and intensity of the training provided under this contract, a precise comparison is difficult, but the value appears within the expected range for significant military training initiatives.

What are the primary risks associated with this type of training contract?

Key risks for this combat training contract include the potential for evolving threat environments requiring rapid adaptation of training scenarios, logistical challenges in deploying training capabilities to various locations, and ensuring the fidelity and realism of simulations to meet combat readiness standards. There's also a risk related to contractor performance, ensuring the quality and effectiveness of instruction and support. Furthermore, budget fluctuations or changes in defense priorities could impact the continuation or scope of such training programs. Cybersecurity risks associated with training systems and data are also a growing concern.

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

The XCTC program is designed to provide realistic, challenging, and relevant combat training to units, particularly those in the National Guard and Reserve, who may have limited access to large training installations. Its 'exportable' nature allows it to be brought closer to these units, reducing logistical burdens and increasing accessibility. The effectiveness is generally measured by the degree to which participating units demonstrate improved proficiency in mission-essential tasks, tactical decision-making, and overall combat readiness. Feedback from participating units and post-exercise evaluations are critical indicators of the program's success in achieving its objectives.

What has been the historical spending trend for combat training services by the Department of the Interior?

The Department of the Interior (DOI) is not typically the primary agency for large-scale combat training services, which are usually procured by the Department of Defense (DoD). The data indicates this contract was awarded by the DOI. This suggests the training might be for specialized DOI law enforcement or security personnel, or potentially a unique inter-agency support role. Historical spending by DOI on combat training would likely be significantly lower and more specialized compared to DoD's extensive training budgets. Analyzing DOI's procurement history for similar services would be necessary to understand the context of this specific award.

What is the significance of the 'Other Computer Related Services' NAICS code (541519) for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is quite broad and suggests that the core of this contract involves computer systems integration, design, and support, rather than direct physical combat instruction or equipment provision. For a combat training contract, this code implies a significant focus on the technological aspects of training, such as developing, maintaining, or operating simulation software, virtual environments, networked training systems, or data management platforms used in training exercises. It indicates that the contractor's primary role is likely in providing the IT infrastructure and services that enable the combat training scenarios to be executed effectively.

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: $72,524,466

Exercised Options: $62,734,528

Current Obligation: $60,574,292

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