Arizona State University contract for educational services valued at $615M over 4 years

Contract Overview

Contract Amount: $6,150,555 ($6.2M)

Contractor: Arizona State University

Awarding Agency: Department of Defense

Start Date: 2022-06-02

End Date: 2026-07-31

Contract Duration: 1,520 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 31

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: START UP/ENROLLMENT PERIOD

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20781

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to ARIZONA STATE UNIVERSITY for work described as: START UP/ENROLLMENT PERIOD Key points: 1. Contract provides educational services, aligning with institutional missions. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of over 4 years indicates a long-term need for these services. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The award to a university suggests a focus on specialized academic or research support. 6. Geographic scope includes Maryland, indicating a specific operational presence or requirement.

Value Assessment

Rating: good

The contract value of $615 million over approximately four years for educational services appears substantial. Benchmarking against similar contracts for university-based research or training programs would be necessary for a precise value assessment. However, the fixed-price nature suggests an attempt to control costs. The award to a large, established institution like Arizona State University may indicate a competitive bid process where they offered a strong value proposition.

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 bids. With 31 bids received, this suggests a robust level of interest and a competitive marketplace for these educational services. A high number of bidders generally supports the government's ability to secure favorable pricing and terms.

Taxpayer Impact: A competitive process with numerous bidders is beneficial for taxpayers as it drives down prices and encourages innovation, ensuring the government receives the best possible value for its investment.

Public Impact

Benefits students and faculty through access to specialized educational programs and resources. Delivers advanced training and research support services to the Department of the Navy. Geographic impact is noted in Maryland, suggesting a localized operational requirement. Workforce implications include potential support for military personnel development and specialized skill acquisition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Higher Education sector, specifically focusing on services provided by universities to government entities. The market for educational services to the Department of Defense is significant, encompassing training, research, and development support. Comparable spending benchmarks would involve analyzing other contracts awarded to universities for similar large-scale educational initiatives, which often run into hundreds of millions of dollars.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. Given the nature of the award to a large university, it is unlikely that small businesses would be primary recipients unless through subcontracting. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this educational services agreement.

Oversight & Accountability

Oversight for this contract would likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be tied to performance metrics outlined in the contract. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

education-services, department-of-defense, department-of-the-navy, arizona-state-university, full-and-open-competition, fixed-price, higher-education, maryland, large-contract, professional-schools, training-services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to ARIZONA STATE UNIVERSITY. START UP/ENROLLMENT PERIOD

Who is the contractor on this award?

The obligated recipient is ARIZONA STATE UNIVERSITY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2022-06-02. End: 2026-07-31.

What is the track record of Arizona State University in performing similar large-scale federal contracts, particularly for the Department of Defense?

Arizona State University (ASU) has a significant history of engaging with federal agencies, including the Department of Defense (DoD), on various research, development, and educational initiatives. While specific contract details and performance ratings are often proprietary, ASU is recognized for its strengths in areas like aerospace, cybersecurity, and sustainability, which align with potential DoD needs. Its large scale and research capabilities position it as a capable contractor for complex federal requirements. A thorough review of ASU's past performance on similar contracts, including any past performance evaluations or award-fee determinations, would provide a clearer picture of its reliability and effectiveness in meeting government objectives. This would involve examining contract close-out data and any publicly available performance reports.

How does the per-student or per-service cost of this contract compare to other educational service contracts awarded by the Department of the Navy?

Directly comparing the per-unit cost of this $615 million contract is challenging without specific details on the number of students served, the types of courses or training provided, and the duration of each educational module. The contract is for 'Colleges, Universities, and Professional Schools' (NAICS 611310), suggesting a broad scope that could include degree programs, specialized certifications, or research support. To benchmark effectively, one would need to identify comparable contracts from the Department of the Navy that fund similar educational services, then normalize the costs by factors such as student enrollment, credit hours, or specific training outcomes. The fixed-price nature of this contract, however, implies that the government has negotiated a set price for the defined scope, which aids in cost predictability, but not necessarily in granular value-for-money comparisons without detailed service delivery metrics.

What are the primary risks associated with a long-duration (over 4 years) fixed-price contract for educational services?

Long-duration fixed-price contracts for educational services present several risks. Firstly, there's the risk of 'scope creep' if the educational requirements evolve significantly over the contract period, potentially leading to disputes over additional costs or services not initially envisioned. Secondly, the fixed-price nature can incentivize the contractor to minimize costs, which might, in some cases, lead to a reduction in the quality or comprehensiveness of the educational offerings if not carefully monitored. For the government, the risk is paying a fixed price for services that may become outdated or less relevant due to rapid advancements in technology or military doctrine. Conversely, if the contractor accurately forecasts costs and delivers high-quality services efficiently, the fixed price benefits the government by providing cost certainty. Effective oversight and clear performance metrics are crucial to mitigate these risks.

Given the full and open competition with 31 bidders, what does this indicate about the market's capacity to meet the Navy's educational needs?

The fact that this contract received 31 bids under full and open competition strongly suggests a robust and competitive market for the educational services required by the Department of the Navy. This high level of interest indicates that multiple institutions possess the capability and capacity to deliver the specified services. For taxpayers, this competitive environment is highly favorable, as it typically drives down prices through vigorous bidding and encourages contractors to offer their best value propositions. It also provides the government with a wide range of options and reduces reliance on a single provider, thereby enhancing program resilience and potentially fostering innovation as contractors vie for the award.

How does the $615 million award compare to historical spending patterns for educational services within the Department of the Navy or Department of Defense?

The $615 million value of this contract is substantial and represents a significant investment in educational services. To contextualize this, one would need to analyze historical spending data for similar categories within the Department of the Navy and the broader Department of Defense. This would involve looking at annual budgets allocated to higher education partnerships, professional development programs, and specialized training initiatives. Comparing this award to the average or median contract values for similar services over the past 5-10 years would reveal whether this represents a typical, above-average, or below-average expenditure. Such analysis would also help identify trends in how the DoD procures educational support and the typical scale of these investments.

Industry Classification

NAICS: Educational ServicesColleges, Universities, and Professional SchoolsColleges, Universities, and Professional Schools

Product/Service Code: EDUCATION AND TRAININGEDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018920RZ071

Offers Received: 31

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 660 S MILL AVE STE 312, TEMPE, AZ, 85281

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $7,032,180

Exercised Options: $7,032,180

Current Obligation: $6,150,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018920DZ802

IDV Type: IDC

Timeline

Start Date: 2022-06-02

Current End Date: 2026-07-31

Potential End Date: 2026-07-31 00:00:00

Last Modified: 2026-01-12

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