OPM's $30M career development training contract awarded to SRA International, Inc. shows fair value

Contract Overview

Contract Amount: $30,195,591 ($30.2M)

Contractor: SRA International, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2012-05-23

End Date: 2014-03-31

Contract Duration: 677 days

Daily Burn Rate: $44.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CAREER TECH PROGRAM BASED

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $30.2 million to SRA INTERNATIONAL, INC. for work described as: CAREER TECH PROGRAM BASED Key points: 1. The contract delivered professional and management development training, aligning with OPM's mission to improve federal workforce skills. 2. Awarded under full and open competition, the contract saw one bid, suggesting potential for price negotiation. 3. The contract duration of 677 days (approx. 22 months) provided a substantial period for service delivery. 4. The firm-fixed-price contract type likely provided cost certainty for the government. 5. While specific performance metrics are not detailed, the contract's completion suggests a degree of success in meeting training needs.

Value Assessment

Rating: fair

The total award amount of approximately $30.2 million for professional and management development training over roughly two years appears reasonable given the scope. Benchmarking against similar large-scale federal training contracts is challenging without more granular data on the specific services provided. However, the fixed-price nature of the contract suggests that the government secured a defined cost for the services, which is a positive indicator of value.

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 offers. Despite this broad solicitation, only one bid was received. This could suggest a highly specialized service, limited market capacity, or potentially a lack of aggressive outreach by the agency to encourage broader participation. The single bid limits the ability to definitively assess price competitiveness through direct comparison.

Taxpayer Impact: While a single bid can sometimes lead to higher prices, the firm-fixed-price structure may have mitigated this risk. Taxpayers benefit from the competitive process, even with one bidder, as it theoretically forces the contractor to offer a competitive price to win the award.

Public Impact

Federal employees across various agencies likely benefited from enhanced professional and management skills, improving government operations. The training services delivered aimed to bolster the capabilities of the federal workforce in areas of management and professional development. The contract's impact is primarily on the federal workforce, with potential ripple effects on public service delivery quality. No specific geographic limitations were mentioned, suggesting potential nationwide applicability for federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite full and open solicitation raises questions about market engagement and potential price optimization.
Lack of detailed performance metrics makes it difficult to fully assess the effectiveness and impact of the training provided.

Positive Signals

Firm-fixed-price contract type offers cost certainty and budget predictability.
Awarded under full and open competition, adhering to principles of broad market access.
Contract completion indicates that the services were delivered over the specified period.

Sector Analysis

The Professional and Management Development Training sector within the federal government is crucial for maintaining a skilled and effective civilian workforce. This contract falls under the broader category of professional services and human capital management. Spending in this area can fluctuate based on agency priorities for employee development and retention. Comparable spending benchmarks are difficult to establish without knowing the exact curriculum and scale of training provided, but significant investments are common for large agencies like OPM.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a single, likely large, contractor suggests that small businesses may not have been primary participants in this specific procurement.

Oversight & Accountability

The Office of Personnel Management (OPM) is responsible for overseeing this contract. As a firm-fixed-price contract, oversight would focus on ensuring deliverables meet the contract's specifications and terms. Transparency is generally facilitated through contract award databases, but detailed programmatic oversight reports are not publicly available for this specific contract.

Related Government Programs

Federal Workforce Training Programs
Management and Leadership Development
Professional Skills Enhancement
Government Employee Training

Risk Flags

Limited competition despite full and open solicitation.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $30.2 million to SRA INTERNATIONAL, INC.. CAREER TECH PROGRAM BASED

Who is the contractor on this award?

The obligated recipient is SRA INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $30.2 million.

What is the period of performance?

Start: 2012-05-23. End: 2014-03-31.

What was the specific nature and scope of the professional and management development training provided under this contract?

The contract, awarded to SRA International, Inc., focused on 'Professional and Management Development Training' (NAICS code 611430). While the specific curriculum is not detailed in the provided data, this category typically encompasses a wide range of services designed to enhance the skills and competencies of federal employees. This could include leadership training, project management, communication skills, strategic planning, supervisory development, and other areas critical for effective government operations. The contract's duration of over 600 days suggests a comprehensive and ongoing training initiative rather than a one-off event, likely serving a broad segment of the federal workforce managed by OPM.

How does the awarded amount of approximately $30.2 million compare to similar federal training contracts?

Direct comparison of the $30.2 million award to similar federal training contracts is challenging without specific details on the training content, duration, number of participants, and delivery methods. However, large-scale federal training initiatives, especially those managed by central agencies like OPM and spanning multiple years, often involve multi-million dollar investments. For instance, contracts for leadership development or agency-wide compliance training can easily reach these figures. The key differentiator would be the breadth and depth of the training provided. Given the firm-fixed-price nature, the government aimed to cap costs for a defined set of services, which is a common approach for managing large training budgets.

What are the potential risks associated with awarding a contract of this size with only one bid?

Awarding a contract of this magnitude ($30.2 million) with only a single bid, despite being under full and open competition, presents several potential risks. Firstly, it raises concerns about the level of competition achieved; a single bid might indicate a lack of market interest, potential barriers to entry for other firms, or insufficient outreach by the agency. This can lead to a lack of price pressure, potentially resulting in a higher-than-necessary cost for the government. Secondly, it concentrates risk with a single contractor. If SRA International, Inc. faced performance issues, financial instability, or other challenges, the government would have limited alternative options without re-initiating a potentially lengthy procurement process. This situation underscores the importance of robust market research prior to solicitation to ensure adequate competition.

What does the 'Professional and Management Development Training' category imply about the contract's objectives?

The 'Professional and Management Development Training' category (NAICS 611430) signifies that the contract's primary objective was to enhance the skills, knowledge, and abilities of federal employees, particularly those in management or aspiring to management roles. This type of training is crucial for improving leadership effectiveness, fostering innovation, ensuring compliance with regulations, and boosting overall productivity within government agencies. OPM, as the awarding agency, likely sought to equip federal employees with the tools necessary to navigate complex challenges, manage teams efficiently, and contribute to the agency's strategic goals. The investment suggests a commitment to human capital development as a means to achieve better public service outcomes.

How does the contract's firm-fixed-price (FFP) structure impact its value and risk for the government?

The firm-fixed-price (FFP) structure of this contract is generally advantageous for the government in terms of cost control and predictability. Under an FFP contract, the contractor agrees to a set price for the specified goods or services, regardless of the actual costs incurred. This shifts the risk of cost overruns from the government to the contractor. For a training contract like this, it means the government knew its maximum expenditure upfront, simplifying budget management. The value is realized if the training delivered meets the defined scope and quality standards at the agreed-upon price. The primary risk for the government with FFP is that the contractor might cut corners on quality to protect profit margins if not adequately monitored, though the fixed price itself provides a clear benchmark for the expected cost.

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

Parent Company: Sterling Parent Inc. (UEI: 968838909)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,195,591

Exercised Options: $30,195,591

Current Obligation: $30,195,591

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: OPM020700010

IDV Type: IDC

Timeline