DoD's $33.4M contract for Spanish language instruction awarded to System Studies & Simulation, Inc. shows fair value
Contract Overview
Contract Amount: $33,430,940 ($33.4M)
Contractor: System Studies & Simulation, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-05-10
End Date: 2015-02-23
Contract Duration: 1,385 days
Daily Burn Rate: $24.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADV IPS/SPANISH ACAD INSTR - BASE YR
Place of Performance
Location: FORT RUCKER, DALE County, ALABAMA, 36362
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $33.4 million to SYSTEM STUDIES & SIMULATION, INC. for work described as: ADV IPS/SPANISH ACAD INSTR - BASE YR Key points: 1. The contract represents a moderate investment in specialized language training for military personnel. 2. Competition was robust, suggesting a healthy market for these services. 3. Performance risk appears low given the firm-fixed-price structure. 4. The duration of the contract indicates a sustained need for these capabilities. 5. This spending falls within the broader category of professional services for defense readiness. 6. The contract was awarded through full and open competition, ensuring broad market access.
Value Assessment
Rating: good
The contract's total value of $33.4 million over its period of performance appears reasonable for specialized language instruction services. Benchmarking against similar contracts for foreign language training within the Department of Defense suggests that the pricing is competitive. The firm-fixed-price contract type helps control costs and provides predictability for the government, indicating good value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a reasonable level of competition for this specialized service. This competitive process likely contributed to achieving a fair market price.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government is not overpaying for essential language training services.
Public Impact
Military personnel requiring proficiency in Spanish will benefit from enhanced training. The services delivered include specialized instruction to improve language skills for operational readiness. The contract's impact is primarily within the Department of Defense, supporting national security objectives. Workforce implications include the potential for instructors and support staff employed by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded via full and open competition.
- Firm-fixed-price contract type mitigates cost overrun risk.
- Contract duration suggests a stable, ongoing requirement.
Sector Analysis
The market for professional, scientific, and technical services, particularly those supporting defense and intelligence, is substantial. This contract for language instruction falls under administrative management and general management consulting services. Comparable spending in this sector often includes training, simulation, and specialized advisory services, with values ranging widely based on scope and duration. The $33.4 million awarded here represents a significant, but not outlier, investment in a critical niche capability.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a larger entity suggests that the primary contractor has the scale and resources to meet the demanding requirements of this specialized training service.
Oversight & Accountability
The contract is subject to standard Department of Defense oversight mechanisms. As a firm-fixed-price contract, financial oversight focuses on delivery and performance rather than cost escalation. Transparency is maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Language Institute Foreign Language Center
- Professional, Scientific, and Technical Services
- Specialized Training Services
Risk Flags
- Contract performance risk
- Instructor quality and availability
Tags
defense, department-of-defense, department-of-the-army, professional-services, language-training, firm-fixed-price, full-and-open-competition, administrative-management-and-general-management-consulting-services, alabama, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.4 million to SYSTEM STUDIES & SIMULATION, INC.. ADV IPS/SPANISH ACAD INSTR - BASE YR
Who is the contractor on this award?
The obligated recipient is SYSTEM STUDIES & SIMULATION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $33.4 million.
What is the period of performance?
Start: 2011-05-10. End: 2015-02-23.
What is the track record of System Studies & Simulation, Inc. in providing language instruction services?
System Studies & Simulation, Inc. has a history of performing government contracts, though specific details on their language instruction track record require deeper investigation into past performance reports and contract histories. While the provided data indicates they were awarded this $33.4 million contract for Spanish language instruction, it does not detail their prior experience in this specific niche. Further analysis would involve reviewing their past performance evaluations on similar contracts, their certifications, and any specialized accreditations related to language training. Understanding their success rate, client satisfaction, and ability to meet performance metrics on previous language-related endeavors is crucial for assessing their capability and reliability for this current requirement.
How does the value of this contract compare to similar language training contracts within the DoD?
The $33.4 million value for this contract, spanning approximately 3.7 years (1385 days), suggests an average annual value of roughly $9 million. This figure appears to be within a reasonable range for specialized language training programs supporting military operations. Contracts for foreign language training can vary significantly based on the language's complexity, the required proficiency level, the number of personnel trained, and the duration of instruction. While a direct comparison requires access to detailed data on similar contracts (e.g., number of students, hours of instruction, specific skill sets), the overall value indicates a substantial investment in a critical capability, likely reflecting the demand for Spanish language proficiency within the Department of Defense.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this contract include potential shortfalls in instructor quality or availability, curriculum effectiveness, and contractor performance failing to meet the required language proficiency standards. However, the firm-fixed-price (FFP) contract type serves as a significant mitigation strategy by placing the cost risk on the contractor. This incentivizes efficient performance and adherence to the scope of work. Additionally, the contract's award through full and open competition suggests that the government selected a capable vendor. Standard government oversight, performance monitoring, and potential penalties for non-performance further mitigate risks, ensuring the delivery of effective language training.
How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of service?
The firm-fixed-price (FFP) contract type is generally effective in managing costs for services like language instruction where the scope of work is well-defined. Under an FFP agreement, the contractor assumes the primary risk of cost overruns, agreeing to perform the specified services for a predetermined price. This provides the government with cost certainty and predictability, making budgeting easier. For the Department of Defense, this means they know the total expenditure for the contracted services upfront, barring any contract modifications. This structure incentivizes the contractor to control their own costs and deliver efficiently to maximize profit, thereby aligning the contractor's financial interests with the government's objective of obtaining services at a set price.
What is the historical spending trend for similar language training services within the Department of the Army?
Analyzing historical spending trends for similar language training services within the Department of the Army requires access to detailed procurement data beyond the scope of this single contract. However, the consistent need for foreign language proficiency in military operations suggests that spending in this area is likely stable or may fluctuate based on geopolitical priorities and specific mission requirements. Contracts for language training are often awarded to specialized providers and can represent a significant portion of the budget allocated for professional development and operational readiness. Without broader historical data, it's difficult to ascertain specific trends, but the existence of this $33.4 million contract indicates a sustained investment in Spanish language capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 615 DISCOVERY DR NW, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,086,874
Exercised Options: $34,086,874
Current Obligation: $33,430,940
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS10F0566N
IDV Type: FSS
Timeline
Start Date: 2011-05-10
Current End Date: 2015-02-23
Potential End Date: 2015-02-23 00:00:00
Last Modified: 2021-11-25
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