CUI_UDI Course_Signed_Redacted.pdf
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- Solicitation number
- S5121A25QE005
- Issued by
-
Defense Contract Management Agency
About this file
This Justification and Approval (J&A) document is for a sole-source, firm-fixed-price contract with the University of North Carolina (UNC) Kenan-Flagler Business School for an Understanding Defense Industry (UDI) Management Course. The Defense Contract Management Agency (DCMA) will procure a five-day immersive executive development program offered twice annually, with a one-year base period from May 1, 2025 to March 31, 2026 and four one-year option periods through March 31, 2030, totaling $2,673,476.00.
The UDI course is specifically designed to educate senior DCMA leaders on defense industry dynamics, providing advanced training in corporate strategy, financial analysis, and strategic negotiation skills. The program aims to bridge the gap between defense industry and federal government acquisition by offering in-depth insights into contractor behaviors, financial strategies, and negotiation techniques. Market research confirmed no comparable alternative exists, with the course demonstrating significant value, including an example where program insights helped prevent a $35 million profit inflation attempt by a contractor.
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CUI
Source Selection Sensitive Information-See FAR 2.101 and 3.104 career support; practical exercises and reading assignments for 30 students and up to three clients/observers.
This program also bridges this critical defense industry versus. federal government acquisition gap by providing:
a. Corporate Strategy Foresight: Anticipating and countering contractor tactics, risk tolerance, and financial strategies through a deep understanding of their behavior.
b. Financial Acumen: Equipping negotiators with the skills to dissect complex financial statements, identify potential red flags, and accurately assess contractor financial health.
c. Strategic Negotiation Skills: Providing actionable techniques to leverage publicly available financial data and align negotiation strategies with contractor incentives, ensuring optimal outcomes for the government and, ultimately, the warfighter.
6. Efforts to Obtain Competition: A synopsis was posted to SAM.gov on March 7, 2025, technical capability statements were solicited for consideration. Two vendors submitted business information but no detailed information on providing the course content the Government needs.
As future requirements evolve, DCMA will continually monitor and perform market research to determine if comparable services have been introduced to the market and are available at other universities. No other sources were found to offer a comparable program that could be customized to the same extent as the UNC Kenan-Flagler’s Business School for Executive Development.
7. Fair and Reasonable Cost Determination: The price will be determined fair and reasonable in accordance with price analysis techniques identified in FAR 13.106-3(a)(2), the contracting officer may base the analysis on (i) market research; (iii) current price lists; (iv) comparison with similar items in a related industry; (vi) comparison to an independent Government estimate; or
(vii) any other reasonable basis. A memorandum detailing the fair and reasonable price determination will be included in the contract documentation.
The program's impact is undeniable. In one instance, a negotiation team armed with program insights identified and prevented a $35 million profit inflation attempt by a contractor. This success story underscores the program's potential to generate substantial cost savings, directly translating into increased funding for vital warfighter capabilities.
8. Market Research Conducted: Mandatory sources were checked to determine if there were additional sources capable of providing the required training, resulting in no positive responses.
The Contracting Officer conducted independent market research and concurred with the Requiring Activity’s market research.
A SAM Search was conducted on the proposed contractor The University of North Carolina [UEI- E2BMXYHMFN58] with no negative results.
9. Other Supporting Facts: N/A.
10. Sources: University of North Carolina At Chapel Hill DBA Kenan Flagler Business School
CUI
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