Interior's $11.2M Endangered Species Habitat Contract Awarded to Industrial Economics Inc

Contract Overview

Contract Amount: $11,236,192 ($11.2M)

Contractor: Industrial Economics Inc

Awarding Agency: Department of the Interior

Start Date: 2002-09-15

End Date: 2008-06-30

Contract Duration: 2,115 days

Daily Burn Rate: $5.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ECOLOGICAL ANALYSIS SUPPORT FOR CRITICAL HABITAT DESIGNATIONS FOR ENDANGERED SPECIES

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02140

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Interior obligated $11.2 million to INDUSTRIAL ECONOMICS INC for work described as: ECOLOGICAL ANALYSIS SUPPORT FOR CRITICAL HABITAT DESIGNATIONS FOR ENDANGERED SPECIES Key points: 1. Contract awarded through a competitive process, suggesting potential for good value. 2. Focus on critical habitat designations indicates a specialized environmental consulting need. 3. The contract duration of over 6 years suggests a long-term commitment to ecological analysis. 4. Performance context is tied to the U.S. Fish and Wildlife Service's mission. 5. Sector positioning within environmental consulting services for federal agencies. 6. The contract type (Time and Materials) can pose cost control challenges if not managed effectively.

Value Assessment

Rating: fair

The contract value of $11.2 million over approximately six years averages to about $1.87 million annually. Benchmarking this against similar environmental consulting contracts for federal agencies is challenging without more specific service details. However, the Time and Materials pricing structure, while flexible, can lead to higher costs if not closely monitored for scope creep and efficiency. The number of bids (3) is on the lower side for a competitive contract of this size, which might indicate less aggressive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar competitive vehicle. Three bids were received, which is a moderate level of competition. While competitive, a higher number of bidders could potentially drive prices down further. The agency's choice of a competitive route suggests an effort to obtain fair market value.

Taxpayer Impact: A competitive award process, even with three bidders, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions, leading to a more cost-effective outcome than a sole-source award.

Public Impact

The primary beneficiaries are endangered species and the ecosystems they inhabit, through the development of critical habitat designations. Services delivered include ecological analysis, research, and reporting to support regulatory decisions. Geographic impact is nationwide, as the U.S. Fish and Wildlife Service operates across the United States. Workforce implications include employment for environmental scientists, biologists, and consultants within Industrial Economics Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
A relatively low number of bidders (3) for a competitive award might suggest limited market interest or specialized requirements.
The extended duration of the contract (over 6 years) increases the risk of evolving needs and potential for scope creep.

Positive Signals

Awarded through a competitive process, indicating an effort to secure value.
The contract supports a critical mission of the U.S. Fish and Wildlife Service related to endangered species protection.
The contractor, Industrial Economics Inc., likely possesses specialized expertise in ecological analysis.

Sector Analysis

This contract falls within the Environmental Consulting Services sector, a niche within the broader professional services industry. The federal government is a significant client for such services, particularly agencies like the Department of the Interior and the EPA, which are tasked with environmental protection and resource management. The market size for federal environmental consulting is substantial, driven by regulatory compliance, conservation efforts, and infrastructure projects. Comparable spending benchmarks would typically involve analyzing other contracts for ecological assessments, environmental impact statements, and species viability studies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As the contract was awarded to Industrial Economics Inc., a specific analysis of its small business engagement would require further investigation into the contractor's practices and any associated subcontracting requirements or goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Fish and Wildlife Service contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is generally facilitated through contract databases like FPDS-NG (now SAM.gov). Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Endangered Species Act Implementation
Ecological Impact Assessments
Environmental Consulting Services
Federal Conservation Programs
Wildlife Management Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may impact price discovery.
Long contract duration increases risk of scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $11.2 million to INDUSTRIAL ECONOMICS INC. ECOLOGICAL ANALYSIS SUPPORT FOR CRITICAL HABITAT DESIGNATIONS FOR ENDANGERED SPECIES

Who is the contractor on this award?

The obligated recipient is INDUSTRIAL ECONOMICS INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2002-09-15. End: 2008-06-30.

What is the track record of Industrial Economics Inc. with federal contracts, particularly with the Department of the Interior?

Industrial Economics Inc. (IEc) has a history of performing work for federal agencies, including the Department of the Interior. Analyzing their past performance on similar contracts would involve reviewing contract databases for awards, performance evaluations (if available), and any reported issues. A strong track record with the agency suggests familiarity with its processes, requirements, and reporting standards, which can contribute to successful contract execution. Conversely, a history of performance issues or disputes could indicate potential risks for future contracts. Without specific performance data for this contract or others, a definitive assessment of their track record is limited.

How does the average annual cost of this contract compare to similar ecological analysis contracts?

The average annual cost for this contract is approximately $1.87 million ($11.2 million / 6 years). Comparing this to similar contracts requires access to a broader dataset of federal procurements for ecological analysis and critical habitat designation support. Factors influencing cost include the complexity of the species and habitats involved, the scope of research required, the geographic area covered, and the specific deliverables mandated. A direct comparison would ideally involve contracts with similar objectives, durations, and agency oversight. Given the specialized nature of endangered species work, costs can vary significantly, making a precise benchmark difficult without more granular data on comparable procurements.

What are the primary risks associated with a Time and Materials (T&M) contract of this duration?

The primary risks associated with a Time and Materials (T&M) contract, especially one spanning over six years, revolve around cost control and scope management. T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer task durations and potentially less efficient work if not rigorously overseen. For the government, the risk is that costs could escalate beyond initial estimates if the scope of work is not clearly defined and tightly controlled, or if labor rates are not competitive. Effective risk mitigation requires robust government oversight, detailed task orders, and regular performance reviews to ensure efficient resource utilization and adherence to project objectives.

How effective has the U.S. Fish and Wildlife Service been in utilizing contracts for endangered species protection?

The effectiveness of the U.S. Fish and Wildlife Service (USFWS) in utilizing contracts for endangered species protection is multifaceted. Contracts like this one are crucial for accessing specialized scientific expertise and analytical capacity that may not be available in-house. The success of these contracts hinges on clear statement of work, effective contractor performance management, and the integration of contract deliverables into the agency's conservation and regulatory decision-making processes. While specific performance metrics for all USFWS contracts are not publicly detailed, the agency's ongoing efforts in habitat designation and species recovery indicate a reliance on external support. Challenges can include ensuring the scientific rigor of contractor work and managing costs effectively over long-term projects.

What is the historical spending trend for environmental consulting services by the Department of the Interior?

Historical spending trends for environmental consulting services by the Department of the Interior (DOI) generally show a consistent need for such expertise, driven by its broad mandate over natural resources, public lands, and wildlife. Spending fluctuates based on legislative priorities, regulatory changes (e.g., updates to the Endangered Species Act), and the initiation of new conservation or development projects. Analyzing historical data from sources like SAM.gov or FPDS would reveal significant annual outlays for services ranging from environmental impact assessments to ecological surveys and permitting support. The DOI's reliance on these services underscores their importance in fulfilling its mission, particularly in areas of conservation and land management.

What does the number of bidders (3) suggest about the market for specialized ecological analysis?

A number of three bidders for a competitive federal contract, even for specialized services like ecological analysis for critical habitat designations, can suggest several market dynamics. It might indicate that the field is relatively niche, with a limited number of firms possessing the specific scientific expertise, qualifications, and capacity required by the U.S. Fish and Wildlife Service. Alternatively, it could reflect the complexity of the solicitation, the specific geographic or technical requirements, or the contract type (e.g., Time and Materials) which might deter some potential bidders. While three bidders still represent competition, a smaller pool might reduce the downward pressure on pricing compared to a more crowded field, potentially impacting the overall value for taxpayers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 2067 MASSACHUSETTS AVE, CAMBRIDGE, MA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,236,192

Exercised Options: $11,236,192

Current Obligation: $11,236,192

Parent Contract

Parent Award PIID: GS10F0224J

IDV Type: FSS

Timeline