USDA Awards $24.9M 8(a) Sole-Source Contract to MIPPS, LLC for Grants Management Support

Contract Overview

Contract Amount: $24,900,000 ($24.9M)

Contractor: Mipps, LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-05-25

End Date: 2028-05-24

Contract Duration: 1,826 days

Daily Burn Rate: $13.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS A LABOR-HOUR CONTRACT FOR NON-PERSONAL GRANTS MANAGEMENT SUPPORT PROFESSIONAL SERVICES AND IS ISSUED UNDER THE U.S SMALL BUSINESS ADMINISTRATION'S (SBA) "THE 8(A) PROGRAM", UNDER THE AUTHORITY OF FEDERAL ACQUISITION REGULATION

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Agriculture obligated $24.9 million to MIPPS, LLC for work described as: THIS IS A LABOR-HOUR CONTRACT FOR NON-PERSONAL GRANTS MANAGEMENT SUPPORT PROFESSIONAL SERVICES AND IS ISSUED UNDER THE U.S SMALL BUSINESS ADMINISTRATION'S (SBA) "THE 8(A) PROGRAM", UNDER THE AUTHORITY OF FEDERAL ACQUISITION REGULATION Key points: 1. Contract awarded under SBA's 8(a) program, indicating a focus on small, disadvantaged businesses. 2. Sole-source award suggests limited competition, potentially impacting price discovery. 3. The contract is for professional services related to grants management support. 4. The contract duration is approximately 5 years, with a total value of $24.9 million.

Value Assessment

Rating: questionable

The contract is a firm-fixed-price award. However, without specific performance metrics or benchmarks for similar grants management support services, it is difficult to definitively assess its value. The sole-source nature limits comparative pricing analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source under the SBA's 8(a) program. While this program aims to support small disadvantaged businesses, sole-source awards inherently limit competition. This can reduce the government's ability to secure the best possible pricing through a competitive bidding process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the most competitive pricing achievable through an open bidding process.

Public Impact

Supports the U.S. Small Business Administration's 8(a) program, fostering opportunities for disadvantaged businesses. Ensures continued grants management support for the Animal and Plant Health Inspection Service. Potential for reduced competition may lead to higher costs for taxpayers. The long contract duration of five years locks in this provider without competitive re-evaluation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of clear performance benchmarks makes value assessment difficult.
Long contract duration may not reflect evolving needs or market prices.

Positive Signals

Supports a small disadvantaged business through the 8(a) program.
Provides essential grants management support services.

Sector Analysis

This contract falls under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990). Spending in this broad category can vary significantly, but grants management support is a critical function for many federal agencies. The $24.9 million award over five years is substantial for this specific service.

Small Business Impact

The contract is specifically awarded under the SBA's 8(a) program, which is designed to help small, disadvantaged businesses compete for federal contracts. This award directly supports the goal of increasing federal contracting opportunities for such businesses.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. While justified under the 8(a) program, oversight should ensure the pricing is fair and reasonable and that the services provided meet all performance requirements throughout the contract's duration.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Agriculture Contracting
Animal and Plant Health Inspection Service Programs

Risk Flags

Sole-source award
Limited competition
Lack of clear performance benchmarks
Long contract duration (5 years)

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $24.9 million to MIPPS, LLC. THIS IS A LABOR-HOUR CONTRACT FOR NON-PERSONAL GRANTS MANAGEMENT SUPPORT PROFESSIONAL SERVICES AND IS ISSUED UNDER THE U.S SMALL BUSINESS ADMINISTRATION'S (SBA) "THE 8(A) PROGRAM", UNDER THE AUTHORITY OF FEDERAL ACQUISITION REGULATION

Who is the contractor on this award?

The obligated recipient is MIPPS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2023-05-25. End: 2028-05-24.

How does the pricing of this sole-source contract compare to similar grants management support services procured competitively?

Without access to competitive benchmarks for comparable grants management support services, a direct price comparison is not possible. Sole-source awards, by definition, bypass the competitive process that typically drives down costs. Further analysis would require market research into the average rates for similar services procured through full and open competition to determine if MIPPS, LLC's pricing is fair and reasonable.

What are the specific risks associated with a sole-source award for grants management support?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Additionally, there's a risk that the agency might not receive the most innovative solutions or the highest quality service if alternative providers are not considered. The long duration also poses a risk if the contractor's performance or the agency's needs change significantly.

How effective is the 8(a) program in ensuring value for money when used for sole-source awards?

The 8(a) program aims to provide opportunities for small disadvantaged businesses, which is a valuable socio-economic goal. However, when used for sole-source awards, the effectiveness in ensuring 'value for money' is inherently reduced compared to competitive procurements. While the program mandates fair pricing, the absence of competition means the government relies heavily on the contractor's proposed pricing and the agency's negotiation skills, rather than market forces.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4300 B ST, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,900,000

Exercised Options: $24,900,000

Current Obligation: $24,900,000

Actual Outlays: $9,038,977

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline