USDA awards $29M technical assistance contract to National Rural Water Association for rural water programs

Contract Overview

Contract Amount: $29,072,614 ($29.1M)

Contractor: National Rural Water Association

Awarding Agency: Department of Agriculture

Start Date: 2019-04-29

End Date: 2020-10-31

Contract Duration: 551 days

Daily Burn Rate: $52.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USDA, RD, WEP - CIRCUIT RIDER TECHNICAL ASSISTANCE PROGRAM PENNY DOUGLAS, TECHNICAL POINT OF CONTACT

Place of Performance

Location: DUNCAN, STEPHENS County, OKLAHOMA, 73533

State: Oklahoma Government Spending

Plain-Language Summary

Department of Agriculture obligated $29.1 million to NATIONAL RURAL WATER ASSOCIATION for work described as: USDA, RD, WEP - CIRCUIT RIDER TECHNICAL ASSISTANCE PROGRAM PENNY DOUGLAS, TECHNICAL POINT OF CONTACT Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration of 551 days suggests a need for ongoing support. 3. The fixed-price contract type aims to control costs, but the lack of competition may inflate the price. 4. The administrative management and general management consulting services category indicates a focus on operational efficiency. 5. The contract's geographic focus on Oklahoma may limit broader applicability of lessons learned. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $29,072,614.29 for 551 days of service appears substantial. Without comparable sole-source contracts for similar technical assistance programs, it is difficult to definitively benchmark the value. However, the lack of competition raises concerns about whether the government achieved the best possible price. The fixed-price nature of the contract provides some cost certainty, but the absence of competitive bidding means there's no market validation of the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach bypasses the standard procurement process where multiple vendors would submit bids. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the required expertise or capability, it significantly reduces the potential for price competition and may lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution. Without bids from other qualified organizations, it's impossible to know if a lower price was achievable.

Public Impact

Rural communities across Oklahoma will benefit from improved water and wastewater systems through technical assistance. The contract supports the operational efficiency and sustainability of rural water infrastructure. The program aims to ensure access to safe and reliable drinking water for rural residents. Workforce implications include potential support for local jobs involved in water system management and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification process.
No clear indication of small business participation or subcontracting goals.
Performance metrics and success criteria are not detailed in the provided data.
Geographic limitation to Oklahoma may not address national rural water needs.

Positive Signals

National Rural Water Association has a specialized focus on rural water systems.
Fixed-price contract provides cost certainty for the government.
The contract addresses a critical need for technical assistance in rural infrastructure.
The awardee has a demonstrated history in providing such services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. The market for such services supporting government programs is extensive. However, contracts focused on specialized areas like rural water infrastructure technical assistance are more niche. Benchmarking would ideally involve comparing this to other technical assistance contracts for similar infrastructure programs, but the sole-source nature makes direct comparison challenging.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans or goals. This suggests that the primary awardee, National Rural Water Association, will likely perform the majority of the work. Further investigation would be needed to determine if any subcontracting opportunities exist or were considered for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Rural Housing Service within the USDA. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Rural Water and Wastewater Systems
Technical Assistance Programs
USDA Rural Development Initiatives
Infrastructure Improvement Grants

Risk Flags

Sole-source award may not represent best value
Lack of competition limits price discovery
Potential for higher costs to taxpayers
Limited transparency in procurement process

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $29.1 million to NATIONAL RURAL WATER ASSOCIATION. USDA, RD, WEP - CIRCUIT RIDER TECHNICAL ASSISTANCE PROGRAM PENNY DOUGLAS, TECHNICAL POINT OF CONTACT

Who is the contractor on this award?

The obligated recipient is NATIONAL RURAL WATER ASSOCIATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Rural Housing Service).

What is the total obligated amount?

The obligated amount is $29.1 million.

What is the period of performance?

Start: 2019-04-29. End: 2020-10-31.

What is the track record of the National Rural Water Association in delivering technical assistance for rural water programs?

The National Rural Water Association (NRWA) is a non-profit organization with a long-standing history of providing technical assistance, training, and support to rural water and wastewater systems across the United States. They are known for their circuit rider program, which provides on-site assistance to help utilities address operational, managerial, and financial challenges. Their expertise is specifically tailored to the unique needs of small and rural communities. While this specific contract is a sole-source award, NRWA has a broad track record of working with various federal agencies, including the USDA, on similar initiatives. Their extensive network and specialized knowledge in this niche area likely contributed to the sole-source justification.

How does the pricing of this contract compare to similar technical assistance contracts, considering it was sole-sourced?

Directly comparing the pricing of this $29 million sole-source contract to similar technical assistance contracts is challenging due to the lack of competitive bidding. Sole-source awards inherently bypass the market forces that drive down prices in competitive procurements. To assess value-for-money, one would need to analyze the specific deliverables, the scope of work, and the duration of the contract against industry standards for specialized technical assistance. Benchmarking against other sole-source contracts for similar services could provide some context, but would still lack the validation of a competitive process. The fixed-price nature offers cost certainty, but the absence of competition means the government cannot be assured it received the lowest possible price.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude ($29 million) include a lack of price competition, which can lead to inflated costs for the government and taxpayers. There's also a reduced incentive for the contractor to innovate or provide exceptional value beyond the contract's minimum requirements, as there is no threat of losing future business to competitors. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process. Without a competitive evaluation, there's a risk that alternative, potentially more cost-effective or innovative solutions from other qualified vendors were overlooked. Ensuring the justification for the sole-source award is robust and well-documented is critical to mitigating these risks.

What is the expected effectiveness of the technical assistance provided under this contract for improving rural water infrastructure?

The effectiveness of the technical assistance provided under this contract is expected to be significant, given the National Rural Water Association's specialized focus and the critical need for support in rural water infrastructure. The program aims to help water systems improve their operations, management, and financial stability, which are crucial for ensuring the delivery of safe and reliable drinking water. By providing on-site expertise and guidance, the 'circuit rider' model helps utilities address challenges they might otherwise struggle to overcome independently. The success will depend on the thoroughness of the assistance, the adoption of recommendations by the water systems, and the long-term impact on system performance and compliance with regulatory standards.

How does this contract's spending compare to historical USDA spending on similar rural water technical assistance programs?

Historical spending data for similar USDA rural water technical assistance programs would be necessary for a meaningful comparison. This contract, valued at approximately $29 million over roughly 1.5 years, represents a substantial investment. Without access to historical spending figures for comparable programs, it's difficult to determine if this represents an increase, decrease, or consistent level of funding. Factors such as program scope, duration, number of beneficiaries, and the specific services offered would need to be aligned for an accurate historical comparison. It is plausible that funding levels for such critical infrastructure support fluctuate based on legislative priorities and available appropriations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2915 S 13TH ST, DUNCAN, OK, 73533

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,072,614

Exercised Options: $29,072,614

Current Obligation: $29,072,614

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline