Interior Department's $2.6M facilitation support contract awarded to Industrial Economics Inc. for Deepwater Horizon response

Contract Overview

Contract Amount: $2,586,105 ($2.6M)

Contractor: Industrial Economics Inc

Awarding Agency: Department of the Interior

Start Date: 2020-06-30

End Date: 2025-09-30

Contract Duration: 1,918 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NRDAR TRUSTEE GROUP FACILITATION SUPPORT SERVICES - UDOI, DEEPWATER HORIZON GRO

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02140

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Interior obligated $2.6 million to INDUSTRIAL ECONOMICS INC for work described as: NRDAR TRUSTEE GROUP FACILITATION SUPPORT SERVICES - UDOI, DEEPWATER HORIZON GRO Key points: 1. Contract provides essential facilitation and technical support for the NRDAR Trustee Group, crucial for environmental restoration efforts. 2. Awarded through full and open competition, indicating a broad market search for qualified vendors. 3. The contract duration extends over five years, suggesting a need for sustained support in complex environmental recovery. 4. Performance is measured through time and materials, allowing flexibility but requiring diligent oversight of labor hours. 5. The specific NAICS code (541611) points to a focus on management consulting services. 6. The contract's value is modest in the context of large federal procurements, but significant for specialized support services.

Value Assessment

Rating: good

The contract value of approximately $2.6 million over five years for facilitation support services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for environmental consulting and facilitation services would provide a more precise value-for-money assessment. However, the time and materials pricing structure necessitates careful monitoring of labor hours and rates to ensure cost efficiency and prevent overruns. The absence of a fixed price or ceiling on labor hours could be a point of concern if not managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The presence of five bidders indicates a competitive environment, which generally leads to better pricing and service offerings for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive marketplace, driving down costs and encouraging innovation among contractors. This approach ensures that the government secures the best value by considering a wide range of potential providers.

Public Impact

The primary beneficiaries are the NRDAR Trustee Group, which receives critical support for its environmental restoration mission. Services delivered include facilitation, administrative support, and technical expertise related to the Deepwater Horizon oil spill response. The geographic impact is primarily focused on areas affected by the Deepwater Horizon oil spill, supporting restoration efforts nationwide. Workforce implications include the employment of consultants and subject matter experts in environmental management and policy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the time and materials pricing structure if not closely monitored.
Ensuring consistent quality of facilitation and technical support across the contract duration.
Managing the scope of work effectively to align with the evolving needs of the NRDAR Trustee Group.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long-term contract duration indicates a stable and ongoing need for these specialized services.
Contractor's expertise in administrative management and general management consulting is aligned with the service requirements.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for such services is broad, encompassing firms that provide expertise in environmental policy, natural resource damage assessment, and facilitation. The federal government is a significant consumer of these services, particularly in areas requiring specialized knowledge for complex environmental incidents like the Deepwater Horizon spill. Comparable spending benchmarks would involve analyzing other contracts for similar facilitation and consulting services awarded to support large-scale environmental response and restoration efforts.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. Industrial Economics Inc. is likely a mid-sized or large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Further analysis would be needed to determine if subcontracting opportunities exist and what impact this contract might have on the small business ecosystem.

Oversight & Accountability

Oversight of this contract would typically be managed by the U.S. Fish and Wildlife Service, the contracting agency. Accountability measures would include performance reviews, adherence to the time and materials reporting requirements, and deliverables outlined in the contract. Transparency is generally maintained through federal procurement databases, though specific performance metrics and detailed cost breakdowns may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Deepwater Horizon Oil Spill Natural Resource Damage Assessment
NRDAR Trustee Council Support Services
Environmental Consulting Services
Federal Facilitation and Mediation Contracts

Risk Flags

Potential for cost creep with Time and Materials contract type.
Ensuring consistent quality of specialized facilitation services over a long duration.
Managing complex stakeholder dynamics inherent in environmental restoration.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.6 million to INDUSTRIAL ECONOMICS INC. NRDAR TRUSTEE GROUP FACILITATION SUPPORT SERVICES - UDOI, DEEPWATER HORIZON GRO

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 $2.6 million.

What is the period of performance?

Start: 2020-06-30. End: 2025-09-30.

What is the track record of Industrial Economics Inc. in supporting federal environmental response efforts?

Industrial Economics Inc. (IEc) has a history of providing economic and environmental consulting services to various federal agencies, including those involved in natural resource damage assessment and restoration. Their work often involves complex analyses related to environmental impacts, policy development, and stakeholder engagement. While specific details on their involvement with the NRDAR Trustee Group prior to this contract are not provided, their general expertise in areas like economic valuation of environmental damages and restoration planning suggests a relevant background. A deeper dive into their past performance on similar federal contracts, particularly those involving large-scale environmental incidents, would offer more insight into their capabilities and reliability in this specific context.

How does the pricing structure (time and materials) compare to industry standards for similar facilitation services?

Time and materials (T&M) pricing is a common structure for professional services contracts where the scope of work can be variable or difficult to define precisely at the outset, such as facilitation and consulting. For services like those provided under this contract, T&M allows for flexibility in adapting to the evolving needs of the NRDAR Trustee Group. However, it shifts the risk of cost control to the government, requiring robust oversight of labor hours, rates, and direct costs. Industry standards often see a mix of T&M, fixed-price, and cost-plus contracts depending on the project's predictability. The key to value-for-money with T&M lies in the government's ability to effectively manage and audit the contractor's expenditures.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for facilitation and support services contracts include the effectiveness of meetings and workshops facilitated, timely delivery of reports and analyses, successful stakeholder engagement, and adherence to budget and schedule. For the NRDAR Trustee Group, KPIs might also relate to the progress made in developing and implementing restoration plans, the quality of technical advice provided, and the overall efficiency of the group's decision-making processes. The contracting officer's representative (COR) would be responsible for monitoring these aspects and ensuring the contractor meets the contract's objectives.

What is the historical spending trend for facilitation support services related to the Deepwater Horizon oil spill response?

Historical spending on facilitation support services related to the Deepwater Horizon oil spill response is likely substantial, given the scale and complexity of the incident and the subsequent multi-year restoration efforts. The Natural Resource Damage Assessment (NRDAR) process itself involves extensive coordination among multiple government agencies and stakeholders. Contracts for facilitation, legal support, scientific analysis, and administrative services are essential components of managing such a large-scale environmental recovery. While this specific contract represents a portion of that spending, the overall federal expenditure related to the Deepwater Horizon response, including restoration activities, has been in the billions of dollars over many years. Tracking specific line items for facilitation support across different agencies and contract vehicles would be necessary for a comprehensive historical analysis.

Are there any identified risks associated with the contractor's performance or the nature of the services provided?

Potential risks associated with this contract include the possibility of cost overruns due to the time and materials (T&M) pricing structure, especially if labor hours are not diligently managed and justified. Another risk could be the contractor's ability to maintain consistent quality and effectiveness in facilitation and technical support over the five-year period, particularly as the needs of the NRDAR Trustee Group may evolve. Furthermore, ensuring effective communication and coordination among diverse stakeholders involved in the restoration process presents an ongoing challenge. The complexity of the Deepwater Horizon case itself introduces inherent risks related to scientific uncertainty, legal challenges, and public perception that the contractor must navigate.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQ1423062

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2067 MASSACHUSETTS AVE, CAMBRIDGE, MA, 02140

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

Financial Breakdown

Contract Ceiling: $2,586,105

Exercised Options: $2,586,105

Current Obligation: $2,586,105

Actual Outlays: $2,586,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA20D0044

IDV Type: FSS

Timeline