FCC's $25M Emergency Connectivity Fund contract awarded to Universal Service Administrative Company for management consulting

Contract Overview

Contract Amount: $25,073,369 ($25.1M)

Contractor: Universal Service Administrative Company

Awarding Agency: Federal Communications Commission

Start Date: 2023-08-17

End Date: 2025-08-16

Contract Duration: 730 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USAC EMERGENCY CONNECTIVITY FUND

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Federal Communications Commission obligated $25.1 million to UNIVERSAL SERVICE ADMINISTRATIVE COMPANY for work described as: USAC EMERGENCY CONNECTIVITY FUND Key points: 1. Contract value represents a significant investment in administrative support for a critical federal program. 2. The award to a single entity suggests a focused approach to program management. 3. Performance period of two years allows for sustained support and evaluation. 4. The contract's fixed-price nature aims to control costs and provide budget certainty. 5. This award is situated within the broader context of federal efforts to bridge the digital divide.

Value Assessment

Rating: good

The contract value of approximately $25 million over two years for administrative management and general management consulting services appears reasonable given the scope of the Emergency Connectivity Fund. Benchmarking against similar large-scale federal program support contracts, this figure suggests a moderate per-year expenditure. The firm fixed-price structure provides cost predictability for the agency. Without specific details on the deliverables and the number of personnel involved, a precise value-for-money assessment is challenging, but the amount is not an outlier for managing substantial federal initiatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service quality. The fact that it was competed fully suggests that the agency sought the most advantageous offer based on a range of factors. The number of bidders would provide further insight into the level of market interest and competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider pool of offerors, which can drive down costs and improve the quality of services received, ensuring federal funds are used efficiently.

Public Impact

The primary beneficiaries are the recipients of the Emergency Connectivity Fund, who will receive support through efficient program administration. Services delivered include administrative management and general management consulting, crucial for the effective operation of the fund. The geographic impact is national, as the Emergency Connectivity Fund aims to provide internet access across the United States. Workforce implications include the potential for employment within the contractor organization to support this federal initiative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements evolve significantly beyond initial projections.
Reliance on a single contractor for critical administrative functions could pose a risk if performance falters.
Ensuring continued alignment with evolving FCC policies and program goals requires robust oversight.

Positive Signals

The firm fixed-price contract provides cost certainty and incentivizes efficient performance.
Awarding under full and open competition suggests a thorough vetting process and potential for strong vendor capabilities.
The two-year duration allows for sustained focus and development of expertise in managing the fund.

Sector Analysis

The Emergency Connectivity Fund operates within the telecommunications and technology sector, specifically focusing on digital inclusion initiatives. This contract for administrative management falls under the broader professional services market, which includes management consulting. The market for such services supporting federal programs is substantial, with agencies frequently contracting for expertise to manage complex initiatives. Benchmarks for similar administrative support contracts vary widely based on program scope and duration, but a $25 million award over two years for a program of this nature is within a typical range for significant federal support.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests the primary award was not directed towards small businesses. However, the prime contractor, Universal Service Administrative Company, may engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their subcontracting plans and the nature of the services required. The impact on the small business ecosystem would depend on whether such subcontracting opportunities are created.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Communications Commission (FCC), the awarding and contracting agency. The contract's firm fixed-price nature provides a degree of financial oversight by limiting cost overruns. Accountability measures are typically embedded within the contract's performance work statement and reporting requirements. Transparency would be enhanced through public contract databases and potentially through FCC reporting on the Emergency Connectivity Fund's progress. The Inspector General of the FCC would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Emergency Connectivity Fund
Universal Service Fund Programs
Federal Broadband Initiatives
Digital Equity Act Programs

Risk Flags

Contract duration aligns with program needs.
Awarded via full and open competition.
Firm fixed-price contract provides cost certainty.

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $25.1 million to UNIVERSAL SERVICE ADMINISTRATIVE COMPANY. USAC EMERGENCY CONNECTIVITY FUND

Who is the contractor on this award?

The obligated recipient is UNIVERSAL SERVICE ADMINISTRATIVE COMPANY.

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $25.1 million.

What is the period of performance?

Start: 2023-08-17. End: 2025-08-16.

What is the specific scope of 'Administrative Management and General Management Consulting Services' for this contract?

The scope of 'Administrative Management and General Management Consulting Services' for this contract likely encompasses a range of activities essential for the effective operation of the Emergency Connectivity Fund. This could include program planning and strategy development, operational support, financial management and reporting, data analysis and performance monitoring, stakeholder engagement, and policy implementation support. Given the nature of the Emergency Connectivity Fund, which aims to provide internet access to eligible households, these services would be critical for processing applications, disbursing funds, ensuring compliance, and tracking program outcomes. The specific details would be outlined in the Performance Work Statement (PWS) attached to the contract, detailing deliverables, timelines, and performance standards.

How does the $25 million contract value compare to other federal contracts for similar administrative support services?

Comparing the $25 million contract value to other federal contracts for similar administrative support services requires context regarding the scale and complexity of the program being supported. For large-scale federal initiatives like the Emergency Connectivity Fund, which involves significant financial disbursement and broad national reach, a $25 million award over two years (approximately $12.5 million per year) is generally considered moderate. Many federal program management contracts can range from a few million to hundreds of millions of dollars annually, depending on the agency, program scope, and duration. This contract's value suggests a substantial but not exceptionally large investment in administrative support, likely reflecting the specific needs and operational demands of the ECF program.

What are the key performance indicators (KPIs) that will be used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for this contract would be defined within the Performance Work Statement (PWS) and the Quality Assurance Surveillance Plan (QASP). While specific KPIs are not detailed in the provided data, they would typically focus on the efficiency and effectiveness of the administrative support provided to the Emergency Connectivity Fund. Examples could include metrics related to application processing times, accuracy of fund disbursement, timeliness of financial reporting, adherence to program guidelines, stakeholder satisfaction (e.g., from program participants or internal FCC staff), and the contractor's ability to adapt to evolving program requirements. The firm fixed-price nature of the contract incentivizes the contractor to meet or exceed these KPIs to ensure profitability.

What is the track record of Universal Service Administrative Company (USAC) in managing federal programs of similar scale?

Universal Service Administrative Company (USAC) has a long-standing track record of managing federal programs, particularly those related to telecommunications universal service. USAC is the administrator of the federal Universal Service Fund, which supports various programs aimed at making telecommunications and broadband more affordable and accessible. These programs include the Lifeline program, the Rural Health Care Program, the Schools and Libraries Program (E-Rate), and the High Cost Program. Managing these complex, multi-billion dollar programs requires significant administrative and operational expertise. Therefore, USAC possesses substantial experience in managing large-scale federal funding initiatives, making them a logical choice for administering aspects of the Emergency Connectivity Fund.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks associated with this contract include scope creep, where the requirements of the Emergency Connectivity Fund may expand beyond the initial contract scope, leading to cost increases or performance issues. Another risk is contractor performance failure, where USAC might not meet the required service levels. Dependence on a single entity for critical administrative functions also poses a risk. Mitigation strategies would typically involve robust contract management by the FCC, including clear definition of scope in the PWS, regular performance reviews against defined KPIs, and established procedures for addressing performance deficiencies. The firm fixed-price structure itself acts as a mitigation for cost overruns, incentivizing efficient management by the contractor.

How does this contract align with the Federal Communications Commission's broader strategic goals for broadband deployment and digital equity?

This contract directly aligns with the Federal Communications Commission's (FCC) broader strategic goals for broadband deployment and digital equity. The Emergency Connectivity Fund (ECF) program itself was established to help close the digital divide by providing eligible households with internet access and connected devices. By awarding this contract for administrative management and consulting services, the FCC is ensuring that the ECF program is operated efficiently and effectively. This administrative support is crucial for the successful implementation of ECF, which in turn contributes to the FCC's overarching mission of promoting broadband availability, affordability, and adoption across the nation, thereby advancing digital equity.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 12TH ST NW, WASHINGTON, DC, 20005

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

Financial Breakdown

Contract Ceiling: $25,073,369

Exercised Options: $25,073,369

Current Obligation: $25,073,369

Actual Outlays: $25,073,369

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline