FTC awards $3.8M contract for expert services to Berkeley Research Group, LLC

Contract Overview

Contract Amount: $3,820,691 ($3.8M)

Contractor: Berkeley Research Group, LLC

Awarding Agency: Federal Trade Commission

Start Date: 2022-11-09

End Date: 2026-11-08

Contract Duration: 1,460 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPERT SERVICES

Place of Performance

Location: EMERYVILLE, ALAMEDA County, CALIFORNIA, 94608

State: California Government Spending

Plain-Language Summary

Federal Trade Commission obligated $3.8 million to BERKELEY RESEARCH GROUP, LLC for work described as: EXPERT SERVICES Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed diligently. 3. The duration of 1460 days (4 years) suggests a long-term need for these expert services. 4. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 5. The awardee, Berkeley Research Group, LLC, is a known entity in the consulting space. 6. The contract is managed by the Federal Trade Commission, a key regulatory body.

Value Assessment

Rating: fair

The total award amount is $3,820,691. Benchmarking this against similar expert service contracts is challenging without more specific details on the services rendered. However, the Time and Materials pricing structure necessitates close monitoring to ensure value for money. The contract's duration suggests a significant investment, and its effectiveness will depend on the quality and impact of the expert services provided over the four-year period. Without specific performance metrics or comparisons to industry standards for these particular services, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be open, specific sources may have been excluded prior to the solicitation, or the competition was reopened after an initial exclusion. The presence of two bids indicates some level of competition, but the 'exclusion of sources' aspect warrants further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: The limited competition, particularly with the exclusion of sources, may have resulted in a less competitive pricing environment, potentially leading to higher costs for taxpayers than if a broader, unrestricted competition had occurred.

Public Impact

The Federal Trade Commission benefits from access to specialized expert services to support its mission. These services likely contribute to the FTC's regulatory and enforcement activities. The geographic impact is primarily within the Federal Trade Commission's operational scope, likely Washington D.C. and potentially nationwide through its investigations. The contract supports the professional services workforce within the consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
The 'exclusion of sources' in the competition method raises questions about the extent of true open competition.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services.

Positive Signals

Awarded through a competitive process, indicating some level of market vetting.
The contractor, Berkeley Research Group, LLC, is a recognized firm in the consulting industry.
The contract supports a critical government agency (FTC) in its mission.

Sector Analysis

The professional services sector, particularly consulting, is a significant area of federal spending. This contract falls under 'Other Scientific and Technical Consulting Services' (NAICS 541690), which encompasses a broad range of specialized expertise. Federal agencies frequently procure such services to augment internal capabilities, conduct research, provide litigation support, or offer strategic advice. The market for these services is competitive, with numerous firms vying for government contracts. The $3.8 million award is moderate within the context of large federal consulting contracts, but represents a substantial investment for the specific services procured.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The awardee is Berkeley Research Group, LLC, which is typically considered a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, and there's no indication of specific efforts to engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Trade Commission's contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. The Time and Materials nature of the contract requires diligent oversight to manage labor hours and costs effectively. Transparency is facilitated through contract award databases like FPDS, but detailed operational oversight and accountability measures are internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Expert Witness Services
Management and Financial Consulting Services
Economic Consulting Services
Legal Support Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition due to 'exclusion of sources' clause.
Lack of detailed service description in summary data.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $3.8 million to BERKELEY RESEARCH GROUP, LLC. EXPERT SERVICES

Who is the contractor on this award?

The obligated recipient is BERKELEY RESEARCH GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2022-11-09. End: 2026-11-08.

What specific types of expert services are being provided under this contract?

The provided data indicates the contract is for 'EXPERT SERVICES' under NAICS code 541690 ('Other Scientific and Technical Consulting Services'). While the specific nature of these services is not detailed, this NAICS code typically covers a wide array of specialized consulting, including areas like scientific research, technical analysis, environmental consulting, and management consulting related to technical operations. Given the awarding agency is the Federal Trade Commission (FTC), these expert services could potentially relate to economic analysis, antitrust investigations, consumer protection matters, or other areas requiring specialized knowledge relevant to the FTC's regulatory and enforcement mandate. Further details would be needed from the contract's statement of work to ascertain the precise services.

How does the $3.8 million award compare to similar expert service contracts awarded by the FTC or other agencies?

Benchmarking the $3.8 million award requires comparing it to contracts for similar 'Other Scientific and Technical Consulting Services' (NAICS 541690) or expert services procured by the FTC and other federal agencies. Without access to the specific statement of work and the duration of comparable contracts, a direct comparison is difficult. However, $3.8 million over four years ($950,000 annually) is a moderate-sized contract. Agencies like the FTC often require specialized expertise for complex investigations or litigation, and costs can vary significantly based on the rarity of the expertise and the intensity of the work. A comprehensive analysis would involve reviewing historical FTC spending on similar services and broader federal procurement data for this NAICS code to establish a typical price range and identify potential outliers.

What are the potential risks associated with a Time and Materials (T&M) contract for expert services?

Time and Materials (T&M) contracts, like the one awarded to Berkeley Research Group, LLC, carry inherent risks, primarily related to cost control. In a T&M contract, the government pays the contractor for the actual labor hours expended at specified hourly rates, plus the cost of materials. The primary risk is that costs can escalate beyond initial estimates if the scope of work is not well-defined or if the contractor's efficiency is low. This can lead to cost overruns and potentially exceed the contract's ceiling amount. For expert services, ensuring the necessity and efficiency of all billed hours is crucial. Effective oversight, detailed timesheets, and clear performance expectations are vital to mitigate these risks and ensure the government receives good value for its investment.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the competition for this contract?

The contract clause 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a nuanced procurement process. It indicates that the solicitation was intended to be open to all responsible sources, but prior to this specific award, certain sources were excluded. This exclusion could stem from various reasons, such as prior performance issues, specific qualifications not met, or perhaps a previous sole-source justification that was later revised. While it aims for broad competition, the 'exclusion' element means the pool of potential bidders might have been narrower than in a standard 'full and open competition.' The fact that two bids were received suggests some level of interest, but the impact of the source exclusion on the final price and the range of solutions considered warrants scrutiny.

What is Berkeley Research Group, LLC's track record with federal contracts, particularly with the FTC?

Berkeley Research Group, LLC (BRG) is a well-established consulting firm that frequently secures federal contracts across various agencies. Publicly available data indicates BRG has a history of performing services related to economic analysis, litigation support, and management consulting for government entities. While specific details on their past performance with the FTC are not provided in the summary data, their ability to win this $3.8 million contract suggests a positive track record or strong qualifications relevant to the FTC's needs. A deeper dive into contract databases would reveal the volume and nature of their previous work with the FTC and other agencies, including performance ratings and any past issues.

How does the duration of this contract (1460 days) align with typical needs for expert services at the FTC?

A contract duration of 1460 days (4 years) is substantial and suggests that the expert services required by the FTC are anticipated to be long-term or ongoing. This duration is not uncommon for strategic support, complex research projects, or continuous advisory roles that agencies may need to fulfill their mandates effectively over multiple fiscal years. For the FTC, such a long-term engagement could support sustained efforts in areas like market analysis, regulatory development, or long-term litigation support. The extended period allows for deeper integration of the contractor's expertise and potentially greater cost efficiencies compared to multiple short-term procurements, provided performance remains high and the need persists.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFQ-FTC-1000-23-EW-0002

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2200 POWELL ST STE 1200, EMERYVILLE, CA, 94608

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,820,691

Exercised Options: $3,820,691

Current Obligation: $3,820,691

Actual Outlays: $2,923,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline