FTC awards $2.1M contract for expert services to Bates White, LLC, with no competition

Contract Overview

Contract Amount: $2,135,590 ($2.1M)

Contractor: Bates White, LLC

Awarding Agency: Federal Trade Commission

Start Date: 2023-06-16

End Date: 2026-06-15

Contract Duration: 1,095 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXPERT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $2.1 million to BATES WHITE, LLC for work described as: EXPERT SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of 1095 days suggests a long-term need for specialized consulting. 3. Services fall under 'Other Scientific and Technical Consulting Services,' indicating a need for external expertise. 4. The 'Time and Materials' pricing structure can lead to cost overruns if not closely monitored. 5. Awarded to a single vendor, Bates White, LLC, without a competitive bidding process. 6. The contract's value of $2.1M warrants scrutiny regarding its necessity and efficiency.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar expert services. The 'Time and Materials' pricing model, while common for expert services, carries inherent risks of cost escalation. Without competitive bids, it's difficult to ascertain if the selected vendor's rates represent fair market value or if taxpayers are receiving optimal value for the $2.1M expenditure. Further analysis of Bates White, LLC's specific expertise and historical performance on similar contracts would be needed for a more definitive assessment.

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. The Federal Trade Commission (FTC) did not conduct a bidding process to solicit offers from multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or expertise required for the service, or in cases of urgent need. The lack of competition means there was no opportunity for price discovery through market forces, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards limit opportunities for other qualified firms to secure government contracts and can result in higher prices for taxpayers due to the absence of competitive pressure.

Public Impact

The Federal Trade Commission benefits from specialized expert services to support its mission. Services likely involve complex analysis and consultation related to the FTC's regulatory and enforcement activities. The contract's impact is primarily internal to the FTC, supporting its operational needs. Workforce implications are minimal, as this contract focuses on external expert support rather than direct hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs.
Time and Materials pricing structure poses a risk of cost overruns.
Sole-source award limits opportunities for other vendors.
Transparency regarding the justification for sole-source award could be improved.

Positive Signals

Awarded to a known entity, Bates White, LLC, potentially indicating specialized expertise.
Contract duration suggests a clear, long-term need for the services.
Services are categorized under 'Other Scientific and Technical Consulting Services,' implying a specific, high-value function.

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector encompasses a broad range of specialized advisory and analytical support. This contract likely falls within the professional services segment of the federal market, which is characterized by a mix of large established firms and niche consultancies. Federal agencies frequently procure such services to augment internal capabilities for complex tasks, research, and policy analysis. Benchmarking this specific award against similar sole-source procurements for expert consulting within regulatory agencies would provide further context on its relative value.

Small Business Impact

This contract does not appear to involve a small business set-aside, as Bates White, LLC is a known entity in the consulting space, and the contract was awarded sole-source. There is no indication of subcontracting requirements for small businesses within the provided data. The lack of a set-aside or subcontracting plan means this particular award does not directly contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Trade Commission's internal procurement and program management offices. As a sole-source award, the justification for its necessity and the vendor's performance would be subject to internal review. Transparency regarding the specific services rendered and the adherence to the 'Time and Materials' cap would be key aspects of oversight. The Inspector General's office for the FTC may also have jurisdiction to investigate potential waste, fraud, or abuse if concerns arise.

Related Government Programs

Federal Acquisition Regulation (FAR) Part 15
Federal Acquisition Regulation (FAR) Part 13
Consulting Services
Expert Witness Services
Economic Consulting

Risk Flags

Sole-source award lacks competitive pricing.
Time and Materials pricing increases risk of cost overruns.
Lack of transparency on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $2.1 million to BATES WHITE, LLC. EXPERT SERVICES

Who is the contractor on this award?

The obligated recipient is BATES WHITE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2023-06-16. End: 2026-06-15.

What is the specific nature of the expert services Bates White, LLC is providing to the FTC?

The provided data indicates the contract is for 'Other Scientific and Technical Consulting Services' (NAICS code 541690). While the specific nature of the services is not detailed, this category typically includes expert advice, analysis, and consultation in specialized scientific or technical fields. Given the FTC's mission, these services could relate to economic analysis, antitrust matters, consumer protection investigations, or litigation support. The 'Time and Materials' contract type suggests that the scope may be flexible or evolve, requiring ongoing expert input rather than a fixed deliverable.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. Federal Acquisition Regulation (FAR) 6.302 outlines circumstances for other than full and open competition, such as when only one responsible source is available or when the agency's need is of such urgency that the government would be seriously injured if the contract were not awarded immediately. Without further documentation from the FTC, the precise justification for this sole-source award remains unknown, but it implies a belief that Bates White, LLC possesses unique qualifications or that competition was otherwise not feasible or advantageous.

How does the 'Time and Materials' pricing structure impact cost control for this contract?

The 'Time and Materials' (T&M) pricing structure means the government pays the contractor for the actual labor hours expended at agreed-upon hourly rates, plus the cost of materials used. While T&M can be suitable for services where the scope is not clearly defined or is expected to change, it presents a significant risk for cost control. Unlike fixed-price contracts, there is no ceiling on the total cost unless a contract ceiling is explicitly stated and enforced. Effective oversight, including detailed tracking of hours, rigorous review of invoices, and potentially establishing cost-plus-fixed-fee elements or strict not-to-exceed limits, is crucial to prevent cost overruns and ensure value for money.

What is Bates White, LLC's track record with the federal government, particularly the FTC?

The provided data indicates Bates White, LLC is the awardee for this specific contract. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS-NG for historical contract awards to Bates White, LLC across various agencies. This would reveal the types of services they have provided, their performance history (if documented), and the value of previous contracts. Without access to this broader historical data, it's difficult to comment on their overall track record, though their selection for this sole-source award suggests they are considered a qualified provider by the FTC.

Are there comparable contracts for similar expert services that can be used for benchmarking?

Benchmarking this contract is difficult without more specific details on the 'expert services' provided. However, the NAICS code 541690 ('Other Scientific and Technical Consulting Services') is broad. To find comparable contracts, one would search federal procurement databases for awards to other firms providing similar consulting services to agencies like the FTC, particularly those awarded on a sole-source or competed basis. Analyzing the contract value, duration, and pricing structure (e.g., T&M vs. fixed-price) of these comparable contracts would help determine if the $2.1M award to Bates White, LLC is within a reasonable range for the services rendered.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2001 K ST NW N BUILDING STE 500, WASHINGTON, DC, 20006

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: $2,280,590

Exercised Options: $2,280,590

Current Obligation: $2,135,590

Actual Outlays: $2,129,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline