Environmental Consulting Services contract awarded to ENVIRONMENTAL INCENTIVES, INC. for over $77.9M

Contract Overview

Contract Amount: $77,953,806 ($78.0M)

Contractor: Environmental Incentives, Inc.

Awarding Agency: Agency for International Development

Start Date: 2020-02-19

End Date: 2025-03-11

Contract Duration: 1,847 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PPL PROGRAM CYCLE AWARD

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $78.0 million to ENVIRONMENTAL INCENTIVES, INC. for work described as: PPL PROGRAM CYCLE AWARD Key points: 1. Contract value exceeds $77.9 million over its lifecycle. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. Contract duration extends nearly five years, indicating a long-term need for services. 4. Services are categorized under Environmental Consulting, a critical sector for agency operations. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The contractor, ENVIRONMENTAL INCENTIVES, INC., has secured a significant award in this domain.

Value Assessment

Rating: fair

The contract's total value of over $77.9 million over approximately five years suggests a substantial investment in environmental consulting. Benchmarking this against similar large-scale environmental consulting contracts would be necessary for a precise value-for-money assessment. The Time and Materials pricing structure, while flexible, carries inherent risks for cost escalation if not managed diligently. Without specific performance metrics or comparison data, it's difficult to definitively assess if the pricing is competitive or if the value delivered aligns with market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The full and open competition process likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award, as multiple firms vied for the contract.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which will receive environmental consulting services. Services delivered are expected to support environmental initiatives and compliance efforts. The contract is geographically focused on Washington D.C., where the agency is headquartered. The contract may have implications for the environmental consulting workforce, potentially creating or sustaining jobs in this field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Long contract duration (over 4 years) increases the risk of scope creep or evolving requirements not being adequately addressed.
Lack of specific performance benchmarks makes it challenging to assess contractor efficiency and effectiveness.
Potential for contractor to prioritize billable hours over optimal solutions due to T&M structure.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Multiple bidders (6) suggest significant market interest and potential for competitive pricing.
Contractor has secured a substantial award, implying a level of trust and capability.
Long-term contract provides stability for essential environmental consulting services.

Sector Analysis

Environmental consulting services encompass a broad range of activities, including environmental impact assessments, regulatory compliance, natural resource management, and sustainability planning. This sector is crucial for government agencies to meet environmental mandates and manage their ecological footprint. The market for these services is competitive, with numerous firms offering specialized expertise. The size of this contract, exceeding $77.9 million, positions it as a significant award within the federal environmental consulting landscape, likely supporting major agency-wide initiatives.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Agency for International Development's contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Compliance Services
Environmental Consulting
Natural Resource Management
Sustainability Consulting
Agency for International Development Contracts

Risk Flags

Time and Materials contract type
Long contract duration
Potential for cost overruns
Lack of specific performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $78.0 million to ENVIRONMENTAL INCENTIVES, INC.. PPL PROGRAM CYCLE AWARD

Who is the contractor on this award?

The obligated recipient is ENVIRONMENTAL INCENTIVES, INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $78.0 million.

What is the period of performance?

Start: 2020-02-19. End: 2025-03-11.

What is the track record of ENVIRONMENTAL INCENTIVES, INC. with federal contracts, particularly in environmental consulting?

ENVIRONMENTAL INCENTIVES, INC. has a history of securing federal contracts, with this award being a significant one. Analyzing their past performance on similar contracts, including their success in meeting deadlines, budget adherence, and client satisfaction, is crucial. A review of their contract history would reveal if they have consistently delivered quality services and managed projects effectively. Understanding their experience with the Agency for International Development specifically, or with contracts of similar scope and value, would provide further insight into their capabilities and reliability as a federal contractor in the environmental consulting space.

How does the awarded amount of over $77.9 million compare to similar environmental consulting contracts awarded by USAID or other agencies?

The $77.9 million total contract value is substantial and suggests a significant scope of work or a long-term engagement. To benchmark its value, one would compare it to other large-scale environmental consulting contracts awarded by USAID or similar agencies (e.g., EPA, Department of Interior) over the past few years. Factors like contract duration, specific services required (e.g., impact assessments, policy development, field work), and the number of bidders influence pricing. If comparable contracts for similar services and durations are significantly lower, it might indicate potential overpricing or a less competitive bid. Conversely, if it aligns with or is lower than benchmarks, it suggests reasonable value.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

Time and Materials contracts, while offering flexibility, carry inherent risks, especially for large, long-duration awards like this one. The primary risk is cost escalation, as the government pays for the labor hours and materials used, rather than a fixed price. Without stringent oversight and well-defined task orders, contractors may have less incentive to control costs or complete work efficiently, potentially leading to budget overruns. For this $77.9 million contract spanning nearly five years, risks include scope creep where tasks expand without formal change orders, inefficient labor utilization, and difficulty in accurately forecasting the total expenditure. Robust monitoring by the agency is essential to mitigate these risks.

How effective are the competition dynamics (6 bidders) in ensuring optimal price discovery and value for this contract?

Having six bidders in a full and open competition generally indicates a healthy level of market interest and competition, which is positive for price discovery. This number suggests that multiple firms found the opportunity attractive and believed they could offer competitive solutions. A larger pool of bidders typically drives down prices as companies vie for the award. However, the effectiveness also depends on the quality and competitiveness of the bids submitted. If the bids were clustered at a high price point, it might suggest market limitations or that the government's requirements were highly specific, limiting the number of truly competitive offers. Nonetheless, six bidders is a strong signal that the government likely received competitive pricing.

What are the potential implications of this contract on the Agency for International Development's environmental program effectiveness?

This contract's value and duration suggest it is intended to support significant environmental program objectives for USAID. The effectiveness hinges on the quality of the consulting services provided by ENVIRONMENTAL INCENTIVES, INC. If the contractor delivers high-quality analysis, strategic advice, and effective implementation support, it can significantly enhance USAID's ability to achieve its environmental goals, whether related to international development, climate change adaptation, or conservation efforts. Conversely, if the services are subpar or misaligned with program needs, it could hinder progress and represent a poor use of taxpayer funds. Clear performance metrics and active program oversight are critical to ensuring the contract contributes positively to USAID's mission.

What is the historical spending pattern for environmental consulting services by the Agency for International Development?

Analyzing historical spending patterns for environmental consulting at USAID would provide context for this $77.9 million award. This involves examining previous contract awards for similar services, their values, durations, and the contractors involved. Understanding whether this contract represents an increase, decrease, or stable level of spending in this area is important. It would also reveal if ENVIRONMENTAL INCENTIVES, INC. has been a frequent recipient of such contracts or if this is a new relationship. Trends in spending can indicate shifts in agency priorities, increased focus on environmental issues, or changes in contracting strategies. Without specific historical data, it's difficult to ascertain if this award is an anomaly or part of a consistent pattern.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 725 15TH ST NW FL 10, WASHINGTON, DC, 20005

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $79,792,188

Exercised Options: $79,792,188

Current Obligation: $77,953,806

Actual Outlays: $71,891,513

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $25,365,456

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F193DA

IDV Type: FSS

Timeline