Agency for International Development awards $31M contract for organizational performance consulting to Encompass LLC

Contract Overview

Contract Amount: $30,957,616 ($31.0M)

Contractor: Encompass LLC

Awarding Agency: Agency for International Development

Start Date: 2021-03-23

End Date: 2025-02-13

Contract Duration: 1,423 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DDI/ED_DESIGNING EFFECTIVE EVIDENCE-BASED ENGAGEMENT AND LEARNING FOR ORGANIZATIONAL PERFORMANCE (DEVELOP) - DESIGNING EFFECTIVE EVIDENCE-BASED ENGAGEMENT AND LEARNING FOR ORGANIZATIONAL PERFORMANCE (DEVELOP) IS EXPECTED TO PROVIDE CONTINUING SERVICE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $31.0 million to ENCOMPASS LLC for work described as: DDI/ED_DESIGNING EFFECTIVE EVIDENCE-BASED ENGAGEMENT AND LEARNING FOR ORGANIZATIONAL PERFORMANCE (DEVELOP) - DESIGNING EFFECTIVE EVIDENCE-BASED ENGAGEMENT AND LEARNING FOR ORGANIZATIONAL PERFORMANCE (DEVELOP) IS EXPECTED TO PROVIDE CONTINUING SERVICE Key points: 1. Contract focuses on designing effective, evidence-based engagement and learning strategies. 2. The contract duration is over 3 years, indicating a need for sustained support. 3. Administrative Management and General Management Consulting Services are core to the contract's scope. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed carefully. 6. The agency's investment signals a commitment to improving internal operational effectiveness.

Value Assessment

Rating: fair

The contract value of $30.96 million over approximately 3.5 years for consulting services appears within a reasonable range for large-scale organizational development projects. Benchmarking against similar contracts for management consulting services to federal agencies would provide a clearer picture of value for money. The Time and Materials pricing structure necessitates close monitoring to ensure costs remain aligned with the expected outcomes and do not escalate beyond initial projections. Without specific performance metrics or deliverables tied to the pricing, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 5 bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The agency's decision to use full and open competition implies confidence in the market's ability to provide suitable solutions for their organizational performance needs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiary is the Agency for International Development, which will receive enhanced organizational performance through improved engagement and learning strategies. Services delivered include consulting on designing effective, evidence-based approaches to organizational development. The geographic impact is primarily internal to the agency's operations, potentially affecting its global development initiatives. Workforce implications may include training and development opportunities for agency staff to adopt new engagement and learning methodologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type carries inherent risk of cost overruns if not closely managed and monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and value of the services.
The broad scope of 'organizational performance' could lead to scope creep if not clearly defined and managed.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract duration suggests a strategic, long-term investment in organizational improvement.
The focus on 'evidence-based' strategies aligns with best practices for effective program design.

Sector Analysis

This contract falls within the Management and Business Professional Services sector, specifically focusing on administrative and general management consulting. This sector is crucial for government agencies seeking to optimize operations, improve efficiency, and implement strategic initiatives. The market for such services is robust, with numerous firms capable of providing expertise in organizational development, performance improvement, and evidence-based practices. The $31 million award is a significant investment, reflecting the agency's commitment to enhancing its internal capabilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Encompass LLC, may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist at the Agency for International Development. Performance monitoring, invoice review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract award databases and public reporting mechanisms. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Management and Consulting Services
Organizational Development
Performance Improvement Consulting
Evidence-Based Program Design
Federal Agency Operational Efficiency

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Scope definition and management are critical for success.
Reliance on contractor's expertise for evidence-based strategy development.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $31.0 million to ENCOMPASS LLC. DDI/ED_DESIGNING EFFECTIVE EVIDENCE-BASED ENGAGEMENT AND LEARNING FOR ORGANIZATIONAL PERFORMANCE (DEVELOP) - DESIGNING EFFECTIVE EVIDENCE-BASED ENGAGEMENT AND LEARNING FOR ORGANIZATIONAL PERFORMANCE (DEVELOP) IS EXPECTED TO PROVIDE CONTINUING SERVICE

Who is the contractor on this award?

The obligated recipient is ENCOMPASS LLC.

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 $31.0 million.

What is the period of performance?

Start: 2021-03-23. End: 2025-02-13.

What is the track record of Encompass LLC in delivering similar organizational performance consulting services to federal agencies?

Assessing the track record of Encompass LLC requires a deeper dive into their past performance on federal contracts. Information regarding their successful completion of similar projects, client satisfaction ratings, and any past performance issues would be crucial. Reviewing past performance evaluations, contract close-out reports, and any publicly available case studies or testimonials related to organizational development, evidence-based strategies, and learning program design would provide insight into their capabilities and reliability. Without this specific data, it is difficult to definitively assess their suitability and past success in this domain.

How does the awarded amount of $30.96 million compare to similar large-scale organizational consulting contracts within the federal government?

The $30.96 million award for organizational performance consulting is a substantial figure, indicative of a large-scale, multi-year engagement. To benchmark this value, one would compare it against contracts for similar services (e.g., management consulting, strategic planning, organizational development) awarded to other federal agencies or within the same sector. Factors such as contract duration, scope of work complexity, number of personnel involved, and the specific expertise required would influence comparability. A preliminary assessment suggests this is a significant investment, and a detailed market analysis of comparable contracts would be necessary to determine if it represents excellent, good, or fair value for money.

What are the primary risks associated with a Time and Materials (T&M) contract for organizational consulting services?

The primary risk associated with a Time and Materials (T&M) contract for organizational consulting services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred. If not meticulously managed and monitored, this structure can lead to escalating expenses if the project scope expands, timelines are extended, or contractor efficiency is low. Effective oversight, clear task definitions, and robust progress tracking are essential to mitigate these risks and ensure the contract remains within budget and delivers the intended value.

How will the success and effectiveness of the 'Designing Effective Evidence-Based Engagement and Learning for Organizational Performance (DEVELOP)' initiative be measured?

Measuring the success and effectiveness of the DEVELOP initiative will likely involve establishing Key Performance Indicators (KPIs) and specific, measurable, achievable, relevant, and time-bound (SMART) objectives. These metrics should align with the agency's goals for improved organizational performance, engagement, and learning. Examples could include improvements in employee satisfaction scores, enhanced efficiency in program delivery, successful implementation of new learning modules, or demonstrable positive impacts on development outcomes attributable to better engagement strategies. Regular performance reviews and data analysis will be critical to track progress against these KPIs and make necessary adjustments.

What is the historical spending trend for administrative management and general management consulting services by the Agency for International Development?

To understand the historical spending trend for administrative management and general management consulting services by the Agency for International Development (USAID), one would need to analyze procurement data over several fiscal years. This analysis would involve identifying contracts categorized under NAICS code 541611 (Administrative Management and General Management Consulting Services) awarded by USAID. Examining the total dollar amounts obligated annually, the number of contracts awarded, and the types of services procured would reveal patterns. This historical context is vital for understanding if the current $30.96 million award represents an increase, decrease, or consistent level of investment in these types of services.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1100 WAYNE AVE STE 1200, SILVER SPRING, MD, 20910

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

Financial Breakdown

Contract Ceiling: $36,444,132

Exercised Options: $36,444,132

Current Obligation: $30,957,616

Actual Outlays: $25,816,458

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $587,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA19D00BV

IDV Type: FSS

Timeline