USAID's $20.3M BEACON Project awarded to Nathan Associates LLC for professional services

Contract Overview

Contract Amount: $20,277,918 ($20.3M)

Contractor: Nathan Associates LLC

Awarding Agency: Agency for International Development

Start Date: 2021-06-14

End Date: 2025-03-11

Contract Duration: 1,366 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BETTER ACCESS AND CONNECTIVITY (BEACON) PROJECT

Plain-Language Summary

Agency for International Development obligated $20.3 million to NATHAN ASSOCIATES LLC for work described as: BETTER ACCESS AND CONNECTIVITY (BEACON) PROJECT Key points: 1. Value for money appears fair given the contract type and duration, but detailed cost breakdowns are needed for a definitive assessment. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. Risk indicators are moderate, with the Cost Plus Fixed Fee structure requiring careful monitoring of expenditures. 4. Performance context is broad, encompassing 'All Other Professional, Scientific, and Technical Services,' making specific outcome evaluation challenging without further detail. 5. Sector positioning is within professional services, supporting international development initiatives.

Value Assessment

Rating: fair

The contract's total value of approximately $20.3 million over 1366 days (roughly 3.7 years) suggests a moderate annual spend. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses the contractor for allowable costs plus a fixed fee, which can be efficient if costs are well-managed. Benchmarking against similar large-scale international development support contracts would be necessary to fully assess value, but the duration and scope imply a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 5 bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the level of competition achieved.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers and can drive down costs through market forces.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which receives professional, scientific, and technical services to support its mission. Services delivered are broadly defined as 'All Other Professional, Scientific, and Technical Services,' likely encompassing analysis, research, consulting, and program support for international development projects. The geographic impact is likely global, aligning with USAID's mandate to provide foreign assistance. Workforce implications include employment for professionals in specialized fields, both within the contractor organization and potentially through local hires or subcontractors in program countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires diligent oversight to prevent cost overruns.
Broad service description ('All Other Professional, Scientific, and Technical Services') may obscure specific performance metrics and accountability.
Long contract duration necessitates sustained monitoring and adaptation to evolving program needs.

Positive Signals

Awarded under full and open competition, indicating a potentially robust selection process.
Contractor (Nathan Associates LLC) likely has a track record in providing similar professional services.
Clear start and end dates provide a defined period for service delivery and performance evaluation.

Sector Analysis

The professional, scientific, and technical services sector is vast and supports numerous government functions. This contract falls within the sub-sector of services supporting international development and foreign aid. The market for such services is competitive, with numerous firms capable of providing specialized expertise. Comparable spending benchmarks would depend on the specific nature of the services rendered, but large contracts supporting agency-wide functions can range from millions to hundreds of millions of dollars annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to the prime contractor, Nathan Associates LLC. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the BEACON project.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, USAID's contracting officers and program managers would be responsible for monitoring costs, ensuring compliance with contract terms, and evaluating performance. Transparency would be enhanced through regular reporting requirements from the contractor. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

USAID Program Support Contracts
International Development Assistance Services
Professional and Technical Services Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Measurement Ambiguity (Broad Service Category)
Long-Term Contract Management

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $20.3 million to NATHAN ASSOCIATES LLC. BETTER ACCESS AND CONNECTIVITY (BEACON) PROJECT

Who is the contractor on this award?

The obligated recipient is NATHAN ASSOCIATES 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 $20.3 million.

What is the period of performance?

Start: 2021-06-14. End: 2025-03-11.

What is Nathan Associates LLC's track record with USAID and similar federal agencies?

A comprehensive review of Nathan Associates LLC's federal contracting history would be necessary to assess their track record. This would involve examining past performance evaluations, any contract disputes or terminations, and their history of delivering services on time and within budget for USAID and other agencies. Their experience with Cost Plus Fixed Fee contracts and the specific domain of international development services would be particularly relevant. Without access to specific past performance data or award details, it's difficult to provide a definitive assessment, but their selection for a contract of this size suggests a level of established capability.

How does the estimated annual cost of this contract compare to similar USAID support contracts?

The total award of $20.3 million over approximately 3.7 years equates to an estimated annual cost of roughly $5.5 million. To benchmark this effectively, one would need to compare it against other USAID contracts providing similar 'professional, scientific, and technical services' for international development support. Factors such as the specific technical expertise required, the geographic scope of operations, and the complexity of the programs being supported would influence cost. A direct comparison would require identifying contracts with comparable scopes of work and durations within USAID's portfolio.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks with a CPFF contract of this magnitude ($20.3M) revolve around cost control and contractor incentives. While the fixed fee provides the contractor with an incentive to control costs to maximize profit, the government bears the risk of cost overruns if actual allowable costs exceed estimates. Effective oversight by USAID is crucial to ensure that all costs claimed are reasonable, allocable, and allowable. There's also a risk that the contractor might prioritize fee maximization over optimal service delivery if not properly managed. The long duration (1366 days) amplifies these risks, requiring sustained vigilance.

How will the effectiveness of the 'BETTER ACCESS AND CONNECTIVITY (BEACON) PROJECT' be measured?

The effectiveness of the BEACON Project will be measured based on the specific performance work statement (PWS) and the metrics defined within the contract. Given the broad service category ('All Other Professional, Scientific, and Technical Services'), effectiveness metrics could include deliverables met, milestones achieved, quality of analysis or recommendations provided, and impact on USAID's programmatic goals related to access and connectivity. Regular progress reports, performance reviews, and potentially independent evaluations would be used to assess contractor performance against these defined objectives.

What is the historical spending trend for 'All Other Professional, Scientific, and Technical Services' at USAID?

Analyzing historical spending trends for 'All Other Professional, Scientific, and Technical Services' at USAID would require access to detailed federal procurement data over several fiscal years. This category is broad and can encompass a wide array of services, making trend analysis challenging without further segmentation. Generally, agencies like USAID rely heavily on such services to support their diverse international development programs. Spending in this category can fluctuate based on agency priorities, specific program needs, and the availability of internal expertise versus the need for external support.

What is the significance of the contract type 'DEFINITIVE CONTRACT' in this context?

A 'Definitive Contract' is a fixed-price or cost-reimbursement contract that is fully funded and contains all the terms and clauses necessary for performance. In this case, it's a Cost Plus Fixed Fee Definitive Contract. This means the contract is established with a defined scope, price ceiling (or cost ceiling plus fee), and period of performance, unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts which may have task orders issued against them. The 'Definitive' nature here implies a clear, established agreement for the entire project duration and value, rather than a framework for future orders.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL49220R00005

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1777 N KENT ST STE 1400, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $33,276,461

Exercised Options: $33,276,461

Current Obligation: $20,277,918

Actual Outlays: $16,776,088

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline