Millennium Challenge Corporation awards $6M+ contract for consulting services to Dalberg Consulting US LLC

Contract Overview

Contract Amount: $6,062,666 ($6.1M)

Contractor: Dalberg Consulting US LLC

Awarding Agency: Millennium Challenge Corporation

Start Date: 2022-05-23

End Date: 2027-05-22

Contract Duration: 1,825 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PRIVATE SECTOR OPPORTUNITIES ASSESSMENTS SUPPORT SERVICES

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10017

State: New York Government Spending

Plain-Language Summary

Millennium Challenge Corporation obligated $6.1 million to DALBERG CONSULTING US LLC for work described as: PRIVATE SECTOR OPPORTUNITIES ASSESSMENTS SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a long-term need for these services. 3. Services fall under Administrative Management and General Management Consulting, a broad category. 4. The award amount is moderate for consulting services of this duration. 5. No small business set-aside was utilized, indicating the primary awardee is not an SMB. 6. The contract type is Time and Materials, which can pose cost control challenges if not managed closely.

Value Assessment

Rating: fair

The contract value of approximately $6 million over five years averages to $1.2 million annually. Benchmarking this against similar management consulting contracts is challenging without more specific service details. However, the Time and Materials pricing structure necessitates close monitoring to ensure value for money, as costs can escalate if not managed effectively. The absence of a fixed price or ceiling could indicate a higher risk of cost overruns compared to firm-fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates two bids were received. While two bidders suggest some level of competition, it is on the lower end for a contract of this potential value and duration. A higher number of bidders typically leads to more robust price discovery and potentially better pricing for the government.

Taxpayer Impact: The limited number of bids received in this full and open competition may mean that taxpayers did not benefit from the most competitive pricing achievable. Further analysis would be needed to determine if the pricing reflects a fair market value given the limited competition.

Public Impact

The Millennium Challenge Corporation (MCC) is the primary beneficiary, receiving support for its administrative and management functions. The services delivered are expected to enhance the operational efficiency and strategic planning of the MCC. The contract is geographically focused on New York, where the contractor is located. The contract is likely to impact a small team of consultants within Dalberg Consulting US LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Only two bids were received, which may indicate limited competition and potentially higher costs for taxpayers.
The specific deliverables and performance metrics are not detailed, making it harder to assess performance outcomes.
The contract duration of five years is substantial, requiring ongoing oversight to ensure continued relevance and value.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The contractor, Dalberg Consulting US LLC, is likely selected based on specific expertise relevant to MCC's needs.
The contract aims to support critical administrative and management functions, suggesting a focus on improving government operations.

Sector Analysis

This contract falls within the management and professional services sector, specifically administrative management and general management consulting. This sector is crucial for government agencies seeking specialized expertise to improve operations, strategy, and efficiency. The market for such services is competitive, with numerous firms offering a wide range of capabilities. The annual value of this contract is moderate within the broader federal consulting spend.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the awardee, Dalberg Consulting US LLC, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless subcontracting opportunities are pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Millennium Challenge Corporation's contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is generally facilitated through federal contract databases, but detailed performance reports are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Professional Services Contracts
Federal Consulting Awards

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited competition (2 bidders) may impact price discovery and taxpayer value.
Long contract duration (5 years) requires sustained oversight.
Lack of detailed performance metrics in provided data hinders outcome assessment.

Frequently Asked Questions

What is this federal contract paying for?

Millennium Challenge Corporation awarded $6.1 million to DALBERG CONSULTING US LLC. PRIVATE SECTOR OPPORTUNITIES ASSESSMENTS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DALBERG CONSULTING US LLC.

Which agency awarded this contract?

Awarding agency: Millennium Challenge Corporation (Millennium Challenge Corporation).

What is the total obligated amount?

The obligated amount is $6.1 million.

What is the period of performance?

Start: 2022-05-23. End: 2027-05-22.

What is the track record of Dalberg Consulting US LLC with the federal government?

Information regarding Dalberg Consulting US LLC's specific track record with the federal government is not provided in the data. To assess their track record, one would typically look at past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A thorough review would involve searching federal procurement databases and performance review systems to understand their past performance, reliability, and adherence to contract terms and conditions in previous government engagements. Without this data, it's difficult to gauge their experience and success in delivering services to federal agencies.

How does the average annual value of this contract compare to similar consulting contracts awarded by the MCC or other agencies?

The average annual value of this contract is approximately $1.2 million ($6.06M / 5 years). Benchmarking this against similar consulting contracts requires access to a broader dataset of federal procurements for management and administrative consulting services. Factors such as contract duration, scope of work complexity, and the specific agency's budget and needs influence pricing. Generally, consulting contracts can range from tens of thousands to tens of millions annually. Without specific comparable contracts for similar services and scope, it's difficult to definitively state if $1.2 million annually is high, low, or average. However, for specialized consulting, this figure is within a plausible range for a multi-year engagement.

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

The primary risks associated with a Time and Materials (T&M) contract, especially one spanning five years, revolve around cost control and potential for scope creep. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if not rigorously managed. For the government, the risk is that costs could exceed initial estimates significantly if the work is not well-defined, if labor hours are not closely monitored, or if the scope of work expands without proper controls. Effective oversight, detailed task orders, and strong performance management are crucial to mitigate these risks and ensure value for money.

What is the potential impact of having only two bidders on this contract?

Having only two bidders in a full and open competition can have several implications. Firstly, it suggests that the market for this specific service might be limited, or that the barriers to entry for this particular solicitation were high, potentially deterring other qualified firms. Secondly, with fewer competitors, the government may have less leverage in negotiating favorable pricing. The winning bidder might face less pressure to offer highly competitive rates compared to a scenario with numerous bidders. This could potentially lead to higher costs for taxpayers. However, it's also possible that these two bidders were the most qualified, and the pricing offered was still competitive within that limited pool.

How does the NAICS code 541611 (Administrative Management and General Management Consulting Services) typically fare in terms of competition and pricing in federal contracting?

The NAICS code 541611, covering Administrative Management and General Management Consulting Services, is a broad category that sees significant activity in federal contracting. Competition within this sector can vary widely depending on the specific niche, agency, and scope of work. While some specialized consulting areas might have fewer players, general management consulting often attracts a large number of bidders, including large corporations, specialized firms, and smaller businesses. Pricing is also variable, influenced by the complexity of the task, the level of expertise required, and the duration of the contract. Contracts under this code can range from small, short-term advisory roles to large, multi-year strategic support engagements. The presence of only two bidders in this instance might suggest a more specialized sub-segment or specific requirements of the solicitation.

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

Solicitation ID: 95332422Q0014

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1401 K ST NW STE 900, WASHINGTON, DC, 20005

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

Financial Breakdown

Contract Ceiling: $7,752,690

Exercised Options: $7,752,690

Current Obligation: $6,062,666

Actual Outlays: $-600,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0188V

IDV Type: FSS

Timeline