MCC awards $2.9M contract for administrative management consulting to Nathan Associates LLC

Contract Overview

Contract Amount: $2,944,983 ($2.9M)

Contractor: Nathan Associates LLC

Awarding Agency: Millennium Challenge Corporation

Start Date: 2023-04-17

End Date: 2027-04-16

Contract Duration: 1,460 days

Daily Burn Rate: $2.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: GSI ENERGY

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Millennium Challenge Corporation obligated $2.9 million to NATHAN ASSOCIATES LLC for work described as: GSI ENERGY Key points: 1. Contract awarded for administrative management and general management consulting services. 2. Nathan Associates LLC is the contractor, with Millennium Challenge Corporation as the agency. 3. The contract is valued at $2,944,982.68 and runs from April 17, 2023, to April 16, 2027. 4. This is a Time and Materials contract type, competed under Simplified Acquisition Procedures (SAP).

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts for administrative management consulting is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below the full and open threshold. This method generally promotes price discovery but may not achieve the same level of competition as larger, full and open solicitations.

Taxpayer Impact: The use of SAP suggests an effort to obtain fair pricing for services within the simplified acquisition range, aiming for efficient use of taxpayer funds.

Public Impact

Provides essential administrative and management consulting services to the Millennium Challenge Corporation. Supports the agency's operational efficiency and program management. The contract duration of four years allows for sustained support and potential long-term impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty.
Limited detail on specific deliverables makes performance assessment challenging.
Small business participation not specified.

Positive Signals

Competed under SAP, suggesting a competitive process.
Long contract duration allows for continuity of services.
Contract awarded to a single entity, potentially indicating specialized expertise.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category. Spending in this sector can vary significantly based on agency needs and project scope. This contract appears to be within a typical range for specialized consulting services.

Small Business Impact

The data indicates the contract was not set aside for small businesses (sb: false). Further analysis would be needed to determine if small businesses had a fair opportunity to compete or if subcontracting opportunities exist.

Oversight & Accountability

Oversight will be crucial given the Time and Materials contract type to ensure costs remain within budget and services align with agency requirements. The Millennium Challenge Corporation's procurement processes should ensure accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Millennium Challenge Corporation Contracting
Millennium Challenge Corporation Programs

Risk Flags

Time and Materials contract type.
Lack of specific performance metrics in provided data.
No indication of small business subcontracting goals.
Potential for cost overruns without stringent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Millennium Challenge Corporation awarded $2.9 million to NATHAN ASSOCIATES LLC. GSI ENERGY

Who is the contractor on this award?

The obligated recipient is NATHAN ASSOCIATES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2023-04-17. End: 2027-04-16.

What specific deliverables are expected under this administrative management consulting contract, and how will their successful completion be measured to ensure value for money?

The provided data lacks specific deliverables. To ensure value, the contract should clearly define measurable outcomes, key performance indicators (KPIs), and reporting requirements. The agency's oversight should focus on tracking progress against these defined metrics and ensuring the consultant's work directly contributes to the MCC's strategic objectives and operational efficiency.

What are the potential risks associated with a Time and Materials contract for consulting services, and what mitigation strategies are in place?

Time and Materials (T&M) contracts carry inherent risks of cost escalation if not closely monitored, as payment is based on actual labor hours and material costs. Potential risks include scope creep and inefficient work. Mitigation strategies typically involve establishing clear labor rate ceilings, strict oversight of hours worked, detailed progress reporting, and defined not-to-exceed (NTE) limits for the contract.

How does the awarded price compare to industry benchmarks for similar administrative management consulting services, considering the contract's scope and duration?

Without detailed scope of work and specific service components, a precise benchmark comparison is challenging. However, the total value of $2.94 million over four years averages to approximately $736,000 annually. This figure needs to be assessed against the complexity of the MCC's needs and the specific expertise provided by Nathan Associates LLC, relative to market rates for comparable consulting engagements.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $3,686,046

Exercised Options: $3,079,026

Current Obligation: $2,944,983

Actual Outlays: $582,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 95332421A0003

IDV Type: BPA

Timeline