USAID's $14M consulting contract with NATHAN ASSOCIATES LLC saw 7 bidders under full and open competition

Contract Overview

Contract Amount: $14,090,975 ($14.1M)

Contractor: Nathan Associates LLC

Awarding Agency: Agency for International Development

Start Date: 2005-08-19

End Date: 2011-02-28

Contract Duration: 2,019 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TAS::72 1000::TAS - COMPETITIVENESS

Plain-Language Summary

Agency for International Development obligated $14.1 million to NATHAN ASSOCIATES LLC for work described as: TAS::72 1000::TAS - COMPETITIVENESS Key points: 1. The contract's duration of nearly 6 years suggests a need for sustained advisory services. 2. A Cost Plus Fixed Fee (CPFF) pricing structure was utilized, which can incentivize cost control but requires careful oversight. 3. The number of bidders (7) indicates a healthy level of competition for this type of service. 4. The contract was awarded under a Definitive Contract vehicle, a common choice for long-term engagements. 5. The NAICS code 541618 points to 'Other Management Consulting Services', a broad category. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $14 million contract over nearly six years is challenging without specific deliverables. The CPFF structure, while common, can lead to higher costs if not managed tightly. Comparing it to similar large-scale, long-term management consulting contracts for international development agencies would provide better context on whether the overall cost was reasonable for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with seven bidders vying for the opportunity. This suggests a robust competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The presence of multiple bidders indicates that the market for these services is sufficiently developed and accessible.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are likely the Agency for International Development (USAID) itself, receiving expert advice to support its mission. Services delivered would encompass management consulting, potentially aiding in program strategy, operational efficiency, and policy development. The geographic impact is likely global, aligning with USAID's international development mandate. Workforce implications could include the engagement of specialized consultants, potentially augmenting USAID's internal capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not rigorously monitored.
Scope creep could increase costs without proportional benefit if not managed effectively.
Reliance on external consultants may reduce internal capacity building over the long term.

Positive Signals

Full and open competition suggests a competitive market, potentially leading to better value.
A Definitive Contract vehicle provides a stable framework for long-term engagement.
The engagement of a specialized firm like NATHAN ASSOCIATES LLC implies access to specific expertise.

Sector Analysis

This contract falls within the Management Consulting services sector, a critical support industry for government agencies. The market for these services is large and diverse, with numerous firms capable of providing strategic advice and operational support. This specific contract, awarded by USAID, likely focuses on international development consulting, a niche within the broader management consulting landscape. Comparable spending benchmarks would involve looking at other large, long-term consulting contracts awarded by development-focused agencies.

Small Business Impact

There is no indication that this contract included a small business set-aside. The competitive nature suggests that larger, established firms were likely participants. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific needs of the project. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting occurred.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers at USAID. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency is facilitated by the public nature of contract awards, though specific performance details may be proprietary. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

USAID Management Consulting Services
International Development Advisory Contracts
Government Management and Technical Consulting Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee structure requires diligent oversight to prevent cost overruns.
Long contract duration may impact knowledge transfer and internal capacity building.
Specific performance metrics and outcomes are not detailed, making value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $14.1 million to NATHAN ASSOCIATES LLC. TAS::72 1000::TAS - COMPETITIVENESS

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 $14.1 million.

What is the period of performance?

Start: 2005-08-19. End: 2011-02-28.

What specific types of management consulting services were provided under this contract?

While the NAICS code 541618 broadly covers 'Other Management Consulting Services,' the specific services under this USAID contract likely focused on areas critical to international development. This could include strategic planning, policy analysis, program evaluation, organizational development, financial management advisory, and operational efficiency improvements for USAID's global programs. Given the long duration and CPFF structure, the services were likely complex and required ongoing support rather than discrete, short-term tasks. Detailed statements of work and performance reports, if publicly available, would offer more precise insights into the nature of the consulting provided.

How does the $14 million cost compare to similar long-term consulting contracts for international development agencies?

Directly comparing the $14 million cost without detailed performance metrics and scope is difficult. However, for a nearly six-year engagement involving specialized management consulting for an agency like USAID, this figure appears within a plausible range, especially considering the complexity of international development work. Similar contracts for agencies such as the Department of State or the World Bank, supporting long-term advisory roles, can also run into millions of dollars. The key determinant of value would be the effectiveness and impact of the consulting services on USAID's mission objectives, which are not fully detailed in the provided data. A thorough benchmark would require analyzing the specific deliverables and outcomes against the investment.

What were the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If the government does not maintain rigorous oversight and control over the contractor's expenditures, costs can escalate beyond initial projections. Another risk is the contractor's incentive to increase costs to maximize profit, although the fixed fee is intended to mitigate this. For USAID, ensuring that the 'costs' incurred were truly necessary and directly related to achieving the contract's objectives was paramount. Effective management of scope and performance was crucial to mitigate these risks and ensure value for money.

What was the track record of NATHAN ASSOCIATES LLC with USAID or similar agencies prior to this award?

Information regarding NATHAN ASSOCIATES LLC's specific track record with USAID or similar agencies prior to this 2005 award is not detailed in the provided data. However, the fact that they were awarded a significant, long-term contract under full and open competition suggests they likely possessed relevant experience and qualifications that met USAID's requirements at the time. Government contract databases and past performance reviews would typically inform such award decisions. Further investigation into their contract history with federal agencies would provide a clearer picture of their established performance and relationship with clients like USAID.

How did the competition level (7 bidders) influence the final contract price and terms?

A competition level of seven bidders generally indicates a healthy and active market for the services sought. This level of competition typically exerts downward pressure on pricing, as firms strive to offer competitive bids to secure the contract. It also encourages bidders to refine their proposals to offer the best value, potentially including more favorable terms or innovative approaches. For USAID, having seven bidders likely resulted in a more advantageous price and a stronger pool of qualified candidates than if there had been only one or two offers. This competitive dynamic is a key mechanism for ensuring efficient use of taxpayer funds.

What are the implications of the contract's long duration (2005-2011) for program continuity and knowledge retention?

The extended duration of this contract, spanning nearly six years, suggests a need for sustained, long-term support for specific USAID initiatives or functions. This continuity can be beneficial for program stability and the development of deep institutional knowledge within the contractor's team regarding USAID's operations and objectives. However, it also raises questions about knowledge transfer and retention within USAID itself. Over such a long period, there's a risk that critical expertise resides primarily with the contractor, potentially leading to a gap if the relationship ends or if USAID aims to build more internal capacity. Effective knowledge management strategies by both parties would be crucial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting 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: 11104022

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2101 WILSON BLVD STE 1200, ARLINGTON, VA, 22201

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,090,975

Exercised Options: $14,090,975

Current Obligation: $14,090,975

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline