USAID's $23.3M Contract with Nathan & Associates for Technical Services Faces Scrutiny Over Duration and Cost

Contract Overview

Contract Amount: $23,273,272 ($23.3M)

Contractor: Nathan Associates LLC

Awarding Agency: Agency for International Development

Start Date: 2015-07-06

End Date: 2024-01-21

Contract Duration: 3,121 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF AID-482-C-15-00001 USAID PRIVATE SECTOR DEVELOPMENT - NATHAN&ASSOCIATES

Plain-Language Summary

Agency for International Development obligated $23.3 million to NATHAN ASSOCIATES LLC for work described as: IGF::OT::IGF AID-482-C-15-00001 USAID PRIVATE SECTOR DEVELOPMENT - NATHAN&ASSOCIATES Key points: 1. The contract, awarded to Nathan & Associates LLC, spans over 8 years with a total value of $23.3 million. 2. The primary service category is 'All Other Professional, Scientific, and Technical Services', a broad area that may lack specific performance metrics. 3. The contract type is 'Cost Plus Fixed Fee', which can incentivize cost overruns if not closely monitored. 4. The long duration and broad service category raise questions about the initial scope definition and ongoing necessity.

Value Assessment

Rating: questionable

The contract's total value of $23.3 million over nearly 9 years suggests a significant investment. Benchmarking is difficult without specific deliverables, but the cost-plus-fixed-fee structure warrants close examination for potential inefficiencies compared to fixed-price contracts for well-defined services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the long duration and broad service description might have limited the number of truly comparable bids or allowed for scope creep over time.

Taxpayer Impact: The significant taxpayer investment over an extended period necessitates robust oversight to ensure value for money and prevent potential cost escalations.

Public Impact

Taxpayers are funding a long-term contract for broad technical services, raising questions about efficiency and necessity. The 'Cost Plus Fixed Fee' structure could lead to higher costs than anticipated if not managed diligently. The extended contract period may not reflect current needs or the most cost-effective solutions available today.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years)
Cost-Plus-Fixed-Fee contract type
Broad service category (All Other Professional, Scientific, and Technical Services)
Lack of specific performance metrics in provided data

Positive Signals

Awarded under full and open competition
Contractor has a defined entity (Nathan & Associates LLC)

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' sector is vast and encompasses a wide range of activities. Without more specific details on the services rendered, it's challenging to benchmark against typical contract values or performance standards within this broad category.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The long duration of this contract necessitates strong oversight from the Agency for International Development to ensure that the services remain relevant, effective, and cost-efficient throughout its term. Regular performance reviews and audits are crucial.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Extended contract duration raises concerns about adaptability and potential for obsolescence.
Cost-Plus-Fixed-Fee structure can incentivize higher spending if not tightly managed.
Broad service category lacks specificity, making performance and value assessment difficult.
Potential for scope creep over the long contract term.
Lack of clear performance metrics in the provided summary data.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $23.3 million to NATHAN ASSOCIATES LLC. IGF::OT::IGF AID-482-C-15-00001 USAID PRIVATE SECTOR DEVELOPMENT - NATHAN&ASSOCIATES

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 $23.3 million.

What is the period of performance?

Start: 2015-07-06. End: 2024-01-21.

What specific technical services were provided under this contract, and how did they align with USAID's evolving development goals over the 8-year period?

The provided data categorizes the services broadly as 'All Other Professional, Scientific, and Technical Services.' To assess value, specific deliverables, project outcomes, and their alignment with USAID's strategic objectives throughout the contract's lifespan are essential. Without this detail, it's difficult to ascertain if the $23.3 million investment yielded targeted and impactful results.

What mechanisms were in place to control costs and ensure efficiency given the 'Cost Plus Fixed Fee' structure and the contract's extended duration?

A Cost Plus Fixed Fee (CPFF) contract allows for reimbursement of allowable costs plus a fixed fee representing profit. To mitigate risks of cost overruns and ensure efficiency, USAID should have implemented rigorous cost monitoring, regular audits of incurred costs, and performance-based incentives tied to achieving specific milestones or cost savings. The fixed fee itself should have been negotiated based on a realistic estimate of effort.

How effectively did the 'full and open competition' process ensure the best value for taxpayer money, considering the contract's broad scope and long term?

While 'full and open competition' is a positive indicator, its effectiveness in ensuring best value for this contract depends on the specificity of the solicitation. A broad scope and long duration can sometimes lead to less competitive bids if potential offerors struggle to accurately estimate long-term needs or if specialized firms are deterred. USAID's evaluation criteria and negotiation process would have been critical in selecting the most capable and cost-effective offeror.

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: SOL-482-15-00004

Offers Received: 6

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,304,192

Exercised Options: $23,304,192

Current Obligation: $23,273,272

Actual Outlays: $1,724,564

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline