USAID awards $17.1M institutional support contract to Macfadden & Associates, Inc. for services in Washington D.C

Contract Overview

Contract Amount: $17,105,009 ($17.1M)

Contractor: Macfadden & Associates, Inc.

Awarding Agency: Agency for International Development

Start Date: 2006-11-01

End Date: 2022-07-14

Contract Duration: 5,734 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NEW AWARD OF DCHA INSTITUTIONAL SUPPORT CONTRACT. NEW:TO MACFADDEN/OTI SUPPORT SERVICESTAS::72 1027::TAS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $17.1 million to MACFADDEN & ASSOCIATES, INC. for work described as: NEW AWARD OF DCHA INSTITUTIONAL SUPPORT CONTRACT. NEW:TO MACFADDEN/OTI SUPPORT SERVICESTAS::72 1027::TAS Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of over 15 years (5734 days) indicates a long-term need for institutional support. 3. The cost-plus-fixed-fee pricing structure may incentivize cost control by the contractor. 4. The contract is for 'All Other Business Support Services,' a broad category that requires careful performance monitoring. 5. The award to a single entity, Macfadden & Associates, Inc., highlights the concentration of expertise in this niche. 6. The contract's geographic focus is the District of Columbia, implying localized service delivery.

Value Assessment

Rating: fair

The total award amount of $17.1 million over approximately 15.7 years results in an average annual value of roughly $1.08 million. Benchmarking this against similar institutional support contracts is challenging without more specific service details. However, the duration suggests a significant investment. The cost-plus-fixed-fee structure means the government pays the allowable costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. The presence of 10 bids (no) suggests a competitive marketplace for these institutional support services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive environment, driving down costs and encouraging innovation among potential contractors.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which receives essential institutional support services. Services delivered likely include administrative, logistical, and potentially specialized support functions critical to USAID's operations. The geographic impact is concentrated in the District of Columbia, where the contractor will be providing services. Workforce implications may involve the creation of jobs for individuals with expertise in business support services, both directly by the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 15 years) increases the risk of cost escalation and potential for contractor performance degradation over time.
Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, requiring robust oversight to ensure efficiency.
The broad 'All Other Business Support Services' category may lack specificity, making it harder to define and measure performance outcomes.
Concentration of award to a single contractor could limit future competition if performance issues arise or needs change.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The contractor, Macfadden & Associates, Inc., has secured a significant long-term contract, suggesting a level of established capability and trust.
The fixed fee component of the contract structure provides some predictability in contractor profit margins.

Sector Analysis

This contract falls within the Business Support Services sector, a broad category encompassing a wide range of services that enable organizations to operate efficiently. This sector is characterized by a mix of large, established firms and smaller, specialized providers. Government spending in this area is substantial, supporting various administrative, operational, and management functions across agencies. Comparable spending benchmarks would depend heavily on the specific nature of the 'institutional support' provided, but it represents a critical, albeit often behind-the-scenes, component of government operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business (ss: false). Therefore, there are no direct small business set-aside benefits associated with this specific award. However, the potential for subcontracting opportunities with small businesses exists, depending on Macfadden & Associates, Inc.'s subcontracting plan and the nature of the services required. The impact on the small business ecosystem would be indirect, contingent on whether small businesses are engaged as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee is earned appropriately. Performance monitoring would involve tracking key performance indicators (KPIs) related to the institutional support services delivered. Transparency is facilitated through contract award databases, but detailed performance reports and audits are typically internal or subject to specific Freedom of Information Act (FOIA) requests. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

USAID Institutional Support Services
Federal Administrative Support Contracts
Government Business Operations Support
Professional Services Contracts

Risk Flags

Long contract duration
Cost-plus-fixed-fee structure
Broad service category

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $17.1 million to MACFADDEN & ASSOCIATES, INC.. NEW AWARD OF DCHA INSTITUTIONAL SUPPORT CONTRACT. NEW:TO MACFADDEN/OTI SUPPORT SERVICESTAS::72 1027::TAS

Who is the contractor on this award?

The obligated recipient is MACFADDEN & ASSOCIATES, INC..

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 $17.1 million.

What is the period of performance?

Start: 2006-11-01. End: 2022-07-14.

What is the historical spending pattern for institutional support services at USAID, and how does this award compare?

Analyzing historical spending for institutional support at USAID requires access to detailed budget and contract data over multiple fiscal years. Without specific historical figures, it's challenging to provide a precise comparison. However, a $17.1 million award over approximately 15.7 years suggests a consistent, albeit potentially modest, annual investment in these services. If USAID has historically awarded similar-sized contracts for comparable support functions, this award might represent a continuation of established spending levels. Conversely, if historical spending has been significantly lower or higher, this award could indicate a shift in resource allocation or a change in the scope of institutional support needs. Further analysis would involve examining trends in contract values, durations, and the number of awards within this service category over time.

What specific types of 'institutional support services' are included under this contract?

The contract is broadly categorized under 'All Other Business Support Services' (NAICS code 561499), which is a very general classification. This typically encompasses a wide array of non-core business functions that help an organization operate smoothly. For USAID, these services could potentially include administrative support (e.g., clerical, record-keeping, travel arrangements), logistical support (e.g., facility management, equipment maintenance, supply chain coordination), human resources support (e.g., onboarding assistance, benefits administration), IT support (e.g., help desk, basic network maintenance), financial administration support (e.g., invoice processing, budget tracking), and potentially program-specific administrative coordination. The lack of specificity in the NAICS code means the exact deliverables are defined within the contract's statement of work, which is not provided here. Understanding the precise services is crucial for evaluating performance and value.

How does the cost-plus-fixed-fee (CPFF) structure impact the government's financial risk and the contractor's incentive for efficiency?

The Cost-Plus-Fixed-Fee (CPFF) contract structure means the government reimburses the contractor for all allowable costs incurred during performance, plus a predetermined fixed fee representing the contractor's profit. This structure shifts a significant portion of the financial risk to the government, as the total cost is not fixed upfront and can fluctuate based on actual expenses. However, the fixed fee provides the contractor with a clear profit target. While the fee is fixed, the contractor is still incentivized to manage costs efficiently to ensure that their incurred costs plus the fixed fee do not exceed the overall anticipated budget or lead to scrutiny. The government's primary tool for ensuring efficiency under CPFF is robust oversight of allowable costs and performance monitoring to ensure the contractor is delivering the required services effectively.

What is Macfadden & Associates, Inc.'s track record with government contracts, particularly with USAID?

Macfadden & Associates, Inc. has a history of securing government contracts, including those with USAID. Their ability to win a long-term, significant award like this suggests a demonstrated capability and a positive past performance record with the agency or similar federal entities. Without access to specific contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), it's difficult to provide a detailed assessment of their track record. However, winning competitive bids, especially for substantial amounts and durations, typically implies that the contractor has met or exceeded performance expectations on previous engagements, possesses the necessary resources and expertise, and has maintained a satisfactory business and financial standing with the government.

Given the 15+ year duration, what are the potential risks associated with long-term performance and contract management?

The extended duration of this contract (over 15 years) presents several long-term risks. Firstly, there's the risk of 'scope creep,' where the requirements may evolve significantly over such a long period, potentially leading to cost increases if not managed through formal contract modifications. Secondly, contractor performance can degrade over time due to complacency, changes in key personnel, or shifts in company priorities. Maintaining consistent quality and responsiveness requires ongoing vigilance and effective contract management. Thirdly, technological advancements or changes in government needs could render the contracted services less relevant or efficient over the contract's lifespan. Finally, long-term contracts can sometimes stifle innovation if the contractor becomes too entrenched and less motivated to explore more efficient or modern approaches. Robust oversight, regular performance reviews, and clear communication channels are essential to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support 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

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 8403 COLESVILLE RD STE 280, SILVER SPRING, MD, 20910

Business Categories: Category Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,256,136

Exercised Options: $18,256,136

Current Obligation: $17,105,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDDFDI000600170

IDV Type: IDC

Timeline