USAID's $56.7M Institutional Support Services contract awarded to Macfadden & Associates, Inc. with no competition

Contract Overview

Contract Amount: $56,669,302 ($56.7M)

Contractor: Macfadden & Associates, Inc.

Awarding Agency: Agency for International Development

Start Date: 2014-04-01

End Date: 2022-07-20

Contract Duration: 3,032 days

Daily Burn Rate: $18.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: IGF::CT::IGF INSTITUTIONAL SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $56.7 million to MACFADDEN & ASSOCIATES, INC. for work described as: IGF::CT::IGF INSTITUTIONAL SUPPORT SERVICES. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential overpayment and lack of competitive pressure. 2. Significant duration of over 8 years suggests a long-term need for these services. 3. The 'All Other Professional, Scientific, and Technical Services' category is broad, making specific performance evaluation challenging. 4. Awarded to a single contractor without competition limits opportunities for other firms and potentially reduces innovation. 5. The contract's value is substantial, warranting close scrutiny of its necessity and cost-effectiveness. 6. Geographic location in Washington D.C. may indicate a focus on administrative or policy-related support.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The contract's cost-plus-no-fee structure, while common for certain types of services, can sometimes lead to less incentive for cost control compared to fixed-price contracts. Comparing this to similar institutional support contracts awarded competitively would be necessary to assess if the pricing is fair. The lack of competition inherently limits the ability to determine if taxpayers received the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the agency identified a specific need that they believed only Macfadden & Associates, Inc. could fulfill, or that circumstances did not allow for a competitive solicitation. The absence of multiple bidders means there was no price discovery through competition, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from competitive bidding. This can result in the government paying more than it would if multiple companies had vied for the contract.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which receives institutional support services. These services likely encompass a range of professional, scientific, and technical support crucial for USAID's operations. The contract's impact is concentrated in Washington D.C., where the contractor is located. The contract supports a workforce employed by Macfadden & Associates, Inc. to fulfill USAID's requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price reasonableness and potential for inflated costs.
The broad nature of 'All Other Professional, Scientific, and Technical Services' makes it difficult to ascertain the specific value and necessity of each service provided.
Long contract duration without clear performance metrics or competitive re-evaluation could lead to complacency and reduced efficiency.
Sole-source awards can limit opportunities for small businesses and innovative new entrants into the federal contracting space.

Positive Signals

The contract has been in place for a significant duration, suggesting a consistent need and potentially a stable relationship with the contractor.
The contractor, Macfadden & Associates, Inc., has been awarded this contract, indicating they possess the necessary qualifications and capabilities.
The contract is managed by a major federal agency (USAID), implying a level of established oversight and process.

Sector Analysis

The professional, scientific, and technical services sector is a vast and critical component of federal spending. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a catch-all category for services not elsewhere classified. This broad classification can include a wide array of support functions. Comparable spending in this sector often involves consulting, research, analysis, and specialized technical assistance. Without specific details on the services rendered, direct benchmarking is challenging, but the overall sector sees significant investment across various agencies for mission support.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or subcontractors, unless they are specifically engaged by the prime contractor. This could mean a missed opportunity to leverage the capabilities of the small business sector in fulfilling these support services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a definitive contract awarded without competition, it likely underwent internal agency review and justification processes. Transparency is limited due to the sole-source nature and lack of publicly available performance reports or detailed service breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

USAID Institutional Support Contracts
Professional and Technical Services
Government Support Services
Sole-Source Contract Awards
Federal Consulting Services

Risk Flags

Sole-source award
Lack of competition
Broad service category
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $56.7 million to MACFADDEN & ASSOCIATES, INC.. IGF::CT::IGF INSTITUTIONAL SUPPORT SERVICES.

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 $56.7 million.

What is the period of performance?

Start: 2014-04-01. End: 2022-07-20.

What specific services are included under 'All Other Professional, Scientific, and Technical Services' for this contract?

The provided data categorizes this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad classification that can encompass a wide range of activities not specified elsewhere. For this particular contract with USAID and Macfadden & Associates, Inc., the services could range from administrative support, research and analysis, program management assistance, technical consulting, data management, or specialized advisory roles. Without access to the contract's statement of work (SOW) or task orders, the precise nature of these services remains undefined. Typically, such broad categories are used when the specific services are diverse or evolve over the contract's life, but they necessitate careful monitoring by the contracting agency to ensure alignment with mission objectives and prevent scope creep.

How does the cost of this contract compare to similar institutional support services procured competitively by other federal agencies?

Direct comparison of the total contract value ($56.7 million) to similar competitively procured contracts is challenging without knowing the specific services rendered and their scope. However, the fact that this contract was sole-sourced raises a red flag regarding potential cost inefficiencies. Competitive bidding typically drives down prices as contractors vie for the award. A sole-source award, especially for a long duration (over 8 years), suggests that the government may not have achieved the most favorable pricing. To conduct a proper comparison, one would need to identify contracts with similar service descriptions (e.g., program management support, administrative services, technical consulting) awarded competitively, analyze their pricing structures (e.g., labor rates, fixed-price vs. cost-reimbursable), and adjust for differences in contract size, duration, and geographic location. Without this detailed analysis, it's difficult to definitively state if the cost is higher than market rates, but the lack of competition inherently reduces the likelihood of optimal value.

What is the track record of Macfadden & Associates, Inc. in performing federal contracts, particularly sole-source awards?

Macfadden & Associates, Inc. has a history of receiving federal contracts, including this significant sole-source award from USAID. Examining their broader contract portfolio would reveal their experience across different agencies and contract types. For sole-source awards specifically, it's important to understand the justifications provided by the awarding agencies. Agencies typically award sole-source contracts when only one source is capable of meeting the government's needs, often due to unique capabilities, urgent requirements, or specific research and development needs. A review of Macfadden's past performance, including any past performance evaluations or awards, would provide insight into their reliability and effectiveness as a contractor. However, the sole-source nature of this particular contract means that its success is not validated by a competitive process, placing greater emphasis on USAID's due diligence and oversight.

What are the potential risks associated with a sole-source award of this magnitude and duration?

Sole-source awards of this magnitude ($56.7 million) and duration (over 8 years) carry several inherent risks. Firstly, the lack of competition can lead to higher costs for taxpayers, as there is no market pressure to ensure the most competitive pricing. Secondly, it can reduce innovation, as the incumbent contractor may have less incentive to develop new or more efficient methods if their position is secure. Thirdly, there's a risk of contractor complacency or reduced performance quality over time, as the agency lacks the leverage of a competitive re-procurement to drive improvements. Finally, sole-source awards can create barriers to entry for other capable firms, potentially limiting the pool of qualified contractors for future needs and hindering small business participation. Robust oversight and performance management by the agency are crucial to mitigate these risks.

How has federal spending in the 'All Other Professional, Scientific, and Technical Services' category evolved over the past five years, and where does this contract fit?

Federal spending in the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) has generally seen fluctuations driven by agency priorities and budget allocations. This category is broad, encompassing a diverse range of services, making overall trend analysis complex. However, agencies like USAID often rely on these services for program support, policy analysis, and operational assistance. This specific contract, valued at approximately $56.7 million over its lifespan, represents a significant, albeit singular, investment within this category for USAID. Its long duration suggests a sustained need for the services provided. To understand its place, one would compare its value against the total annual spending within NAICS 541990 across the entire federal government, which typically runs into billions of dollars annually, indicating that while substantial, this contract is one component of a much larger federal expenditure landscape.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 8403 COLESVILLE RD STE 400, SILVER SPRING, MD, 20910

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

Financial Breakdown

Contract Ceiling: $70,776,048

Exercised Options: $70,776,048

Current Obligation: $56,669,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline