ENCOMPASS LLC awarded $22.4M contract for management consulting services by USAID

Contract Overview

Contract Amount: $22,391,547 ($22.4M)

Contractor: Encompass LLC

Awarding Agency: Agency for International Development

Start Date: 2016-08-15

End Date: 2024-01-12

Contract Duration: 2,706 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $22.4 million to ENCOMPASS LLC for work described as: IGF::CL::IGF Key points: 1. Contract value represents a significant investment in administrative management and general management consulting. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of 2706 days indicates a long-term need for these services. 4. Delivery order award type implies it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541611 points to a focus on management consulting expertise. 6. The contract's primary performance location is Maryland, suggesting a concentration of federal administrative functions in the region.

Value Assessment

Rating: fair

The contract value of $22.4 million over approximately 7.4 years for management consulting services requires careful benchmarking. Without specific deliverables or performance metrics, it's challenging to definitively assess value for money. However, the duration suggests a sustained need, and the full and open competition may have helped to moderate pricing. Further analysis would involve comparing the hourly rates or project costs to similar contracts for administrative management consulting services within the federal government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding environment, potentially leading to better price discovery and value for the government. The presence of two bidders, as indicated by the 'no' field, is a moderate level of competition. While more bidders could potentially drive prices lower, two bidders still provide a basis for comparison and negotiation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive environment, which can lead to more favorable pricing and a wider range of innovative solutions. The presence of at least two bidders ensures some level of market pressure on pricing.

Public Impact

The primary beneficiary of this contract is the Agency for International Development (USAID), which receives administrative management and general management consulting services. These services likely support the agency's operational efficiency, strategic planning, and program management. The geographic impact is concentrated in Maryland, where the contract is performed. The contract supports the federal workforce by engaging professional consulting services to augment agency capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long contract duration and time-and-materials pricing.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
Reliance on a single contractor for extended periods could lead to a loss of institutional knowledge within the agency if not managed properly.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
The contract duration indicates a sustained and potentially critical need for the services provided.
The contractor, ENCOMPASS LLC, has secured a significant award, implying a level of trust and capability recognized by the agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, with agencies frequently outsourcing specialized expertise to improve operations and achieve strategic goals. The market for management consulting services is competitive, with numerous firms offering a wide array of capabilities. Benchmarking this contract would involve comparing its total value and duration against other similar management consulting contracts awarded by federal agencies for administrative support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, ENCOMPASS LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Agency for International Development. The contract's performance would be monitored against the terms and conditions outlined in the delivery order. Transparency is generally maintained through contract award databases, though specific performance details may be internal. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Professional Services Contracts
Agency for International Development Contracts

Risk Flags

Time and Materials Pricing
Long Contract Duration
Limited Competition Indicated (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $22.4 million to ENCOMPASS LLC. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is ENCOMPASS 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 $22.4 million.

What is the period of performance?

Start: 2016-08-15. End: 2024-01-12.

What is the track record of ENCOMPASS LLC in performing similar federal contracts?

Assessing ENCOMPASS LLC's track record requires a review of their past performance on federal contracts, particularly those involving administrative management and general management consulting services. Information on contract history, including awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or terminations, would be crucial. A history of successful, on-time, and within-budget contract completions, especially with agencies like USAID or similar organizations, would indicate a strong capability. Conversely, a pattern of performance issues, cost overruns, or disputes might raise concerns about their ability to successfully execute this $22.4 million contract over its extended duration.

How does the value of this contract compare to similar management consulting contracts awarded by USAID or other federal agencies?

To benchmark the value of this $22.4 million contract, one would compare it against similar management consulting services procured by USAID and other federal agencies over the past several years. Key comparison points include the total contract value, duration, and the specific services rendered (e.g., strategic planning, organizational efficiency, process improvement). If this contract is for a similar scope and duration as other awards, its value can be assessed for reasonableness. For instance, if comparable contracts for similar consulting needs were awarded in the $15-20 million range, this $22.4 million award might be considered on the higher end, warranting closer scrutiny of the scope and deliverables to ensure it justifies the cost. Conversely, if it aligns with or is lower than benchmarks, it suggests fair pricing.

What are the primary risks associated with a long-term, time-and-materials contract for management consulting?

Long-term, time-and-materials (T&M) contracts for management consulting present several inherent risks. A primary concern is the potential for cost overruns, as the government pays for the actual time and materials expended by the contractor, rather than a fixed price. This can be exacerbated by a lack of clearly defined deliverables or performance metrics, making it difficult to control costs and ensure accountability. Scope creep is another significant risk, where the project's objectives may expand beyond the original intent without adequate cost adjustments. For taxpayers, this translates to potentially higher overall costs than initially anticipated. Effective oversight, detailed task orders, and robust performance monitoring are critical to mitigating these risks.

How effective are delivery orders under IDIQ contracts for procuring specialized consulting services?

Delivery orders (DOs) issued under Indefinite-Delivery/Indefinite-Quantity (IDIQ) contracts are a common and often effective mechanism for procuring specialized services like management consulting. They provide agencies with flexibility to obtain services as needed, without having to re-compete the basic contract each time. For specialized consulting, this allows agencies to tap into pre-vetted capabilities and potentially faster delivery. The effectiveness hinges on the quality of the underlying IDIQ contract's scope and the fairness of the competition among IDIQ holders for each DO. When used appropriately, DOs streamline procurement, reduce administrative burden, and allow agencies to respond agilely to evolving needs. However, if the IDIQ scope is too broad or the DO competition is weak, it can lead to suboptimal pricing or service quality.

What is the significance of the NAICS code 541611 for this contract?

The North American Industry Classification System (NAICS) code 541611, 'Management Consulting Services,' is highly significant as it precisely defines the nature of the services procured under this contract. This code indicates that the contract is intended to acquire expert advice and assistance to improve an organization's management and strategic planning capabilities. Federal agencies utilize these codes to categorize procurements, enabling better tracking of spending across different service sectors and facilitating comparisons with industry benchmarks. For this contract, it signifies that USAID is seeking external expertise to enhance its operational efficiency, organizational structure, or decision-making processes, rather than procuring tangible goods or other types of services.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1451 ROCKVILLE PIKE SUITE 600, ROCKVILLE, MD, 20852

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $25,691,127

Exercised Options: $25,691,127

Current Obligation: $22,391,547

Actual Outlays: $9,633,443

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0245M

IDV Type: FSS

Timeline