Boston Consulting Group receives $23.7M for USAID management consulting, awarded via full and open competition

Contract Overview

Contract Amount: $23,719,441 ($23.7M)

Contractor: THE Boston Consulting Group Inc

Awarding Agency: Agency for International Development

Start Date: 2016-09-21

End Date: 2022-04-18

Contract Duration: 2,035 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF INTRO/SCALE PLANNING, FACILITATING, AND CAPACITY BUILDING PROJECT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $23.7 million to THE BOSTON CONSULTING GROUP INC for work described as: IGF::OT::IGF INTRO/SCALE PLANNING, FACILITATING, AND CAPACITY BUILDING PROJECT Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract duration spans over 2000 days, indicating a long-term engagement. 3. Awarded as a delivery order under a larger contract vehicle. 4. The North American Industry Classification System (NAICS) code is 541611. 5. The contract was not set aside for small businesses. 6. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

The total award amount of $23.7 million for administrative management and general management consulting services over approximately five years appears to be within a reasonable range for large-scale consulting projects. However, without specific details on the deliverables and the complexity of the tasks performed, a precise value-for-money assessment is difficult. Benchmarking against similar large-scale, long-term consulting engagements for federal agencies would provide a clearer picture of whether the pricing reflects competitive market rates for the expertise provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of 3 bids indicates a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for ensuring fair pricing and access to a broad range of capabilities, the actual impact on price discovery depends on the number and quality of the competing proposals and the specific evaluation criteria used.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, as contractors vie to win the award.

Public Impact

The primary beneficiary of this contract is the Agency for International Development (USAID), which receives support for its administrative management and capacity-building initiatives. The services delivered are expected to enhance the efficiency and effectiveness of USAID's operations and program planning. The geographic impact is likely global, given USAID's mission to advance American interests and promote democratic values abroad. Workforce implications may include the utilization of specialized consultants to augment USAID's internal capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Long contract duration (2035 days) may reduce flexibility to adapt to changing needs.
Lack of specific performance metrics in the provided data makes it hard to assess effectiveness.
Limited information on the specific consulting tasks limits a deep dive into value.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The Boston Consulting Group is a well-established consulting firm with a strong reputation.
The contract aims to facilitate and build capacity, which are positive strategic objectives.
The total award amount is substantial, indicating a significant project with potential for impact.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector, a broad category encompassing strategic planning, organizational design, and operational efficiency improvements. The federal government is a significant consumer of these services to support its complex missions. The market for management consulting is highly competitive, with numerous firms ranging from large global players to specialized boutiques. This contract with USAID represents a portion of the government's overall spending on professional services aimed at enhancing administrative functions and program delivery.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, this award does not directly contribute to the government's small business contracting goals. The absence of small business participation may limit opportunities for smaller, specialized firms to contribute to USAID's capacity-building efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within USAID. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Specific details on Inspector General (IG) involvement would depend on any audits or investigations initiated based on performance or financial concerns.

Related Government Programs

USAID Management and Technical Consulting Services
Federal Management Consulting Contracts
Professional Services Contracts
Administrative Support Services

Risk Flags

Time and Materials Contract Type
Long Contract Duration
Limited Scope Detail

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $23.7 million to THE BOSTON CONSULTING GROUP INC. IGF::OT::IGF INTRO/SCALE PLANNING, FACILITATING, AND CAPACITY BUILDING PROJECT

Who is the contractor on this award?

The obligated recipient is THE BOSTON CONSULTING GROUP 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 $23.7 million.

What is the period of performance?

Start: 2016-09-21. End: 2022-04-18.

What specific management and capacity-building initiatives did The Boston Consulting Group support for USAID under this contract?

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' and aimed at 'Facilitating, and Capacity Building Project.' While the exact nature of the initiatives is not detailed, such contracts typically involve strategic planning, organizational assessments, process improvement, policy development, and the implementation of new management systems or frameworks. For USAID, this could translate to improving the efficiency of its development programs, enhancing its internal administrative processes, strengthening its project management capabilities, or advising on organizational restructuring to better meet its global development objectives. The 'Intro/Scale Planning' aspect suggests involvement in the early stages of program design and scaling up successful initiatives.

How does the $23.7 million award compare to other large management consulting contracts awarded by USAID or similar agencies?

The $23.7 million award for The Boston Consulting Group (BCG) over approximately five years is a significant sum, reflecting a substantial engagement. To benchmark this, one would compare it to other large-scale, long-term consulting contracts awarded by USAID or agencies with similar missions, such as the Department of State or other foreign aid organizations. Contracts for strategic planning, organizational reform, or large-scale program support often reach tens of millions of dollars. For instance, similar engagements might involve support for IT modernization, financial management system implementation, or comprehensive policy reviews. Without specific details on the scope of work and deliverables for this BCG contract, a precise comparison is challenging, but the amount is consistent with major consulting projects undertaken by federal agencies.

What are the potential risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

Time and Materials (T&M) contracts, like the one awarded to BCG, carry inherent risks, primarily concerning cost control. In a T&M arrangement, the government pays the contractor for the actual labor hours expended at pre-negotiated hourly rates, plus the cost of materials. The primary risk is that costs can escalate beyond initial estimates if the project takes longer than anticipated or if labor hours are not efficiently utilized. For a contract of $23.7 million over 2035 days, the government is exposed to potential cost overruns if project scope creeps, inefficiencies arise, or the contractor's resource allocation is not optimal. Robust oversight, detailed tracking of hours, and clear definition of 'level of effort' are crucial to mitigate these risks and ensure the government receives good value.

What is The Boston Consulting Group's track record with federal government contracts, particularly with USAID?

The Boston Consulting Group (BCG) is a globally recognized management consulting firm with a history of serving both private sector and government clients. While specific details of their entire federal contract portfolio are not provided here, BCG has undertaken numerous engagements with various U.S. federal agencies, including those focused on strategy, operations, and digital transformation. Their work often involves high-level advisory services. For USAID, BCG has likely provided support on strategic planning, organizational effectiveness, and program implementation, aligning with the agency's mission. A deeper analysis would involve reviewing their past performance ratings on federal contracts, the types of services rendered, and their success in meeting contract objectives across different agencies.

How does the 'full and open competition' award mechanism impact the potential for innovation and cost savings for this USAID contract?

Awarding this contract through 'full and open competition' theoretically maximizes the potential for innovation and cost savings. This mechanism allows any qualified contractor to submit a bid, thereby broadening the pool of potential solutions and fostering a competitive environment. When multiple firms vie for the contract, they are incentivized to offer their most innovative approaches and competitive pricing to win the award. For USAID, this means they could benefit from a wider range of strategic insights and potentially secure services at a more advantageous price point compared to sole-source or limited competition scenarios. The presence of 3 bids suggests a degree of competition, but the extent of innovation and cost savings ultimately depends on the evaluation criteria and the specific proposals submitted.

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

Solicitation ID: SOL-OAA-16-000037

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: BCG Federal Corporation

Address: 4800 HAMPDEN LANE STE 500, BETHESDA, MD, 20814

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

Financial Breakdown

Contract Ceiling: $23,764,957

Exercised Options: $23,764,957

Current Obligation: $23,719,441

Actual Outlays: $11,236,447

Contract Characteristics

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0253V

IDV Type: FSS

Timeline