USAID's $163.5M contract for administrative management consulting services awarded to MACFADDEN & ASSOCIATES, INC

Contract Overview

Contract Amount: $163,562,094 ($163.6M)

Contractor: Macfadden & Associates, Inc.

Awarding Agency: Agency for International Development

Start Date: 2016-12-01

End Date: 2024-08-16

Contract Duration: 2,815 days

Daily Burn Rate: $58.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF -TASK ORDER, INSTITUTIONAL SUPPORT SHARED SERVICES FOR DCHA/OFDA

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 $163.6 million to MACFADDEN & ASSOCIATES, INC. for work described as: IGF::OT::IGF -TASK ORDER, INSTITUTIONAL SUPPORT SHARED SERVICES FOR DCHA/OFDA Key points: 1. Contract provides institutional support and shared services for USAID's DCHA/OFDA. 2. The contract duration spans over 7 years, indicating a long-term need for these services. 3. Awarded under full and open competition, suggesting a robust selection process. 4. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee. 5. The North American Industry Classification System (NAICS) code 541611 points to administrative management and general management consulting services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to cost overruns if not managed tightly, but it also allows for flexibility in scope. Comparing it to similar long-term institutional support contracts within USAID or other agencies would provide better context on its overall value proposition. The fixed fee component offers some predictability for the contractor's profit.

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 suggests a competitive bidding process was utilized, which typically aims to secure the best value for the government. The number of bidders is not specified, but the open competition itself is a positive indicator for price discovery and selection of qualified contractors.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider pool of qualified service providers.

Public Impact

The primary beneficiaries are USAID's Development, Humanitarian Assistance, and Foreign Disaster Assistance (DCHA/OFDA) bureaus, receiving essential administrative and management support. Services delivered include institutional support and shared services, crucial for the efficient operation of these critical USAID functions. The geographic impact is primarily within the District of Columbia, where the agency is headquartered, but the services indirectly support global development and humanitarian efforts. The contract supports a workforce of consultants and administrative professionals, contributing to employment in the management consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified by the scope of work.
Long-term contracts can sometimes lead to complacency or a lack of agility if not actively managed and reviewed for continued necessity and effectiveness.
The broad nature of 'institutional support' can make performance measurement and accountability more complex without clearly defined KPIs.

Positive Signals

Awarded through full and open competition, suggesting a thorough vetting of potential contractors and a competitive pricing environment.
The extended duration of the contract (over 7 years) indicates a sustained and recognized need for the services provided by the contractor.
The contract supports critical functions within USAID's DCHA/OFDA, contributing to the agency's mission delivery.

Sector Analysis

This contract falls within the Management and Consulting Services sector, a significant segment of the professional services industry supporting government operations. The NAICS code 541611 specifically covers firms primarily engaged in providing advice and assistance to businesses and other organizations on administrative and management issues. Spending in this sector is driven by the government's need for specialized expertise in areas like strategic planning, organizational efficiency, and operational support, often supplementing internal government capabilities.

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. The primary contractor, MACFADDEN & ASSOCIATES, INC., is likely a larger entity, and opportunities for small businesses would depend on their subcontracting plans, which are not detailed in this summary.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within USAID responsible for the DCHA/OFDA functions. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the approved budget and ensure the fixed fee is earned. Transparency is generally maintained through contract reporting requirements and potential audits by the USAID Office of Inspector General (OIG) or the Government Accountability Office (GAO).

Related Government Programs

USAID Institutional Support Contracts
Management and Consulting Services
Federal Administrative Support Services
Foreign Assistance Program Support

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs.
Long contract duration may necessitate performance reviews to ensure continued relevance and efficiency.
Scope definition for 'institutional support' needs clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $163.6 million to MACFADDEN & ASSOCIATES, INC.. IGF::OT::IGF -TASK ORDER, INSTITUTIONAL SUPPORT SHARED SERVICES FOR DCHA/OFDA

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 $163.6 million.

What is the period of performance?

Start: 2016-12-01. End: 2024-08-16.

What is the track record of MACFADDEN & ASSOCIATES, INC. with federal contracts, particularly with USAID?

MACFADDEN & ASSOCIATES, INC. has a history of federal contracting, including work with USAID. Analyzing their past performance on similar contracts, especially those involving institutional support and management consulting, would reveal their reliability, quality of service, and adherence to contract terms. A review of past contract awards, modifications, and any reported performance issues or successes would provide a clearer picture of their capabilities and suitability for this significant award. Their experience with Cost Plus Fixed Fee contracts is also a key factor in assessing their ability to manage project costs effectively while delivering on the fixed fee objectives.

How does the total contract value of $163.5 million compare to similar institutional support contracts at USAID or other federal agencies?

The $163.5 million value over approximately 7 years places this contract in the mid-to-large range for institutional support services within federal agencies. To benchmark effectively, one would compare this to other contracts providing similar administrative, management, and operational support to bureaus or agencies of comparable size and mission scope. Factors like the specific services rendered, the complexity of the supported functions (e.g., humanitarian aid vs. general administration), and the duration of the contract are critical for a fair comparison. Without specific comparable contract data, it's difficult to definitively state if this represents exceptional value, but its substantial size suggests a significant and ongoing requirement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks with a CPFF contract of this size and duration include potential cost overruns if the contractor's actual costs exceed estimates significantly, although the fixed fee provides a ceiling on profit. There's also a risk of scope creep, where the project expands beyond its original intent without adequate adjustments to the fee or timeline. For the government, ensuring the contractor maintains efficiency and avoids unnecessary expenses is crucial, as costs are reimbursed. Diligent oversight, clear performance metrics, and robust change management processes are essential to mitigate these risks and ensure the government receives good value for its investment over the contract's lifespan.

How effectively does the 'Administrative Management and General Management Consulting Services' NAICS code capture the scope of work for this contract?

The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' appears to be a suitable classification for the described 'institutional support and shared services.' This code encompasses firms providing expertise in organizational structure, management processes, and operational efficiency. However, the specific nature of USAID's work, particularly within DCHA/OFDA, might involve specialized consulting related to international development, humanitarian aid, or disaster response that could extend beyond the typical scope implied by this general code. A detailed review of the contract's Statement of Work (SOW) would be necessary to confirm if the NAICS code fully captures all nuances of the services provided.

What are the implications of this contract being awarded as a Delivery Order under a potential larger vehicle?

If this contract is a Delivery Order (aw: DELIVERY ORDER) under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or similar vehicle, it signifies that the foundational competition and terms were established at the IDIQ level. This Delivery Order represents a specific task or call for services within that pre-competed framework. The implications include potentially faster award times for subsequent orders, established pricing structures (though subject to negotiation per order), and a pre-vetted pool of contractors. For taxpayers, it suggests that the initial competition for the IDIQ vehicle was robust, and this order leverages that established process for a specific need.

What is the historical spending trend for similar administrative support services at USAID over the past five years?

Analyzing historical spending trends for administrative support services at USAID requires access to detailed federal procurement databases. Generally, agencies like USAID rely heavily on external contractors for specialized support, including management and administrative functions, to augment their internal capabilities, especially for complex international operations. Spending in this category often fluctuates based on agency priorities, budget allocations, and the initiation of new programs or initiatives. A trend analysis would likely show consistent or increasing expenditure in this area, reflecting the ongoing need for expert support in managing global development and humanitarian efforts, though specific figures would need to be extracted from procurement data.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Services, Inc.

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: $163,562,094

Exercised Options: $163,562,094

Current Obligation: $163,562,094

Actual Outlays: $74,897,484

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $655,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: AIDOAAI1500040

IDV Type: IDC

Timeline