EPA's $30M consulting contract with Eastern Research Group Inc. awarded in 2002, spanning over a decade

Contract Overview

Contract Amount: $30,002,675 ($30.0M)

Contractor: Eastern Research Group Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2002-09-15

End Date: 2012-09-25

Contract Duration: 3,663 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $30.0 million to EASTERN RESEARCH GROUP INC for work described as: Key points: 1. Contract awarded for administrative and management consulting services, indicating a need for specialized expertise. 2. Long duration of over 10 years suggests a sustained requirement for the contractor's services. 3. The contract was awarded under full and open competition, implying a robust selection process. 4. Eastern Research Group Inc. has been the sole awardee, raising questions about ongoing competition. 5. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not managed carefully. 6. The North American Industry Classification System (NAICS) code 541611 points to general management consulting.

Value Assessment

Rating: fair

The contract's value of approximately $30 million over more than 10 years averages to about $3 million per year. Without specific deliverables or performance metrics, it's challenging to benchmark value for money. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not stringent. Comparing this to similar long-term, broad-scope consulting contracts across federal agencies would be necessary for a more definitive assessment of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that multiple bidders were likely considered. However, the fact that Eastern Research Group Inc. was the sole awardee for such a long duration might indicate that either they were uniquely qualified, or subsequent modifications and renewals did not re-open competition. Further investigation into the initial solicitation and any subsequent actions would clarify the extent of competition throughout the contract's lifecycle.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, the long-term sole awardee status warrants scrutiny to ensure continued price reasonableness and prevent potential complacency.

Public Impact

The Environmental Protection Agency (EPA) benefits from ongoing administrative and management consulting services. Services likely support various EPA programs and operational needs, enhancing efficiency and effectiveness. The contract's broad scope suggests a wide range of potential impacts across EPA's mission areas. Workforce implications are likely related to the integration of external expertise with internal EPA staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration without apparent re-competition could limit opportunities for new vendors and potentially reduce competitive pressure on pricing over time.
The Cost Plus Fixed Fee (CPFF) structure requires diligent oversight to ensure costs remain reasonable and avoid potential for contractor inefficiencies.
Lack of specific performance data makes it difficult to assess the true impact and value derived from the consulting services.

Positive Signals

Awarded through full and open competition, indicating an initial effort to secure the best value.
The sustained engagement suggests the contractor has consistently met the EPA's needs over an extended period.
The contract's longevity may reflect a stable and predictable need for specialized consulting expertise within 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, supporting agencies across all domains. The market for management consulting is vast, with numerous firms competing for government contracts. Benchmarking this contract's value would involve comparing its annual spend and scope to other large, long-term consulting engagements within the federal government, particularly those supporting environmental or regulatory agencies.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions. The prime contractor, Eastern Research Group Inc., is not identified as a small business itself based on the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Environmental Protection Agency. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to monitor expenditures and ensure compliance with the fixed fee. Transparency would depend on the EPA's internal reporting and any public disclosures related to contract performance and spending. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Management and Consulting Services
Professional Services Contracts
Environmental Consulting
Administrative Support Services

Risk Flags

Long-term sole awardee status may indicate reduced competition over time.
Cost Plus Fixed Fee contract type requires diligent cost oversight.
Lack of specific performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $30.0 million to EASTERN RESEARCH GROUP INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is EASTERN RESEARCH GROUP INC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2002-09-15. End: 2012-09-25.

What specific types of administrative and management consulting services were provided under this contract?

While the NAICS code 541611 indicates 'Administrative Management and General Management Consulting Services,' the specific deliverables under this particular contract are not detailed in the provided data. Typically, such services can encompass a wide range of support, including strategic planning, organizational analysis, process improvement, policy development, program management support, and general administrative operations assistance. Given the duration and the awarding agency (EPA), the services likely supported the agency's complex environmental mission, potentially involving regulatory analysis, scientific program support, or internal operational efficiencies. A deeper dive into contract line item numbers (CLINs) or task orders would be necessary to ascertain the precise nature of the services rendered.

How does the annual average spending of approximately $3 million compare to similar EPA consulting contracts?

An annual average spend of $3 million for consulting services is substantial but not uncommon for large federal agencies like the EPA, which manage complex missions. To benchmark this effectively, one would need to compare it against other EPA contracts for management and administrative consulting, particularly those awarded around the same period (early 2000s) and with similar scopes. Furthermore, comparing it to contracts of similar duration (over 10 years) would provide context. Without access to a broader dataset of EPA's contracting history or similar agency contracts, it's difficult to definitively state whether $3 million annually represents high, low, or average spending. However, it suggests a significant and ongoing need for external expertise.

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

The primary risk with a CPFF contract, especially one spanning over a decade, is the potential for cost escalation and reduced contractor incentive for efficiency. While the 'fixed fee' provides a ceiling on the contractor's profit, the 'cost plus' element means the government reimburses allowable costs. If cost controls are not rigorously managed by the agency, the contractor may have less incentive to minimize expenses compared to a firm-fixed-price contract. Over a long period, this can lead to the government paying more than necessary. Effective oversight, detailed cost monitoring, and clear performance expectations are crucial to mitigate these risks and ensure the government receives good value.

Given Eastern Research Group Inc. was the sole awardee, what does this imply about competition and potential future procurements?

The fact that Eastern Research Group Inc. was the sole awardee for this contract, despite being initially awarded under 'full and open competition,' raises questions about the competitive landscape throughout its lifecycle. It could imply that the initial competition was highly specialized, and ERG was the only firm capable of meeting all requirements. Alternatively, it might suggest that subsequent modifications, renewals, or related procurements did not re-open the field to broader competition. For future procurements, this history could influence how the requirement is structured and whether agencies actively seek to introduce new competitors to ensure market responsiveness and potentially better pricing.

What is the track record of Eastern Research Group Inc. with federal contracts, particularly with the EPA?

Eastern Research Group Inc. (ERG) has a history of receiving federal contracts, including significant work with the EPA. The provided data shows this specific contract alone was valued at over $30 million and spanned more than a decade. This long-standing relationship suggests a level of performance and capability that has met the EPA's needs over an extended period. Without access to detailed performance reviews or a broader contract history database, it's difficult to provide a comprehensive assessment of their overall track record. However, the longevity and value of this single contract indicate ERG is an established federal contractor with experience in providing administrative and management consulting 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: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 110 HARTWELL AVE, LEXINGTON, MA, 02421

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,130,516

Exercised Options: $29,049,192

Current Obligation: $30,002,675

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline