NOAA's $63M environmental consulting contract awarded to ABT GLOBAL LLC raises questions about competition and value

Contract Overview

Contract Amount: $63,070,150 ($63.1M)

Contractor: ABT Global LLC

Awarding Agency: Department of Commerce

Start Date: 2011-09-22

End Date: 2014-12-31

Contract Duration: 1,196 days

Daily Burn Rate: $52.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TASK ORDER 1 - ASSESSMENT OF LOST DIRECT AND PASSIVE HUMAN USE

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80302

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $63.1 million to ABT GLOBAL LLC for work described as: TASK ORDER 1 - ASSESSMENT OF LOST DIRECT AND PASSIVE HUMAN USE Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract's duration and cost suggest a significant investment in environmental consulting services. 3. Performance period spans over three years, indicating a long-term need for these services. 4. The 'Environmental Consulting Services' NAICS code points to a specialized area of expertise. 5. Lack of competition may lead to higher prices than if multiple vendors were considered. 6. The contract was a delivery order under a larger indefinite-delivery vehicle, but specifics on its competition are unclear.

Value Assessment

Rating: questionable

Benchmarking the value of this $63 million contract is challenging without comparable sole-source environmental consulting engagements. The time-and-materials pricing structure, while common for consulting, can lead to cost overruns if not closely managed. Without a competitive bidding process, it's difficult to ascertain if the pricing reflects fair market value or if taxpayers received the best possible deal. Further analysis of the specific services rendered and their outcomes would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed among multiple vendors. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from various qualified companies. While sole-source awards can be justified in specific circumstances, they inherently reduce price discovery and can limit the government's ability to secure the most cost-effective solution.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost reductions typically achieved through competitive bidding, potentially leading to higher overall expenditures for the services rendered.

Public Impact

The Department of Commerce, specifically NOAA, benefits from specialized environmental consulting services. Services likely involve assessments related to environmental impacts and human use, potentially informing policy and resource management. The geographic impact is not specified but likely relates to NOAA's operational areas or specific environmental concerns. The contract supports specialized professional services, potentially impacting the environmental consulting workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Time-and-materials contract type carries inherent risk of cost escalation.
Lack of transparency in the justification for sole-source award.
The specific environmental consulting services and their necessity require further scrutiny.
Potential for contractor lock-in due to specialized nature of services.

Positive Signals

Contract awarded to a specific entity, suggesting a perceived capability to meet NOAA's needs.
The duration of the contract indicates a sustained requirement for these environmental services.
Delivery order structure implies it's part of a broader contracting vehicle, potentially with some pre-qualification.

Sector Analysis

The environmental consulting services sector is a niche but critical part of the professional services industry. This contract falls under NAICS code 541620, which covers environmental consulting services. The market for such services is driven by regulatory compliance, environmental impact assessments, and sustainability initiatives. Federal spending in this area is often tied to specific agency missions, such as NOAA's focus on oceanic and atmospheric research and stewardship. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar environmental consulting expertise.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award to ABT GLOBAL LLC, it is unlikely that small businesses were specifically targeted for participation. This contract does not appear to contribute to the small business ecosystem through set-aside goals or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce's internal procurement and program management offices, as well as NOAA's specific oversight mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. Transparency regarding the justification for the sole-source award and the detailed performance metrics would be key to assessing accountability.

Related Government Programs

Environmental Impact Statements
Environmental Consulting Services
Natural Resource Management
Climate Change Research Support
Coastal Zone Management

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Time-and-materials contract type increases risk of cost escalation.
Lack of detailed justification for sole-source award.
Limited transparency on specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $63.1 million to ABT GLOBAL LLC. TASK ORDER 1 - ASSESSMENT OF LOST DIRECT AND PASSIVE HUMAN USE

Who is the contractor on this award?

The obligated recipient is ABT GLOBAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $63.1 million.

What is the period of performance?

Start: 2011-09-22. End: 2014-12-31.

What specific environmental consulting services were provided under this contract?

The contract, identified as TASK ORDER 1 - ASSESSMENT OF LOST DIRECT AND PASSIVE HUMAN USE, was for environmental consulting services under NAICS code 541620. While the title suggests a focus on assessing human use impacts, the full scope of services would typically include data collection, analysis, modeling, reporting, and potentially expert testimony or recommendations related to environmental policy and management. These services are crucial for agencies like NOAA to understand and mitigate the effects of human activities on natural resources and ecosystems, informing regulatory decisions and long-term planning.

How does the $63 million cost compare to similar environmental consulting contracts?

Direct comparison of the $63 million cost is difficult without knowing the specific deliverables and duration of comparable sole-source contracts. However, for large-scale environmental consulting projects, especially those involving extensive data analysis, modeling, and long-term assessments, costs can indeed reach tens of millions of dollars. The fact that this was a sole-source award to ABT GLOBAL LLC means that a competitive benchmark for price is absent, making it harder to definitively state if this represents optimal value. Typically, contracts of this magnitude would undergo rigorous competitive bidding to ensure fair market pricing.

What are the risks associated with a sole-source award for environmental consulting?

The primary risk of a sole-source award is the lack of competition, which can lead to inflated prices and reduced innovation. Without competing bids, the government may not secure the most cost-effective solution or the vendor with the best overall value proposition. For specialized services like environmental consulting, there's also a risk of vendor lock-in, where the government becomes dependent on a single provider. Furthermore, the justification for a sole-source award must be robust to ensure it's truly necessary and not simply a matter of convenience, thereby maintaining public trust and accountability.

What is the significance of the 'TIME AND MATERIALS' contract type?

The 'TIME AND MATERIALS' (T&M) contract type means the government pays the contractor for the actual labor hours expended at specified hourly rates, plus the cost of materials used. This type of contract is often used when the scope of work is not clearly defined at the outset or is expected to evolve. While flexible, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. Effective oversight and management are crucial to control costs and ensure efficient performance under a T&M arrangement.

What is the historical spending pattern for environmental consulting services at NOAA?

Analyzing historical spending patterns for environmental consulting at NOAA would require access to broader federal procurement data beyond this single task order. However, agencies like NOAA, with mandates related to climate, oceans, and atmosphere, consistently require specialized environmental expertise. Spending in this area can fluctuate based on specific research initiatives, regulatory changes, and the lifecycle of major projects. Understanding past investments in similar services would provide context for the $63 million awarded here, particularly if previous contracts were also sole-source or competed.

What does the NAICS code 541620 indicate about the contractor's qualifications?

The North American Industry Classification System (NAICS) code 541620 specifically designates establishments primarily engaged in providing environmental consulting services. This includes services such as environmental impact assessment, air and water pollution control consulting, hazardous waste management consulting, and general environmental consulting. Awarding a contract under this code suggests that ABT GLOBAL LLC possesses the specialized knowledge, expertise, and potentially the certifications required to perform these technical and advisory functions for the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: AB133C-11-RP-0091

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 55 WHEELER ST, CAMBRIDGE, MA, 02138

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

Financial Breakdown

Contract Ceiling: $63,070,150

Exercised Options: $63,070,150

Current Obligation: $63,070,150

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCAB133C11CQ0051

IDV Type: IDC

Timeline