NOAA's $20.7M toxicity testing contract awarded to ABT Global LLC via sole-source justification

Contract Overview

Contract Amount: $20,763,562 ($20.8M)

Contractor: ABT Global LLC

Awarding Agency: Department of Commerce

Start Date: 2012-02-09

End Date: 2017-08-08

Contract Duration: 2,007 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TASK ORDER 2 - TOXICITY TESTING

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80306

State: Colorado Government Spending

Plain-Language Summary

Department of Commerce obligated $20.8 million to ABT GLOBAL LLC for work described as: TASK ORDER 2 - TOXICITY TESTING Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. Significant duration of over 5 years suggests a long-term need for these specialized environmental consulting services. 3. The contract's value, while substantial, needs benchmarking against similar toxicity testing services to assess value for money. 4. Awarded under a Time and Materials contract type, which can pose cost control challenges if not managed diligently. 5. The absence of small business set-asides or subcontracting plans warrants further investigation into broader economic impact. 6. Environmental Consulting Services (NAICS 541620) is a competitive field, making the sole-source award notable.

Value Assessment

Rating: questionable

The contract's value of $20.7 million over five years for toxicity testing services requires careful benchmarking. Without competitive bidding, it's difficult to definitively assess if this represents fair market value. The Time and Materials pricing structure, while flexible, can lead to cost overruns if not tightly managed. Comparing this to similar, competitively awarded contracts for environmental consulting and specialized testing would be crucial for a robust value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one contractor, ABT Global LLC, was solicited. The rationale for this approach is not detailed here but typically involves unique capabilities, urgent needs, or lack of other qualified sources. The absence of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The sole-source award limits the government's ability to leverage market competition to secure the best possible pricing for taxpayers. This approach bypasses the standard process designed to ensure cost-effectiveness through multiple bids.

Public Impact

The primary beneficiaries are likely the National Oceanic and Atmospheric Administration (NOAA) and its research initiatives requiring toxicity assessments. Services delivered include specialized toxicity testing, crucial for environmental impact assessments and regulatory compliance. The geographic impact is primarily national, supporting NOAA's mission across various environmental domains. Workforce implications may involve specialized scientific and technical personnel employed by ABT Global LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Time and Materials contract type can lead to cost escalation without strict oversight.
Lack of transparency regarding the justification for sole-source award.
No indication of small business participation or subcontracting goals.

Positive Signals

Contract supports critical environmental research and regulatory functions for NOAA.
Long-term award suggests a sustained need and potential for stable service delivery.
ABT Global LLC is the selected provider, implying they possess necessary specialized expertise.

Sector Analysis

The environmental consulting services sector is diverse, encompassing a wide range of scientific and technical expertise. NAICS code 541620 covers establishments primarily engaged in providing advice and assistance on environmental issues. This contract falls within the broader professional, scientific, and technical services industry, which is a significant area of federal spending. Benchmarking this contract's value against other federal contracts for similar environmental consulting or specialized testing services would provide context on its relative cost-effectiveness.

Small Business Impact

This contract does not appear to have included small business set-aside provisions, nor is there information indicating subcontracting opportunities for small businesses. The sole-source nature of the award further limits the potential for small business involvement. This suggests that the primary focus was on securing the specific services from ABT Global LLC, potentially overlooking opportunities to foster small business participation within this contract's scope.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve NOAA program managers monitoring performance, deliverables, and adherence to contract terms, especially given the Time and Materials structure. Accountability rests with ABT Global LLC to provide the contracted services effectively. Transparency is limited due to the sole-source nature and lack of publicly detailed justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Consulting Services
Toxicity Testing
NOAA Research Contracts
Sole Source Procurements
Department of Commerce Contracts

Risk Flags

Sole-source award
Time and Materials contract type
Lack of competition
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $20.8 million to ABT GLOBAL LLC. TASK ORDER 2 - TOXICITY TESTING

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 $20.8 million.

What is the period of performance?

Start: 2012-02-09. End: 2017-08-08.

What was the specific justification for awarding this contract on a sole-source basis to ABT Global LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, such as in cases of unique capabilities, urgent and compelling needs, or when other sources are not available or cannot meet the requirements. Without this documentation, it is impossible to fully assess the necessity and appropriateness of bypassing the competitive bidding process for this $20.7 million contract.

How does the $20.7 million cost compare to similar toxicity testing contracts awarded by the government?

Benchmarking the $20.7 million cost requires comparing it to similar toxicity testing and environmental consulting services contracts, ideally those awarded competitively. Factors such as contract duration (over 5 years here), scope of work, specific testing methodologies, and geographic coverage would need to be matched. Given this contract was sole-sourced and used a Time and Materials (T&M) pricing structure, a direct cost comparison might be challenging. However, analysis of competitively awarded T&M contracts for similar services could reveal if ABT Global LLC's rates were within market norms or if the lack of competition potentially inflated costs.

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 this $20.7 million award, carry inherent risks, primarily related to cost control. Since payment is based on direct labor hours at specified hourly rates and the cost of materials, there's a risk of cost escalation if the project duration extends beyond initial estimates or if labor hours are not diligently managed. For a contract spanning over five years, the potential for cost growth is significant. Effective oversight, detailed tracking of labor hours, and clear definition of work effort are critical to mitigate these risks and ensure the government receives value for its investment.

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

The provided data identifies ABT Global LLC as the contractor but does not offer details on their past performance or track record with federal contracts. A comprehensive assessment would require reviewing contract performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS), past contract awards, and any documented issues or successes. Understanding their history with similar environmental consulting or toxicity testing services, especially under government contracts, is crucial for evaluating their capability and reliability in fulfilling this $20.7 million task order.

What is the historical spending trend for toxicity testing services within NOAA or the Department of Commerce?

The provided data focuses on a single task order and does not offer historical spending trends for toxicity testing services within NOAA or the Department of Commerce. To analyze historical spending, one would need to access federal procurement databases (like USASpending.gov) and filter for relevant NAICS codes (e.g., 541620) and agencies over several fiscal years. This would reveal the overall investment in such services, identify trends in contract types and competition levels, and provide context for the significance of this $20.7 million award relative to past expenditures.

Does the sole-source nature of this award indicate a lack of qualified contractors in the market for these services?

A sole-source award suggests that, for specific reasons documented by the agency, only one contractor was deemed capable of meeting the requirement. This could stem from unique technical expertise, proprietary technology, or urgent circumstances. However, it does not definitively mean a lack of qualified contractors in the broader market for environmental consulting. It implies that, at the time of procurement, NOAA determined ABT Global LLC was the only viable option. Further market research or analysis of the justification document would be needed to confirm if other qualified entities exist but were not considered or available for this specific requirement.

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

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: $20,763,562

Exercised Options: $20,763,562

Current Obligation: $20,763,562

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCAB133C11CQ0051

IDV Type: IDC

Timeline