ABT Global LLC contract for consulting services shows a $1-for-$2 benefit offset

Contract Overview

Contract Amount: $10,573,412 ($10.6M)

Contractor: ABT Global LLC

Awarding Agency: Social Security Administration

Start Date: 2004-09-30

End Date: 2008-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: $1-FOR-$2 BENEFIT OFFSET DESIGN SECTION 234 PROJECT

Place of Performance

Location: MASSACHUSETTS

State: Massachusetts Government Spending

Plain-Language Summary

Social Security Administration obligated $10.6 million to ABT GLOBAL LLC for work described as: $1-FOR-$2 BENEFIT OFFSET DESIGN SECTION 234 PROJECT Key points: 1. The contract's benefit offset design suggests a potential for significant return on investment. 2. Competition dynamics for this contract were full and open, indicating a robust bidding process. 3. The contract duration of 1460 days (4 years) suggests a long-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed carefully. 5. The contract was awarded by the Social Security Administration, indicating a focus on administrative support. 6. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services.

Value Assessment

Rating: fair

The contract's stated benefit offset of $1 for every $2 spent is a strong indicator of potential value, though actual realization depends on effective implementation and management. Benchmarking this specific offset ratio is difficult without more data on similar contracts with explicit financial return mandates. The CPFF structure, while allowing flexibility, requires diligent oversight to prevent costs from exceeding the fixed fee component and to ensure value for money.

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 had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing. The fact that it was competed fully implies that the agency sought the best value from the market.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures that the government receives services at a fair market price.

Public Impact

The Social Security Administration benefits from specialized consulting services to support its operations. The services delivered likely contribute to the efficiency and effectiveness of SSA programs. The geographic impact is primarily within the scope of the Social Security Administration's national operations. The contract supports the professional workforce engaged in technical and scientific consulting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) pricing structure.
The effectiveness of the $1-for-$2 benefit offset is contingent on successful project execution and measurable outcomes.
Reliance on a single contractor (ABT GLOBAL LLC) for a significant duration may limit future flexibility or access to potentially better solutions.

Positive Signals

The contract was awarded through full and open competition, indicating a competitive selection process.
The explicit $1-for-$2 benefit offset suggests a strong focus on achieving demonstrable financial returns.
The contract duration implies a recognized and sustained need for the services provided.

Sector Analysis

This contract falls within the 'Other Scientific and Technical Consulting Services' sector, a broad category encompassing specialized expertise. The market for such services is competitive, with numerous firms offering a range of capabilities. The Social Security Administration's spending in this area is likely driven by the need for expert advice on complex administrative and operational challenges. Comparable spending benchmarks would depend on the specific nature of the consulting services provided, but the overall consulting market is substantial.

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 or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, ABT GLOBAL LLC, is likely a larger entity capable of handling the scope of work.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Social Security Administration, who monitors performance and ensures compliance with contract terms. Accountability measures are embedded in the CPFF structure and the stated benefit offset, requiring the contractor to justify costs and demonstrate value. Transparency is generally maintained through contract databases, though specific performance details might be proprietary.

Related Government Programs

Social Security Administration IT Modernization Projects
Federal Consulting Services Contracts
Government Administrative Support Services
Cost-Plus-Fee Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure may lead to cost overruns.
Effectiveness of benefit offset relies heavily on contract management and measurable outcomes.
Limited insight into contractor's past performance without further data.
Specificity of 'Other Scientific and Technical Consulting Services' is unclear from data.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $10.6 million to ABT GLOBAL LLC. $1-FOR-$2 BENEFIT OFFSET DESIGN SECTION 234 PROJECT

Who is the contractor on this award?

The obligated recipient is ABT GLOBAL LLC.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2004-09-30. End: 2008-09-29.

What is the specific nature of the 'Other Scientific and Technical Consulting Services' provided under this contract?

The provided data does not detail the specific nature of the 'Other Scientific and Technical Consulting Services'. The NAICS code 541690 is broad and can include a wide array of specialized consulting, such as process improvement, management consulting, or technical advisory. To understand the exact services, one would need to review the contract's statement of work (SOW) or task orders. Given the contracting agency is the Social Security Administration (SSA), these services could relate to optimizing administrative processes, improving data management, or providing expert advice on program implementation and policy analysis. The 'benefit offset design' mentioned in the data suggests a focus on services that are expected to yield quantifiable financial benefits or cost savings for the SSA.

How has ABT GLOBAL LLC performed on previous government contracts, particularly with the Social Security Administration?

Information regarding ABT GLOBAL LLC's past performance on government contracts, including those with the Social Security Administration, is not directly available in the provided data snippet. A comprehensive assessment would require accessing contract performance databases (like the Federal Procurement Data System - Next Generation - FPDS-NG) or agency-specific past performance repositories. These systems often contain contractor performance evaluations (CPEs) and other feedback that can indicate reliability, quality of work, and adherence to schedule and budget on prior engagements. Without this external data, it's impossible to definitively assess their track record.

Can the $1-for-$2 benefit offset be independently verified, and what metrics are used to measure this benefit?

The $1-for-$2 benefit offset is a stated objective or design feature of the contract, implying that for every dollar spent on the contract, two dollars in benefits (likely cost savings or revenue generation) are expected to be realized. Independent verification would depend on the specific metrics defined in the contract's SOW and performance clauses. These metrics would need to be clearly defined, measurable, achievable, relevant, and time-bound (SMART). The Social Security Administration would be responsible for tracking and validating these benefits against the contract costs. Without access to the contract's detailed performance requirements and reporting mechanisms, the verifiability and actual realization of this offset remain speculative.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific engagement?

The Cost Plus Fixed Fee (CPFF) contract type presents inherent risks, primarily related to cost control. While the contractor is reimbursed for allowable costs and paid a predetermined fixed fee (profit), there is less incentive for the contractor to control costs compared to fixed-price contracts. If the contractor's costs exceed estimates, the government still pays those costs, potentially leading to higher overall spending than anticipated. The risk for the government is that the 'fixed fee' might not adequately compensate for the effort if costs escalate significantly, or that the contractor may not be as diligent in seeking cost efficiencies. Effective oversight by the contracting officer and technical team is crucial to mitigate these risks by scrutinizing costs and ensuring the work performed aligns with the contract objectives.

How does the $10.57 million contract value compare to typical spending for similar consulting services by the Social Security Administration?

The contract value of approximately $10.57 million over its 4-year duration (1460 days) averages around $2.64 million per year. To benchmark this against typical spending, one would need to analyze historical SSA contracts for 'Other Scientific and Technical Consulting Services' (NAICS 541690) or similar categories. The Federal Procurement Data System (FPDS) can provide this data. Factors influencing comparability include the specific nature of the services, the complexity of the tasks, the duration, and the number of bidders. Without comparative data, it's difficult to definitively state if $10.57 million is high, low, or average for the SSA's needs in this domain. However, for specialized consulting services supporting a large federal agency, this value is within a plausible range.

What is the significance of the contract being awarded in Massachusetts (SN: MASSACHUSETTS)?

The 'SN: MASSACHUSETTS' designation likely indicates the state where the contractor, ABT GLOBAL LLC, is located or where a significant portion of the contract work is performed. For federal contracts, the location of performance can have implications for state and local taxes, labor laws, and economic impact. However, for consulting services, especially those that can be performed remotely or involve national-level support for an agency like the Social Security Administration, the specific state of performance might be less critical than the contractor's capability. It could also reflect the location of a specific task order or a major project site within Massachusetts.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 55 WHEELER ST, CAMBRIDGE, MA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,573,412

Exercised Options: $10,573,412

Current Obligation: $10,573,412

Contract Characteristics

Multi-Year Contract: Yes

Timeline