SSA's $26.6M contract for Promoting Opportunity Demonstration Study awarded to ABT Global LLC

Contract Overview

Contract Amount: $26,611,691 ($26.6M)

Contractor: ABT Global LLC

Awarding Agency: Social Security Administration

Start Date: 2017-01-30

End Date: 2022-11-30

Contract Duration: 2,130 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF IMPLEMENTATION OF THE PROMOTING OPPORTUNITY DEMONSTRATION (POD-I) STUDY. THIS IS A COST-PLUS-FIXED-FEE (CPFF) COMPLETION TYPE CONTRACT WITH A FOUR AND A HALF YEAR PERIOD OF PERFORMANCE, WITH AN OPTION TO EXTEND SERVICES CLAUSE, AS SPECIFIED IN SECTION I-34, FOR A TOTAL POSSIBLE PERIOD OF PERFORMANCE OF 60-MONTHS.

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138

State: Massachusetts Government Spending

Plain-Language Summary

Social Security Administration obligated $26.6 million to ABT GLOBAL LLC for work described as: IGF::OT::IGF IMPLEMENTATION OF THE PROMOTING OPPORTUNITY DEMONSTRATION (POD-I) STUDY. THIS IS A COST-PLUS-FIXED-FEE (CPFF) COMPLETION TYPE CONTRACT WITH A FOUR AND A HALF YEAR PERIOD OF PERFORMANCE, WITH AN OPTION TO EXTEND SERVICES CLAUSE, AS SPECIFIED IN SECTION I-34, FOR A TOT… Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost-Plus-Fixed-Fee (CPFF), which can incentivize cost control but also carries inherent risks. 3. A significant period of performance (up to 60 months) indicates a complex, long-term project. 4. The administrative management and general management consulting services sector is broad and can encompass various project scopes. 5. The contract's value of $26.6 million over approximately 5 years warrants scrutiny for value for money. 6. No small business set-aside was utilized, indicating the primary awardee is not a small business.

Value Assessment

Rating: fair

The contract value of $26.6 million over a 60-month period suggests an average annual spend of approximately $5.3 million. Benchmarking this against similar large-scale consulting studies for federal agencies is challenging without more specific details on the study's scope and deliverables. However, the CPFF structure requires careful monitoring to ensure costs remain reasonable and aligned with the fixed fee. The absence of a specific per-unit cost makes direct comparison difficult, but the overall contract size indicates a substantial investment.

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. The solicitation process likely involved a formal Request for Proposals (RFP) where multiple companies could compete. The number of bidders is not specified, but full and open competition generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from the potential for a more competitive price due to the open bidding process. This approach aims to ensure that the government receives the best value by considering a wide range of qualified contractors.

Public Impact

The primary beneficiary is the Social Security Administration (SSA), which will receive insights from the Promoting Opportunity Demonstration (POD-I) Study. The study aims to inform policies and programs related to opportunity and potentially improve service delivery or program effectiveness. The geographic impact is likely national, as the SSA operates nationwide, though specific pilot locations for the demonstration study are not detailed. Workforce implications could include the engagement of researchers, analysts, and administrative staff by the contractor, ABT Global LLC, and potentially within the SSA to manage and implement the study's findings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-Plus-Fixed-Fee contracts can lead to cost overruns if not managed diligently.
The long performance period requires sustained oversight to ensure objectives remain relevant and achievable.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The fixed fee component provides some level of cost certainty for the government.
The contract duration allows for in-depth analysis and implementation of a demonstration study.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is characterized by a wide range of specialized expertise. Federal spending in this area often supports policy analysis, program evaluation, and operational improvements. Comparable spending benchmarks would depend heavily on the specific nature and scale of the 'Promoting Opportunity Demonstration Study,' but large-scale federal consulting contracts can range from millions to hundreds of millions of dollars.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, ABT Global LLC, is likely a large business given the contract's value. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This means opportunities for small business participation may be limited unless ABT Global LLC voluntarily engages them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Social Security Administration's contracting officers and program managers. The CPFF structure necessitates close monitoring of costs incurred and the progress towards the fixed fee objectives. Transparency would be facilitated through regular reporting requirements stipulated in the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Social Security Administration Research and Analysis Contracts
Federal Management Consulting Services
Demonstration Study Contracts
Program Evaluation Contracts

Risk Flags

Long performance period may increase risk of scope creep or changing relevance.
CPFF contract type requires diligent oversight to manage costs.
Lack of specific performance metrics in provided data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $26.6 million to ABT GLOBAL LLC. IGF::OT::IGF IMPLEMENTATION OF THE PROMOTING OPPORTUNITY DEMONSTRATION (POD-I) STUDY. THIS IS A COST-PLUS-FIXED-FEE (CPFF) COMPLETION TYPE CONTRACT WITH A FOUR AND A HALF YEAR PERIOD OF PERFORMANCE, WITH AN OPTION TO EXTEND SERVICES CLAUSE, AS SPECIFIED IN SECTION I-34, FOR A TOTAL POSSIBLE PERIOD OF PERFORMANCE OF 60-MONTHS.

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 $26.6 million.

What is the period of performance?

Start: 2017-01-30. End: 2022-11-30.

What specific research questions or objectives does the Promoting Opportunity Demonstration (POD-I) Study aim to address for the Social Security Administration?

The provided data does not detail the specific research questions or objectives of the Promoting Opportunity Demonstration (POD-I) Study. However, given the context of the Social Security Administration (SSA) and the contract title, it likely focuses on evaluating programs or policies designed to enhance opportunities for individuals, potentially related to employment, benefits, or social mobility. The study's findings are intended to inform SSA's strategic direction and program development. Further details would typically be found in the contract's Statement of Work (SOW) or related documentation, which are not included here.

How does the Cost-Plus-Fixed-Fee (CPFF) structure compare to other contract types in terms of risk and incentive for the contractor and the government?

The Cost-Plus-Fixed-Fee (CPFF) contract type involves the government reimbursing the contractor for all allowable costs plus a predetermined fixed fee. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin (the fixed fee remains constant regardless of cost fluctuations). For the government, it offers flexibility in scope but carries the risk of cost overruns if the initial cost estimates are inaccurate or if the project scope expands significantly. Compared to a Firm-Fixed-Price (FFP) contract, CPFF offers more flexibility but less cost certainty. Compared to a Cost-Plus-Incentive-Fee (CPIF) contract, the fee is fixed, removing the direct incentive for cost reduction tied to performance metrics beyond project completion.

What is the typical track record of ABT Global LLC in performing similar large-scale federal consulting contracts?

Information regarding ABT Global LLC's specific track record on similar large-scale federal consulting contracts is not provided in the data. To assess their performance, one would typically review past performance evaluations, contract awards, and any publicly available reports or case studies related to their work with federal agencies. A comprehensive review would involve examining the complexity, duration, and value of previous contracts, as well as client satisfaction and adherence to timelines and budgets. Without this external data, it's impossible to definitively assess their track record for this specific contract.

Can the $26.6 million contract value be benchmarked against similar government studies on 'promoting opportunity'?

Benchmarking the $26.6 million contract value against similar government studies on 'promoting opportunity' is challenging without more specific details on the scope, objectives, and deliverables of the POD-I Study. Federal spending on research and demonstration projects varies widely based on complexity, duration, and the number of participants or sites involved. While $26.6 million over five years represents a significant investment, its value can only be truly assessed by comparing it to contracts with comparable goals, methodologies, and expected outcomes within agencies like the Department of Labor, HHS, or other entities focused on social and economic opportunity programs.

What are the potential risks associated with a 60-month period of performance for a demonstration study?

A 60-month period of performance for a demonstration study presents several potential risks. Firstly, the relevance of the study's objectives and methodologies may diminish over time due to evolving policy landscapes, technological advancements, or societal changes. Secondly, maintaining consistent contractor performance and stakeholder engagement over such a long duration can be challenging. Thirdly, there's an increased risk of scope creep or requirement changes, which, if not managed effectively, can lead to cost overruns and delays. Finally, long-term contracts can sometimes face funding uncertainties or shifts in agency priorities, potentially impacting the study's continuity and ultimate success.

How does the 'Administrative Management and General Management Consulting Services' NAICS code (541611) typically translate into contract deliverables for a study like POD-I?

The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' is broad and encompasses a wide range of activities. For a study like the Promoting Opportunity Demonstration (POD-I), deliverables under this code could include strategic planning, policy analysis, program design and evaluation, organizational assessment, process improvement recommendations, and data analysis. Specifically for POD-I, it likely involves designing and executing a demonstration project, collecting and analyzing data on its outcomes, and providing comprehensive reports with findings and recommendations to the Social Security Administration to inform future policy or program decisions.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SSA-RFP-17-1004

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $29,901,864

Exercised Options: $26,611,691

Current Obligation: $26,611,691

Actual Outlays: $16,239,350

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $37,425,335

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline