Interior Department awards $2.6B consulting contract to Mathematica Inc. for administrative management services

Contract Overview

Contract Amount: $2,598,061 ($2.6M)

Contractor: Mathematica Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-09-21

End Date: 2027-09-20

Contract Duration: 1,825 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SCAN POLICIES DATABASE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $2.6 million to MATHEMATICA INC. for work described as: SCAN POLICIES DATABASE Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract's duration of 5 years indicates a long-term need for administrative management support. 3. The use of Time and Materials pricing may present cost control challenges if not closely managed. 4. This contract falls under administrative management and general management consulting services, a broad category. 5. The significant award value suggests a substantial scope of work and potential impact on contractor operations.

Value Assessment

Rating: fair

Benchmarking the value of this $2.6 billion contract is challenging without specific deliverables and performance metrics. However, the award to a single contractor for a 5-year period suggests a significant investment in administrative management consulting. The Time and Materials (T&M) pricing structure, while common for consulting, can lead to cost overruns if not meticulously monitored. Comparing this to similar large-scale administrative consulting contracts across federal agencies would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The fact that it was competed broadly suggests a healthy market for administrative management consulting services, with several firms capable of meeting the government's needs.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for their money. Full and open competition generally leads to more favorable pricing and a wider selection of qualified contractors.

Public Impact

Federal agencies requiring administrative management and general management consulting services will benefit from the expertise provided. The contract supports the operational efficiency and effectiveness of the Department of the Interior's various programs. Services delivered likely include strategic planning, organizational analysis, process improvement, and policy development. The primary geographic impact is within the District of Columbia, where the Department of the Interior is headquartered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure if not managed rigorously.
Scope creep could increase costs beyond initial projections without strict oversight.
Dependence on a single contractor for a significant duration may limit flexibility in adapting to changing needs.

Positive Signals

Awarded through full and open competition, indicating a competitive process and potential for good value.
Long-term contract duration suggests a stable and ongoing need, allowing for deep expertise development.
The significant award value indicates the importance and scale of the services required by the agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal contracting, supporting a wide array of agency functions. The market for these services is competitive, with numerous firms offering specialized expertise. The award value of $2.6 billion places this contract among larger federal engagements for consulting services.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Mathematica Inc. is a large business, there is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are expected to participate in fulfilling the contract requirements.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the agency's program management office. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Administrative Management and General Management Consulting Services
Professional, Scientific, and Technical Services
Department of the Interior Contracts
Large-Scale Consulting Engagements

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for strong contract oversight to manage scope and effort.
Long-term duration may limit agency's agility in adapting to future needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.6 million to MATHEMATICA INC.. SCAN POLICIES DATABASE

Who is the contractor on this award?

The obligated recipient is MATHEMATICA INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2022-09-21. End: 2027-09-20.

What is Mathematica Inc.'s track record with federal contracts, particularly in administrative management consulting?

Mathematica Inc. has a substantial history of performing federal contracts across various agencies, including significant work with health and human services programs. While their expertise is well-established in research, data analysis, and program evaluation, their specific track record in large-scale administrative management consulting for an agency like the Department of the Interior warrants detailed review. Examining past performance evaluations and any past performance issues on similar contracts would provide a clearer picture of their capabilities and reliability in this specific domain. Their extensive experience suggests a strong foundation, but the scale and nature of this particular award necessitate a focused look at relevant past performance.

How does the $2.6 billion award value compare to similar administrative management consulting contracts awarded by the Department of the Interior or other large federal agencies?

The $2.6 billion award value for this 5-year contract is substantial and places it among the larger federal consulting engagements. To benchmark effectively, one would compare it to other 'full and open competition' awards for 'Administrative Management and General Management Consulting Services' (NAICS 541611) over similar durations. Agencies like HHS, DOD, or GSA often award large contracts in this space. A comparative analysis would involve looking at the average award value per year, the scope of services typically included, and the number of bidders. Without this comparative data, it's difficult to definitively state if this represents exceptional value or is within the expected range for such a significant, long-term requirement.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract, and how are they mitigated?

The primary risk with a Time and Materials (T&M) contract is the potential for cost escalation if the level of effort or duration of work is not well-defined or controlled. Contractors are reimbursed for direct labor hours at specified rates and for the cost of materials. This can lead to higher-than-anticipated costs if tasks take longer than expected or if material costs increase. Mitigation strategies typically involve robust oversight by the Contracting Officer's Representative (COR), clear task orders with defined objectives and estimated levels of effort, regular progress reviews, and strict adherence to the contract's ceiling price. The agency must actively manage the scope and monitor expenditures to ensure costs remain within budget and deliver value.

What is the expected impact of this contract on the Department of the Interior's operational effectiveness and efficiency?

This contract is expected to significantly enhance the Department of the Interior's operational effectiveness and efficiency by providing expert administrative management and general management consulting services. These services likely encompass areas such as strategic planning, organizational design, process improvement, performance management, and policy development. By leveraging Mathematica Inc.'s expertise, the Department can streamline operations, optimize resource allocation, improve decision-making processes, and ensure better alignment of its programs with its strategic goals. The long-term nature of the contract suggests a commitment to sustained improvement and the integration of consulting insights into the Department's core functions.

How has federal spending in administrative management and general management consulting services evolved over the past five years, and where does this contract fit?

Federal spending in administrative management and general management consulting services (NAICS 541611) has generally seen a steady increase over the past five years, driven by agencies' needs to modernize operations, improve efficiency, and adapt to evolving policy landscapes. This $2.6 billion, 5-year contract awarded to Mathematica Inc. represents a significant portion of that spending within a single award. It aligns with the trend of agencies seeking specialized external expertise for complex management challenges. Its large value suggests a critical, agency-wide initiative or a comprehensive support requirement, placing it at the higher end of the spectrum for individual consulting contracts within this category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0422Q0525

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1100 1ST ST NE FL 12, WASHINGTON, DC, 20002

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

Financial Breakdown

Contract Ceiling: $2,999,893

Exercised Options: $2,598,079

Current Obligation: $2,598,061

Actual Outlays: $2,062,752

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA18D00BQ

IDV Type: FSS

Timeline