MCC awards $4M for Mozambique II Compact Technical Services to Mott MacDonald, Inc

Contract Overview

Contract Amount: $4,049,150 ($4.0M)

Contractor: Mott Macdonald, Inc.

Awarding Agency: Millennium Challenge Corporation

Start Date: 2022-02-01

End Date: 2026-06-30

Contract Duration: 1,610 days

Daily Burn Rate: $2.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MOZAMBIQUE II COMPACT - TECHNICAL SERVICES

Place of Performance

Location: ISELIN, MIDDLESEX County, NEW JERSEY, 08830

State: New Jersey Government Spending

Plain-Language Summary

Millennium Challenge Corporation obligated $4.0 million to MOTT MACDONALD, INC. for work described as: MOZAMBIQUE II COMPACT - TECHNICAL SERVICES Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract is a Time and Materials type, indicating payment based on labor hours and material costs. 3. The duration of the contract is 1610 days, spanning from February 2022 to June 2026. 4. The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a focus on smaller value procurements. 5. The award is a BPA Call, indicating it was made against an existing Blanket Purchase Agreement. 6. The contractor, Mott MacDonald, Inc., is based in New Jersey. 7. The contract value is approximately $4.05 million. 8. No small business set-aside was utilized for this contract.

Value Assessment

Rating: good

The contract value of approximately $4.05 million for technical services over a period of roughly 4.4 years appears reasonable for a project of this nature. Benchmarking against similar consulting services contracts awarded by agencies like the Millennium Challenge Corporation (MCC) would provide a more precise value-for-money assessment. The Time and Materials pricing structure necessitates careful monitoring of labor hours and rates to ensure cost efficiency and prevent overruns. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of excellent value is challenging, but the award appears to be within a typical range for specialized consulting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), which generally implies a competitive process, though potentially with fewer bidders than a full and open competition for larger contracts. The presence of two bids (no: 2) indicates some level of competition. The specific details of the solicitation and evaluation process under SAP would determine the extent of competition. For contracts under SAP, agencies aim for fair and reasonable pricing through competition or market research.

Taxpayer Impact: Competition under SAP, even with a limited number of bidders, generally helps ensure that taxpayer funds are used efficiently by driving down prices compared to a sole-source award. The fact that it was competed suggests an effort to obtain the best value.

Public Impact

The primary beneficiary of these technical services is the Millennium Challenge Corporation (MCC) and its mission in Mozambique. The services will support the implementation and oversight of the Mozambique II Compact, a development program. The geographic impact is focused on Mozambique, where the MCC compact activities are taking place. The contract supports specialized consulting services, likely involving project management, technical expertise, and administrative support for the compact's objectives. The workforce implications are primarily for the contractor, Mott MacDonald, Inc., which will deploy personnel to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials pricing structure if not closely monitored.
Reliance on a single contractor for critical technical services could pose a risk if performance issues arise.
The effectiveness of competition under SAP for ensuring optimal pricing needs further scrutiny.

Positive Signals

Award to an established firm, Mott MacDonald, Inc., suggests a degree of confidence in their capabilities.
The contract is part of a larger development initiative (Mozambique II Compact), indicating alignment with strategic foreign aid objectives.
The duration of the contract allows for sustained support throughout the compact's lifecycle.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions from policy development to program implementation. The market for these services is competitive, with numerous firms offering specialized expertise. The MCC's use of such services is typical for agencies managing complex international development programs, where external expertise is often leveraged to ensure effective execution and achieve program goals.

Small Business Impact

This contract was not set aside for small businesses (ss: false, sb: false). The award to Mott MacDonald, Inc., a presumably larger entity, indicates that small businesses were not specifically targeted for this procurement. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem for this specific contract appears minimal, though larger prime contractors often engage small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract will primarily reside with the Millennium Challenge Corporation (MCC), as both the awarding and contracting agency. The contract's Time and Materials nature necessitates robust oversight of labor hours, rates, and expenses to ensure cost control and prevent waste. Transparency will be facilitated through contract reporting requirements and potentially through MCC's public-facing information on its development programs. The Inspector General of the MCC would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Millennium Challenge Corporation Programs
International Development Assistance
Technical Assistance Contracts
Management Consulting Services
Foreign Aid Administration

Risk Flags

Potential for cost overruns due to T&M contract type.
Reliance on contractor performance for critical project support.
Effectiveness of competition under SAP needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Millennium Challenge Corporation awarded $4.0 million to MOTT MACDONALD, INC.. MOZAMBIQUE II COMPACT - TECHNICAL SERVICES

Who is the contractor on this award?

The obligated recipient is MOTT MACDONALD, INC..

Which agency awarded this contract?

Awarding agency: Millennium Challenge Corporation (Millennium Challenge Corporation).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2022-02-01. End: 2026-06-30.

What is Mott MacDonald, Inc.'s track record with the Millennium Challenge Corporation and similar federal agencies?

Mott MacDonald, Inc. has a history of working with government agencies, including potentially the Millennium Challenge Corporation (MCC) on international development projects. To assess their track record specifically with MCC, one would need to review past contract awards and performance evaluations. Generally, firms in this sector often have multiple contracts across various federal agencies. A detailed review would involve searching federal procurement databases like FPDS-NG or USAspending.gov for prior awards to Mott MacDonald, Inc. by MCC and other relevant agencies, looking for indicators of past performance, such as contract modifications, termination history, and any reported disputes or performance issues. Their experience with similar large-scale technical services for development programs would be a key indicator of their suitability and reliability for the Mozambique II Compact.

How does the $4.05 million contract value compare to similar technical services contracts for international development projects?

The $4.05 million contract value for technical services supporting the Mozambique II Compact appears to be within a reasonable range for a multi-year engagement of this nature. Benchmarking against similar contracts awarded by the MCC or other agencies like USAID for technical assistance and project management in developing countries would provide a more precise comparison. Factors influencing the value include the scope of services, the duration of the contract (over 4 years), the complexity of the project, and the specific expertise required. Contracts for large-scale development programs can range from hundreds of thousands to tens of millions of dollars, depending on these variables. The Time and Materials (T&M) pricing structure also means the final cost can fluctuate based on actual hours worked and resources utilized, making direct comparisons challenging without detailed scope and labor rate information.

What are the primary risks associated with this Time and Materials contract, and how are they mitigated?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns if not managed diligently. Since payment is based on direct labor hours and costs, there's an incentive for the contractor to bill more hours or incur higher material costs. Mitigation strategies employed by the MCC would include establishing clear labor hour ceilings, defining specific task orders with estimated hours, implementing rigorous invoice review processes, and potentially incorporating fixed-price components for certain deliverables. Regular performance reviews and audits are crucial to ensure that the hours billed are reasonable and directly related to the contract's objectives. The contract's duration of over four years also necessitates ongoing vigilance to manage costs effectively throughout its lifecycle.

How effective is the competition level (2 bidders under SAP) in ensuring fair pricing for taxpayers?

Having two bidders under Simplified Acquisition Procedures (SAP) indicates a degree of competition, which is generally beneficial for taxpayers as it encourages more competitive pricing than a sole-source award. However, the effectiveness of this competition in ensuring fair pricing depends on several factors. SAP is typically used for procurements valued below certain thresholds (e.g., $250,000, though this can vary), and while agencies strive for competition, the pool of interested and capable bidders might be smaller compared to larger, full-and-open competitions. The specific nature of the technical services required and the number of qualified firms available in the market will influence how robust this competition truly is. A thorough analysis would require understanding the solicitation process, the evaluation criteria, and whether the pricing received was deemed fair and reasonable based on market research or historical data.

What are the potential performance challenges or indicators of success for this technical services contract?

Potential performance challenges for this technical services contract could include delays in project implementation, failure to meet key performance indicators (KPIs) related to the Mozambique II Compact, issues with coordination among stakeholders, or inadequate technical expertise provided by the contractor. Indicators of success would likely be tied to the effective and timely execution of the compact's objectives, positive feedback from beneficiaries and MCC program managers, adherence to budget, and the successful delivery of technical advice and support. The MCC would typically establish specific performance metrics and reporting requirements within the contract to monitor progress and ensure accountability. Regular progress reports, site visits, and stakeholder consultations would be key to assessing performance.

How does this contract's spending align with the Millennium Challenge Corporation's overall budget and mission objectives?

This contract's spending of approximately $4.05 million aligns with the Millennium Challenge Corporation's (MCC) mission to promote economic growth and reduce poverty in developing countries through large-scale, time-bound programs like the Mozambique II Compact. MCC relies on technical services to effectively plan, implement, and oversee these complex initiatives. The allocation of funds for consulting services is a necessary component of program management, ensuring that projects are technically sound, efficiently managed, and achieve their intended development outcomes. The spending represents a portion of the overall budget dedicated to the Mozambique II Compact and contributes directly to the achievement of its goals, reflecting the agency's strategic priorities.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 95332422Q0004

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Macdonald Mott Group Inc

Address: 111 WOOD AVE S STE 410, ISELIN, NJ, 08830

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

Financial Breakdown

Contract Ceiling: $4,049,150

Exercised Options: $4,049,150

Current Obligation: $4,049,150

Actual Outlays: $686,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 95332418A0052

IDV Type: BPA

Timeline