USAID's $1.3M contract for administrative management consulting services awarded to The Services Group Inc

Contract Overview

Contract Amount: $13,091,822 ($13.1M)

Contractor: THE Services Group Inc

Awarding Agency: Agency for International Development

Start Date: 2007-09-28

End Date: 2010-09-30

Contract Duration: 1,098 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EXERCISE OPTION YEAR; PROVIDE INCREMENTAL FUNDING; AUTHORIZE CONTRACTOR TO EXECUTE GRANTS WITH NON-GOVERNMENTAL ORGANIZATIONS; AND REVISE SOW

Plain-Language Summary

Agency for International Development obligated $13.1 million to THE SERVICES GROUP INC for work described as: EXERCISE OPTION YEAR; PROVIDE INCREMENTAL FUNDING; AUTHORIZE CONTRACTOR TO EXECUTE GRANTS WITH NON-GOVERNMENTAL ORGANIZATIONS; AND REVISE SOW Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed effectively. 3. The duration of the contract is approximately 3 years, indicating a medium-term engagement. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. The contract was awarded by the Agency for International Development (USAID), focusing on administrative support. 6. The contract has been exercised for option years, indicating continued need and satisfactory performance.

Value Assessment

Rating: fair

The contract value of $1.3 million over approximately three years for administrative management consulting services appears moderate. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. However, the Time and Materials pricing structure warrants careful monitoring to ensure costs remain within reasonable bounds compared to industry benchmarks for similar consulting engagements. The absence of detailed cost breakdowns or comparisons makes it difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the competitive nature of the award process generally supports price discovery and potentially more favorable pricing for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a market-driven price. This approach aims to secure the best possible services at the most competitive rates available.

Public Impact

The primary beneficiaries are likely USAID's administrative and operational functions, which receive support through management consulting services. The services delivered are focused on administrative management and general management consulting, aiming to improve organizational efficiency. The geographic impact is primarily within the scope of USAID's operations, which can be global. Workforce implications may include the augmentation of internal USAID staff with external expertise, potentially leading to knowledge transfer or specialized project support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to gauge the true impact and value.
The contract's focus on administrative services might not address the most critical programmatic needs.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Option years exercised suggest consistent need and likely satisfactory performance.
The contractor, The Services Group Inc., has experience in administrative management consulting.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad sector encompassing firms that provide expertise to improve organizational efficiency, strategy, and operations. The market is characterized by a mix of large, established consulting firms and smaller, specialized boutiques. Spending in this sector by federal agencies is significant, often driven by needs for strategic planning, process improvement, and organizational restructuring. This contract fits within the typical range of federal spending for such advisory services.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal unless The Services Group Inc. engages in subcontracting with small businesses. Further analysis would be needed to determine subcontracting plans and their adherence to small business utilization goals.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers at USAID. The Time and Materials nature of the contract necessitates diligent oversight of labor hours and direct costs to ensure compliance with the contract terms and prevent cost overruns. Transparency is facilitated through contract award databases, but detailed performance reports and cost justifications may not be publicly available.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Federal Agency Operational Support

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of detailed performance metrics makes value assessment difficult.
Scope of services is broad (administrative management), requiring careful monitoring of deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $13.1 million to THE SERVICES GROUP INC. EXERCISE OPTION YEAR; PROVIDE INCREMENTAL FUNDING; AUTHORIZE CONTRACTOR TO EXECUTE GRANTS WITH NON-GOVERNMENTAL ORGANIZATIONS; AND REVISE SOW

Who is the contractor on this award?

The obligated recipient is THE SERVICES GROUP INC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2007-09-28. End: 2010-09-30.

What is the track record of The Services Group Inc. with federal contracts, particularly in administrative management consulting?

The Services Group Inc. has a history of securing federal contracts, primarily within the administrative and management consulting domain. Their awards often align with NAICS code 541611, indicating a specialization in general management consulting services. While specific details on past performance metrics for individual contracts are not always publicly accessible, the exercise of option years on contracts like this one with USAID suggests a pattern of satisfactory performance and continued demand for their services. Analyzing their broader contract portfolio could reveal trends in contract types, agencies served, and overall value, providing a more comprehensive view of their federal contracting experience.

How does the $1.3 million contract value compare to similar administrative consulting contracts awarded by USAID or other agencies?

The $1.3 million contract value for approximately three years of administrative management consulting services is within a moderate range for federal engagements of this nature. However, a precise comparison requires detailed knowledge of the specific services rendered, the complexity of the tasks, and the duration. USAID and other agencies often award contracts for similar consulting services that can range from tens of thousands to several million dollars, depending on the scope. Contracts focused on high-level strategic planning or extensive organizational transformation might command higher values, while those for more routine administrative support could be lower. Benchmarking against contracts with similar NAICS codes and durations, while accounting for inflation and agency-specific needs, would provide a more accurate assessment of value.

What are the primary risks associated with a Time and Materials (T&M) contract for administrative consulting?

The primary risk associated with a Time and Materials (T&M) contract for administrative consulting is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if not rigorously managed. For the government, effective oversight is crucial to ensure that the hours billed are reasonable and directly related to the contract's objectives, and that material costs are justified. Without strong controls and performance monitoring, the total cost can exceed initial estimates, diminishing the overall value proposition.

How effective are administrative management consulting services in improving the overall efficiency of federal agencies like USAID?

The effectiveness of administrative management consulting services in improving federal agency efficiency is highly variable and depends on several factors. When well-executed, these services can identify process bottlenecks, streamline workflows, implement best practices, and provide strategic guidance that leads to significant operational improvements. However, effectiveness is contingent upon the clarity of the SOW, the expertise of the consultants, the contractor's ability to deliver actionable insights, and the agency's willingness and capacity to implement the recommendations. For USAID, which operates in complex global environments, effective administrative consulting could enhance program delivery, resource allocation, and internal management, ultimately contributing to mission success. Conversely, poorly defined scopes or a lack of follow-through can result in minimal tangible benefits.

What has been the historical spending trend for administrative management and general management consulting services at USAID?

Analyzing historical spending trends for administrative management and general management consulting services at USAID requires access to detailed procurement data over multiple fiscal years. Generally, agencies like USAID utilize consulting services to support various functions, including strategic planning, organizational development, program management, and administrative process improvements. Spending in this category can fluctuate based on agency priorities, budget allocations, and the initiation of new programs or reforms. While this specific $1.3 million contract represents a snapshot, a broader trend analysis would involve examining annual obligations for NAICS 541611 and related codes to understand if spending has increased, decreased, or remained stable, and to identify any significant shifts in the types or scale of consulting services procured.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2300 CLARENDON BLVD # 1110, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $74,322,382

Exercised Options: $67,983,062

Current Obligation: $13,091,822

Parent Contract

Parent Award PIID: GS10F0277P

IDV Type: FSS

Timeline