USAID's $78M Disaster Grant Contracts with Macfadden & Associates Face Scrutiny for Oversight

Contract Overview

Contract Amount: $78,042,447 ($78.0M)

Contractor: Macfadden & Associates, Inc.

Awarding Agency: Agency for International Development

Start Date: 2006-08-21

End Date: 2014-04-01

Contract Duration: 2,780 days

Daily Burn Rate: $28.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INSTUTIONAL CONTRACTOR WORKING UNDER OFDA WRITING DISASTER RELATED GRANTS AND PERSONAL SERVICES CONTRACTS THAT ARE SUBSEQUENTLY SIGNED BY THE CONTRACTING OFFICER IN USAID.TAS::72 1035::TAS

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $78.0 million to MACFADDEN & ASSOCIATES, INC. for work described as: INSTUTIONAL CONTRACTOR WORKING UNDER OFDA WRITING DISASTER RELATED GRANTS AND PERSONAL SERVICES CONTRACTS THAT ARE SUBSEQUENTLY SIGNED BY THE CONTRACTING OFFICER IN USAID.TAS::72 1035::TAS Key points: 1. Significant spending on disaster relief grants and personal services contracts. 2. Contract awarded via competitive delivery order, but oversight concerns exist. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Limited information on specific disaster relief outcomes and effectiveness.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a long duration and significant value, raises concerns about potential cost inefficiencies. Benchmarking against similar disaster relief personal services contracts is difficult without more granular data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a competitive delivery order, suggesting some level of price discovery. However, the nature of disaster relief and personal services can sometimes limit true competition and lead to less aggressive pricing.

Taxpayer Impact: Taxpayer funds are being used for disaster relief, but the efficiency and effectiveness of this specific contract's spending are not fully transparent, potentially impacting the overall value for money.

Public Impact

Funds allocated for disaster relief efforts, impacting communities affected by crises. Contract duration of nearly 8 years suggests ongoing support for disaster response. The use of personal services contracts can blur lines between contractor and government employee roles. Potential for funds to be used for administrative costs rather than direct aid.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear performance metrics for disaster relief effectiveness.
Potential for cost creep in Cost Plus Fixed Fee contracts.
Limited transparency on how funds were allocated and utilized.
Long contract duration without apparent re-competition.

Positive Signals

Awarded through a competitive process.
Supports critical disaster relief operations.
Contracting Officer's final signature indicates a level of review.

Sector Analysis

This contract falls within the Business Support Services sector, specifically related to disaster relief and grant management. Spending benchmarks for such specialized services are highly variable depending on the scope and duration of the disaster.

Small Business Impact

The contract was awarded to Macfadden & Associates, Inc., a large business. There is no indication that small businesses were significantly involved as subcontractors or partners in this specific contract.

Oversight & Accountability

The contract was signed by a Contracting Officer, indicating a formal government approval process. However, the long duration and nature of the services suggest a need for ongoing robust oversight to ensure funds are used effectively and appropriately.

Related Government Programs

All Other Business Support Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Lack of performance metrics.
Potential for cost overruns (CPFF).
Long contract duration.
Oversight challenges with personal services contracts.
Limited transparency on fund utilization.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $78.0 million to MACFADDEN & ASSOCIATES, INC.. INSTUTIONAL CONTRACTOR WORKING UNDER OFDA WRITING DISASTER RELATED GRANTS AND PERSONAL SERVICES CONTRACTS THAT ARE SUBSEQUENTLY SIGNED BY THE CONTRACTING OFFICER IN USAID.TAS::72 1035::TAS

Who is the contractor on this award?

The obligated recipient is MACFADDEN & ASSOCIATES, 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 $78.0 million.

What is the period of performance?

Start: 2006-08-21. End: 2014-04-01.

What specific disaster relief activities were funded by this contract, and what were the measurable outcomes?

The provided data lacks specifics on the disaster relief activities undertaken. Without detailed reporting on the services rendered and their impact, it's impossible to assess the effectiveness of the $78M expenditure. Future contracts should mandate clear, quantifiable metrics tied to disaster response and recovery.

How was the Cost Plus Fixed Fee structure managed to prevent excessive costs given the long contract duration?

The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost overruns, especially over an extended period like this contract's nearly eight years. Effective management would require rigorous monitoring of actual costs against the fixed fee, detailed justification for all expenses, and proactive negotiation to control scope creep and ensure value for taxpayer money.

What mechanisms were in place to ensure the personal services provided were distinct from government functions and offered genuine value?

Personal services contracts can be complex, requiring clear delineation between contractor and government roles to avoid improper delegation of inherently governmental functions. Oversight should ensure that the services procured were necessary, that the contractor personnel possessed unique expertise not readily available within the agency, and that the contract terms prevented the contractor from acting as a government employee.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M/OAA/DCHA/DOFDA-07-001

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC (UEI: 081342873)

Address: 8403 COLESVILLE RD STE 280, SILVER SPRING, MD, 20910

Business Categories: Category Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $83,508,595

Exercised Options: $83,508,595

Current Obligation: $78,042,447

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDDFDI000600170

IDV Type: IDC

Timeline