NOAA awards $100.6M for Environmental Consulting Services to Industrial Economics Inc
Contract Overview
Contract Amount: $100,631,876 ($100.6M)
Contractor: Industrial Economics Inc
Awarding Agency: Department of Commerce
Start Date: 2006-09-08
End Date: 2011-09-30
Contract Duration: 1,848 days
Daily Burn Rate: $54.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: ENVIRONMENTAL CONSULTING SERVICES
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02140
Plain-Language Summary
Department of Commerce obligated $100.6 million to INDUSTRIAL ECONOMICS INC for work described as: ENVIRONMENTAL CONSULTING SERVICES Key points: 1. The contract value of $100.6 million for environmental consulting services is substantial. 2. Industrial Economics Inc. secured this contract, indicating a competitive landscape for such services. 3. The primary risk lies in the Time and Materials pricing structure, which can lead to cost overruns. 4. This falls under professional services, specifically environmental consulting, a critical sector for government operations.
Value Assessment
Rating: fair
The contract uses a Time and Materials (T&M) pricing structure, which offers flexibility but carries a higher risk of cost escalation compared to fixed-price contracts. The awarded amount of $100.6M over 5 years suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was awarded as a competitive delivery order, suggesting multiple vendors likely vied for the contract. The competitive nature should have driven price discovery, but the T&M structure still poses a risk to final cost.
Taxpayer Impact: Taxpayers are exposed to potential cost overruns due to the T&M pricing. However, competition should have ensured a reasonable baseline price.
Public Impact
Environmental consulting is crucial for NOAA's mission, impacting regulatory compliance and resource management. The long duration of the contract (over 4 years) suggests ongoing, critical needs for these services. The use of T&M pricing warrants close monitoring to ensure efficient use of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Long contract duration
- Potential for cost overruns
Positive Signals
- Competitive award
- Significant value indicating critical need
Sector Analysis
Environmental consulting services are essential for government agencies like NOAA to manage environmental impacts, comply with regulations, and conduct scientific research. Benchmarks for such services vary widely based on scope and complexity, but a $100M contract over five years indicates a large-scale, long-term engagement.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed for small business participation.
Oversight & Accountability
The competitive nature of the award is a positive oversight mechanism. However, the T&M pricing structure necessitates robust oversight to manage costs and ensure performance aligns with expectations.
Related Government Programs
- Environmental Consulting Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Risk of cost overruns due to Time and Materials pricing.
- Potential for scope creep over the long contract duration.
- Lack of explicit small business participation noted.
- Need for robust oversight to manage T&M expenditures.
Tags
environmental-consulting-services, department-of-commerce, ma, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $100.6 million to INDUSTRIAL ECONOMICS INC. ENVIRONMENTAL CONSULTING SERVICES
Who is the contractor on this award?
The obligated recipient is INDUSTRIAL ECONOMICS INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $100.6 million.
What is the period of performance?
Start: 2006-09-08. End: 2011-09-30.
What specific environmental consulting services were provided under this contract, and how did they align with NOAA's core mission objectives?
The contract was for 'Environmental Consulting Services' (NAICS 541620). These services likely supported NOAA's mission in areas such as climate monitoring, fisheries management, coastal zone management, and regulatory compliance. Detailed task orders would specify the exact services, but they generally involve scientific analysis, impact assessments, permitting support, and policy development related to environmental protection and resource stewardship.
Given the Time and Materials pricing, what mechanisms were in place to control costs and ensure value for money throughout the contract's duration?
While T&M contracts offer flexibility, they require stringent oversight to control costs. This typically involves setting labor rate ceilings, establishing fixed-fee components for certain tasks, requiring detailed timesheets and expense reports, and implementing performance metrics. Regular reviews and audits by the contracting officer and technical monitors are crucial to ensure that hours and costs are reasonable and directly related to contract requirements.
How did the competitive bidding process ensure that Industrial Economics Inc. offered the best value, considering the T&M pricing structure?
The competitive process likely involved evaluating technical proposals, past performance, and estimated costs. Even with T&M, agencies can assess the realism of proposed labor rates and the efficiency of the contractor's approach. The award to Industrial Economics Inc. suggests their overall proposal, including their understanding of the requirements and their proposed rates, was deemed the most advantageous compared to other bidders, balancing cost and technical merit.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2067 MASSACHUSETTS AVE, CAMBRIDGE, MA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $121,015,617
Exercised Options: $114,549,357
Current Obligation: $100,631,876
Parent Contract
Parent Award PIID: GS10F0224J
IDV Type: FSS
Timeline
Start Date: 2006-09-08
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2014-12-24
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