Logistics Consulting Services Contract Awarded to McFarland & Associates, Inc. for $12.5 Million

Contract Overview

Contract Amount: $12,512,404 ($12.5M)

Contractor: Mcfarland & Associates, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2004-09-29

End Date: 2009-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $6.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: SAMHSA'S INTERAITH AND COMMUNITY BASED LOGISTICS SYMPOSIUM

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.5 million to MCFARLAND & ASSOCIATES, INC. for work described as: SAMHSA'S INTERAITH AND COMMUNITY BASED LOGISTICS SYMPOSIUM Key points: 1. Contract awarded for logistics consulting services, indicating a need for specialized expertise in process and distribution. 2. The contract duration of 1825 days suggests a long-term engagement for ongoing support. 3. Awarded by the Substance Abuse and Mental Health Services Administration (SAMHSA), suggesting a focus on operational efficiency within a health-related agency. 4. The 'COST PLUS AWARD FEE' contract type allows for performance-based incentives, potentially driving higher quality outcomes. 5. The contract was competitively awarded, implying a degree of market vetting for the chosen vendor. 6. The specific NAICS code 541614 points to a niche in logistics and distribution consulting.

Value Assessment

Rating: fair

The contract value of $12.5 million over five years for logistics consulting services appears to be within a reasonable range for specialized federal support. Benchmarking against similar contracts for process, physical distribution, and logistics consulting services is challenging without more granular data on the scope of work and specific deliverables. However, the cost-plus award fee structure suggests that the final price could vary based on performance, making direct cost comparisons difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'COMPETITIVE DELIVERY ORDER' (CT: COMPETITIVE DELIVERY ORDER), indicating that it was subject to a full and open competition process. This suggests that multiple vendors had the opportunity to bid on the requirement. The presence of competition is generally positive for price discovery and ensuring that the government receives a fair market price for the services rendered.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by fostering a marketplace where vendors must offer competitive pricing and quality to win contracts.

Public Impact

The primary beneficiaries are the Substance Abuse and Mental Health Services Administration (SAMHSA), which receives expert support to optimize its logistics and distribution processes. The services delivered likely involve improving the efficiency of SAMHSA's operations, potentially impacting the timely and cost-effective delivery of its programs and resources. The geographic impact is primarily within Maryland (ST: MD), where the contractor is located, but the operational improvements could have a broader national effect on SAMHSA's reach. Workforce implications are likely indirect, focusing on enhancing the efficiency of existing SAMHSA personnel through improved logistical frameworks rather than direct employment generation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus award fee structure can sometimes lead to cost overruns if not carefully managed and monitored.
The long duration of the contract (1825 days) may reduce flexibility if SAMHSA's needs change significantly over time.
Reliance on a single contractor for five years could create vendor lock-in and limit opportunities for innovation from other market players.

Positive Signals

The competitive award process suggests that McFarland & Associates, Inc. was selected based on merit and competitive pricing.
The 'award fee' component incentivizes strong performance, potentially leading to superior service delivery.
The focus on logistics consulting indicates a strategic investment in operational efficiency, which can yield long-term cost savings.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on management and technical consulting. The market for logistics and distribution consulting services is competitive, with numerous firms offering specialized expertise. This contract represents a significant investment by SAMHSA in optimizing its supply chain and operational processes, aligning with broader government efforts to improve efficiency and reduce waste in federal agencies. Comparable spending benchmarks for similar consulting services can vary widely based on the complexity and duration of the engagement.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract is not readily available from the provided data. As the contract was awarded competitively, it is possible that small businesses had the opportunity to participate in the bidding process. However, without explicit details on subcontracting requirements or set-aside goals, the direct impact on the small business ecosystem remains unclear. Further investigation into the contract's specific terms would be needed to assess its implications for small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Substance Abuse and Mental Health Services Administration (SAMHSA). The 'COST PLUS AWARD FEE' structure implies performance metrics that would be monitored to determine the award fee. Transparency would be enhanced through contract reporting mechanisms and potentially through public contract databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Federal Logistics Management
Supply Chain Optimization Services
Government Consulting Contracts
Health and Human Services Agency Support
Process Improvement Consulting

Risk Flags

Cost-Plus Award Fee structure requires careful monitoring to prevent cost overruns.
Long contract duration may limit adaptability to changing agency needs.
Performance metrics for award fee need clear definition and rigorous assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.5 million to MCFARLAND & ASSOCIATES, INC.. SAMHSA'S INTERAITH AND COMMUNITY BASED LOGISTICS SYMPOSIUM

Who is the contractor on this award?

The obligated recipient is MCFARLAND & ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Substance Abuse and Mental Health Services Administration).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2004-09-29. End: 2009-09-28.

What is the track record of McFarland & Associates, Inc. in performing similar federal contracts?

McFarland & Associates, Inc. has a history of performing federal contracts, including those related to logistics and consulting services. Analyzing their past performance on similar contracts awarded by agencies like SAMHSA or other components of the Department of Health and Human Services would provide insight into their reliability, quality of service, and ability to meet deadlines and budgetary constraints. A review of their contract history, including any performance evaluations or past performance questionnaires, would be crucial to assessing their suitability for this significant five-year engagement. Specific details on past contract values, durations, and the nature of services rendered would allow for a more precise evaluation of their capabilities and potential risks associated with their performance on this current contract.

How does the awarded amount of $12.5 million compare to market rates for similar logistics consulting services?

The awarded amount of $12.5 million over five years for logistics consulting services needs to be benchmarked against market rates for comparable engagements. Factors influencing market rates include the complexity of the services, the specific expertise required, the duration of the contract, and the geographic location. Given the NAICS code 541614 (Process, Physical Distribution, and Logistics Consulting Services), the services likely involve strategic planning, process analysis, and implementation support for SAMHSA's operations. A comprehensive market analysis would involve comparing the contract's scope of work, deliverables, and labor categories to industry benchmarks and rates charged by other consulting firms for similar federal or commercial contracts. Without a detailed breakdown of the services and labor hours, a precise comparison is difficult, but the competitive award suggests the price was deemed fair at the time of award.

What are the key performance indicators (KPIs) used to determine the 'award fee' in this contract?

The 'award fee' component of this Cost Plus Award Fee (CPAF) contract is designed to incentivize superior performance by linking a portion of the contractor's compensation to the achievement of specific performance objectives. While the exact KPIs are not detailed in the provided data, they would typically be outlined in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). Common KPIs for logistics consulting contracts might include improvements in delivery times, reduction in shipping costs, enhanced inventory accuracy, successful implementation of new logistical systems, or measurable gains in operational efficiency. The contracting officer and program officials would assess the contractor's performance against these pre-defined metrics to determine the amount of award fee earned, ensuring that SAMHSA receives value beyond basic contract fulfillment.

What is the potential impact of this contract on SAMHSA's ability to deliver its core mission?

This contract for logistics consulting services has the potential to significantly enhance SAMHSA's ability to deliver its core mission by optimizing its operational and distribution processes. Efficient logistics are critical for ensuring that resources, information, and support services reach their intended recipients in a timely and cost-effective manner. By improving supply chain management, reducing operational bottlenecks, and potentially implementing more advanced distribution strategies, McFarland & Associates, Inc. can help SAMHSA streamline its operations. This could lead to faster deployment of critical resources, better inventory management, and overall improved program effectiveness, ultimately benefiting the individuals and communities that SAMHSA serves.

How has SAMHSA's spending on logistics consulting services evolved over time, and does this contract represent a significant shift?

Analyzing SAMHSA's historical spending on logistics consulting services would provide context for this $12.5 million, five-year contract. If SAMHSA has previously awarded similar contracts, comparing the value, duration, and scope can indicate whether this represents a significant increase or shift in investment in this area. A sustained or increasing investment might suggest a growing reliance on external expertise for operational efficiency. Conversely, if this is a new or substantially larger contract, it could signal a strategic initiative to overhaul or significantly upgrade SAMHSA's logistics capabilities. Understanding past spending patterns is crucial for assessing the long-term strategy and resource allocation priorities of the agency in relation to its operational support functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 8601 GEORGIA AVE STE 601, SILVER SPRING, MD, 08

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,512,405

Exercised Options: $12,512,404

Current Obligation: $12,512,404

Parent Contract

Parent Award PIID: 280020500

IDV Type: IDC

Timeline