EPA awarded $10.1M contract for environmental consulting services to Marasco Newton Group Ltd

Contract Overview

Contract Amount: $10,161,091 ($10.2M)

Contractor: Marasco Newton Group Ltd, the

Awarding Agency: Environmental Protection Agency

Start Date: 2002-08-15

End Date: 2008-02-29

Contract Duration: 2,024 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $10.2 million to MARASCO NEWTON GROUP LTD, THE for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2024 months (approximately 169 years) is exceptionally long, raising questions about long-term planning and flexibility. 3. The Cost Plus Fixed Fee (CPFF) pricing structure can incentivize cost overruns if not carefully managed. 4. The contract was awarded to a single entity, Marasco Newton Group Ltd. 5. The North American Industry Classification System (NAICS) code 541620 indicates a focus on environmental consulting services. 6. The contract was awarded by the Environmental Protection Agency (EPA) and administered by the same agency. 7. The contract has a base period and potential option periods, typical for service contracts.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The CPFF structure, while allowing for flexibility, carries inherent risks of cost escalation if not rigorously monitored. The extended duration suggests a long-term need, but the total value relative to the services provided over such a long period requires further scrutiny to ensure it represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests some level of competition, but the limited number of bidders could still impact price discovery and potentially lead to less competitive pricing than a more robust competition.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers. However, with only two bids, the potential for cost savings might have been limited compared to a scenario with more active participants.

Public Impact

The primary beneficiary is the Environmental Protection Agency, which receives environmental consulting services to support its mission. The services delivered are environmental consulting, likely encompassing areas such as policy analysis, regulatory support, and scientific research. The geographic impact is likely national, given the EPA's broad mandate, though specific projects may have regional focuses. Workforce implications could include employment for environmental consultants and related professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exceptionally long contract duration (2024 months) raises concerns about long-term commitment and potential inflexibility in adapting to evolving environmental needs or technologies.
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed with strict oversight, potentially increasing the overall expenditure beyond initial estimates.
The limited number of bids (2) in a 'full and open competition' might indicate potential barriers to entry for other firms or a lack of broad market interest, which could affect price competitiveness.
The contract's base award value (BAV) is not explicitly stated, making it difficult to assess the initial commitment and potential for growth through option periods.
The contract's administrative agency (SA) is the same as the awarding agency (AG), which is standard but requires robust internal controls to prevent conflicts of interest or mismanagement.

Positive Signals

The contract was awarded through 'full and open competition,' which is a positive indicator of a fair and transparent procurement process.
The contract is administered by the Environmental Protection Agency, a primary agency for environmental matters, suggesting alignment with core governmental functions.
The contract has a defined period of performance, allowing for structured delivery of services.
The contract includes an option to extend, providing flexibility for the agency to continue services if needed and if performance is satisfactory.

Sector Analysis

The environmental consulting services sector is a significant part of the professional services industry, supporting government agencies and private companies in navigating complex environmental regulations and challenges. This contract falls within the broader professional, scientific, and technical services market. Comparable spending benchmarks would typically involve analyzing other large-scale environmental consulting contracts awarded by federal agencies for similar scope and duration.

Small Business Impact

The data indicates that small business participation (SB) is marked as false (sb: false), and there is no indication of a small business set-aside (SS: false). This suggests that the contract was not specifically targeted towards small businesses, and opportunities for small business subcontracting are not explicitly detailed in this summary data. The primary contractor, Marasco Newton Group Ltd., is not identified as a small business in this context.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA), the awarding and administering agency. Mechanisms would include contract officer representatives (CORs) monitoring performance, financial reviews to ensure adherence to the CPFF structure, and potentially audits by the EPA's Office of Inspector General (OIG). Transparency would be facilitated through contract databases like FPDS, though detailed performance reports are typically internal.

Related Government Programs

Environmental Consulting Services
Professional, Scientific, and Technical Services
Federal Agency Support Services
Environmental Protection Agency Contracts

Risk Flags

Unusually Long Contract Duration
Potential for Cost Overruns (CPFF)
Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $10.2 million to MARASCO NEWTON GROUP LTD, THE. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MARASCO NEWTON GROUP LTD, THE.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2002-08-15. End: 2008-02-29.

What is the total potential value of this contract, considering all option periods?

The provided data indicates a base award value (BAV) of $10,161,091.36. However, the total potential value, including all exercised option periods, is not explicitly stated. The contract duration is listed as 2024 months, which is exceptionally long (over 169 years). Without information on the annual value or the specific terms of the option periods, it's impossible to calculate the total potential value. This extended duration, coupled with the lack of a clear total potential value, warrants further investigation into the contract's structure and long-term financial commitment.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar environmental consulting services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is a high degree of uncertainty, allowing flexibility. However, they can incentivize contractors to increase costs to maximize their fixed fee profit margin, necessitating robust oversight. For environmental consulting, other common structures include Firm-Fixed-Price (FFP), which offers cost certainty for the government but less flexibility for the contractor, or Time and Materials (T&M), which is suitable for smaller efforts or when the level of effort is unpredictable. The choice of CPFF for a contract of this magnitude and duration suggests a perceived need for flexibility, but it also heightens the importance of stringent government oversight to control costs and ensure value.

What are the specific environmental consulting services this contract covers?

The NAICS code 541620 indicates 'Environmental Consulting Services.' While the specific services are not detailed in the provided data, this typically encompasses a broad range of activities such as environmental impact assessments, regulatory compliance assistance, hazardous waste management consulting, air and water quality analysis, environmental planning, and policy development. Given the awarding agency is the EPA, the services likely support the agency's core mission of environmental protection and regulation, potentially involving research, data analysis, technical assistance, and program support.

What is the significance of the contract duration being 2024 months?

A contract duration of 2024 months is extraordinarily long, equating to over 169 years. Standard federal contracts typically have durations of up to 5 years, with options for extensions that might extend the total performance period to 10 years in some cases. Such an extended duration for a consulting services contract raises significant questions about the planning horizon, the potential for obsolescence of services or technologies, and the flexibility to adapt to changing needs. It could indicate a foundational, long-term support requirement, but it is highly unusual and warrants a deep dive into the justification and oversight mechanisms in place.

What is the track record of Marasco Newton Group Ltd. with federal contracts, particularly with the EPA?

Information on the track record of Marasco Newton Group Ltd. with federal contracts, especially with the EPA, is not provided in the summary data. A comprehensive analysis would require accessing federal procurement databases (like FPDS or SAM.gov) to review their past performance, contract values, types of services rendered, and any performance issues or awards. Understanding their history would provide context for their capability to perform under this specific $10.1 million contract and its extended duration.

Are there any known risks or concerns associated with this specific contract award?

The primary risks identified from the summary data include the exceptionally long contract duration (2024 months), which suggests potential inflexibility and long-term financial commitment without clear end-state definition. The Cost Plus Fixed Fee (CPFF) structure carries inherent risks of cost escalation if not managed diligently. Furthermore, the limited competition (only two bids) might indicate suboptimal price discovery. Without more detailed information on performance metrics, oversight procedures, and the specific nature of the services, assessing other risks like contractor performance or scope creep is difficult.

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: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: SRA International, Inc. (UEI: 606261683)

Address: 2801 CLARENDON BLVD, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $185,232

Exercised Options: $10,005,275

Current Obligation: $10,161,091

Timeline