State Department Awards $28.4M Task Order to American Institute in Taiwan for International Affairs Support
Contract Overview
Contract Amount: $28,409,686 ($28.4M)
Contractor: American Institute in Taiwan
Awarding Agency: Department of State
Start Date: 2025-08-08
End Date: 2026-08-07
Contract Duration: 364 days
Daily Burn Rate: $78.0K/day
Competition Type: NOT COMPETED
Pricing Type: TIME AND MATERIALS
Sector: International Affairs
Official Description: FUNDING TASK ORDER FOR AIT.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $28.4 million to AMERICAN INSTITUTE IN TAIWAN for work described as: FUNDING TASK ORDER FOR AIT. Key points: 1. Significant funding allocated for international affairs, potentially impacting diplomatic relations and foreign aid. 2. Sole-source award raises questions about competition and potential for inflated costs. 3. Contract duration of one year with a large value warrants close monitoring for effectiveness. 4. Focus on international affairs suggests a critical need for specialized support in this sector.
Value Assessment
Rating: questionable
The contract value of $28.4 million for a one-year duration is substantial. Without competitive bidding, it's difficult to assess if this pricing is optimal compared to similar international affairs support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best value.
Taxpayer Impact: The lack of competition on this $28.4 million contract means taxpayers may not be receiving the most cost-effective solution available.
Public Impact
Impacts U.S. foreign policy objectives and international engagement. Potential for funds to support critical diplomatic missions or humanitarian efforts. Lack of transparency in awarding funds could erode public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical international affairs functions
- Clear contract end date
Sector Analysis
The International Affairs sector involves significant government spending on diplomacy, foreign aid, and international programs. Benchmarks for similar support contracts are highly variable and depend on specific services rendered.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, suggesting missed opportunities for small business participation and economic development.
Oversight & Accountability
Oversight is crucial for this sole-source contract to ensure funds are used effectively and appropriately, given the significant amount and lack of competitive pressure.
Related Government Programs
- International Affairs
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- No small business participation
Tags
international-affairs, department-of-state, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $28.4 million to AMERICAN INSTITUTE IN TAIWAN. FUNDING TASK ORDER FOR AIT.
Who is the contractor on this award?
The obligated recipient is AMERICAN INSTITUTE IN TAIWAN.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $28.4 million.
What is the period of performance?
Start: 2025-08-08. End: 2026-08-07.
What specific services does the American Institute in Taiwan provide under this contract, and how do they justify the $28.4 million cost?
The provided data does not detail the specific services rendered. However, given the contract's focus on 'International Affairs' and the recipient being the American Institute in Taiwan, services likely include support for diplomatic operations, cultural exchange programs, or policy implementation in Taiwan. The justification for the cost would typically be outlined in the contract's statement of work and justification for sole-source award, which are not available here.
What are the risks associated with awarding a large contract solely to the American Institute in Taiwan without competition?
The primary risks include potential overpayment due to the absence of competitive pricing, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency that could lead to public distrust. There's also a risk that alternative, potentially more cost-effective solutions from other qualified entities were not considered.
How effective is the Department of State in ensuring value for taxpayer money when using sole-source contracts for international affairs?
The effectiveness of sole-source contracting for value is inherently difficult to assess without competitive benchmarks. While sole-sourcing can be justified for unique capabilities or urgent needs, it requires robust internal oversight and justification processes to ensure fair pricing and prevent waste. The effectiveness hinges on the agency's diligence in validating the necessity and cost reasonableness of such awards.
Industry Classification
NAICS: Public Administration › National Security and International Affairs › International Affairs
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1300 17TH ST N STE 750, ARLINGTON, VA, 22209
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $390,749,250
Exercised Options: $41,549,250
Current Obligation: $28,409,686
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19AQMM25D1068
IDV Type: IDC
Timeline
Start Date: 2025-08-08
Current End Date: 2026-08-07
Potential End Date: 2035-08-07 00:00:00
Last Modified: 2026-04-09
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