State Dept. Awards $3.2M for Professional Services to American Institute in Taiwan

Contract Overview

Contract Amount: $3,238,454 ($3.2M)

Contractor: American Institute in Taiwan

Awarding Agency: Department of State

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PROFESSIONAL SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $3.2 million to AMERICAN INSTITUTE IN TAIWAN for work described as: PROFESSIONAL SERVICES Key points: 1. Spending focuses on international affairs, with a significant portion allocated to professional services. 2. The contract is a delivery order under an existing award, indicating a continuation of services. 3. No small business participation is noted, which could be a missed opportunity for economic inclusion. 4. The contract duration is one year, suggesting a need for ongoing support in international relations.

Value Assessment

Rating: fair

The contract value of $3.2M for professional services appears reasonable given the duration and the nature of international affairs support. Benchmarking against similar contracts for specialized international services is difficult without more specific task details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This approach may limit price discovery and potentially lead to higher costs compared to a fully competitive process.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these professional services.

Public Impact

Supports U.S. diplomatic and public diplomacy efforts in Taiwan. Ensures continuity of essential services for international engagement. Potential for increased costs due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • No small business participation

Positive Signals

  • Supports critical international affairs mission
  • Clear contract duration

Sector Analysis

This contract falls under professional services within the International Affairs sector. Spending in this sector often involves specialized expertise for diplomatic, security, and foreign aid initiatives. Benchmarks are highly variable based on specific services and geographic focus.

Small Business Impact

The contract does not indicate any set-aside for small businesses. This represents a missed opportunity to leverage small business capabilities and promote economic growth within the small business community.

Oversight & Accountability

The Department of State is responsible for this award. Oversight should focus on ensuring the necessity of the sole-source award and the effective delivery of services to justify the expenditure.

Related Government Programs

  • International Affairs
  • Department of State Contracting
  • Department of State Programs

Risk Flags

  • Sole-source award limits competition and price discovery.
  • No small business participation noted.
  • Potential for cost overruns due to lack of competition.
  • Lack of detailed service description hinders full assessment.

Tags

international-affairs, department-of-state, va, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.2 million to AMERICAN INSTITUTE IN TAIWAN. PROFESSIONAL SERVICES

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 $3.2 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What specific professional services are being procured, and why is the American Institute in Taiwan the sole provider?

The specific professional services are not detailed in the provided data. However, the American Institute in Taiwan (AIT) is the de facto embassy of the United States in Taiwan, handling a wide range of diplomatic and consular functions. A sole-source award suggests that AIT possesses unique capabilities or is the only entity authorized or capable of performing these specific, critical functions in that region, likely related to U.S. foreign policy and representation.

What are the risks associated with a sole-source award for these professional services?

The primary risk of a sole-source award is the potential for inflated costs due to a lack of competitive bidding. Without competing offers, the government may not achieve the best possible price. Additionally, there's a risk of reduced innovation and service quality, as the provider faces less pressure to excel compared to a competitive environment. Transparency and justification for the sole-source nature are crucial for mitigating these risks.

How does this contract contribute to the overall effectiveness of U.S. foreign policy objectives in Taiwan?

This contract likely supports the operational needs of the American Institute in Taiwan, which is central to executing U.S. foreign policy and diplomatic engagement in the region. By ensuring the provision of necessary professional services, the contract enables AIT to effectively carry out its mission, including public diplomacy, consular services, and fostering bilateral relations. The continuity of these services is vital for maintaining U.S. presence and influence.

Industry Classification

NAICS: Public AdministrationNational Security and International AffairsInternational Affairs

Product/Service Code: EDUCATION AND TRAININGEDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: LABOR HOURS (Z)

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: $3,238,454

Exercised Options: $3,238,454

Current Obligation: $3,238,454

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: 2025-09-30

Current End Date: 2026-09-29

Potential End Date: 2026-09-29 00:00:00

Last Modified: 2026-03-12

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