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 Administration › National Security and International Affairs › International Affairs
Product/Service Code: EDUCATION AND TRAINING › EDUCATION 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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