GSA awards $9M+ engineering contract for USAID mobility design, with 4 bidders competing

Contract Overview

Contract Amount: $9,045,875 ($9.0M)

Contractor: AFG Group Inc.

Awarding Agency: General Services Administration

Start Date: 2018-11-02

End Date: 2025-12-31

Contract Duration: 2,616 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CM SERVICES - USAID PHASES 3 AND 4 MOBILITY DESIGN LAB

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $9.0 million to AFG GROUP INC. for work described as: CM SERVICES - USAID PHASES 3 AND 4 MOBILITY DESIGN LAB Key points: 1. Contract value appears reasonable given the scope of services and duration. 2. Full and open competition suggests a healthy market for these specialized engineering services. 3. Potential risks include performance delays or cost overruns, though the firm-fixed-price structure mitigates some financial risk. 4. This contract supports USAID's international development efforts through critical design services. 5. The engineering services sector is competitive, with many firms capable of performing this work. 6. The contract's duration of over 7 years indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of over $9 million for engineering services over approximately 7 years appears to be within a reasonable range for complex design and mobility solutions. Benchmarking against similar large-scale engineering contracts for international development agencies suggests that the pricing is competitive, especially considering the firm-fixed-price nature of the award which typically includes a premium for risk transfer to the contractor. The number of bidders (4) also indicates a degree of price discovery and market validation.

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 offers. With four bidders participating, there was a reasonable level of competition, which generally leads to better price discovery and value for the government. The competitive process likely encouraged bidders to offer their best pricing and technical solutions to secure the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by leveraging market forces to obtain competitive pricing for essential engineering services.

Public Impact

Beneficiaries include USAID, which will receive critical design services for mobility solutions. Services delivered encompass engineering and design expertise for complex projects. Geographic impact is likely international, supporting USAID's global development missions. Workforce implications include employment for engineers and design professionals within the awarded contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed.
Dependence on contractor performance for timely and effective delivery of design services.
Geopolitical risks in regions where USAID operates could impact project execution.

Positive Signals

Firm-fixed-price contract structure limits financial risk for the government.
Award to AFG GROUP INC. suggests a track record of successful performance in similar contracts.
Full and open competition indicates a robust market and potential for high-quality service providers.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the professional services market supporting government and private sector initiatives. The market for engineering services is vast, encompassing design, consulting, and project management across various industries. This specific contract's focus on mobility design for international development aligns with specialized segments within the broader engineering landscape. Comparable spending benchmarks for large-scale engineering support to federal agencies often run into tens or hundreds of millions of dollars annually, making this $9M+ award a significant, but not exceptionally large, investment in specialized design capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, AFG GROUP INC., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside means that opportunities for small businesses would primarily arise through subcontracting, the extent of which is not detailed here. This could limit direct contracting opportunities for small businesses in this specific award.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including performance monitoring and compliance checks. As this is a BPA Call, the underlying BPA likely has established oversight procedures. The firm-fixed-price contract type inherently places performance risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements. Specific Inspector General jurisdiction would depend on the agency ultimately utilizing the services (USAID), but GSA's Office of Inspector General would oversee the procurement process itself.

Related Government Programs

USAID Global Development Programs
GSA Federal Supply Schedule Contracts
Engineering and Architectural Services
International Development Support Contracts

Risk Flags

Long contract duration may increase exposure to changing requirements or economic conditions.
International scope introduces geopolitical and logistical risks.
Dependence on contractor performance for critical design elements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.0 million to AFG GROUP INC.. CM SERVICES - USAID PHASES 3 AND 4 MOBILITY DESIGN LAB

Who is the contractor on this award?

The obligated recipient is AFG GROUP INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $9.0 million.

What is the period of performance?

Start: 2018-11-02. End: 2025-12-31.

What is AFG GROUP INC.'s track record with GSA and USAID for similar engineering services?

While the provided data confirms AFG GROUP INC. as the awardee for this specific contract, a comprehensive assessment of their track record would require reviewing their past performance evaluations on federal contracts, particularly those with GSA and USAID. Federal procurement data systems (like SAM.gov or FPDS) often contain performance ratings and details of previous awards. Generally, winning a competitive bid for a significant contract like this suggests a positive past performance history, as agencies often consider contractor experience and reliability. However, a deeper dive into specific project outcomes, client satisfaction, and any past disputes or corrective actions would be necessary for a complete evaluation of their suitability and reliability for this $9M+ engagement.

How does the $9.04 million contract value compare to similar engineering design contracts for international development?

The $9.04 million contract value for engineering services over approximately 7 years (2616 days) appears to be within a reasonable range for specialized design work supporting international development. Benchmarking against similar contracts awarded by agencies like USAID or the Department of State for mobility design, infrastructure planning, or technical assistance in developing regions often shows values ranging from a few million to tens of millions of dollars, depending on the project's complexity, duration, and geographic scope. The firm-fixed-price nature of this award suggests that the price includes contractor risk, which can sometimes lead to a higher nominal cost compared to cost-reimbursement contracts, but offers better budget certainty for the government. The fact that it was competed under full and open competition with four bidders further suggests the pricing is market-driven and competitive.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance issues (delays, quality deficiencies), scope creep if requirements are not well-defined, and geopolitical or logistical challenges inherent in international development work. Mitigation strategies are embedded within the contract structure and management. The firm-fixed-price (FFP) award is a key mitigation tool, shifting the financial risk of cost overruns to the contractor, AFG GROUP INC. The contract duration of over seven years necessitates robust project management and oversight from both the contractor and GSA/USAID to ensure milestones are met. Clear statement of work (SOW) and change control processes are crucial for preventing scope creep. Furthermore, the selection of a contractor through full and open competition implies a vetting process that considers the bidder's capability and past performance, reducing the risk of selecting an unqualified vendor.

What is the expected effectiveness of these engineering services in achieving USAID's mobility design goals?

The effectiveness of these engineering services hinges on the quality of the design work produced by AFG GROUP INC. and its alignment with USAID's specific mobility objectives. As a firm-fixed-price contract awarded through full and open competition, there's an expectation that the selected contractor possesses the requisite expertise to deliver effective solutions. The success will be measured by whether the designs facilitate improved mobility, support USAID's programmatic goals in the target regions, and are technically sound, cost-effective to implement, and sustainable. USAID's own program management and oversight will be critical in ensuring the designs translate into tangible, positive impacts on the ground, contributing to broader development outcomes.

How has federal spending on engineering services like this evolved over the past five years?

Federal spending on engineering services has generally remained robust, driven by ongoing infrastructure needs, national security requirements, and international development initiatives. Agencies like GSA, DoD, and USAID consistently procure engineering expertise across various disciplines. While specific figures fluctuate annually based on budget allocations and project priorities, the demand for specialized engineering services, particularly those involving complex design, project management, and technical consulting, has shown a steady trend. The increasing focus on sustainable infrastructure, resilient design, and advanced technological integration may also be influencing the types of engineering services being contracted. Contracts awarded through competitive processes, like this one, reflect the government's commitment to leveraging market expertise efficiently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 HERNDON PKWY, HERNDON, VA, 20170

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $9,045,875

Exercised Options: $9,045,875

Current Obligation: $9,045,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS11P17DXA0001

IDV Type: BPA

Timeline