USAID's $12.7M program management contract awarded to SouthPoint Consulting, Inc. shows potential for cost efficiencies

Contract Overview

Contract Amount: $12,772,324 ($12.8M)

Contractor: Southpoint Consulting, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-06-06

End Date: 2026-06-05

Contract Duration: 1,460 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM MANAGEMENT AND OVERSIGHT SUPPORT FOR US AGENCY FOR INTERNATIONAL DEVELOPMENT USAID

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $12.8 million to SOUTHPOINT CONSULTING, INC. for work described as: PROGRAM MANAGEMENT AND OVERSIGHT SUPPORT FOR US AGENCY FOR INTERNATIONAL DEVELOPMENT USAID Key points: 1. The contract's value of $12.7 million over its duration suggests a significant investment in program management support. 2. Competition dynamics for this contract are favorable, indicating a potentially robust price discovery process. 3. Risk indicators appear manageable, with the contract type and duration not inherently signaling high risk. 4. Performance context will be crucial, as the effectiveness of program management support directly impacts USAID's mission delivery. 5. This contract fits within the broader IT services sector, specifically custom computer programming, supporting federal agencies. 6. The absence of small business set-aside or subcontracting requirements warrants further examination for broader economic impact.

Value Assessment

Rating: good

The contract's total value of $12.7 million over approximately four years suggests a moderate annual spend. Benchmarking against similar program management support contracts for federal agencies of USAID's scale would be necessary for a precise value-for-money assessment. However, the 'Delivery Order' type under a larger contract vehicle implies that pricing was likely negotiated and vetted previously, potentially offering some level of cost control. The Time and Materials pricing structure, while flexible, requires diligent oversight to ensure efficient resource utilization and prevent cost overruns.

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. This approach generally fosters a competitive environment, encouraging multiple bidders to vie for the contract. The presence of 10 bidders, as suggested by the data, points to a healthy level of interest and competition for this requirement. This broad participation is a positive sign for price discovery and ensures that the government has a wide range of options to choose from, potentially leading to more favorable terms.

Taxpayer Impact: A full and open competition with multiple bidders typically benefits taxpayers by driving down prices through competitive pressure. This ensures that government funds are used more efficiently, as contractors are incentivized to offer their best pricing to win the award.

Public Impact

The primary beneficiaries are the programs managed by USAID, which will receive enhanced support in planning, execution, and oversight. Services delivered include program management and oversight, crucial for the effective implementation of international development initiatives. The geographic impact is primarily focused on the District of Columbia, where the contractor is located, but the programs supported have global reach. Workforce implications include the direct employment of personnel by SouthPoint Consulting, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost overruns if not closely monitored for scope creep and labor hour efficiency.
Lack of specific small business subcontracting goals may limit opportunities for smaller firms to participate in this contract's execution.
The broad nature of 'Program Management and Oversight Support' requires clear performance metrics to ensure accountability and measure success.

Positive Signals

Awarded under full and open competition with 10 bidders, indicating a competitive process that likely secured favorable pricing.
The contract is for a defined period, allowing for periodic reassessment of needs and contractor performance.
SouthPoint Consulting, Inc. is the awardee, suggesting they met the technical and cost requirements of the solicitation.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Custom Computer Programming Services (NAICS 541511). This category encompasses services related to designing, developing, and implementing software and IT solutions. The federal IT services market is substantial, with agencies consistently investing in technology to support their missions. Contracts like this, focused on program management and oversight, are essential for ensuring that IT investments are aligned with strategic goals and delivered effectively. Comparable spending benchmarks would involve looking at other agencies' expenditures on similar IT program management support services.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor does the provided data indicate specific subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this contract are likely limited to those that can secure subcontracts from the prime contractor, SouthPoint Consulting, Inc. The absence of set-aside provisions means that larger businesses were eligible to compete and potentially win the entire contract value, which could impact the distribution of federal dollars within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officer and the program officials within USAID who are responsible for the services being procured. The General Services Administration (GSA) acts as the contracting agency, utilizing its Federal Acquisition Service. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be embedded in the contract's performance work statement and delivery terms. While no specific Inspector General jurisdiction is mentioned, USAID's Office of Inspector General would likely have oversight authority over programs funded by the agency.

Related Government Programs

USAID Program Management Support
Federal IT Services Contracts
Custom Computer Programming Services
GSA Federal Acquisition Service Contracts
Delivery Orders under IDIQs

Risk Flags

Potential for cost overruns due to T&M pricing structure
Need for robust oversight to ensure efficient labor utilization
Limited visibility into small business subcontracting opportunities

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.8 million to SOUTHPOINT CONSULTING, INC.. PROGRAM MANAGEMENT AND OVERSIGHT SUPPORT FOR US AGENCY FOR INTERNATIONAL DEVELOPMENT USAID

Who is the contractor on this award?

The obligated recipient is SOUTHPOINT CONSULTING, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2022-06-06. End: 2026-06-05.

What is the track record of SouthPoint Consulting, Inc. in performing similar program management and IT support services for federal agencies?

A comprehensive review of SouthPoint Consulting, Inc.'s past performance would involve examining their contract history, including awards, past performance evaluations, and any reported issues or successes. Data from sources like the Federal Procurement Data System (FPDS) can reveal the types of contracts they have held, their value, and the agencies they have served. Understanding their experience with USAID or similar international development agencies would be particularly relevant. A positive track record with successful delivery on comparable projects would indicate a lower risk for this current contract. Conversely, a history of performance issues, contract disputes, or unmet requirements would raise concerns about their ability to meet USAID's needs effectively.

How does the awarded price compare to market rates for similar program management and IT support services?

Benchmarking the awarded price against market rates requires detailed analysis. Since this is a Delivery Order under a larger contract vehicle, the initial pricing was likely negotiated. However, the Time and Materials (T&M) structure necessitates scrutiny of labor rates and estimated hours. Comparing SouthPoint Consulting's proposed labor categories and rates to industry benchmarks for custom computer programming and program management support in the Washington D.C. area is essential. Factors like the experience levels of personnel, overhead rates, and profit margins should be considered. Without access to the specific negotiated rates and the competitive bids, a precise comparison is difficult, but general market data for similar services can provide a reasonable estimate of value for money.

What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effective program management support?

The effectiveness of program management support hinges on clearly defined Key Performance Indicators (KPIs) outlined in the Performance Work Statement (PWS). These KPIs should align with USAID's strategic objectives and the specific programs being supported. Examples of relevant KPIs could include on-time delivery of project milestones, adherence to budget constraints, quality of reports and documentation, stakeholder satisfaction, and the successful resolution of program-related issues. The contract should specify how these KPIs will be measured (e.g., through regular reporting, audits, client feedback) and what constitutes acceptable performance levels. Robust measurement and regular performance reviews are critical for ensuring that SouthPoint Consulting delivers tangible value and contributes effectively to USAID's mission.

What is the historical spending pattern for program management and IT support services by USAID, and how does this contract fit within that trend?

Analyzing USAID's historical spending on program management and IT support services provides context for this contract. Examining FPDS data for previous years would reveal the total expenditure on similar services, the types of contracts awarded (e.g., sole-source vs. competitive), and the primary contractors. This contract, valued at $12.7 million, represents a significant, but not necessarily anomalous, investment. Understanding whether USAID's spending in this area has been increasing, decreasing, or remaining stable is important. This contract's full and open competition award suggests a continuation of a competitive procurement strategy. Comparing its value to previous large program management contracts can indicate whether this award is in line with historical trends or represents a notable shift in procurement approach or investment level.

What are the potential risks associated with the Time and Materials (T&M) pricing structure for this contract, and what mitigation strategies are in place?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns if the scope of work is not well-defined or if labor hours are not diligently managed. Contractors may have less incentive to control costs compared to fixed-price contracts. For this contract, mitigation strategies would include a detailed Performance Work Statement (PWS) that clearly defines tasks and deliverables, robust oversight by USAID contracting officers and technical monitors to track labor hours and resource allocation, and potentially establishing ceiling prices for specific labor categories or task orders. Regular progress reviews and audits are also crucial to ensure that the contractor is efficiently utilizing resources and that costs remain within the anticipated budget. Clear communication channels between USAID and SouthPoint Consulting are vital for managing expectations and addressing any potential scope changes promptly.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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

Solicitation ID: 47QFEA22Q0005

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Southpoint Consulting Inc.

Address: 6660 MORVERN LN, LORTON, VA, 22079

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,916,646

Exercised Options: $17,810,014

Current Obligation: $12,772,324

Actual Outlays: $65,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D0048

IDV Type: FSS

Timeline