USAID Awards $20.8M for International Development Advisory Services to International Development Group Advisory Services, LLC

Contract Overview

Contract Amount: $20,854,435 ($20.9M)

Contractor: International Development Group Advisory Services, LLC

Awarding Agency: Agency for International Development

Start Date: 2019-07-29

End Date: 2024-12-31

Contract Duration: 1,982 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Agency for International Development obligated $20.9 million to INTERNATIONAL DEVELOPMENT GROUP ADVISORY SERVICES, LLC for work described as: OVERSEAS CONTRACT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract spans over 5 years, indicating a long-term need for these services. 3. The contractor, International Development Group Advisory Services, LLC, is specialized in professional, scientific, and technical services. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed effectively.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure requires careful monitoring to ensure costs remain reasonable compared to similar advisory service contracts. Without detailed cost breakdowns, it's difficult to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Time and Materials pricing mechanism means the final cost is dependent on actual labor hours and material costs incurred.

Taxpayer Impact: Taxpayer funds are being used for international development advisory services. The effectiveness and efficiency of these services will determine the ultimate value for taxpayer investment.

Public Impact

Supports U.S. foreign policy objectives through international development initiatives. Potential impact on recipient countries' economic and social progress. Ensures specialized expertise is available for complex global challenges.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely managed.
Lack of specific performance metrics makes it hard to gauge effectiveness.
Contract duration is long, increasing exposure to potential scope creep or changing needs.

Positive Signals

Awarded through full and open competition, indicating market engagement.
Contractor specializes in the required advisory services.
Long-term contract provides stability for critical development programs.

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Benchmarks for similar international development advisory contracts are difficult to establish without more specific service details, but the award amount suggests a significant scope of work.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This suggests the primary contractor is likely a larger entity, and there is no explicit mention of subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight by the Agency for International Development (USAID) is crucial, especially given the Time and Materials contract type. Regular reviews of invoices, labor hours, and deliverables are necessary to ensure accountability and prevent cost inefficiencies.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration increases risk of scope creep and changing needs.
Lack of explicit small business participation.
Limited insight into specific performance metrics and deliverables.
Contractor's specialized nature may limit alternative solutions if issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $20.9 million to INTERNATIONAL DEVELOPMENT GROUP ADVISORY SERVICES, LLC. OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL DEVELOPMENT GROUP ADVISORY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2019-07-29. End: 2024-12-31.

How will USAID ensure the Time and Materials contract delivers value for money, given the potential for cost escalation?

USAID must implement rigorous oversight mechanisms, including detailed review of all invoices, verification of labor hours charged against specific tasks, and comparison of rates to market benchmarks. Establishing clear milestones and performance metrics, even within a T&M framework, can help control costs and ensure deliverables align with project objectives, thereby maximizing the value derived from taxpayer funds.

What are the primary risks associated with a 5-year Time and Materials contract for international development advisory services?

The primary risks include potential cost overruns due to unmonitored labor hours or material costs, scope creep where the project expands beyond its original intent without commensurate budget adjustments, and a lack of clear performance incentives. Additionally, if the international development landscape shifts significantly over the contract period, the services provided may become less relevant or effective, impacting overall program success.

How effective is the 'full and open competition' method in ensuring the best outcome for this type of international development contract?

Full and open competition is generally effective in soliciting a wide range of qualified bidders and fostering competitive pricing. For international development advisory services, it helps identify specialized firms with proven track records. However, the effectiveness of the final outcome also heavily relies on the clarity of the solicitation, the evaluation criteria used, and the subsequent contract management to ensure the selected contractor delivers high-quality services as intended.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 7200AA19R00005

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1100 N GLEBE RD STE 800, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,033,759

Exercised Options: $20,992,200

Current Obligation: $20,854,435

Actual Outlays: $20,815,759

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $4,749,735

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: YES

Timeline