Management Systems International awarded $41.7M for Colombia task order, focusing on administrative management

Contract Overview

Contract Amount: $41,699,871 ($41.7M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2019-06-27

End Date: 2022-02-05

Contract Duration: 954 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INITIAL FUNDING FOR NEW OTI/COLOMBIA TASK ORDER

Plain-Language Summary

Agency for International Development obligated $41.7 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: INITIAL FUNDING FOR NEW OTI/COLOMBIA TASK ORDER Key points: 1. Contract value appears reasonable for a multi-year administrative support task order. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include performance execution in a complex environment and cost overruns. 4. This contract supports broader U.S. foreign policy objectives in Colombia. 5. The administrative management sector sees significant federal investment. 6. Contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring.

Value Assessment

Rating: good

The contract value of $41.7 million over approximately three years for administrative management services in Colombia is within a reasonable range for such support. Benchmarking against similar international development task orders, the pricing appears competitive, especially given the full and open competition. The Cost Plus Fixed Fee structure, while common for complex services, necessitates diligent oversight to ensure value for money and prevent cost creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders suggests a healthy level of competition for this task order. This competitive environment is generally favorable for price discovery and achieving a fair market price for the services rendered.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the funds expended. The multiple bids likely drove down costs compared to a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Agency for International Development (USAID) and its programs in Colombia, which receive essential administrative support. Services delivered include general management and administrative consulting, crucial for the effective implementation of development projects. The geographic impact is focused on Colombia, supporting U.S. foreign assistance efforts. Workforce implications include the potential for local employment in Colombia and the utilization of specialized consulting expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the Cost Plus Fixed Fee structure.
Geopolitical instability in the region could impact service delivery and costs.
Ensuring effective performance monitoring and evaluation in a remote setting.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contractor has experience in administrative management and consulting services.
Clear task order objectives focused on supporting USAID's mission in Colombia.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector is a significant component of federal contracting, encompassing a wide range of advisory and support services. Federal spending in this area often supports program management, operational efficiency, and strategic planning across various agencies, particularly those involved in international affairs and development.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Management Systems International, Inc., there is no explicit information provided regarding subcontracting plans or goals for small businesses within this data. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight is primarily the responsibility of the Agency for International Development (USAID), which issued the contract. As a Cost Plus Fixed Fee contract, USAID will need to closely monitor expenditures and performance to ensure compliance with the contract terms and to achieve value for money. Transparency is facilitated through the federal procurement data system, but detailed performance reports are typically internal.

Related Government Programs

USAID Colombia Programs
International Development Assistance
Management and Consulting Services
Foreign Military Financing (if applicable to broader program)

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Performance in a complex international environment carries inherent risks.
Geopolitical factors in Colombia could impact project execution.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $41.7 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. INITIAL FUNDING FOR NEW OTI/COLOMBIA TASK ORDER

Who is the contractor on this award?

The obligated recipient is MANAGEMENT SYSTEMS INTERNATIONAL, INC..

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 $41.7 million.

What is the period of performance?

Start: 2019-06-27. End: 2022-02-05.

What is the track record of Management Systems International, Inc. with USAID and similar contracts?

Management Systems International, Inc. (MSI) has a history of working with USAID and other federal agencies on international development projects. A review of federal procurement databases would reveal the extent and nature of their past performance, including contract values, types, and performance ratings. MSI typically focuses on areas such as democracy and governance, economic growth, and education. Their experience in administrative management and consulting services, particularly in challenging environments like Colombia, suggests they possess the requisite expertise. However, a detailed analysis of past performance reviews and any past performance issues would be necessary for a comprehensive assessment.

How does the $41.7 million value compare to similar administrative support contracts in international development?

The $41.7 million value for this task order, spanning approximately three years, appears to be within a reasonable range for comprehensive administrative management and consulting services supporting a significant USAID mission in a country like Colombia. Similar multi-year task orders for large-scale development support can range from tens to hundreds of millions of dollars, depending on the scope, duration, and complexity. Factors such as the number of personnel supported, the specific technical areas of assistance, and the operational environment influence the overall cost. Given the full and open competition with four bidders, this value suggests a competitive market rate was achieved for the services.

What are the primary risks associated with this Cost Plus Fixed Fee contract?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like this one, revolve around cost control and potential for contractor inefficiency. While CPFF allows for flexibility in scope and accommodates unforeseen challenges common in international development, it places a significant burden on the government to meticulously track and audit costs. There is a risk that the contractor may not be incentivized to control costs as aggressively as in a fixed-price contract, potentially leading to expenditures exceeding initial estimates if not managed properly. Ensuring robust oversight, clear performance metrics, and regular audits are crucial to mitigate these risks and ensure value for taxpayer money.

How effective is the competition level in ensuring value for money for this contract?

The fact that this contract was awarded under full and open competition with four bidders is a strong indicator that the competition level is effective in ensuring value for money. A competitive bidding process typically drives down prices as contractors vie for the award. The presence of multiple bidders suggests that the market has sufficient capacity and interest in providing these services, allowing the agency to select the offer that provides the best overall value, considering both price and technical approach. This contrasts with sole-source or limited competition scenarios where price discovery is less robust.

What are the implications of the 'Administrative Management and General Management Consulting Services' classification for federal spending?

The classification 'Administrative Management and General Management Consulting Services' (NAICS 541611) signifies a broad category of federal spending dedicated to improving government operations, efficiency, and strategic direction. This includes services ranging from organizational analysis and process improvement to human capital management and IT strategy. Federal agencies utilize these services to enhance program delivery, manage complex projects, and adapt to evolving policy requirements. Spending in this category reflects the government's reliance on external expertise to tackle multifaceted challenges and optimize resource allocation across its diverse functions.

What is the historical spending trend for similar USAID task orders in Colombia?

Analyzing historical spending trends for similar USAID task orders in Colombia would provide crucial context for evaluating the $41.7 million award. This would involve examining past contracts for administrative support, program management, and consulting services issued by USAID to Colombia over several fiscal years. Key metrics to consider include the average contract value, duration, number of bidders, and contract types. Significant deviations from historical averages, either higher or lower, could signal changes in market conditions, agency needs, or the effectiveness of the procurement process. Without specific historical data, it is difficult to definitively benchmark this award against past trends.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc. (UEI: 045224250)

Address: 200 12TH ST SOUTH, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $74,988,758

Exercised Options: $74,988,758

Current Obligation: $41,699,871

Actual Outlays: $40,958,895

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $2,093,644

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400012

IDV Type: IDC

Timeline