USAID's $17.4M contract for Latin America development support awarded to Development Professionals Inc

Contract Overview

Contract Amount: $17,424,790 ($17.4M)

Contractor: Development Professionals Inc.-Making Cents International

Awarding Agency: Agency for International Development

Start Date: 2020-08-12

End Date: 2025-02-26

Contract Duration: 1,659 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT THE LATIN AMERICA AND CARIBBEAN BUREAUS OFFICE FOR REGIONAL SUSTAINABLE DEVELOPMENT AND WILL CONTRIBUTE TO IMPROVING USAIDS WORK IN DEMOCRACY, HUMAN RIGHTS, AND GOVERNANCE AND CITIZEN SECURITY VIOLENCE PRE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $17.4 million to DEVELOPMENT PROFESSIONALS INC.-MAKING CENTS INTERNATIONAL for work described as: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT THE LATIN AMERICA AND CARIBBEAN BUREAUS OFFICE FOR REGIONAL SUSTAINABLE DEVELOPMENT AND WILL CONTRIBUTE TO IMPROVING USAIDS WORK IN DEMOCRACY, HUMAN RIGHTS, AND GOVERNANCE AND CITIZEN SECURITY VIOLENCE PRE Key points: 1. Contract focuses on improving Democracy, Human Rights, Governance, and Citizen Security in Latin America and the Caribbean. 2. The contract is a Cost Plus Fixed Fee type, indicating potential for cost overruns. 3. Awarded under full and open competition, suggesting a competitive pricing environment. 4. The duration of over 1600 days points to a long-term commitment to regional development. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services'. 6. The contract is managed by the Agency for International Development (USAID).

Value Assessment

Rating: fair

The contract's value of $17.4 million over approximately 5.5 years suggests a moderate annual spend. Benchmarking this against similar USAID contracts for regional technical assistance would be necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for all allowable costs plus a fixed fee for profit. Without detailed cost breakdowns and performance metrics, it's difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that multiple bidders were likely considered. The fact that it was competed openly suggests that USAID sought the best value through a competitive process. The number of bidders (5) indicates a reasonable level of interest in this type of work, which generally supports price discovery and can lead to more competitive offers.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

Beneficiaries include governments and citizens in Latin America and the Caribbean seeking improved governance and security. Services delivered focus on technical assistance and support for USAID's Democracy, Human Rights, and Governance (DRG) and Citizen Security initiatives. Geographic impact is concentrated in the Latin America and Caribbean regions. Workforce implications include the potential for employment of technical experts and support staff in the region and by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure requires diligent oversight to manage allowable costs and prevent scope creep.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to undefined tasks if not clearly managed.
Long contract duration necessitates sustained performance monitoring to ensure continued relevance and effectiveness.

Positive Signals

Awarded under full and open competition, indicating a potentially competitive pricing structure.
Focus on critical development areas like democracy and citizen security aligns with U.S. foreign policy objectives.
The contract is managed by USAID, an agency with established processes for overseeing development contracts.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting international development efforts. The market for such services is driven by government foreign aid budgets and international development goals. USAID is a major procurer in this space, often competing contracts for technical assistance, program evaluation, and capacity building in developing regions. Comparable spending benchmarks would involve looking at other USAID contracts for similar technical assistance in the DRG and citizen security sectors across different regions.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests that the prime contract was likely awarded to a larger firm capable of handling the scope and complexity. However, the prime contractor, Development Professionals Inc., may engage small businesses as subcontractors to fulfill specific project needs, contributing to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, USAID will need to monitor allowable costs, contractor performance against objectives, and adherence to the contract terms. Transparency is typically managed through regular reporting requirements from the contractor. While specific Inspector General (IG) jurisdiction isn't detailed here, USAID's Office of Inspector General would likely have oversight authority for fraud, waste, and abuse.

Related Government Programs

USAID Democracy, Human Rights, and Governance Programs
USAID Citizen Security Initiatives
USAID Latin America and Caribbean Bureau Programs
International Development Technical Assistance Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost monitoring.
Broad scope of 'All Other Professional, Scientific, and Technical Services' needs clear definition and management.
Long contract duration necessitates sustained performance evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $17.4 million to DEVELOPMENT PROFESSIONALS INC.-MAKING CENTS INTERNATIONAL. THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT THE LATIN AMERICA AND CARIBBEAN BUREAUS OFFICE FOR REGIONAL SUSTAINABLE DEVELOPMENT AND WILL CONTRIBUTE TO IMPROVING USAIDS WORK IN DEMOCRACY, HUMAN RIGHTS, AND GOVERNANCE AND CITIZEN SECURITY VIOLENCE PRE

Who is the contractor on this award?

The obligated recipient is DEVELOPMENT PROFESSIONALS INC.-MAKING CENTS INTERNATIONAL.

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 $17.4 million.

What is the period of performance?

Start: 2020-08-12. End: 2025-02-26.

What is the track record of Development Professionals Inc. in managing similar USAID contracts?

Development Professionals Inc. (DPI) has a history of working with USAID and other federal agencies on international development projects. Their portfolio often includes technical assistance, capacity building, and program support in areas such as democracy, governance, economic growth, and education. To assess their track record specifically for this contract, one would need to examine past performance evaluations, any awards or penalties received on previous USAID contracts, and the successful completion of projects with similar scope and complexity. A review of their contract history would reveal their experience in managing Cost Plus Fixed Fee (CPFF) awards and their ability to meet performance targets within budget and schedule constraints. Information on DPI's past performance is often available through federal procurement databases like SAM.gov or through USAID's own contract award databases.

How does the $17.4 million contract value compare to other USAID technical assistance contracts in the region?

The $17.4 million contract value for USAID's support to the Latin America and Caribbean Bureaus' Office for Regional Sustainable Development is a significant but not exceptionally large sum for a multi-year international development contract. USAID frequently awards contracts in the range of $10 million to $50 million for technical assistance, program support, and capacity building in various regions. The specific value should be benchmarked against contracts with similar objectives (e.g., Democracy, Human Rights, Governance, Citizen Security) and geographic focus. For instance, comparing it to other contracts managed by the LAC Bureau or other bureaus with similar thematic areas would provide context. The duration of the contract (over 5 years) also influences the annual spend, making it a moderate annual investment rather than a large, short-term expenditure.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like this one awarded to Development Professionals Inc., revolve around cost control and potential for inefficiencies. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the actual expenses. Key risks include: 1) Cost Overruns: If costs exceed initial estimates, the government is obligated to cover them, potentially leading to budget challenges. 2) Scope Creep: Without strict management, the scope of work can expand, increasing costs without a corresponding increase in the fixed fee. 3) Lack of Incentive for Efficiency: Unlike fixed-price contracts, there's less direct financial incentive for the contractor to minimize costs. 4) Monitoring Burden: USAID must implement robust monitoring and auditing processes to ensure all costs are allowable, reasonable, and allocable. Effective risk mitigation requires diligent oversight, clear performance metrics, and proactive management by the contracting officer and technical team.

How effective are USAID's mechanisms for ensuring accountability and transparency in contracts like this one?

USAID generally employs a range of mechanisms to ensure accountability and transparency in its contracts. For a contract like this, accountability is typically driven by performance-based requirements outlined in the contract statement of work. The contractor is required to submit regular progress reports, financial statements, and performance metrics, which are reviewed by USAID's contracting officers and technical staff. Transparency is fostered through the Federal Procurement Data System (FPDS) and USAspending.gov, which report contract awards. Furthermore, USAID's Office of Inspector General (OIG) provides an independent layer of oversight, conducting audits and investigations to detect and prevent fraud, waste, and abuse. While these mechanisms are in place, the effectiveness can vary depending on the diligence of oversight, the clarity of contract terms, and the contractor's commitment to compliance. Robust communication channels and clear performance indicators are crucial for maximizing accountability.

What is the historical spending pattern for USAID's Democracy, Human Rights, and Governance (DRG) programs in Latin America?

USAID has consistently allocated significant funding towards Democracy, Human Rights, and Governance (DRG) programs globally, with a notable focus on regions like Latin America and the Caribbean. Historical spending patterns reveal a sustained commitment to strengthening democratic institutions, promoting rule of law, supporting civil society, and enhancing citizen security. While specific annual figures fluctuate based on geopolitical priorities, budget allocations, and program needs, DRG funding has remained a core component of USAID's development assistance. For Latin America, spending in this area often targets challenges such as corruption, political instability, violence, and human rights abuses. Analyzing historical data from USAID's annual reports, budget documents, and contract databases (like FPDS) would provide precise figures and trends, illustrating the scale and evolution of investment in DRG initiatives within the region over time.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1350 CONNECTICUT AVE NW STE 410, WASHINGTON, DC, 20036

Business Categories: Category Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $18,997,705

Exercised Options: $18,997,705

Current Obligation: $17,424,790

Actual Outlays: $14,902,127

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $14,670,190

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 7200AA19D00006

IDV Type: IDC

Timeline