USAID's $25M ITSS II Contract with Zemitek LLC Faces Scrutiny for Administrative Management Services

Contract Overview

Contract Amount: $25,080,635 ($25.1M)

Contractor: Zemitek LLC

Awarding Agency: Agency for International Development

Start Date: 2020-12-07

End Date: 2025-06-13

Contract Duration: 1,649 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEW AFRICA INSTITUTIONAL AND TECHNICAL SUPPORT SERVICES (ITSS II) CONTRACT - THE TECHNICAL AND SUPPORT SERVICES PROVIDED UNDER THIS CONTRACT WILL ASSIST USAID IN ACHIEVING ITS PROGRAM PRIORITIES BY PROVIDING CONTRACTED TECHNICAL, PROFESSIONAL, OPERAT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $25.1 million to ZEMITEK LLC for work described as: NEW AFRICA INSTITUTIONAL AND TECHNICAL SUPPORT SERVICES (ITSS II) CONTRACT - THE TECHNICAL AND SUPPORT SERVICES PROVIDED UNDER THIS CONTRACT WILL ASSIST USAID IN ACHIEVING ITS PROGRAM PRIORITIES BY PROVIDING CONTRACTED TECHNICAL, PROFESSIONAL, OPERAT Key points: 1. Contract awarded to Zemitek LLC for administrative and technical support services. 2. Total value of $25,080,634.54 over its duration. 3. Services aim to assist USAID in achieving program priorities. 4. Contract type is Time and Materials, awarded under Full and Open Competition. 5. Duration spans from December 2020 to June 2025.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure can lead to cost overruns if not closely managed. Benchmarking against similar administrative management consulting services is difficult without detailed task breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing model may limit price discovery and incentivize longer project durations.

Taxpayer Impact: Taxpayer funds are being used for administrative and technical support, with potential for cost inefficiencies due to the T&M contract type.

Public Impact

Supports USAID's mission by providing essential technical and professional services. Contract duration of nearly five years indicates a long-term need for these services. Potential for cost escalation exists with Time and Materials contracts. Transparency in task order execution is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing model
Potential for scope creep and cost overruns
Lack of detailed performance metrics in provided data

Positive Signals

Awarded through full and open competition
Supports critical agency program priorities
Long-term engagement suggests sustained need

Sector Analysis

This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector can vary widely based on agency needs, but efficient contract management is key to controlling costs.

Small Business Impact

The provided data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight is critical for Time and Materials contracts to ensure costs remain within budget and services are delivered effectively. USAID's internal controls and reporting mechanisms are key to accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Potential for cost overruns due to T&M pricing
Lack of detailed task descriptions
Limited insight into contractor performance metrics
No clear indication of small business subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $25.1 million to ZEMITEK LLC. NEW AFRICA INSTITUTIONAL AND TECHNICAL SUPPORT SERVICES (ITSS II) CONTRACT - THE TECHNICAL AND SUPPORT SERVICES PROVIDED UNDER THIS CONTRACT WILL ASSIST USAID IN ACHIEVING ITS PROGRAM PRIORITIES BY PROVIDING CONTRACTED TECHNICAL, PROFESSIONAL, OPERAT

Who is the contractor on this award?

The obligated recipient is ZEMITEK 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 $25.1 million.

What is the period of performance?

Start: 2020-12-07. End: 2025-06-13.

What specific administrative and technical support tasks are being performed under this contract, and how do they directly contribute to USAID's program priorities?

The contract provides contracted technical, professional, and administrative support to assist USAID in achieving its program priorities. Without a detailed breakdown of specific tasks and their alignment with USAID's strategic goals, it is difficult to fully assess the direct contribution and value. Further information on task orders and deliverables would be necessary for a comprehensive evaluation of the support's impact on program outcomes.

How does the Time and Materials pricing structure mitigate or exacerbate the risk of cost overruns for this $25 million contract?

The Time and Materials (T&M) pricing structure inherently carries a higher risk of cost overruns compared to fixed-price contracts. It allows the contractor to bill for actual labor hours and material costs incurred. While offering flexibility, this model necessitates robust government oversight to monitor hours, prevent scope creep, and ensure efficient resource utilization. Without stringent controls, the potential for escalating costs is significant.

What mechanisms are in place to ensure the effectiveness and efficiency of the services provided by Zemitek LLC, given the contract's duration and value?

Effectiveness and efficiency are typically ensured through performance work statements, regular progress reviews, and defined deliverables within task orders. For this T&M contract, USAID's project officers must diligently track contractor performance, validate hours billed against work accomplished, and ensure services align with program objectives. The long duration and significant value necessitate continuous monitoring and proactive management to maintain effectiveness and prevent waste.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3 BETHESDA METRO CTR STE 700, BETHESDA, MD, 20814

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $33,337,050

Exercised Options: $33,337,050

Current Obligation: $25,080,635

Actual Outlays: $21,174,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F356GA

IDV Type: FSS

Timeline