USAID's $46.3M Colombia program management contract awarded to Management Systems International, Inc

Contract Overview

Contract Amount: $46,309,840 ($46.3M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2021-08-16

End Date: 2025-03-12

Contract Duration: 1,304 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INITIAL FUNDING FOR OTI/COLOMBIA

Plain-Language Summary

Agency for International Development obligated $46.3 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: INITIAL FUNDING FOR OTI/COLOMBIA Key points: 1. Contract focuses on administrative and general management consulting services for the OTI/Colombia program. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Duration of 1304 days indicates a long-term commitment to program support. 5. No specific small business set-aside was noted, but subcontracting opportunities may exist. 6. The contract's value is substantial, requiring robust oversight to ensure efficiency.

Value Assessment

Rating: fair

The contract's value of $46.3 million over approximately 3.5 years requires careful scrutiny. Without specific benchmarks for similar OTI program management contracts, it's difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to control costs and ensure the fixed fee remains reasonable relative to the services provided. Benchmarking against other USAID-administered programs or similar international development support contracts would be necessary for a more precise valuation.

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 a bid. The fact that it was competed suggests that multiple firms likely vied for the opportunity. The level of competition can influence pricing, with more bidders generally leading to more competitive offers. However, the specific number of bids received is not provided, which limits a deeper analysis of price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds. Full and open competition increases the likelihood of receiving a fair price and high-quality services by allowing a wide range of qualified contractors to participate.

Public Impact

The primary beneficiaries are the programs and initiatives managed under USAID's OTI/Colombia mission, aiming to foster stability and development. Services delivered include administrative and general management consulting, crucial for the effective implementation of foreign assistance programs. The geographic impact is focused on Colombia, supporting U.S. foreign policy objectives in the region. Workforce implications may include the employment of consultants and project staff, both domestically and potentially in the field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously managed.
The long duration of the contract requires sustained performance monitoring to ensure continued effectiveness.
Lack of specific performance metrics in the provided data makes it challenging to assess contractor efficiency.
Potential for scope creep in long-term consulting contracts needs careful management.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive and fair bidding process.
The contract supports a critical foreign assistance program (OTI/Colombia), aligning with strategic U.S. government objectives.
The contractor, Management Systems International, Inc., likely has relevant experience in international development and program management.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is a significant component of federal contracting, supporting a wide array of government functions. USAID, as a major agency, frequently procures such services to manage complex international development and humanitarian aid programs. Benchmarking would involve comparing this contract's value and scope to other similar management support contracts awarded by USAID or other agencies involved in foreign assistance.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. While there is no explicit mention of subcontracting requirements, large federal contracts often include provisions for small business participation. The impact on the small business ecosystem would depend on whether MSI, Inc. actively seeks out and utilizes small business subcontractors for specialized services or support roles.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through a Contracting Officer's Representative (COR). Accountability measures would be embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract awards databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

USAID OTI Programs
International Development Assistance
Management and Consulting Services
Foreign Aid Administration
Colombia Country Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Long contract duration increases risk of scope creep and performance degradation.
Lack of specific performance metrics hinders objective assessment.
Potential for contractor staff turnover impacting institutional knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $46.3 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. INITIAL FUNDING FOR OTI/COLOMBIA

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 $46.3 million.

What is the period of performance?

Start: 2021-08-16. End: 2025-03-12.

What is the track record of Management Systems International, Inc. (MSI) in managing similar USAID contracts?

Management Systems International, Inc. (MSI) has a significant history of working with USAID and other federal agencies on international development projects. A review of federal procurement data would reveal numerous past awards to MSI for program management, technical assistance, and monitoring and evaluation services across various countries and sectors. Their experience typically includes managing complex, multi-year contracts with substantial budgets, similar to the OTI/Colombia contract. Assessing specific past performance on contracts with comparable scope, duration, and geographic focus would provide a clearer picture of their capabilities and reliability in executing this current award. This would involve examining past performance evaluations, any contract disputes or terminations, and the overall success of their previous engagements.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other award types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is common for services where the scope of work is not precisely defined at the outset or is expected to evolve, such as in complex program management or research and development. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This differs from Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the contractor's actual costs, offering greater cost certainty for the government but potentially higher initial prices to account for contractor risk. Other types include Cost-Plus-Incentive-Fee (CPIF), which adjusts the fee based on performance against targets, and Time and Materials (T&M), often used for smaller, less defined efforts. For long-term program management like this, CPFF can offer flexibility, but it places a heavy burden on the government to monitor costs and ensure efficiency to avoid overspending, making it potentially less cost-effective than a well-defined FFP contract if scope could be tightly controlled.

What are the primary risks associated with the long duration (1304 days) of this contract?

The extended duration of 1304 days (approximately 3.5 years) for this contract presents several key risks. Firstly, the risk of 'scope creep' increases, where the project's objectives or tasks may expand beyond the original intent without corresponding adjustments to the fee or budget, potentially leading to inefficiencies. Secondly, maintaining consistent performance quality over such a long period can be challenging; contractor staff may change, institutional knowledge can be lost, or motivation may wane. Thirdly, the longer the contract, the greater the exposure to external factors such as shifts in political priorities, economic conditions in Colombia, or changes in USAID's strategic direction, which could render the contract's objectives less relevant or necessitate significant modifications. Finally, prolonged contracts can reduce the government's agility to adapt to new technologies or approaches that emerge during the contract period, potentially locking it into outdated methods.

How does the administrative and general management consulting services (NAICS 541611) spending compare across federal agencies?

Spending on Administrative and General Management Consulting Services (NAICS 541611) is substantial across the federal government, reflecting the need for specialized expertise in areas like organizational efficiency, strategic planning, and operational improvement. Agencies such as the Department of Defense, Health and Human Services, and Homeland Security are often among the largest purchasers of these services, alongside agencies like USAID that focus on program implementation and foreign assistance. While specific comparative spending figures require detailed analysis of federal procurement data (e.g., from FPDS), it's understood that consulting services are a common procurement category. USAID's spending in this area is directly tied to its mission of delivering foreign aid effectively, often requiring expert support to manage complex, multi-faceted programs in challenging environments. Benchmarking USAID's specific outlays against the total federal spend for NAICS 541611 would contextualize the significance of this particular contract within the broader federal landscape.

What are the potential implications of awarding a large contract like this to a single entity for program continuity?

Awarding a large, long-term contract like this to a single entity, Management Systems International, Inc., can offer significant benefits for program continuity and institutional knowledge. Having one contractor responsible for managing the OTI/Colombia program over an extended period allows for the development of deep expertise and a consistent approach to implementation. This can lead to greater efficiency and effectiveness as the contractor becomes intimately familiar with the program's nuances, challenges, and stakeholders. It also simplifies contract management for the agency. However, it also concentrates risk; if the contractor underperforms or faces significant challenges, the entire program's continuity could be jeopardized. Furthermore, it limits the infusion of fresh perspectives or alternative methodologies that might come from multiple, competing contractors over time.

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

Solicitation ID: 7200AA21R00032

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $140,727,163

Exercised Options: $140,727,163

Current Obligation: $46,309,840

Actual Outlays: $37,428,237

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 7200AA19D00031

IDV Type: IDC

Timeline