USAID's $27.7M contract for non-direct education support services awarded to Zemitek LLC

Contract Overview

Contract Amount: $27,747,424 ($27.7M)

Contractor: Zemitek LLC

Awarding Agency: Agency for International Development

Start Date: 2021-09-23

End Date: 2025-03-26

Contract Duration: 1,280 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF ESI 2 IS TO ACQUIRE NON-DIRECT EDUCATION SUPPORT SERVICES FOR DDI CENTER FOR EDUCATION AND USAID MISSIONS TO SUPPLEMENT ITS DIRECT-HIRE STAFF, I.E., FEDERAL CIVILIAN EMPLOYEES THAT ARE APPOINTED UNDER CIVIL SERVICE AND FOREIGN SERVICE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $27.7 million to ZEMITEK LLC for work described as: THE PURPOSE OF ESI 2 IS TO ACQUIRE NON-DIRECT EDUCATION SUPPORT SERVICES FOR DDI CENTER FOR EDUCATION AND USAID MISSIONS TO SUPPLEMENT ITS DIRECT-HIRE STAFF, I.E., FEDERAL CIVILIAN EMPLOYEES THAT ARE APPOINTED UNDER CIVIL SERVICE AND FOREIGN SERVICE Key points: 1. Contract aims to supplement direct-hire education staff for USAID missions. 2. Focus on administrative management and general management consulting services. 3. Awarded via full and open competition, suggesting broad market engagement. 4. Contract duration extends through March 2025. 5. Delivery order under a larger contract vehicle. 6. Small business set-aside was not utilized.

Value Assessment

Rating: fair

The contract value of $27.7 million for approximately 2.5 years of support appears within a reasonable range for specialized consulting services. Benchmarking against similar contracts for administrative and management support within federal agencies is necessary for a definitive value assessment. The Time and Materials pricing structure introduces some risk for cost overruns if not closely managed, but can also offer flexibility for evolving needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award delivery order suggests that Zemitek LLC was selected as the most advantageous offer. The level of competition, while broad in initial opportunity, resulted in a single award, the details of which are not fully public.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and a wider pool of potential service providers, potentially leading to better value.

Public Impact

International development programs benefit from enhanced educational support services. USAID missions abroad receive supplemental staffing to bolster their education initiatives. Federal civilian employees and Foreign Service officers are supported by these services. The contract impacts the administrative and management consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in Time and Materials contracts if not managed diligently.
Reliance on a single contractor for critical support services may pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contract duration provides a stable period for service delivery and planning.
Services directly support USAID's mission-critical education objectives.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This is a broad category encompassing a wide range of professional services. Federal spending in this sector is substantial, supporting various agency functions from strategic planning to operational efficiency. Comparable spending benchmarks would require analysis of similar consulting contracts awarded by USAID and other development-focused agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary awardee is likely a larger entity, and the direct impact on the small business ecosystem through this specific contract may be limited unless Zemitek LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within USAID. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are not publicly disclosed.

Related Government Programs

USAID Education Programs
International Development Consulting Services
Federal Administrative Support Contracts
Management Consulting Services

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Limited public information on specific performance metrics and contractor past performance.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $27.7 million to ZEMITEK LLC. THE PURPOSE OF ESI 2 IS TO ACQUIRE NON-DIRECT EDUCATION SUPPORT SERVICES FOR DDI CENTER FOR EDUCATION AND USAID MISSIONS TO SUPPLEMENT ITS DIRECT-HIRE STAFF, I.E., FEDERAL CIVILIAN EMPLOYEES THAT ARE APPOINTED UNDER CIVIL SERVICE AND FOREIGN SERVICE

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 $27.7 million.

What is the period of performance?

Start: 2021-09-23. End: 2025-03-26.

What is Zemitek LLC's track record with federal contracts, particularly with USAID?

Zemitek LLC has a history of federal contract awards, though specific details on their performance and track record with USAID require deeper investigation into contract databases like SAM.gov. Analyzing past performance evaluations, any past performance issues, and the types of services previously rendered by Zemitek to USAID or similar agencies would provide a clearer picture of their reliability and capability. Without this granular data, assessing their track record is speculative, but the award of this contract suggests they met initial qualification criteria.

How does the $27.7 million contract value compare to similar USAID education support contracts?

Benchmarking the $27.7 million value requires comparing it against contracts for similar non-direct education support services, administrative management, and general management consulting provided to USAID or other international development agencies. Factors such as contract duration (approx. 2.5 years), scope of services, and geographic reach are crucial for a fair comparison. If similar contracts for comparable services and durations are valued significantly higher or lower, it would indicate potential overpricing or under-resourcing, respectively. A preliminary assessment suggests the value is within a plausible range for specialized consulting.

What are the primary risks associated with this Time and Materials (T&M) contract?

The primary risk with a Time and Materials contract is the potential for cost overruns if the scope of work is not clearly defined or if contractor effort is not efficiently managed. Unlike fixed-price contracts, T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This can lead to unpredictable final costs for the government. Effective oversight, detailed task orders, and vigilant monitoring of labor hours and material costs are essential to mitigate these risks and ensure value for taxpayer money.

How effectively does this contract supplement USAID's direct-hire education staff?

The effectiveness of this contract in supplementing USAID's direct-hire staff hinges on the specific tasks assigned to Zemitek LLC and the quality of the services delivered. The contract's purpose is to provide non-direct education support, implying it handles functions that do not require federal employees, such as specialized analysis, administrative support, or project management assistance. Success would be measured by whether these services enable USAID's federal employees to focus on core strategic and decision-making roles, thereby increasing overall mission efficiency and program impact.

What is the historical spending trend for administrative and management consulting services at USAID?

Analyzing USAID's historical spending on administrative and management consulting services (NAICS 541611) would provide context for the $27.7 million award. Trends might reveal whether spending in this category has been increasing, decreasing, or remaining stable over recent fiscal years. Understanding these patterns can help assess if this contract represents a typical investment or a significant deviation. Such analysis would require accessing historical contract data from sources like USAspending.gov to identify patterns and the average value of similar contracts awarded by the agency.

What are the implications of awarding this contract via full and open competition for price discovery?

Awarding this contract through full and open competition generally enhances price discovery. It allows a wide range of potential contractors to submit proposals, fostering a competitive environment where pricing is a key evaluation factor. This process encourages offerors to submit their most competitive bids to win the contract. While the specific number of bidders and the final negotiated price are not detailed here, the competitive nature of the procurement process increases the likelihood that USAID secured services at a reasonable market price compared to a sole-source or limited competition award.

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: 7200AA21Q00011

Offers Received: 1

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: $41,557,364

Exercised Options: $41,557,364

Current Obligation: $27,747,424

Actual Outlays: $18,695,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F356GA

IDV Type: FSS

Timeline