USAID awards $20.45M for Moldova management consulting, with competition indicating potential value

Contract Overview

Contract Amount: $20,450,000 ($20.4M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2023-02-13

End Date: 2025-03-12

Contract Duration: 758 days

Daily Burn Rate: $27.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: USAID/OTI MOLDOVA INITIAL FUNDING REQ

Plain-Language Summary

Agency for International Development obligated $20.4 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: USAID/OTI MOLDOVA INITIAL FUNDING REQ Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires robust oversight. 3. Duration of 758 days indicates a significant, ongoing need for these services. 4. The administrative management and general management consulting services are crucial for program execution. 5. The award amount is substantial, necessitating careful monitoring of performance and costs. 6. The contractor, Management Systems International, Inc., has a track record that warrants review for past performance.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure value for money. While specific per-unit cost data is not provided, the competitive award process suggests that the pricing was likely vetted against market rates. Benchmarking against similar USAID management consulting contracts would provide further insight into the overall value proposition. The fixed fee component offers some predictability in contractor profit, but the cost reimbursement aspect necessitates diligent oversight of direct costs incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 6 bidders suggests a healthy level of interest and competition for this requirement. This broad competition is generally favorable for price discovery and ensures that the agency can select from a range of qualified contractors, potentially leading to better terms and pricing.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that taxpayer funds are used efficiently by fostering a market-driven selection of the best value offer.

Public Impact

The primary beneficiaries are USAID and its programs in Moldova, which will receive enhanced management and administrative support. Services delivered include general management consulting, crucial for the effective implementation of USAID's initiatives. The geographic impact is focused on Moldova, supporting U.S. foreign assistance objectives in the region. Workforce implications may include the need for specialized consulting expertise, potentially drawing from both U.S. and local talent pools depending on the contractor's approach.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee.
The duration of the contract (758 days) requires sustained oversight to ensure continued performance and adherence to objectives.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness proactively.

Positive Signals

Awarded through full and open competition with 6 bidders, indicating a competitive environment that likely drove favorable pricing.
The contractor, Management Systems International, Inc., is a known entity in the federal contracting space, suggesting a level of established capability.
The contract is for administrative and management consulting, a core service area that, when executed well, can significantly improve program outcomes.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is vital for government operations, providing expertise that agencies often lack internally. The market for such services is competitive, with numerous firms offering specialized skills. USAID's consistent use of such contracts highlights the importance of external expertise in managing complex international development programs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. There is no explicit information on subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is limited, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will primarily rest with USAID's contracting officers and program managers. They are responsible for monitoring costs, ensuring compliance with contract terms, and verifying performance against objectives. The fixed fee component provides some incentive for cost control, but the agency must diligently audit incurred costs. Transparency is facilitated through contract reporting mechanisms, and any Inspector General involvement would depend on specific audit triggers or allegations of fraud, waste, or abuse.

Related Government Programs

USAID Management and Technical Consulting Services
International Development Support Contracts
Administrative and Business Operations Support
Foreign Assistance Program Management

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Contract duration of 758 days necessitates sustained performance monitoring.
Potential for cost escalation inherent in CPFF structures.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $20.4 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. USAID/OTI MOLDOVA INITIAL FUNDING REQ

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 $20.4 million.

What is the period of performance?

Start: 2023-02-13. End: 2025-03-12.

What is Management Systems International, Inc.'s track record with USAID and similar agencies?

Management Systems International, Inc. (MSI) has a significant history of contracting with U.S. government agencies, including USAID. They specialize in international development, providing technical assistance, program management, and monitoring and evaluation services. A review of their past performance on similar contracts would be crucial. This includes examining their record on cost control, adherence to schedules, quality of deliverables, and overall client satisfaction. Data from contract databases like FPDS-NG can reveal the number and value of previous awards, as well as any past performance issues or disputes. Understanding their experience in Moldova or similar political and economic environments would also be pertinent to assessing their suitability for this specific requirement.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are difficult to estimate precisely beforehand, common in consulting and R&D. In this structure, the contractor is reimbursed for all allowable costs incurred and receives a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP), CPFF offers more flexibility for the government if requirements change, but it carries higher cost risk as the government bears the brunt of cost overruns. Time and Materials (T&M) contracts, another alternative, can be simpler but offer less cost certainty. For administrative and management consulting, CPFF can be appropriate if detailed work breakdown structures are challenging, but it necessitates robust government oversight to manage costs effectively and ensure the fixed fee remains a fair incentive.

What are the key performance indicators (KPIs) likely being used to measure the success of this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for management consulting contracts with USAID often revolve around the effective and efficient implementation of program objectives. This could include metrics related to the timely delivery of strategic advice, the successful development and execution of management plans, improvements in operational efficiency for USAID programs, adherence to budget guidelines, and the quality of reports and recommendations provided. For a contract in Moldova, KPIs might also relate to the impact on local capacity building, the successful transition of responsibilities, or the achievement of specific development outcomes outlined in the broader USAID mission strategy. The contractor's ability to meet these KPIs would directly influence their performance evaluation and future opportunities.

How does the $20.45 million award compare to historical spending on similar USAID consulting services?

The $20.45 million award for administrative and general management consulting services for USAID in Moldova is a significant sum, reflecting the scope and duration of the engagement. To benchmark this, one would need to analyze historical spending patterns for similar services provided by USAID, both in Moldova and in comparable countries. This involves looking at the average contract size, the number of contracts awarded annually for management consulting, and the typical duration of such engagements. Factors like the political stability, economic development level, and the complexity of USAID's mission in a particular country can influence contract values. Without specific comparative data, it's challenging to definitively state if this award is high or low, but its magnitude suggests a substantial requirement for expert support.

What are the potential risks associated with a Cost Plus Fixed Fee contract for management consulting?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the government reimburses the contractor for allowable costs. If the contractor does not manage its resources efficiently, costs can escalate beyond initial expectations, even though the fee is fixed. Another risk is the contractor's incentive to incur costs to increase the overall contract value, although the fixed fee mitigates this to some extent. There's also a risk of scope creep if the contract isn't managed tightly, leading to additional costs. For the government, effective oversight is critical to ensure costs are reasonable and allocable, and that the contractor is performing diligently. Poor oversight can lead to inefficient spending and a suboptimal return on investment for the taxpayer.

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: 72C0T123R00008

Offers Received: 6

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: $46,851,906

Exercised Options: $26,851,906

Current Obligation: $20,450,000

Actual Outlays: $9,872,542

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $2,308,272

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