USAID awards $244M task order to Credence Management Solutions for humanitarian assistance support

Contract Overview

Contract Amount: $243,928,778 ($243.9M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Agency for International Development

Start Date: 2023-10-23

End Date: 2028-10-22

Contract Duration: 1,826 days

Daily Burn Rate: $133.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE TASK ORDER IS AWARDED FOR THE IMPLEMENTATION OF THE USAID/BHA PROGRAM ENTITLED BUREAU FOR HUMANITARIAN ASSISTANCE SUPPORT CONTRACT (BHASC). THE PURPOSE OF THE TASK ORDER IS TO PROVIDE OPERATIONAL AND ADMINISTRATIVE SUPPORT TO PROVIDE AND COORDI

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $243.9 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: THE TASK ORDER IS AWARDED FOR THE IMPLEMENTATION OF THE USAID/BHA PROGRAM ENTITLED BUREAU FOR HUMANITARIAN ASSISTANCE SUPPORT CONTRACT (BHASC). THE PURPOSE OF THE TASK ORDER IS TO PROVIDE OPERATIONAL AND ADMINISTRATIVE SUPPORT TO PROVIDE AND COORDI Key points: 1. Task order focuses on operational and administrative support for USAID's Bureau for Humanitarian Assistance. 2. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The duration of the task order is five years, indicating a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, which may be a broad categorization for the support provided. 6. The contract value is substantial, requiring diligent oversight to ensure value for taxpayer money. 7. The task order is a delivery order, a common method for procuring services under an existing contract.

Value Assessment

Rating: fair

The total value of $243,928,778.38 over five years averages to approximately $48.8 million per year. Without specific details on the services rendered, it's difficult to benchmark against similar contracts. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the costs plus a fixed fee, which can sometimes incentivize contractors to incur more costs to increase their fee if not properly structured. Further analysis of the fee structure and cost breakdowns is needed to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more competitive environment, potentially resulting in better pricing and service offerings. The presence of three bidders suggests a moderate level of competition for this significant task order.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the USAID/BHA program, which receives essential operational and administrative support to carry out its humanitarian assistance mission. Services delivered include operational and administrative support, crucial for the effective functioning of a large government bureau. The geographic impact is likely global, as USAID/BHA operates internationally to provide humanitarian aid. Workforce implications may include the creation of jobs for individuals with expertise in operational, administrative, and potentially engineering-related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns and ensure efficient resource utilization.
The broad NAICS code of 'Engineering Services' may obscure the specific nature of the support, making it harder to assess performance and value.
Limited information on the specific deliverables and performance metrics makes it challenging to fully evaluate the contractor's performance and the overall effectiveness of the task order.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The task order has a clear five-year duration, providing stability for both the agency and the contractor.
The contractor, Credence Management Solutions LLC, is being awarded a significant task order, suggesting a level of trust and capability recognized by USAID.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to administrative and operational support for government programs. The NAICS code 541330 (Engineering Services) is somewhat broad for administrative support, but may encompass the technical aspects of managing complex humanitarian aid operations. The overall market for government support services is substantial, with agencies like USAID relying heavily on contractors to implement their missions globally. Benchmarking this contract's value would require detailed comparison with other large-scale support contracts for humanitarian or international development agencies.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific task order. This means there is no explicit small business set-aside, and it does not appear that small businesses are primary awardees. Further investigation into subcontracting plans would be necessary to determine if small businesses will be involved in fulfilling parts of this contract.

Oversight & Accountability

Oversight for this task order would primarily fall under the Agency for International Development's internal contracting and program management offices. The Inspector General for USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency would be enhanced by public reporting of performance metrics and expenditures, though detailed operational data may be sensitive.

Related Government Programs

USAID Bureau for Humanitarian Assistance (BHA) Operations
USAID Support Contracts
Federal Administrative Support Services
International Development Assistance Programs
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Broad NAICS code may obscure specific service details.
Need for robust oversight to ensure value for money.
Limited public information on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $243.9 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. THE TASK ORDER IS AWARDED FOR THE IMPLEMENTATION OF THE USAID/BHA PROGRAM ENTITLED BUREAU FOR HUMANITARIAN ASSISTANCE SUPPORT CONTRACT (BHASC). THE PURPOSE OF THE TASK ORDER IS TO PROVIDE OPERATIONAL AND ADMINISTRATIVE SUPPORT TO PROVIDE AND COORDI

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

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 $243.9 million.

What is the period of performance?

Start: 2023-10-23. End: 2028-10-22.

What is the specific breakdown of services provided under this task order, and how do they align with the NAICS code 541330 (Engineering Services)?

The task order is described as providing 'operational and administrative support' for the USAID/BHA program. While the NAICS code 541330 is listed as 'Engineering Services,' the description of the task order suggests a broader scope that may include program management, logistical coordination, financial administration, and technical assistance related to humanitarian aid delivery. It's possible that 'engineering' in this context refers to the complex systems and processes involved in managing large-scale humanitarian operations, rather than traditional civil or mechanical engineering. A detailed review of the Statement of Work (SOW) would be necessary to understand the precise nature of the services and how they map to the assigned NAICS code. Without this, the categorization appears broad.

How does the pricing structure of this Cost Plus Fixed Fee (CPFF) contract compare to industry standards for similar support services?

The Cost Plus Fixed Fee (CPFF) contract type involves the government reimbursing the contractor for allowable costs plus a fixed fee representing profit. For CPFF contracts, the 'fixed fee' is negotiated upfront and does not change, regardless of the final cost incurred. This structure can incentivize contractors to control costs, as their profit is fixed. However, it also requires robust government oversight to ensure that all costs incurred are reasonable, allocable, and necessary. Benchmarking the fixed fee percentage against similar large-scale government support contracts would be crucial to determine if it aligns with industry norms. Without knowing the negotiated fee percentage and the projected cost base, a direct comparison is difficult, but CPFF is a common contract type for services where the scope may evolve or is difficult to define precisely at the outset.

What is the track record of Credence Management Solutions LLC in performing similar large-scale government support contracts, particularly for humanitarian or international development agencies?

Credence Management Solutions LLC has a history of performing government contracts, including those with agencies like USAID. Information available through federal procurement databases (e.g., FPDS) would detail their past performance, including contract values, agencies served, and types of services rendered. Assessing their track record would involve reviewing past performance evaluations, any past performance issues or disputes, and their experience with complex, large-value task orders. A positive track record with similar agencies and contract types would indicate a lower performance risk for this task order. Conversely, any significant past performance issues would raise concerns about their ability to successfully execute this $244 million contract.

What are the key performance indicators (KPIs) for this task order, and how will USAID measure the success of Credence Management Solutions in delivering operational and administrative support?

The specific Key Performance Indicators (KPIs) for this task order are not detailed in the provided summary data. However, for a contract focused on operational and administrative support for a humanitarian bureau, KPIs would likely revolve around efficiency, timeliness, accuracy, and responsiveness. Examples could include metrics related to the speed of processing requests, the accuracy of financial reporting, the effectiveness of logistical support coordination, and the overall satisfaction of USAID/BHA personnel utilizing the support services. USAID's Contracting Officer's Representative (COR) and the Program Office would be responsible for monitoring these KPIs and ensuring Credence Management Solutions meets the performance standards outlined in the contract's Performance Work Statement (PWS). Regular performance reviews and reporting would be standard.

How does the $244 million total value of this task order compare to historical spending by USAID/BHA on similar support services?

The $244 million value over five years represents a significant annual expenditure for operational and administrative support, averaging nearly $49 million per year. To contextualize this, one would need to examine USAID/BHA's historical spending patterns for similar support functions. This would involve looking at previous contracts awarded for bureau-level operational support, administrative services, or program management assistance. If historical spending on comparable services has been in a similar range, it suggests this task order is in line with the agency's needs and budget. If it represents a substantial increase or decrease, further investigation into the reasons (e.g., expanded program scope, efficiency gains, changes in contracting strategy) would be warranted. Without comparative historical data, it's difficult to definitively assess if this represents an increase or decrease in spending for these types of services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8609 WESTWOOD CTR DR STE 300, VIENNA, VA, 22182

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $898,752,341

Exercised Options: $898,752,341

Current Obligation: $243,928,778

Actual Outlays: $160,039,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20DU108

IDV Type: IDC

Timeline