USAID awards $165.6M for professional services, with contract duration extending over 6 years

Contract Overview

Contract Amount: $165,653,653 ($165.7M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Agency for International Development

Start Date: 2018-10-16

End Date: 2025-10-15

Contract Duration: 2,556 days

Daily Burn Rate: $64.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Agency for International Development obligated $165.7 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. Contract awarded using full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 3. The duration of 2556 days (approx. 7 years) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract value is substantial, requiring careful monitoring of performance and costs. 6. No small business set-aside was utilized, indicating potential missed opportunities for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if not managed diligently. The total award amount of $165.6 million over approximately seven years suggests an average annual value of around $23.6 million. Without comparable contracts for similar broad professional services, it's difficult to definitively assess if this represents excellent value for money. However, the extended duration and CPFF structure warrant close oversight to ensure costs remain reasonable and aligned with objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates there were 4 bids received. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government. The fact that multiple bids were submitted suggests sufficient interest in the market for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider pool of contractors to offer their services, leading to potentially better value.

Public Impact

The primary beneficiaries are likely USAID programs requiring broad professional, scientific, and technical support. Services delivered will encompass a wide range of technical and professional expertise to support agency missions. The geographic impact is likely global, given USAID's international development focus, though specific locations will depend on program needs. Workforce implications could include employment for professionals in various scientific and technical fields, both domestically and potentially abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure may lead to cost overruns if not tightly managed.
Broad scope of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep.
Long contract duration increases the risk of evolving requirements not being met by the original contract terms.
Lack of small business set-aside may limit opportunities for smaller, potentially innovative firms.

Positive Signals

Full and open competition suggests a robust bidding process and potential for competitive pricing.
The award to multiple bidders indicates a healthy market for these services.
The substantial award value suggests a critical and ongoing need for these services by the agency.

Sector Analysis

The professional, scientific, and technical services sector is vast and encompasses a wide array of activities. NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a catch-all category for establishments primarily engaged in providing specialized professional, scientific, and technical services not elsewhere classified. This includes services like research and development, consulting, and technical support across various domains. The market size for such services is significant, with government contracts forming a substantial portion. This particular contract fits within the broader landscape of government support services, where agencies like USAID procure expertise to execute complex international development and humanitarian aid programs.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses. This means that the primary competition was open to all business sizes. While full and open competition can lead to the best overall value, it may also mean that small businesses, which often have specialized capabilities or are more agile, might be overlooked unless they are prime contractors or part of a larger team. The absence of specific set-asides or subcontracting plans could limit the direct economic benefit to the small business ecosystem from this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development's (USAID) contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains appropriate. Performance monitoring would involve tracking deliverables and milestones against the contract's objectives. Transparency is generally facilitated through contract award databases, but detailed performance reports and cost breakdowns may not always be publicly available. The Inspector General's office for USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USAID Development Services
Professional and Technical Support Services
International Aid and Development Contracts
Cost-Plus Contract Vehicles
Government-Wide Acquisition Contracts (GWACs) for Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Broad 'All Other Professional, Scientific, and Technical Services' category may lead to scope creep.
Long contract duration increases risk of evolving requirements and potential inefficiencies.
Lack of disclosed awardees prevents assessment of contractor performance history.
Absence of small business set-aside may limit opportunities for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $165.7 million to DOMESTIC AWARDEES (UNDISCLOSED). OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

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 $165.7 million.

What is the period of performance?

Start: 2018-10-16. End: 2025-10-15.

What is the track record of the undisclosed domestic awardees for similar large-scale professional services contracts with USAID or other federal agencies?

The provided data does not disclose the specific awardees for this contract, making it impossible to assess their track record. To evaluate this, one would need to identify the prime contractors and then research their past performance on similar contracts. Key areas to investigate would include their history of meeting deadlines, staying within budget (especially relevant for CPFF contracts), the quality of their deliverables, and any past performance issues or disputes. A strong track record with similar agencies and contract types would indicate a lower risk and higher likelihood of successful execution. Conversely, a history of performance problems would raise concerns about the contractor's ability to meet USAID's needs effectively and efficiently.

How does the estimated annual value of this contract compare to similar professional services contracts awarded by USAID or other agencies for international development support?

The estimated annual value of this contract is approximately $23.6 million ($165.6 million / ~7 years). Comparing this to similar contracts requires access to a database of federal contract awards, filtered by agency (e.g., USAID, State Department), service type (e.g., technical assistance, program management, research), and contract vehicle (e.g., CPFF). Benchmarking would involve looking at the average annual value, scope of work, and duration of comparable contracts. If this contract's annual value is significantly higher than comparable contracts with similar scopes and durations, it could indicate potential overpricing or a broader scope than typical. Conversely, if it aligns with or is lower than benchmarks, it suggests a potentially reasonable valuation, assuming comparable quality and performance expectations.

What are the specific performance metrics and key performance indicators (KPIs) used to evaluate the success of this contract, and how are they monitored?

The provided data does not specify the performance metrics or KPIs for this contract. In a Cost Plus Fixed Fee contract, especially one with a broad scope like 'All Other Professional, Scientific, and Technical Services,' defining clear, measurable, achievable, relevant, and time-bound (SMART) KPIs is critical for effective oversight. These metrics should directly relate to the agency's objectives for procuring these services. Typical KPIs might include timely delivery of reports, successful implementation of program activities, achievement of specific development outcomes, adherence to budget targets, and client satisfaction. Monitoring these KPIs would involve regular progress reviews, site visits (if applicable), data analysis, and feedback mechanisms involving USAID program managers and potentially beneficiaries. Without this information, assessing the contract's effectiveness and value is speculative.

What is the risk assessment associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific service requirement, and what mitigation strategies are in place?

The CPFF contract type carries inherent risks, primarily the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. For a broad services contract like this, the risk is amplified if the scope of work is not tightly defined or if unforeseen challenges arise. Mitigation strategies typically include robust cost accounting standards, detailed review and approval processes for all incurred costs, clear definition of the 'fixed fee' and its relationship to performance, and strong program oversight to ensure efficient resource utilization. USAID likely employs a dedicated team of contract specialists and program officers to monitor expenditures, validate costs, and ensure the contractor operates within the agreed-upon parameters. Regular audits and performance reviews are also essential to manage these risks.

How has USAID's spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) trended over the past five years, and how does this award fit into that pattern?

To answer this, one would need to access historical federal spending data, specifically USAID's obligations for NAICS code 541990 over the last five fiscal years. This analysis would reveal whether USAID's spending in this broad category has been increasing, decreasing, or remaining stable. It would also show the typical size and duration of contracts awarded under this code. This $165.6 million award, spanning over six years, appears to be a significant, long-term investment. If USAID's historical spending in this category has been substantial and consistent, this award would fit within that pattern. If spending has been lower or more sporadic, this contract might represent a notable expansion or shift in their procurement strategy for these types of services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-121-17-000007

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $170,000,000

Exercised Options: $170,000,000

Current Obligation: $165,653,653

Actual Outlays: $107,864,216

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $895,504

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline