USAID awards $142.8M for overseas professional services, with 5 contracts under a definitive contract

Contract Overview

Contract Amount: $142,825,694 ($142.8M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Agency for International Development

Start Date: 2018-10-01

End Date: 2026-09-30

Contract Duration: 2,921 days

Daily Burn Rate: $48.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Agency for International Development obligated $142.8 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. Value for money is difficult to assess without detailed performance metrics and cost breakdowns. 2. Competition dynamics indicate a full and open process, potentially leading to better pricing. 3. Risk indicators include the cost-plus-fixed-fee contract type, which can incentivize cost overruns. 4. Performance context is limited, as specific deliverables and outcomes are not detailed. 5. Sector positioning is within professional, scientific, and technical services, supporting international development efforts.

Value Assessment

Rating: fair

The total award amount of $142.8 million over approximately 8 years suggests a significant investment. Benchmarking this against similar contracts for overseas professional services is challenging without more specific details on the scope of work and deliverables. The cost-plus-fixed-fee structure, while common for complex or uncertain projects, carries inherent risks of cost escalation compared to fixed-price contracts. The relatively high number of individual awards (5) under the definitive contract could indicate a fragmented approach or a need for flexibility in service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit offers. The presence of 5 individual awards under the definitive contract implies that multiple entities were selected to provide services. A full and open competition generally fosters price discovery and allows the government to select from a wide range of capabilities, potentially leading to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for services rendered, reducing the likelihood of inflated prices due to limited options.

Public Impact

The primary beneficiaries are likely USAID's international development programs and the populations in the regions where these services are delivered. Services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' indicating a wide range of potential support functions. Geographic impact is global, as the contract is for overseas operations, supporting U.S. foreign policy and development goals. Workforce implications could include employment for technical experts, program managers, and support staff both domestically and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type may lead to higher costs if not managed tightly.
Lack of specific performance metrics makes it difficult to assess true value for money.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep.
Undisclosed domestic awardees make it harder to assess contractor track record and potential conflicts of interest.

Positive Signals

Full and open competition suggests a robust selection process.
A definitive contract with multiple awards allows for flexibility and responsiveness to evolving needs.
The long duration (nearly 8 years) indicates a sustained commitment to critical program areas.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, which is a broad category encompassing a wide array of support functions for government agencies. This sector is crucial for agencies like USAID, which rely on specialized expertise for program implementation, research, and technical assistance, particularly in complex overseas environments. Comparable spending benchmarks are difficult to establish without a more precise definition of the services procured, but overall government spending on professional services is substantial.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no specific set-aside information (st, sn). This suggests that the contract was not specifically targeted towards small businesses, and there is no explicit indication of subcontracting goals for small businesses. Consequently, the direct impact on the small business ecosystem for this particular award appears limited, though larger prime contractors may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development's internal contracting and program management offices. Transparency is limited by the 'undisclosed' nature of the domestic awardees and the broad service category. Accountability measures would be tied to the terms of the definitive contract and the individual task orders issued, including performance reviews and financial audits. The Inspector General for USAID would have jurisdiction for oversight and investigation of fraud, waste, or abuse.

Related Government Programs

USAID Program Support Contracts
International Development Services
Professional and Technical Services
Definitive Contracts
Cost-Plus Contracts

Risk Flags

Cost-plus-fixed-fee contract type
Broad service category (541990)
Undisclosed awardees
Long performance period

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $142.8 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 $142.8 million.

What is the period of performance?

Start: 2018-10-01. End: 2026-09-30.

What is the specific nature of the 'All Other Professional, Scientific, and Technical Services' being procured under this contract?

The designation 'All Other Professional, Scientific, and Technical Services' (NAICS code 541990) is a broad category that encompasses a wide range of activities not classified under more specific NAICS codes. For USAID's overseas contracts, this could include services such as program management support, technical assistance in various development sectors (e.g., health, education, agriculture), research and analysis, monitoring and evaluation, logistical support, and capacity building. Without specific task orders or a more detailed contract description, the precise nature of the services remains generalized. This broadness allows for flexibility but also necessitates robust oversight to ensure services align with development objectives and do not deviate into unrelated areas.

How does the cost-plus-fixed-fee (CPFF) contract type compare to other contract types for similar services, and what are its implications for cost control?

Cost-plus-fixed-fee (CPFF) contracts are typically used when the scope of work is not clearly defined or when there is significant uncertainty in the cost of performance, making fixed-price contracts impractical. In this structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers greater flexibility but carries a higher risk of cost overruns, as the government bears the brunt of cost uncertainties. For professional services, especially in complex overseas environments, CPFF can be appropriate for initial phases or research-intensive tasks. However, effective cost control requires stringent oversight, detailed cost reporting, and clear performance metrics to ensure the fixed fee remains a reasonable incentive and that costs do not escalate unnecessarily.

What is the track record of the undisclosed domestic awardees in performing similar overseas development services for the U.S. government?

The track record of the undisclosed domestic awardees cannot be directly assessed from the provided data. Since the awardees are not specified, it is impossible to research their past performance, past performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), or any history of successful or problematic contract execution with USAID or other federal agencies. This lack of transparency regarding the specific contractors hinders a thorough assessment of their experience, reliability, and capacity to deliver the required professional, scientific, and technical services effectively in overseas settings. Future analysis would benefit greatly from identifying these awardees.

How does the total contract value of $142.8 million compare to historical spending patterns for similar overseas professional services by USAID?

The total contract value of $142.8 million over nearly eight years represents an average annual expenditure of approximately $18 million. To compare this to historical spending patterns, one would need access to USAID's historical contract databases and budget allocations for professional, scientific, and technical services supporting overseas operations. Without such comparative data, it's difficult to definitively state whether this contract represents a significant increase, decrease, or is in line with previous investments. However, given the broad nature of the services and the global reach of USAID's mission, an annual spend in the tens of millions for such support is not uncommon for large-scale development initiatives.

What are the potential risks associated with the long performance period (2018-2026) for this contract?

A long performance period, such as the nearly eight years for this contract, presents several potential risks. Firstly, the relevance of the services may diminish over time if the geopolitical or development landscape shifts significantly, requiring costly contract modifications or rendering some services obsolete. Secondly, maintaining consistent oversight and performance management over such an extended duration can be challenging for the contracting agency, potentially leading to complacency or a decline in vigilance. Thirdly, the cost-plus-fixed-fee structure, combined with a long period, increases the risk of cumulative cost growth if not meticulously managed. Finally, the contractor's key personnel or organizational focus might change over time, potentially impacting the quality and continuity of service delivery.

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: 72012118R00006

Offers Received: 5

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: $157,051,252

Exercised Options: $157,051,252

Current Obligation: $142,825,694

Actual Outlays: $95,041,804

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $531,130

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline