USAID awards $182M for professional services, with a 5-year performance period

Contract Overview

Contract Amount: $182,410,000 ($182.4M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Agency for International Development

Start Date: 2020-05-18

End Date: 2029-03-16

Contract Duration: 3,224 days

Daily Burn Rate: $56.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 49

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Agency for International Development obligated $182.4 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period extends nearly a decade, indicating 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. No small business set-aside was noted, potentially limiting opportunities for smaller firms. 6. The contract value is substantial, requiring robust oversight to ensure value for taxpayer money.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure inherently carries risk for cost control, as contractor profit is fixed regardless of actual costs incurred. This necessitates strong oversight to ensure costs remain reasonable and aligned with the fixed fee. Without more granular data on the services provided and their market rates, a definitive value assessment is difficult.

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. The presence of 49 offers suggests a robust level of interest and a competitive environment. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process like this typically benefits taxpayers by driving down costs through market forces, ensuring the government receives services at a more favorable price point.

Public Impact

The Agency for International Development (USAID) is the primary beneficiary, utilizing these services to support its mission. Services likely encompass a wide range of professional, scientific, and technical support critical to USAID's global operations. The contract's overseas nature suggests a significant geographic impact, supporting U.S. foreign policy and development initiatives. Potential workforce implications include the creation or sustainment of jobs within the professional and technical services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
Broad scope of 'All Other Professional, Scientific, and Technical Services' may lead to scope creep if not well-defined.
Long performance period (over 9 years) increases the risk of changing requirements and potential for cost escalation.
Lack of small business set-aside may limit opportunities for smaller, specialized firms.
Undisclosed domestic awardees make it difficult to assess contractor experience and past performance without further investigation.

Positive Signals

Full and open competition suggests a healthy market response and potential for competitive pricing.
The large number of offers (49) indicates significant interest and a broad pool of potential providers.
A definitive contract award provides clarity and stability for the contractor and the agency.
The fixed fee component in CPFF contracts provides some level of cost predictability for the government.

Sector Analysis

The professional, scientific, and technical services sector is vast and diverse. NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a catch-all category for establishments primarily engaged in providing specialized professional, scientific, or technical services not elsewhere classified. This can include a wide array of activities, from research and development support to consulting and program management. The total federal spending in this broad category is in the tens of billions annually, with significant portions allocated to agencies like USAID for international programs. This contract represents a notable investment within this sector, supporting critical agency functions.

Small Business Impact

This contract does not appear to have a small business set-aside. The absence of specific small business participation goals or subcontracting requirements noted in the provided data suggests that opportunities for small businesses may be limited unless they are prime contractors through full and open competition or are subcontracted by the prime awardee. Further investigation into the awardee's subcontracting plan would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor costs and ensure the fixed fee remains appropriate. USAID's Office of Inspector General (OIG) would likely have jurisdiction for audits and investigations to ensure accountability and prevent fraud, waste, and abuse. Transparency would depend on USAID's reporting practices regarding contract performance and expenditures.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long performance period increases risk of requirement changes and cost escalation.
Broad NAICS code may obscure specific service details and associated risks.
Lack of explicit small business participation goals could limit opportunities for SMBs.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $182.4 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 $182.4 million.

What is the period of performance?

Start: 2020-05-18. End: 2029-03-16.

What specific types of professional, scientific, and technical services are being procured under this contract?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad classification that can encompass a wide range of activities. Without more specific details from the contract's statement of work, it is difficult to ascertain the exact services. However, given the awarding agency is USAID, these services likely relate to supporting international development programs, which could include areas such as program management, technical assistance, research, data analysis, policy development, logistical support, or specialized consulting related to global health, economic development, democracy and governance, or humanitarian assistance.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types used by USAID for similar services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is uncertainty about the costs involved, which can be common in complex international development projects. USAID, like other federal agencies, utilizes various contract types including Firm-Fixed-Price (FFP), Cost-Plus-Incentive-Fee (CPIF), and Time and Materials (T&M). CPFF is chosen when the agency needs flexibility but wants to cap the contractor's profit. Compared to FFP, CPFF offers more flexibility but less cost certainty for the government. Compared to CPIF, the profit incentive for cost control is less direct. The suitability of CPFF depends heavily on the agency's ability to effectively monitor costs and manage the contractor's performance throughout the contract's lifecycle.

What is the typical duration for contracts of this nature and value awarded by USAID?

Contracts awarded by USAID for professional, scientific, and technical services can vary significantly in duration and value depending on the program's scope and objectives. A contract with a value of $182 million and a performance period extending nearly a decade (from May 2020 to March 2029) is substantial, indicating a long-term, strategic need. While shorter-term contracts (1-3 years) are common for specific projects or task orders, longer-duration contracts like this one are often used for overarching program support, institutional capacity building, or multi-year development initiatives where sustained effort is required. The extended period reflects the complex and often lengthy nature of international development work.

What are the potential risks associated with a contract spanning over 9 years?

A contract with a performance period of over 9 years (3224 days) presents several potential risks. Firstly, the requirements and objectives may evolve significantly over such a long timeframe due to changing geopolitical landscapes, technological advancements, or shifts in U.S. foreign policy priorities. This can lead to scope creep or the need for costly contract modifications. Secondly, maintaining consistent oversight and performance management over nearly a decade can be challenging, potentially leading to a decline in vigilance. Thirdly, economic factors such as inflation could impact the cost of services, especially if not adequately addressed in the contract terms. Finally, there's a risk that the contractor's capabilities or the market landscape might change, potentially making the contracted services less optimal or more expensive than alternative solutions available later in the contract term.

How does the 'full and open competition' impact the selection of awardees and the overall cost-effectiveness?

Full and open competition is a statutory requirement designed to ensure that federal agencies obtain the best value for taxpayer dollars. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer competitive pricing and innovative solutions to win the contract. The fact that 49 offers were received for this $182 million contract indicates a robust level of competition. This broad participation increases the likelihood that the government will select a highly qualified contractor at a reasonable price. It also promotes transparency and fairness in the procurement process, reducing the risk of favoritism and potentially leading to greater cost-effectiveness over the life of the contract compared to sole-source or limited competition awards.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › ECONOMIC GROWTH/PRODUCTIVITY R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: BAA-UKR-CYBERSECURITY-201

Offers Received: 49

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: $198,000,000

Exercised Options: $198,000,000

Current Obligation: $182,410,000

Actual Outlays: $113,789,261

Subaward Activity

Number of Subawards: 126

Total Subaward Amount: $65,499,127

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline