USAID Funds $47.5M Lebanon Trade Initiative via DAI Global LLC for Export Facilitation

Contract Overview

Contract Amount: $47,429,449 ($47.4M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2020-06-30

End Date: 2025-02-12

Contract Duration: 1,688 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THIS REQUISITION IS TO INITIALLY FUND THE NEW EG TRADE AND INVESTMENT FACILITATION (TIF)ACTIVITY. TIF PURPOSE IS TO FACILITATE EXPORT OF LEBANESE GOODS AND SERVICES TO GENERATE FOREIGN EXCHANGE THROUGH INVESTMENTS THAT SIMULTANEOUSLY PROMOTE JOB CREA

Plain-Language Summary

Agency for International Development obligated $47.4 million to DAI GLOBAL LLC for work described as: THIS REQUISITION IS TO INITIALLY FUND THE NEW EG TRADE AND INVESTMENT FACILITATION (TIF)ACTIVITY. TIF PURPOSE IS TO FACILITATE EXPORT OF LEBANESE GOODS AND SERVICES TO GENERATE FOREIGN EXCHANGE THROUGH INVESTMENTS THAT SIMULTANEOUSLY PROMOTE JOB CREA Key points: 1. The contract aims to boost Lebanese exports and attract foreign investment, potentially improving the country's foreign exchange reserves. 2. Competition was full and open, suggesting a competitive bidding process for this service contract. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 4. The sector involves professional, scientific, and technical services, specifically trade and investment facilitation.

Value Assessment

Rating: fair

The contract value of $47.5 million for a 5-year period (2020-2025) for trade facilitation services appears reasonable given the scope. Benchmarking against similar international development contracts for economic growth initiatives would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The taxpayer impact is the direct funding of $47.5 million towards economic development in Lebanon, with the expectation of a return through increased trade and investment.

Public Impact

Aims to stimulate economic growth in Lebanon by promoting exports and attracting investment. Focuses on generating foreign exchange, which is crucial for Lebanon's economic stability. Supports job creation within Lebanon through increased trade and investment activities. The initiative is managed by USAID, a key agency in U.S. foreign aid and development programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can incentivize cost escalation.
Lack of specific performance metrics in the provided data.
Geopolitical risks in Lebanon could impact program effectiveness.

Positive Signals

Full and open competition suggests a robust procurement process.
Long-term contract duration allows for sustained impact.
Focus on tangible economic outcomes like exports and investment.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically focusing on trade and investment facilitation. Spending in this area by agencies like USAID is common for economic development programs in emerging markets.

Small Business Impact

The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract. Further investigation would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

USAID is responsible for overseeing this contract. The Agency for International Development (AID) is listed as the contracting and funding agency, implying internal oversight mechanisms are in place.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Contract type (CPFF) carries inherent cost escalation risk.
Geopolitical instability in the operating region.
Potential for challenges in measuring direct impact on foreign exchange.
Dependence on local economic and political conditions for success.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $47.4 million to DAI GLOBAL LLC. THIS REQUISITION IS TO INITIALLY FUND THE NEW EG TRADE AND INVESTMENT FACILITATION (TIF)ACTIVITY. TIF PURPOSE IS TO FACILITATE EXPORT OF LEBANESE GOODS AND SERVICES TO GENERATE FOREIGN EXCHANGE THROUGH INVESTMENTS THAT SIMULTANEOUSLY PROMOTE JOB CREA

Who is the contractor on this award?

The obligated recipient is DAI GLOBAL LLC.

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 $47.4 million.

What is the period of performance?

Start: 2020-06-30. End: 2025-02-12.

What specific metrics will be used to measure the success of the TIF activity in facilitating exports and attracting investment?

Success metrics for the TIF activity would likely include the value of Lebanese goods and services exported, the amount of foreign direct investment attracted to Lebanon, and the number of jobs created as a result of these activities. These would be detailed in the contract's performance work statement and monitored by USAID.

What are the primary risks associated with implementing a trade and investment facilitation program in Lebanon, and how are they being mitigated?

Key risks include political instability, economic volatility, and potential corruption within Lebanon. Mitigation strategies may involve robust due diligence on partners, flexible program design to adapt to changing conditions, and strong monitoring and evaluation frameworks to ensure funds are used effectively and transparently.

How does the Cost Plus Fixed Fee (CPFF) contract structure balance the need for flexibility in development programs with ensuring cost-effectiveness for taxpayers?

The CPFF structure allows for flexibility by covering actual costs plus a fixed fee, which is beneficial for complex development projects with uncertain elements. However, it requires diligent oversight from USAID to manage costs, ensure the fixed fee is reasonable, and prevent unnecessary spending, thereby aiming for cost-effectiveness despite the inherent flexibility.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 72026820R00002

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7600 WISCONSIN AVE STE 200, BETHESDA, MD, 20814

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

Financial Breakdown

Contract Ceiling: $70,212,510

Exercised Options: $70,212,510

Current Obligation: $47,429,449

Actual Outlays: $35,531,553

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $10,761,746

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline