USAID awards $52.6M contract to DAI Global LLC for Water, Sanitation, and Conservation Activity

Contract Overview

Contract Amount: $52,660,000 ($52.7M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2021-06-17

End Date: 2025-04-07

Contract Duration: 1,390 days

Daily Burn Rate: $37.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THIS IS A NEW CONTRACT TO IMPLEMENT A NEW ACTIVITY: "THE WATER SANITATION AND CONSERVATION' (WSC) ACTIVITY.

Plain-Language Summary

Agency for International Development obligated $52.7 million to DAI GLOBAL LLC for work described as: THIS IS A NEW CONTRACT TO IMPLEMENT A NEW ACTIVITY: "THE WATER SANITATION AND CONSERVATION' (WSC) ACTIVITY. Key points: 1. Contract aims to establish a new Water, Sanitation, and Conservation (WSC) Activity. 2. DAI Global LLC, a known entity in international development, is the selected contractor. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Competition was full and open, suggesting a robust bidding process. 5. The contract duration is 1390 days, indicating a significant, long-term project. 6. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services', a broad category. 7. No small business set-aside was utilized for this contract. 8. The base award amount is $37.8M, with a potential total of $52.6M.

Value Assessment

Rating: fair

The contract's value of $52.6 million for a new activity in water, sanitation, and conservation is substantial. Benchmarking this against similar international development activities requires detailed analysis of scope and geographic focus. The Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost growth, as contractor incentives are aligned with incurring costs to achieve a fixed fee. Without specific performance metrics and cost breakdowns, it's difficult to definitively assess value for money at this stage. However, the broad nature of the services suggests a need for careful oversight to ensure efficiency.

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 4 bidders suggests a competitive environment, which is generally favorable for price discovery and achieving better value. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide further insight into the strength of the competition.

Taxpayer Impact: A full and open competition is the most taxpayer-favorable approach, as it encourages multiple companies to bid, driving down costs and improving the quality of services offered.

Public Impact

The primary beneficiaries are expected to be populations in regions targeted by the Water, Sanitation, and Conservation Activity, gaining improved access to essential services. The contract will deliver professional, scientific, and technical services related to water management, sanitation infrastructure, and conservation efforts. Geographic impact will depend on the specific regions identified by USAID for this activity, likely in developing countries facing water-related challenges. The activity will likely involve local and international technical experts, potentially creating employment opportunities within the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
The broad NAICS code (541990) may indicate a wide scope of work, increasing complexity and potential for undefined costs.
Lack of specific performance metrics in the provided data makes it difficult to assess potential effectiveness and value for money upfront.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield better value.
DAI Global LLC is an experienced contractor in international development, potentially bringing significant expertise.
The contract duration of over three years suggests a commitment to addressing long-term development needs in water, sanitation, and conservation.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically related to environmental and development consulting. This sector is characterized by a mix of large, established firms and smaller specialized consultancies. Spending in this area often supports government initiatives in areas like international aid, environmental management, and infrastructure development. Comparable spending benchmarks would typically involve analyzing other USAID-funded activities or similar international development projects focused on water and conservation.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does the data indicate any specific subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract may be limited unless they are prime contractors or choose to subcontract with DAI Global LLC. The overall impact on the small business ecosystem for this particular award is likely minimal without further subcontracting plans.

Oversight & Accountability

Oversight for this contract will primarily reside with the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, USAID will need to closely monitor costs incurred by DAI Global LLC to ensure they are reasonable and allocable to the contract's objectives. Transparency will depend on USAID's reporting practices and public availability of contract performance data. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

USAID Water and Development Strategy
Global Water Security Initiatives
International Environmental Protection Programs
Development Assistance Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Broad scope indicated by NAICS code may lead to management challenges.
Lack of specific performance metrics in initial data hinders upfront assessment of effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $52.7 million to DAI GLOBAL LLC. THIS IS A NEW CONTRACT TO IMPLEMENT A NEW ACTIVITY: "THE WATER SANITATION AND CONSERVATION' (WSC) ACTIVITY.

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 $52.7 million.

What is the period of performance?

Start: 2021-06-17. End: 2025-04-07.

What is DAI Global LLC's track record with USAID, particularly on similar water, sanitation, and conservation projects?

DAI Global LLC has a substantial track record with USAID, having been awarded numerous contracts across various sectors, including international development, economic growth, and governance. While specific details on their past performance on water, sanitation, and conservation (WSC) activities require a deeper dive into contract databases and USAID's performance reports, their extensive experience suggests familiarity with USAID's operational requirements and reporting standards. A review of their past performance evaluations, if publicly available, would offer more precise insights into their success rates, cost management, and client satisfaction on comparable projects. Their longevity and continued awards from USAID indicate a generally positive relationship and capability to execute complex development programs.

How does the $52.6 million award compare to other USAID WSC activities in terms of scale and scope?

The $52.6 million award for the Water, Sanitation, and Conservation (WSC) Activity positions it as a significant investment within USAID's portfolio. To benchmark its scale, one would need to compare it against the average award size for similar WSC projects managed by USAID or other development agencies over the past five years. Factors such as geographic focus (e.g., Sub-Saharan Africa vs. Asia), the specific interventions planned (e.g., infrastructure development vs. policy reform), and the duration of the contract are crucial for a meaningful comparison. Generally, multi-year, multi-million dollar contracts like this one are typical for large-scale development initiatives aiming for substantial impact in critical sectors like water and sanitation.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of activity?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to DAI Global LLC, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the contractor has less incentive to control costs compared to fixed-price contracts, as their profit margin remains constant regardless of the total cost incurred. This can lead to scope creep or less efficient resource management if USAID's oversight is not rigorous. For a broad activity like WSC, where unforeseen challenges in technical implementation or local conditions can arise, careful monitoring of expenditures and performance is critical to prevent the total contract cost from significantly exceeding the initial estimate.

What performance metrics will be used to evaluate the success of the Water, Sanitation, and Conservation Activity?

The provided data does not specify the performance metrics for the Water, Sanitation, and Conservation (WSC) Activity. However, typical metrics for such programs often include improvements in access to safe drinking water (e.g., number of people served, volume of water provided), increased access to improved sanitation facilities (e.g., number of households with latrines, reduction in open defecation), enhanced water resource management (e.g., water quality improvements, sustainable water use practices), and conservation outcomes (e.g., protected areas, biodiversity indicators). USAID contracts usually include a detailed Performance Work Statement (PWS) outlining Key Performance Indicators (KPIs), targets, and reporting frequencies to ensure accountability and measure impact.

How does the $37.8 million base award differ from the $52.6 million total potential award, and what triggers the increase?

The difference between the $37.8 million base award and the $52.6 million total potential award ($14.8 million) likely represents the value of contract options or indefinite-delivery/indefinite-quantity (IDIQ) task orders that USAID may choose to exercise or issue based on performance and funding availability. These options typically allow for the extension of services, expansion of scope, or addition of new tasks within the contract's framework. The increase is usually triggered by USAID's decision to fund additional work related to the WSC Activity's objectives, often dependent on successful initial performance, evolving program needs, and continued congressional appropriations. The contractor, DAI Global LLC, would then perform this additional work under the same contract terms.

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

Offers Received: 4

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: $115,874,054

Exercised Options: $115,874,054

Current Obligation: $52,660,000

Actual Outlays: $38,607,601

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $13,264,326

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline