USAID's $28.4M Jordan MEL Contract Awarded to The Kaizen Company, LLC

Contract Overview

Contract Amount: $28,415,182 ($28.4M)

Contractor: THE Kaizen Company, LLC

Awarding Agency: Agency for International Development

Start Date: 2020-02-11

End Date: 2025-05-10

Contract Duration: 1,915 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: JORDAN MONITORING, EVALUATION AND LEARNING (MEL) CONTRACT

Plain-Language Summary

Agency for International Development obligated $28.4 million to THE KAIZEN COMPANY, LLC for work described as: JORDAN MONITORING, EVALUATION AND LEARNING (MEL) CONTRACT Key points: 1. The contract aims to enhance monitoring, evaluation, and learning for USAID's Jordan programs. 2. The Kaizen Company, LLC, is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The sector is administrative management and general management consulting services.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure requires close monitoring to ensure costs remain reasonable. Benchmarking against similar MEL contracts is difficult without detailed scope information, but the total value appears substantial for the duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific awardee and contract type warrant scrutiny to ensure value for money.

Taxpayer Impact: Taxpayer funds are being utilized for program effectiveness and oversight in Jordan, with the potential for significant impact if objectives are met.

Public Impact

Enhances USAID's ability to track and improve development program outcomes in Jordan. Supports evidence-based decision-making for future foreign assistance. Provides critical data for accountability and transparency in aid delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of small business participation.
Potential for scope creep without strict oversight.

Positive Signals

Awarded through full and open competition.
Focus on critical monitoring and evaluation functions.
Long-term contract duration allows for sustained impact.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting. Spending in this area by agencies like USAID is common for program implementation and oversight, with benchmarks varying widely based on scope and geographic focus.

Small Business Impact

The data indicates no small business participation in this contract, which is a missed opportunity for economic development and diversification within the contracting landscape.

Oversight & Accountability

Oversight will be crucial for the Agency for International Development to manage the Cost Plus Fixed Fee structure effectively, ensuring that costs are controlled and that the contract delivers on its intended monitoring, evaluation, and learning objectives.

Related Government Programs

Administrative Management and General Management Consulting Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Cost Plus Fixed Fee structure.
No small business participation.
Potential for contractor to maximize costs.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $28.4 million to THE KAIZEN COMPANY, LLC. JORDAN MONITORING, EVALUATION AND LEARNING (MEL) CONTRACT

Who is the contractor on this award?

The obligated recipient is THE KAIZEN COMPANY, 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 $28.4 million.

What is the period of performance?

Start: 2020-02-11. End: 2025-05-10.

What specific performance metrics will be used to evaluate the success of this MEL contract and ensure value for taxpayer money?

Success will likely be measured by the quality and timeliness of MEL reports, the actionable insights generated for program adaptation, and the achievement of specific program objectives linked to the MEL framework. USAID's internal evaluation processes and potentially third-party reviews will assess the contractor's adherence to scope, budget, and performance standards, ensuring accountability and value.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient resource utilization?

Mitigation strategies typically include detailed cost proposals, regular financial reporting, audits, and clear contract clauses that define allowable costs and profit margins. USAID contracting officers must actively monitor expenditures, conduct performance reviews, and enforce contract terms to prevent unnecessary spending and ensure the contractor operates efficiently within the agreed-upon framework.

How will the insights generated by this MEL contract directly contribute to the effectiveness of USAID's programs in Jordan and inform future funding decisions?

The MEL contract is designed to provide data-driven evidence on program performance, identify successes, and pinpoint areas for improvement. These insights will enable USAID to make informed adjustments to ongoing projects, reallocate resources effectively, and design future interventions that are more responsive to local needs and more likely to achieve desired development outcomes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 72027818R00006

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 1700 K ST NW, SUITE 440, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $28,415,182

Exercised Options: $28,415,182

Current Obligation: $28,415,182

Actual Outlays: $27,094,410

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $11,319,848

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline