USAID Spends $21.6M to Bolster Bangladesh's Economic Growth and Food Security

Contract Overview

Contract Amount: $21,629,670 ($21.6M)

Contractor: International Development Group Advisory Services, LLC

Awarding Agency: Agency for International Development

Start Date: 2019-11-12

End Date: 2025-02-26

Contract Duration: 1,933 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE GOAL OF THIS ACTIVITY IS TO SUPPORT THE GOVERNMENT OF BANGLADESH (GOB) TO BOLSTER ECONOMIC GROWTH AND FOOD SECURITY BY IMPROVING TRADE FACILITATION, ENHANCING MARKET ACCESS, AND IMPROVING THE BUSINESS ENABLING MARKET.

Plain-Language Summary

Agency for International Development obligated $21.6 million to INTERNATIONAL DEVELOPMENT GROUP ADVISORY SERVICES, LLC for work described as: THE GOAL OF THIS ACTIVITY IS TO SUPPORT THE GOVERNMENT OF BANGLADESH (GOB) TO BOLSTER ECONOMIC GROWTH AND FOOD SECURITY BY IMPROVING TRADE FACILITATION, ENHANCING MARKET ACCESS, AND IMPROVING THE BUSINESS ENABLING MARKET. Key points: 1. Focuses on trade facilitation, market access, and business environment improvement in Bangladesh. 2. Contract awarded via full and open competition, indicating broad market engagement. 3. Risk appears moderate given the long duration and cost-plus-fixed-fee structure. 4. Sector is primarily international development and technical services.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. The fixed fee component provides some incentive for the contractor to control costs, but the overall value proposition depends heavily on effective project execution and achieving the stated goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that should have led to a fair price discovery. The use of a Delivery Order mechanism implies it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, but the specifics of the competition for this particular order are not detailed.

Taxpayer Impact: Taxpayer funds are being used to support economic development and food security in Bangladesh, aiming for long-term benefits through improved trade and business environments.

Public Impact

Aims to improve the lives of citizens in Bangladesh through economic development initiatives. Potential for increased trade and market access could benefit both Bangladesh and international partners. Success hinges on effective implementation and collaboration with the Government of Bangladesh.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost escalation.
Long contract duration (over 1900 days) increases risk of scope creep or changing needs.
No indication of small business participation.

Positive Signals

Clear objective to bolster economic growth and food security.
Awarded through full and open competition.
Long-term engagement (over 4 years) allows for sustained impact.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on international development. Spending in this area by USAID is common for promoting economic growth and stability in partner countries.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). There is no specific mention of efforts to include small businesses in subcontracting opportunities.

Oversight & Accountability

USAID is responsible for overseeing this contract. The effectiveness of oversight will be crucial in managing the CPFF structure and ensuring the project meets its development goals within budget.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee structure can lead to cost overruns.
Long contract duration increases potential for scope creep and changing requirements.
Lack of small business participation noted.
Effectiveness relies heavily on partner government cooperation and stability.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $21.6 million to INTERNATIONAL DEVELOPMENT GROUP ADVISORY SERVICES, LLC. THE GOAL OF THIS ACTIVITY IS TO SUPPORT THE GOVERNMENT OF BANGLADESH (GOB) TO BOLSTER ECONOMIC GROWTH AND FOOD SECURITY BY IMPROVING TRADE FACILITATION, ENHANCING MARKET ACCESS, AND IMPROVING THE BUSINESS ENABLING MARKET.

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL DEVELOPMENT GROUP ADVISORY SERVICES, 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 $21.6 million.

What is the period of performance?

Start: 2019-11-12. End: 2025-02-26.

How will the effectiveness of trade facilitation improvements be measured and verified?

Measuring the effectiveness of trade facilitation requires clear, quantifiable metrics tied to the project's objectives. This could include reduced customs clearance times, lower transaction costs for businesses, increased volume of trade, and improved scores on relevant international trade indices. Regular reporting and independent evaluations by USAID will be crucial to verify these outcomes and ensure accountability.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?

The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While the fixed fee provides some ceiling, potential for cost overruns exists if the scope is not well-defined or if unforeseen challenges arise. Effective oversight by USAID is critical to mitigate this risk.

What is the expected long-term impact on Bangladesh's economy beyond the contract period?

The long-term impact is expected to be sustained economic growth and improved food security through enhanced trade and a better business environment. Successful implementation should lead to more resilient supply chains, increased foreign and domestic investment, and greater market access for Bangladeshi goods. The goal is to create self-sustaining improvements rather than temporary fixes.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1100 N GLEBE RD SUITE 950, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,629,670

Exercised Options: $21,629,670

Current Obligation: $21,629,670

Actual Outlays: $19,533,904

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $8,733,251

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 7200AA18D00012

IDV Type: IDC

Timeline