USAID contract for rural household improvement awarded to ARD, Inc. for over $115 million

Contract Overview

Contract Amount: $115,781,849 ($115.8M)

Contractor: ARD, Inc.

Awarding Agency: Agency for International Development

Start Date: 2019-08-15

End Date: 2025-02-26

Contract Duration: 2,022 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS ACTIVITY IS TO IMPROVE THE CONDITIONS OF CONFLICT AFFECTED RURAL HOUSEHOLDS IN A SUSTAINABLE MANNER. THIS WILL BE ACHIEVED BY PROVIDING MASSIVE ACCESS TO LAND TITLES WHILE SUPPORTING LAND RESTITUTION AS PART OF THE BROADER LAND TI

Plain-Language Summary

Agency for International Development obligated $115.8 million to ARD, INC. for work described as: THE PURPOSE OF THIS ACTIVITY IS TO IMPROVE THE CONDITIONS OF CONFLICT AFFECTED RURAL HOUSEHOLDS IN A SUSTAINABLE MANNER. THIS WILL BE ACHIEVED BY PROVIDING MASSIVE ACCESS TO LAND TITLES WHILE SUPPORTING LAND RESTITUTION AS PART OF THE BROADER LAND TI Key points: 1. Contract aims to improve conditions in conflict-affected rural households through land titling and restitution. 2. The contract value exceeds $115 million, indicating a significant investment in development initiatives. 3. Competition was full and open, suggesting a robust bidding process. 4. The contract duration spans from August 2019 to February 2025, covering a substantial implementation period. 5. The primary objective is to provide sustainable improvements and access to land rights. 6. The North American Industry Classification System (NAICS) code 541990 points to 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

Benchmarking the value-for-money for this contract is challenging without specific performance metrics and comparable project data. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries risks of cost overruns if not managed diligently. The total obligated amount of $115,781,848.98 over approximately six years suggests a substantial investment per year, requiring careful monitoring of outcomes against expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of four bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the quality of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market that drives down costs and improves the quality of services through competitive pressure.

Public Impact

Rural households in conflict-affected areas are the primary beneficiaries, aiming to improve their living conditions and land security. The contract delivers services related to land titling and land restitution, crucial for stability and economic development. The geographic impact is focused on rural areas within conflict zones, likely in developing countries where USAID operates. Workforce implications may include local employment opportunities for project implementation and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to higher overall costs if not managed tightly.
The long duration of the contract requires sustained oversight to ensure objectives remain relevant and are met.
Measuring the 'sustainable manner' of improvements in conflict-affected areas presents inherent complexities and risks.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract addresses critical development needs in land rights and rural household stability.
The significant funding indicates a commitment to addressing complex development challenges.

Sector Analysis

This contract falls within the 'All Other Professional, Scientific, and Technical Services' sector, which is broad and encompasses a wide range of specialized services. USAID's work in this area often involves technical assistance, program management, and implementation support for development projects globally. Comparable spending in this sector by development agencies is substantial, reflecting the ongoing need for expertise in areas like governance, economic development, and social services in challenging environments.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract, nor does it mention subcontracting plans. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large development contracts often have subcontracting opportunities, which could potentially benefit small businesses if ARD, Inc. engages them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through its contracting officers and program managers. Accountability measures would be tied to the performance work statement and reporting requirements outlined in the contract. Transparency is facilitated through contract award data, but detailed programmatic oversight and Inspector General (IG) jurisdiction would depend on the specific nature of the services and the geographic location of implementation.

Related Government Programs

USAID Development Assistance
International Development Programs
Land Tenure and Property Rights Programs
Conflict Resolution and Peacebuilding Initiatives
Rural Development Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Challenges in measuring sustainable impact in conflict zones.
Risk of exacerbating land disputes if processes are not managed equitably.
Political and security instability in target regions.
Dependency on contractor performance over a long duration.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $115.8 million to ARD, INC.. THE PURPOSE OF THIS ACTIVITY IS TO IMPROVE THE CONDITIONS OF CONFLICT AFFECTED RURAL HOUSEHOLDS IN A SUSTAINABLE MANNER. THIS WILL BE ACHIEVED BY PROVIDING MASSIVE ACCESS TO LAND TITLES WHILE SUPPORTING LAND RESTITUTION AS PART OF THE BROADER LAND TI

Who is the contractor on this award?

The obligated recipient is ARD, INC..

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 $115.8 million.

What is the period of performance?

Start: 2019-08-15. End: 2025-02-26.

What is the track record of ARD, Inc. in managing large-scale international development contracts, particularly those involving land rights in conflict zones?

ARD, Inc. (now part of Tetra Tech) has a long history of implementing international development projects for agencies like USAID. Their portfolio includes work in areas such as economic growth, agriculture, democracy and governance, and environmental management. While specific details on their success with land rights in conflict zones would require a deeper dive into project evaluations and reports, their extensive experience suggests a capacity to manage complex, multi-year programs. However, the effectiveness and sustainability of outcomes in challenging environments are always subject to rigorous monitoring and evaluation, and past performance reviews would be crucial for a comprehensive assessment.

How does the cost-plus-fixed-fee (CPFF) structure of this contract potentially impact cost efficiency and value for money?

The Cost-Plus-Fixed-Fee (CPFF) contract type reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can be beneficial when the scope of work is not precisely defined or is expected to evolve, as it allows flexibility. For taxpayers, the risk lies in potential cost overruns, as the contractor is incentivized to incur costs to achieve the fixed fee. However, the fixed fee itself is negotiated upfront, providing some cost certainty for profit. Effective oversight by the agency is critical to ensure that all costs are reasonable, allocable, and necessary, and that the fixed fee adequately compensates the contractor for the risks and effort involved without being excessive.

What are the key performance indicators (KPIs) used to measure the success of this contract in improving rural household conditions and land access?

While the provided data does not detail the specific KPIs, contracts of this nature typically include indicators related to the number of land titles issued or secured, the number of land restitution cases resolved, the percentage of households reporting improved land tenure security, and potentially indicators related to increased agricultural productivity or investment resulting from secure land rights. Other metrics might include the number of community consultations held, the effectiveness of legal aid provided, and the overall stability or reduction in land-related disputes within the target areas. USAID's standard monitoring and evaluation frameworks would likely guide the selection and tracking of these KPIs.

What is the historical spending pattern for similar USAID contracts focused on land tenure and rural development in conflict-affected regions?

USAID historically allocates significant funding to programs aimed at improving land tenure security and supporting rural development, particularly in regions affected by conflict. Spending patterns vary widely based on the specific country, the scale of the conflict, and the complexity of land issues. Contracts in this domain can range from a few million to tens or even hundreds of millions of dollars, reflecting the long-term and resource-intensive nature of addressing land governance challenges. Analyzing historical data for similar projects would reveal average contract durations, typical funding levels, and the prevalence of different contract types used to implement these initiatives.

What are the potential risks associated with implementing land titling and restitution programs in conflict-affected rural areas, and how might they be mitigated?

Implementing land titling and restitution in conflict-affected rural areas presents numerous risks, including political instability, ongoing violence, corruption, weak institutional capacity, community resistance, and the potential for exacerbating existing disputes. Mitigations strategies often involve robust stakeholder engagement, transparent and participatory processes, strong security protocols, capacity building for local institutions, clear legal frameworks, and phased implementation approaches. Building trust within communities and ensuring that the process is perceived as fair and equitable are paramount. USAID's experience and established best practices in fragile states are crucial for navigating these complex risks.

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

Solicitation ID: 72051418R00016

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 159 BANK ST STE 300, BURLINGTON, VT, 05401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $115,781,849

Exercised Options: $115,781,849

Current Obligation: $115,781,849

Actual Outlays: $109,654,251

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $8,424,520

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 7200AA18D00003

IDV Type: IDC

Timeline