USAID awards $22.5M for technical services to support learning analytics activity

Contract Overview

Contract Amount: $22,552,720 ($22.6M)

Contractor: THE Kaizen Company, LLC

Awarding Agency: Agency for International Development

Start Date: 2023-04-10

End Date: 2025-02-13

Contract Duration: 675 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE TECHNICAL SERVICES FOR THE IMPLEMENTATION OF THE USAID LEARNING ANALYTICS ACTIVITY.

Plain-Language Summary

Agency for International Development obligated $22.6 million to THE KAIZEN COMPANY, LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE TECHNICAL SERVICES FOR THE IMPLEMENTATION OF THE USAID LEARNING ANALYTICS ACTIVITY. Key points: 1. Contract aims to enhance USAID's data utilization for program improvement. 2. Competition was full and open, suggesting a robust market for these services. 3. The contract duration of 675 days indicates a significant, ongoing need. 4. Firm Fixed Price contract type helps manage cost certainty for the agency. 5. The North American Industry Classification System (NAICS) code 541990 covers a broad range of professional services.

Value Assessment

Rating: good

The contract value of $22.5 million for a 675-day period appears reasonable for specialized technical services in data analytics and learning support. Benchmarking against similar contracts for USAID's technical assistance or data management activities would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the agency has a clear understanding of the scope and associated costs, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The agency's decision to use full and open competition aligns with best practices for maximizing value and ensuring a wide selection of capable contractors.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective solution and encouraged innovation among the bidders.

Public Impact

Beneficiaries include USAID program managers and implementers who will gain enhanced data insights. Services delivered will focus on technical support for implementing the USAID Learning Analytics Activity. Geographic impact is global, supporting USAID's international development programs. Workforce implications include the need for skilled technical and analytical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'learning analytics' requirements are not precisely defined.
Dependence on contractor expertise could pose a risk if knowledge transfer is insufficient.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition suggests a healthy market and potential for competitive pricing.
Clear award date and period of performance allow for focused execution.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to data analytics and program evaluation. The market for such services is robust, driven by government and private sector needs for data-driven decision-making. Comparable spending benchmarks would involve looking at other large-scale technical assistance contracts awarded by USAID or similar development agencies for program support and data management.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). While this contract was competed broadly, there is an opportunity for small businesses to participate as subcontractors to the prime contractor, The Kaizen Company, LLC. The agency should monitor subcontracting efforts to ensure small business participation aligns with federal goals.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and program officials within USAID's Agency for International Development. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver specified services within budget. Transparency is facilitated by the public nature of contract awards, though specific performance metrics and reporting details may not be publicly disclosed.

Related Government Programs

USAID Learning Analytics Activity
Technical Assistance Contracts
Data Analytics Services
International Development Support

Risk Flags

Potential for knowledge transfer gaps.
Risk of scope creep in analytics definition.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $22.6 million to THE KAIZEN COMPANY, LLC. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE TECHNICAL SERVICES FOR THE IMPLEMENTATION OF THE USAID LEARNING ANALYTICS ACTIVITY.

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 $22.6 million.

What is the period of performance?

Start: 2023-04-10. End: 2025-02-13.

What is the specific technical expertise The Kaizen Company, LLC brings to this learning analytics contract?

The Kaizen Company, LLC is known for its work in international development, focusing on monitoring, evaluation, and learning (MEL) for USAID and other development partners. Their expertise typically includes designing and implementing data collection systems, conducting rigorous analysis, and providing capacity building for local organizations. For this specific contract, their technical services would likely encompass developing analytical frameworks, managing data platforms, training staff on data utilization, and generating insights to improve program effectiveness. While the provided data doesn't detail specific personnel or past project successes, Kaizen's established presence in the development sector suggests they possess the requisite skills for technical implementation and strategic guidance in learning analytics.

How does the $22.5 million contract value compare to similar USAID technical services contracts?

The $22.5 million contract value for a 675-day period (approximately 22 months) for technical services related to learning analytics is substantial, reflecting the complexity and scope of supporting a major USAID activity. To benchmark this value, one would need to compare it against other large-scale technical assistance, monitoring and evaluation, or data management contracts awarded by USAID or similar agencies like the State Department or other development finance institutions. Contracts for similar services, especially those involving global reach or complex data systems, can range from tens to hundreds of millions of dollars over several years. Without specific comparable contract data, it's difficult to definitively state if $22.5 million is high or low, but it appears to be within a reasonable range for a significant, multi-year technical support initiative.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks for this contract include potential scope creep if the definition of 'learning analytics' is not tightly managed, leading to cost overruns or delays. Another risk is the contractor's ability to effectively transfer knowledge and build capacity within USAID, ensuring sustainability beyond the contract period. Mitigation strategies are embedded in the contract structure: the Firm Fixed Price (FFP) nature incentivizes the contractor to manage costs and scope efficiently. USAID's oversight, through the Contracting Officer's Representative (COR), will be crucial for monitoring progress, managing scope changes, and ensuring deliverables meet quality standards. Clear performance metrics and regular reporting requirements will also help identify and address issues proactively.

What is the expected impact of this contract on USAID's ability to achieve its development goals?

This contract is expected to significantly enhance USAID's ability to achieve its development goals by improving how the agency collects, analyzes, and utilizes data from its programs. The 'Learning Analytics Activity' implies a focus on using data not just for reporting, but for adaptive management – learning what works, why, and how to improve interventions in real-time. By providing technical services for this activity, the contractor will help USAID build stronger data infrastructure, develop more sophisticated analytical capabilities, and foster a culture of data-driven decision-making. This, in turn, should lead to more effective program design, better resource allocation, and ultimately, greater impact in achieving development outcomes across various sectors and regions where USAID operates.

How has USAID's spending on technical and professional services evolved over recent years?

USAID's spending on technical and professional services has historically been substantial, reflecting the agency's mission to deliver development assistance globally. This category often includes a wide array of services such as program design, monitoring and evaluation, technical expertise, research, and administrative support. Over recent years, there has been a growing emphasis on data utilization, digital transformation, and evidence-based programming, which likely influences the types of technical services procured. While specific aggregate spending trends for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) would require detailed analysis of federal procurement data, it's reasonable to assume that spending in areas related to data analytics, learning, and adaptive management has increased in alignment with global development trends and agency priorities.

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: TWO STEP

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 200 12TH ST S, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $47,998,336

Exercised Options: $47,998,336

Current Obligation: $22,552,720

Actual Outlays: $20,165,501

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,395,884

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline