USAID's $20.5M Azerbaijan Trade Program Task Order Awarded to International Development Group Advisory Services

Contract Overview

Contract Amount: $20,466,543 ($20.5M)

Contractor: International Development Group Advisory Services, LLC

Awarding Agency: Agency for International Development

Start Date: 2010-09-30

End Date: 2013-09-30

Contract Duration: 1,096 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AZERBAIJAN COMPETITIVENESS AND TRADE PROGRAM. TASK ORDER UNDER THE IQC GBTI II.

Plain-Language Summary

Agency for International Development obligated $20.5 million to INTERNATIONAL DEVELOPMENT GROUP ADVISORY SERVICES, LLC for work described as: AZERBAIJAN COMPETITIVENESS AND TRADE PROGRAM. TASK ORDER UNDER THE IQC GBTI II. Key points: 1. Contract value represents a significant investment in Azerbaijan's economic development. 2. The task order was issued under a broader Indefinite Quantity Contract (IQC), suggesting a pre-existing relationship and established framework. 3. The contract duration of approximately three years indicates a medium-term project focus. 4. The 'Other Management Consulting Services' NAICS code points to a broad scope of potential activities. 5. The contract was awarded using 'Full and Open Competition After Exclusion of Sources,' a complex procurement method. 6. The contractor, International Development Group Advisory Services, LLC, has experience in international development consulting. 7. The contract's Time and Materials pricing structure can introduce cost uncertainty if not carefully managed.

Value Assessment

Rating: fair

Benchmarking the value of this $20.5 million task order is challenging without specific performance metrics or comparable projects. The 'Other Management Consulting Services' category is broad. However, the duration of nearly three years suggests a substantial engagement. The Time and Materials pricing structure, while flexible, can lead to higher costs if not managed diligently, potentially impacting overall value for money compared to fixed-price contracts for similar scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior agreements. The number of bidders (3) suggests a moderate level of competition, which is generally positive for price discovery, but the exclusion of sources might limit the full potential of open competition.

Taxpayer Impact: The moderate competition level, despite exclusions, likely resulted in a reasonably competitive price. However, taxpayers may have missed out on potentially lower prices had a truly unrestricted full and open competition been conducted.

Public Impact

The program aims to enhance competitiveness and trade within Azerbaijan, potentially benefiting local businesses and the overall economy. The services delivered likely involve technical assistance, policy advice, and capacity building for Azerbaijani entities. The geographic impact is focused on Azerbaijan, supporting its integration into global trade networks. Workforce implications could include the engagement of local Azerbaijani consultants and experts, alongside international advisors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
The 'Exclusion of Sources' in the procurement process may have limited the competitive landscape.
Lack of specific performance metrics makes it difficult to assess the program's effectiveness and value.
The broad nature of 'Other Management Consulting Services' could lead to scope creep if not well-defined.

Positive Signals

Awarded under a broader IQC suggests a streamlined process and potentially pre-vetted capabilities.
The contractor has experience in international development advisory services.
The contract duration of nearly three years indicates a commitment to achieving program objectives.
The program's focus on competitiveness and trade aligns with development goals.

Sector Analysis

This contract falls within the management consulting sector, specifically focusing on international trade and economic development. The market for such services is global, with significant government spending directed towards technical assistance and capacity building in developing nations. Comparable spending benchmarks would typically involve other USAID-funded programs or similar international development initiatives aimed at economic growth and trade facilitation.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. The prime contractor is International Development Group Advisory Services, LLC. Subcontracting opportunities for small businesses would depend on the contractor's strategy and the specific needs of the program, but are not a primary focus based on the available data.

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 delivery of services and achievement of program objectives outlined in the task order. Transparency is generally facilitated through contract award databases, but detailed program performance reports may not be publicly accessible.

Related Government Programs

USAID Azerbaijan Programs
International Trade Development Programs
Economic Growth and Competitiveness Initiatives
Management and Consulting Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition due to exclusion of sources.
Broad scope of 'Other Management Consulting Services' may lack specificity.
Difficulty in assessing value for money without detailed performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $20.5 million to INTERNATIONAL DEVELOPMENT GROUP ADVISORY SERVICES, LLC. AZERBAIJAN COMPETITIVENESS AND TRADE PROGRAM. TASK ORDER UNDER THE IQC GBTI II.

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 $20.5 million.

What is the period of performance?

Start: 2010-09-30. End: 2013-09-30.

What specific services were delivered under this task order, and how were they measured?

The task order falls under the 'Other Management Consulting Services' NAICS code, suggesting a broad range of potential activities. Specific services likely included technical assistance, policy analysis, capacity building, and advisory support aimed at enhancing Azerbaijan's competitiveness and trade. Performance metrics would typically be defined in the task order itself, potentially including indicators related to policy reforms implemented, trade volume increases, or improvements in business environment rankings. Without access to the full task order document and performance reports, the precise services and their measured outcomes remain unspecified.

How does the $20.5 million cost compare to similar international development consulting contracts?

Comparing the $20.5 million cost requires identifying similar USAID or other donor-funded programs focused on trade and competitiveness in comparable economies. Contracts of this magnitude typically span several years and involve a team of experts. Factors influencing cost include the complexity of the issues addressed, the duration, the number of personnel involved, and the specific deliverables. While $20.5 million is a substantial sum, it may be within the expected range for a multi-year, comprehensive program designed to foster significant economic change in a developing country. A more precise comparison would necessitate analyzing contracts with similar objectives, geographic scope, and duration.

What are the key risks associated with this contract, particularly given the Time and Materials pricing structure?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used, which can lead to higher-than-anticipated costs if the project scope expands, inefficiencies arise, or the project takes longer than expected. Other risks include potential scope creep, challenges in monitoring contractor performance and productivity, and ensuring that the contractor remains focused on achieving the most cost-effective solutions. Robust oversight and diligent management by USAID are crucial to mitigate these risks and ensure value for money.

What was the rationale behind the 'Full and Open Competition After Exclusion of Sources' procurement method?

The 'Full and Open Competition After Exclusion of Sources' method is a complex procurement strategy. It implies that the agency initially intended to conduct a broad competition but subsequently excluded certain potential sources. The rationale for exclusion could stem from various factors, such as specific technical requirements that only a limited number of firms could meet, prior performance issues with certain contractors, or the need to leverage existing relationships or specialized knowledge established under a parent Indefinite Quantity Contract (IQC). This method aims to balance competition with specific agency needs or constraints, though it can limit the pool of bidders compared to a truly unrestricted full and open competition.

What is the track record of International Development Group Advisory Services, LLC in similar projects?

International Development Group Advisory Services, LLC (IDG) is a firm specializing in international development consulting. Their track record typically involves providing technical assistance, program management, and advisory services to government agencies and international organizations. For projects similar to the Azerbaijan Competitiveness and Trade Program, IDG would likely have experience in areas such as economic growth, trade facilitation, private sector development, and institutional capacity building in various countries. Assessing their specific performance on past USAID contracts or similar initiatives would require reviewing past performance evaluations and project outcomes, which are not detailed in the provided data.

How has USAID historically funded competitiveness and trade programs in Azerbaijan?

USAID has a history of supporting economic growth and trade initiatives in Azerbaijan, often through various programs and task orders under larger contracts. Historical funding patterns would likely show a consistent investment in areas aimed at improving the business climate, supporting entrepreneurship, and facilitating market access. This specific task order, valued at $20.5 million over nearly three years, represents a significant, but not necessarily unprecedented, level of investment for such a program. Analyzing past USAID budgets and contract awards for Azerbaijan would reveal the scale and focus of previous interventions in this sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1250 CONNECTICUT AVE STE 200, WASHINGTON, DC, 20036

Business Categories: Category Business, Small Business, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $21,516,543

Exercised Options: $21,516,543

Current Obligation: $20,466,543

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDEEMI000700003

IDV Type: IDC

Timeline