USAID's $16M trade liberalization contract with The Services Group Inc. aimed to boost regional economic growth in Central Asia

Contract Overview

Contract Amount: $16,055,324 ($16.1M)

Contractor: THE Services Group Inc

Awarding Agency: Agency for International Development

Start Date: 2007-07-03

End Date: 2020-09-29

Contract Duration: 4,837 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF REGIONAL TRADE LIBERALIZATION AND CUSTOMS (RTLC) CONTRACT IS TO FOSTER ECONOMIC GROWTH AND IMPROVE THE COMPETITIVENESS OF KAZAKHSTAN, KYRGYZSTAN AND TAJIKISTAN THROUGH IMPROVING CONDITIONS FOR INTERNATIONAL AND CROSS-BORDER TRADE AND TRANSIT. THE PROJECT SEEKS TO HELP HOST GOVERNMENTS AND THE PRIVATE SECTOR TO PURSUE AND CAPITALIZE ON THE ADVANTAGES OF GREATER REGIONAL AND GLOBAL ECONOMIC INTEGRATION.

Plain-Language Summary

Agency for International Development obligated $16.1 million to THE SERVICES GROUP INC for work described as: THE PURPOSE OF REGIONAL TRADE LIBERALIZATION AND CUSTOMS (RTLC) CONTRACT IS TO FOSTER ECONOMIC GROWTH AND IMPROVE THE COMPETITIVENESS OF KAZAKHSTAN, KYRGYZSTAN AND TAJIKISTAN THROUGH IMPROVING CONDITIONS FOR INTERNATIONAL AND CROSS-BORDER TRADE AND TRANSIT. THE PROJECT SEEKS TO … Key points: 1. Contract focused on improving trade and transit conditions in Kazakhstan, Kyrgyzstan, and Tajikistan. 2. Aimed to enhance competitiveness of host countries through regional and global economic integration. 3. The Services Group Inc. was awarded a definitive contract for these services. 4. Contract duration spanned over 13 years, from 2007 to 2020. 5. The contract type was Cost Plus Fixed Fee, indicating shared risk between government and contractor. 6. This contract falls under 'All Other Professional, Scientific, and Technical Services' NAICS code. 7. No small business set-asides were utilized for this contract.

Value Assessment

Rating: fair

The contract's total value of approximately $16 million over 13 years suggests a moderate annual spend. Benchmarking this against similar international development contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee structure implies that costs were reimbursed plus a fixed fee for profit, which can sometimes lead to less price certainty compared to fixed-price contracts. The long duration might indicate a stable, ongoing need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to compete for this work. This process is generally expected to yield competitive pricing and a wider range of technical solutions. The presence of 6 bids indicates a reasonable level of interest, though the specific number of bidders doesn't always directly correlate with the degree of price competition achieved.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through market forces, ensuring that the government receives the best value for its investment in international development services.

Public Impact

Beneficiaries include governments and private sectors in Kazakhstan, Kyrgyzstan, and Tajikistan. Services delivered aimed to improve conditions for international and cross-border trade and transit. Geographic impact is focused on Central Asia, specifically the three named countries. The contract's success could lead to increased economic activity and competitiveness in the region. Workforce implications are indirect, potentially through increased trade and business opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (13 years) could lead to potential cost overruns if not managed effectively.
Cost Plus Fixed Fee contracts can sometimes incentivize higher spending if cost controls are weak.
Measuring the direct impact of trade liberalization efforts can be complex and subject to external economic factors.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract's clear objective of fostering economic growth provides a defined purpose.
The long duration indicates a sustained commitment to addressing complex trade issues in the region.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to international trade and economic development consulting. The market for such services is global, involving specialized firms that advise governments and organizations on policy, trade facilitation, and economic integration. The contract's focus on regional trade liberalization aligns with broader international development goals supported by agencies like USAID.

Small Business Impact

The contract was awarded under full and open competition and there is no indication of small business set-asides. This suggests that large businesses were likely the primary participants in the bidding process. Subcontracting opportunities for small businesses may have existed, but were not mandated as part of a specific set-aside strategy for this particular award.

Oversight & Accountability

Oversight would typically be managed by the Agency for International Development (USAID) contracting officers and program managers. Accountability measures would be tied to the performance objectives outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level details might be less publicly accessible.

Related Government Programs

International Trade Administration
Export-Import Bank of the United States
Millennium Challenge Corporation
USAID Economic Growth Programs

Risk Flags

Geopolitical instability in Central Asia
Economic volatility in target countries
Reliance on host government commitment for reforms
Difficulty in attributing economic growth solely to contract activities

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $16.1 million to THE SERVICES GROUP INC. THE PURPOSE OF REGIONAL TRADE LIBERALIZATION AND CUSTOMS (RTLC) CONTRACT IS TO FOSTER ECONOMIC GROWTH AND IMPROVE THE COMPETITIVENESS OF KAZAKHSTAN, KYRGYZSTAN AND TAJIKISTAN THROUGH IMPROVING CONDITIONS FOR INTERNATIONAL AND CROSS-BORDER TRADE AND TRANSIT. THE PROJECT SEEKS TO HELP HOST GOVERNMENTS AND THE PRIVATE SECTOR TO PURSUE AND CAPITALIZE ON THE ADVANTAGES OF GREATER REGIONAL AND GLOBAL ECONOMIC INTEGRATION.

Who is the contractor on this award?

The obligated recipient is THE SERVICES GROUP 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 $16.1 million.

What is the period of performance?

Start: 2007-07-03. End: 2020-09-29.

What was the specific performance of The Services Group Inc. on this contract?

Detailed performance metrics for The Services Group Inc. on this specific contract are not publicly available in the provided data. However, the contract's duration of over 13 years suggests a level of satisfaction or continued need for the services rendered by the agency. USAID typically monitors contractor performance through various means, including performance evaluations and adherence to contract milestones. Without access to internal USAID reports or specific deliverables, a precise assessment of their performance remains limited. The contract's objective was to foster economic growth and improve trade competitiveness, and the agency would have assessed progress against these goals.

How does the $16 million cost compare to similar international trade development contracts?

Comparing the $16 million cost requires context regarding the scope, duration, and specific objectives of similar contracts. This contract spanned over 13 years, making the average annual spend approximately $1.23 million. This figure is moderate for large-scale international development projects focused on economic policy and trade facilitation. Contracts with similar goals in other regions or focusing on different aspects of trade (e.g., infrastructure, digital trade) could vary significantly in cost. Factors like the political stability of the region, the complexity of the reforms targeted, and the number of countries involved also influence pricing. Without a direct comparison of contracts with identical parameters, it's difficult to definitively label this cost as high or low.

What were the primary risks associated with this contract?

Primary risks associated with this contract likely included geopolitical instability in Central Asia, which could disrupt trade flows and reform efforts. Economic volatility within the target countries (Kazakhstan, Kyrgyzstan, Tajikistan) posed another significant risk, potentially undermining the impact of trade liberalization measures. Furthermore, the success of the contract depended heavily on the commitment and capacity of the host governments to implement policy changes, a factor often outside the direct control of the contractor. Lastly, measuring the direct attribution of economic growth solely to this contract can be challenging due to numerous external economic influences.

How effective was this contract in achieving its stated goals of fostering economic growth?

The effectiveness of this contract in fostering economic growth is difficult to quantify precisely from the provided data alone. The contract aimed to improve conditions for international and cross-border trade and transit, thereby enhancing the competitiveness of Kazakhstan, Kyrgyzstan, and Tajikistan. While the long duration suggests sustained effort and potentially some progress, the ultimate impact on economic growth is influenced by a multitude of factors, including global economic trends, domestic policies, and regional dynamics. USAID's internal evaluations would hold the most definitive assessment of its effectiveness. Success would be measured by indicators such as increased trade volumes, reduced transit times, and improved investment climates.

What is the historical spending pattern for USAID's regional trade liberalization efforts?

The provided data focuses on a single contract and does not offer insight into USAID's broader historical spending patterns on regional trade liberalization. To understand this, one would need to analyze USAID's budget allocations and contract awards across multiple fiscal years and regions. This would involve examining spending on similar initiatives, the number and value of contracts awarded, and the geographic distribution of these investments. Such an analysis would reveal trends in USAID's priorities and resource allocation towards trade facilitation and economic integration programs globally.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2300 CLARENDON BLVD # 1110, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $16,072,220

Exercised Options: $16,072,220

Current Obligation: $16,055,324

Actual Outlays: $27,389

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline