USAID contract for professional services modified to increase obligation by $4.8M, totaling $14.9M over 3 years

Contract Overview

Contract Amount: $14,912,623 ($14.9M)

Contractor: America-Mideast Educational and Training Services, Inc.

Awarding Agency: Agency for International Development

Start Date: 2006-10-19

End Date: 2009-09-30

Contract Duration: 1,077 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MODIFICATION TO INCREASE OBLIGATION BY $4,815,000.

Plain-Language Summary

Agency for International Development obligated $14.9 million to AMERICA-MIDEAST EDUCATIONAL AND TRAINING SERVICES, INC. for work described as: MODIFICATION TO INCREASE OBLIGATION BY $4,815,000. Key points: 1. Contract value increased significantly, suggesting evolving project needs or scope expansion. 2. The contract was awarded under full and open competition, indicating a broad market search. 3. A Cost Plus Fixed Fee (CPFF) pricing structure was used, which can incentivize cost control but requires careful oversight. 4. The contract duration of nearly three years suggests a substantial, ongoing service requirement. 5. The contractor, AMERICA-MIDEAST EDUCATIONAL AND TRAINING SERVICES, INC., has a track record with this agency. 6. The nature of 'All Other Professional, Scientific, and Technical Services' is broad, requiring specific performance metrics for evaluation.

Value Assessment

Rating: fair

The total award amount of $14.9 million over approximately three years for professional services appears moderate for a government contract of this duration. Without specific details on the services rendered, a direct value-for-money assessment is challenging. However, the modification increasing the obligation by $4.8 million warrants scrutiny to understand the reasons for the increased cost and whether it aligns with original objectives or represents scope creep. Benchmarking against similar contracts for educational and training services would provide better context for pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is generally expected to yield competitive pricing and a wider pool of qualified contractors. The fact that it was competed broadly is a positive indicator for price discovery. However, the number of bids received and the specific evaluation criteria used would provide a clearer picture of the actual competitive intensity.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it maximizes the potential for obtaining services at the most competitive prices available in the market.

Public Impact

The primary beneficiaries are likely entities or individuals receiving educational and training services facilitated by the contractor. Services delivered fall under the broad category of professional, scientific, and technical support, potentially impacting international education or training programs. The geographic impact is likely concentrated in regions where the Agency for International Development (USAID) operates educational and training initiatives. Workforce implications could include employment opportunities for educators, trainers, and support staff managed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the CPFF contract type if not managed diligently.
Scope creep is a risk, as indicated by the significant modification increasing the obligation.
Performance metrics for 'All Other Professional, Scientific, and Technical Services' need to be robust to ensure accountability.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contractor has an existing relationship with the agency, potentially indicating past performance.
The contract has been modified, which can be a normal part of project evolution and adaptation.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under NAICS code 541990. This is a broad category encompassing a wide range of services. Government spending in this sector is substantial, supporting various agency missions. Comparable spending benchmarks would depend heavily on the specific nature of the educational and training services provided, which are not detailed here. The market for such services is diverse, with many firms capable of delivering specialized expertise.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it mention subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the broad nature of the competition might allow for small businesses to participate as subcontractors if they possess the required specialized skills.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and that the fixed fee is earned through satisfactory performance. Transparency would be enhanced by public reporting of contract performance and expenditures. The Inspector General for USAID would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

USAID International Education Programs
USAID Technical Assistance Contracts
Federal Professional Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of scope creep indicated by contract modification.
Broad service category requires detailed performance metrics for effective oversight.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $14.9 million to AMERICA-MIDEAST EDUCATIONAL AND TRAINING SERVICES, INC.. MODIFICATION TO INCREASE OBLIGATION BY $4,815,000.

Who is the contractor on this award?

The obligated recipient is AMERICA-MIDEAST EDUCATIONAL AND TRAINING SERVICES, 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 $14.9 million.

What is the period of performance?

Start: 2006-10-19. End: 2009-09-30.

What specific educational and training services were delivered under this contract?

The provided data classifies the contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification does not specify the exact nature of the educational and training services. These could range from curriculum development, teacher training, educational program management, to technical skills development in various fields. To understand the services delivered, one would need to consult the contract's statement of work (SOW) or task orders. The modification increasing the obligation suggests that the scope of these services either expanded or required more resources than initially anticipated.

How does the $14.9 million total obligation compare to similar USAID contracts for educational and training services?

A direct comparison of the $14.9 million total obligation to similar USAID contracts requires access to a database of historical contract awards with detailed service descriptions and performance data. Without this comparative data, it's difficult to definitively state whether this amount represents high, low, or average spending. However, for a contract spanning nearly three years and involving professional services, $14.9 million is a moderate sum. The value-for-money assessment would depend on the specific outcomes achieved, the efficiency of service delivery, and the criticality of the services to USAID's mission objectives in the region of operation.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a CPFF contract, such as this one, revolve around cost control and potential for contractor inefficiency. While the fixed fee provides the contractor with an incentive to control costs (as they keep a portion of any savings below the target cost), there is also a risk that the contractor may not be sufficiently motivated to achieve maximum efficiency if the fee is substantial. For the government, the risk is that costs could exceed estimates, and the fixed fee, while predetermined, is layered on top of actual costs. Robust oversight, detailed cost accounting, and clear performance metrics are essential to mitigate these risks and ensure value for money.

What does the modification increasing the obligation by $4.8 million signify?

A modification increasing the contract obligation by $4.8 million, representing a substantial increase of over 30% on the original $14.9 million total, typically signifies a change in the project's scope, an increase in the quantity of services required, or an adjustment due to unforeseen circumstances or inflation. It could indicate that the initial contract was under-scoped, that new requirements emerged during contract performance, or that the contractor encountered unexpected challenges necessitating additional resources. Understanding the specific justification for this modification is crucial for assessing whether the increased spending aligns with program goals and represents good value.

What is the track record of AMERICA-MIDEAST EDUCATIONAL AND TRAINING SERVICES, INC. with the Agency for International Development?

AMERICA-MIDEAST EDUCATIONAL AND TRAINING SERVICES, INC. (AETSI) has a history of contracting with the Agency for International Development (USAID). The fact that USAID awarded this contract, and previously awarded other contracts to AETSI, suggests a level of confidence in the company's ability to perform. However, a comprehensive assessment of their track record would require reviewing past performance evaluations, any past disputes or contract terminations, and the overall success of their previous engagements with USAID and other federal agencies. This specific contract's modification indicates an evolving relationship and potentially expanding scope of work.

How does the 'All Other Professional, Scientific, and Technical Services' category impact performance assessment?

The broad nature of the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) presents a challenge for performance assessment. Unlike more specialized categories, it lacks inherent definition, making it difficult to establish clear, objective performance standards without a detailed Statement of Work (SOW). Effective oversight requires the agency to meticulously define key performance indicators (KPIs), deliverables, and quality standards within the SOW and subsequent task orders. Without these specifics, evaluating the contractor's performance and ensuring accountability becomes significantly more complex, potentially leading to disputes over service quality and value.

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: 1730 M ST NW, STE-1100, WASHINGTON, DC, 98

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $224,517,851

Exercised Options: $224,517,851

Current Obligation: $14,912,623

Timeline