Foreign Assistance Program contract awarded to BearingPoint, Inc. for $635.5M over 5 years

Contract Overview

Contract Amount: $635,516,012 ($635.5M)

Contractor: Bearingpoint, Inc.

Awarding Agency: Agency for International Development

Start Date: 2005-10-03

End Date: 2010-10-31

Contract Duration: 1,854 days

Daily Burn Rate: $342.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FOREIGN ASSISTANCE PROGRAM

Plain-Language Summary

Agency for International Development obligated $635.5 million to BEARINGPOINT, INC. for work described as: FOREIGN ASSISTANCE PROGRAM Key points: 1. Contract value represents a significant investment in international development services. 2. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope of work. 3. A Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. 4. The duration of 1854 days indicates a long-term commitment to the program. 5. The contract was awarded under full and open competition, suggesting a robust bidding process. 6. The award amount is substantial, requiring diligent oversight to ensure value for taxpayer money.

Value Assessment

Rating: fair

The contract value of $635.5 million over approximately five years is substantial. Without specific benchmarks for similar foreign assistance programs of this scope and duration, a precise value-for-money assessment is challenging. The CPFF contract type, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. The agency's ability to effectively manage costs and ensure efficient service delivery will be critical to realizing good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 3 bidders identified, this suggests a reasonable level of competition for the contract. This competitive process is generally expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to a more competitive bidding environment, potentially resulting in lower overall costs and better quality services compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely recipient countries receiving foreign assistance, through the services and programs facilitated by this contract. The contract supports the delivery of professional, scientific, and technical services aimed at advancing U.S. foreign policy objectives. Geographic impact is global, as foreign assistance programs typically span multiple countries and regions. Workforce implications include employment opportunities for individuals with expertise in international development, project management, and technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize higher spending if not closely monitored.
The broad NAICS code could lead to scope creep if not clearly defined and managed.
Long contract duration increases the risk of changing geopolitical or programmatic needs not being met.
Reliance on a single contractor for a large program requires robust performance management.

Positive Signals

Awarded through full and open competition, indicating a fair and competitive process.
Multiple bidders participated, suggesting market interest and potential for good service.
The contract duration allows for sustained program impact and development.
The substantial award indicates a significant program of record with potential for long-term positive outcomes.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to government and public administration. The foreign assistance domain is a specialized segment within this sector, often involving complex program management and implementation. Comparable spending benchmarks would typically be found within agencies managing international development aid, such as USAID, focusing on the scale and nature of services procured.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large prime contract, it is possible that BearingPoint, Inc. may engage small businesses as subcontractors to fulfill certain aspects of the work, but this is not explicitly detailed in the award information. Further analysis would be needed to determine subcontracting plans and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). Mechanisms likely include regular performance reviews, financial audits, and adherence to contractual reporting requirements. Transparency would be facilitated through contract award databases and potentially public reporting on program outcomes. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

USAID Foreign Assistance Programs
International Development Projects
Technical Assistance Contracts
Global Health Initiatives
Economic Development Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Risk of scope creep given broad service category.
Need for robust performance monitoring over long contract duration.
Dependency on contractor's ability to adapt to evolving program needs.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $635.5 million to BEARINGPOINT, INC.. FOREIGN ASSISTANCE PROGRAM

Who is the contractor on this award?

The obligated recipient is BEARINGPOINT, 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 $635.5 million.

What is the period of performance?

Start: 2005-10-03. End: 2010-10-31.

What is BearingPoint, Inc.'s track record with large federal contracts, particularly in foreign assistance?

BearingPoint, Inc. has a history of performing large federal contracts across various agencies. While specific details on their foreign assistance track record require deeper investigation into past USAID or similar agency awards, their general experience in professional, scientific, and technical services suggests a capacity for managing complex, large-scale projects. Analyzing past performance reviews, contract modifications, and any past disputes or awards would provide a clearer picture of their reliability and effectiveness in similar roles. Their ability to successfully manage the $635.5M award indicates a significant level of trust and demonstrated capability by the Agency for International Development.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for foreign assistance programs?

The CPFF structure is common for research and development or complex services where the scope is not fully defined at the outset. It allows the contractor to recover all allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost overruns for the government if costs are not meticulously managed and controlled. For foreign assistance, where program needs can evolve, CPFF can be advantageous for adapting to changing circumstances. However, it necessitates robust oversight from the procuring agency to ensure costs remain reasonable and the fixed fee provides adequate incentive for efficient performance, unlike a Cost-Plus-Incentive-Fee (CPIF) which directly links fee to performance metrics.

What are the key performance indicators (KPIs) typically used to evaluate success in foreign assistance contracts of this nature?

Key performance indicators for foreign assistance contracts like this typically focus on achieving specific development objectives, such as improvements in health outcomes, economic growth, governance, or stability in recipient countries. Metrics often include the number of people reached, the efficiency of resource utilization (cost per beneficiary), the sustainability of program impacts, adherence to timelines and budgets, and the quality of technical assistance provided. For a broad contract like this, KPIs would be tailored to the specific program areas funded, requiring regular reporting from BearingPoint, Inc. and rigorous evaluation by USAID to ensure alignment with strategic foreign policy goals and effective use of taxpayer funds.

What is the historical spending trend for similar foreign assistance programs managed by USAID?

Historical spending trends for USAID's foreign assistance programs are generally substantial, reflecting the agency's mandate to support global development and humanitarian efforts. Annual budgets often run into the tens of billions of dollars, allocated across various sectors like global health, economic growth, democracy, conflict prevention, and humanitarian assistance. Contracts for professional, scientific, and technical services form a significant portion of this spending, enabling program implementation and technical support. Analyzing USAID's budget justifications and contract award data over the past decade would reveal trends in specific program areas and the types of services most frequently procured, providing context for the $635.5M award to BearingPoint, Inc.

Are there specific geographic regions or program areas that this contract is likely to focus on?

Given the broad nature of 'Foreign Assistance Program' and the 'All Other Professional, Scientific, and Technical Services' NAICS code, the focus could be diverse. However, USAID typically prioritizes regions facing significant development challenges or strategic importance to U.S. foreign policy. Historically, this includes Sub-Saharan Africa, the Middle East, and parts of Asia. Programmatic focus areas often encompass global health (HIV/AIDS, maternal and child health), economic development (agriculture, trade), democracy and governance, education, and humanitarian aid. Without more specific task orders or program descriptions, pinpointing exact regions or areas is speculative, but the contract's structure allows for flexibility across USAID's strategic 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: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DR, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,122,064,593

Exercised Options: $916,891,585

Current Obligation: $635,516,012

Timeline