USAID contract for agribusiness development in Iraq awarded to The Louis Berger Group, Inc. for over $174 million

Contract Overview

Contract Amount: $174,896,650 ($174.9M)

Contractor: THE Louis Berger Group, Inc

Awarding Agency: Agency for International Development

Start Date: 2007-05-14

End Date: 2012-12-31

Contract Duration: 2,058 days

Daily Burn Rate: $85.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TO CREATE COMPETITIVE MARKETS FOR THE AGRICULTURAL AND AGRIBUSINESS INPUTS, OUTPUTS, AND RELATED TECHNOLOGIES. THIS IS EXPECTED TO CONTRIBUTE TO THE GOAL OF INCREASING PRODUCTIVE EMPLOYMENT IN AGRICULTURE AND RELATED ENTERPRISE. THE AGRIBUSINESS ACTIVITIES ARE IN FULL SUPPORT OF THE APPROVED USAID/IRAQ?S STRATEGIC OBJECTIVE 8, ?PRIVATE SECTOR ECONOMIC OPPORTUNITIES EXPANDED?

Plain-Language Summary

Agency for International Development obligated $174.9 million to THE LOUIS BERGER GROUP, INC for work described as: TO CREATE COMPETITIVE MARKETS FOR THE AGRICULTURAL AND AGRIBUSINESS INPUTS, OUTPUTS, AND RELATED TECHNOLOGIES. THIS IS EXPECTED TO CONTRIBUTE TO THE GOAL OF INCREASING PRODUCTIVE EMPLOYMENT IN AGRICULTURE AND RELATED ENTERPRISE. THE AGRIBUSINESS ACTIVITIES ARE IN FULL SUPPORT O… Key points: 1. Contract aims to foster competitive markets for agricultural inputs and outputs, supporting economic growth and employment. 2. Focus on private sector development aligns with USAID's strategic objective for expanded economic opportunities. 3. The contract utilized full and open competition, suggesting a robust bidding process. 4. Performance period spans over 5 years, indicating a long-term commitment to the program. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 6. The North American Industry Classification System (NAICS) code 561990 points to broad support services.

Value Assessment

Rating: fair

The total value of $174.9 million over five years suggests a significant investment in agribusiness development. Benchmarking this against similar USAID programs in post-conflict zones would be necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex projects, carries inherent risks of cost overruns if not managed diligently. Without specific performance metrics and outcomes, it's challenging to definitively assess the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This process is designed to foster price discovery and ensure the government receives competitive offers. The presence of two bids suggests a moderate level of competition for this significant contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through a competitive bidding process, leading to potentially better value for the funds expended.

Public Impact

Iraqi agricultural producers and agribusinesses are the primary beneficiaries, gaining access to improved inputs, outputs, and technologies. The contract aims to increase productive employment within the agricultural sector and related enterprises in Iraq. Geographic impact is focused on Iraq, supporting the country's economic recovery and development. The program is expected to foster a more robust private sector, potentially leading to broader economic benefits beyond agriculture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require rigorous oversight to manage potential cost escalations.
The long performance period necessitates sustained monitoring to ensure objectives are met and funds are used efficiently.
Assessing the specific impact on employment and market competitiveness requires detailed performance data.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract directly supports a strategic objective of USAID for private sector economic growth.
The focus on agribusiness development addresses a critical sector for economic recovery and stability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting economic development initiatives. The agribusiness sector is crucial for many developing economies, and contracts like this aim to modernize and professionalize it. Comparable spending might be found in other USAID programs focused on economic growth, agricultural development, or private sector strengthening in similar regions.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. The prime contractor, The Louis Berger Group, Inc., is a large engineering and construction firm. Subcontracting opportunities for small businesses may exist, but their extent and impact are not detailed in the provided data. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight would typically be managed by USAID's contracting officers and program officials. Given the CPFF structure, robust financial and performance monitoring is essential. Inspector General audits may also be conducted to ensure accountability and prevent fraud, waste, and abuse. Transparency would be enhanced through regular reporting requirements from the contractor.

Related Government Programs

USAID Economic Growth Programs
USAID Iraq Mission Programs
Agricultural Development Assistance
Private Sector Development Initiatives

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Performance in a post-conflict environment presents inherent security and stability risks.
Measuring the direct impact on employment and market competitiveness requires robust data collection.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $174.9 million to THE LOUIS BERGER GROUP, INC. TO CREATE COMPETITIVE MARKETS FOR THE AGRICULTURAL AND AGRIBUSINESS INPUTS, OUTPUTS, AND RELATED TECHNOLOGIES. THIS IS EXPECTED TO CONTRIBUTE TO THE GOAL OF INCREASING PRODUCTIVE EMPLOYMENT IN AGRICULTURE AND RELATED ENTERPRISE. THE AGRIBUSINESS ACTIVITIES ARE IN FULL SUPPORT OF THE APPROVED USAID/IRAQ?S STRATEGIC OBJECTIVE 8, ?PRIVATE SECTOR ECONOMIC OPPORTUNITIES EXPANDED?

Who is the contractor on this award?

The obligated recipient is THE LOUIS BERGER 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 $174.9 million.

What is the period of performance?

Start: 2007-05-14. End: 2012-12-31.

What was the specific performance history of The Louis Berger Group, Inc. on similar USAID contracts prior to this award?

Assessing The Louis Berger Group, Inc.'s prior performance is crucial for understanding their capability to execute this complex contract. While the provided data does not detail their specific track record, a comprehensive review would involve examining past USAID contracts, including their value, duration, scope of work, and any reported performance issues or successes. Agencies often maintain internal performance evaluation systems (e.g., Contractor Performance Assessment Reporting System - CPARS) that would shed light on their reliability, quality of work, and adherence to schedule and budget on previous engagements. Understanding their experience in similar geographic regions or with similar development objectives (like agribusiness or private sector growth) would also be highly relevant.

How does the per-contractor cost compare to similar agribusiness development contracts managed by USAID or other development agencies?

The total contract value of approximately $174.9 million over five years, averaging around $35 million annually, provides a baseline for comparison. To assess value for money, this figure needs to be benchmarked against similar contracts. Key comparison points would include contracts with similar objectives (e.g., agricultural productivity enhancement, market access improvement, private sector engagement), geographic focus (e.g., Middle East, post-conflict environments), and contract types (e.g., CPFF). Factors like the specific interventions planned, the scale of the target population, and the prevailing economic conditions in the region would also influence cost. Without access to a database of comparable contract costs, a precise per-unit cost comparison is difficult, but the overall investment appears substantial for a five-year development program.

What are the key performance indicators (KPIs) established for this contract, and how has the contractor performed against them?

The provided data outlines the broad objectives of creating competitive markets and increasing productive employment but does not specify the Key Performance Indicators (KPIs) used to measure success. For a thorough risk assessment and performance evaluation, these KPIs are essential. They would likely include metrics related to increased agricultural yields, number of new agribusinesses established or expanded, jobs created, value of transactions within the targeted markets, and potentially improvements in access to finance or technology. The contractor's performance against these KPIs would determine the actual value and impact of the contract. Regular reporting and independent evaluations would be necessary to track progress and identify any deviations from the planned outcomes.

What is the historical spending trend for USAID's agribusiness development programs in Iraq over the last decade?

Analyzing historical spending trends for USAID's agribusiness development programs in Iraq provides crucial context for this $174.9 million contract. A review would likely show fluctuations based on security conditions, political priorities, and the overall strategic direction of USAID's engagement in the country. If spending has been consistently high in this sector, it suggests a sustained commitment and perceived importance. Conversely, a recent surge might indicate a new strategic focus or response to emerging needs. Understanding this trend helps in evaluating whether the current contract represents a continuation, expansion, or redirection of previous efforts and whether the allocated funds are consistent with past investments in similar programs.

What specific risks were identified during the procurement process, and what mitigation strategies were put in place?

The procurement process for a contract of this magnitude, especially in a challenging environment like Iraq, would typically involve a thorough risk assessment. Potential risks could include security threats to personnel and operations, political instability affecting program implementation, corruption, logistical challenges, and the contractor's capacity to deliver. Mitigation strategies might involve robust security protocols, close coordination with Iraqi authorities and other international organizations, stringent financial controls and auditing, phased implementation based on security assessments, and clear performance-based milestones in the contract. The fact that it was awarded under full and open competition suggests that bidders were expected to address these risks in their proposals.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support 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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: WSP Global Inc

Address: 2445 M ST NW, WASHINGTON, DC, 20037

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

Financial Breakdown

Contract Ceiling: $4,094,506,164

Exercised Options: $2,083,772,091

Current Obligation: $174,896,650

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline