USAID awards $303M contract to DAI GLOBAL LLC for Iraq assistance program
Contract Overview
Contract Amount: $303,000,000 ($303.0M)
Contractor: DAI Global LLC
Awarding Agency: Agency for International Development
Start Date: 2007-09-27
End Date: 2010-09-30
Contract Duration: 1,099 days
Daily Burn Rate: $275.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TO SUPPORT THE IRAQ RAPID ASSITANCE PROGRAM (IRAP).
Plain-Language Summary
Agency for International Development obligated $303.0 million to DAI GLOBAL LLC for work described as: TO SUPPORT THE IRAQ RAPID ASSITANCE PROGRAM (IRAP). Key points: 1. Contract value of $303 million for management consulting services. 2. DAI GLOBAL LLC is the sole awardee. 3. The contract duration is 1099 days. 4. The award was made under full and open competition. 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: fair
The contract value of $303 million for 1099 days suggests a significant investment. Without specific performance metrics or benchmarks for similar large-scale assistance programs, assessing the value for money is challenging. The Cost Plus Fixed Fee structure can incentivize cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the agency to select the best value offer. However, the specific pricing outcomes are not detailed here.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding environment. The final cost will depend on the execution and management of the program.
Public Impact
Supports critical assistance efforts in Iraq, potentially impacting stability and humanitarian aid. The large contract value signifies a substantial commitment of federal resources. The duration of the contract suggests a long-term program requiring sustained management and oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs if not managed effectively.
- Lack of detailed performance metrics makes value assessment difficult.
- Potential for scope creep in long-term assistance programs.
Positive Signals
- Awarded under full and open competition, promoting fairness.
- Supports a critical program in a sensitive region.
- Experienced contractor likely involved.
Sector Analysis
This contract falls under Other Management Consulting Services, a broad category. The value of $303 million is substantial for this sector, suggesting a complex and large-scale project. Benchmarks for similar international assistance programs would be needed for a precise comparison.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to DAI GLOBAL LLC, a large company. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Agency for International Development (USAID) is responsible for overseeing this contract. Given the significant value and duration, robust oversight mechanisms are crucial to ensure program effectiveness, financial accountability, and adherence to contract terms.
Related Government Programs
- Other Management Consulting Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Cost Plus Fixed Fee contract structure.
- Large contract value ($303M).
- Long contract duration (1099 days).
- Potential for cost overruns.
- Limited information on performance metrics.
Tags
other-management-consulting-services, agency-for-international-development, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $303.0 million to DAI GLOBAL LLC. TO SUPPORT THE IRAQ RAPID ASSITANCE PROGRAM (IRAP).
Who is the contractor on this award?
The obligated recipient is DAI GLOBAL 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 $303.0 million.
What is the period of performance?
Start: 2007-09-27. End: 2010-09-30.
What specific performance metrics are in place to measure the success and value of the Iraq Rapid Assistance Program (IRAP) funded by this contract?
The provided data does not detail specific performance metrics for the IRAP. Effective program management would necessitate clearly defined, measurable objectives related to the program's goals, such as humanitarian aid delivery, infrastructure development, or stability enhancement. Regular reporting and evaluation against these metrics are essential for assessing the contract's value and impact.
What are the primary risks associated with a Cost Plus Fixed Fee contract for international assistance, and how are they mitigated?
A primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies include stringent cost monitoring, clear definition of allowable costs, robust auditing, and performance-based incentives. For international assistance, risks also include geopolitical instability, logistical challenges, and potential fraud, requiring strong on-the-ground oversight and risk management plans.
How does the $303 million investment in the IRAP compare to similar international assistance programs managed by USAID or other agencies?
Without specific details on the scope and objectives of the IRAP, direct comparison to other international assistance programs is difficult. However, $303 million represents a significant financial commitment, suggesting a program of substantial scale and importance. Benchmarking would require analyzing the program's intended outcomes, duration, and the specific challenges it aims to address within the Iraqi context relative to other aid initiatives.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7600 WISCONSIN AVE STE 200, BETHESDA, MD, 08
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $2,386,458,000
Exercised Options: $1,968,087,000
Current Obligation: $303,000,000
Timeline
Start Date: 2007-09-27
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2010-02-24
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