USAID's $75M water utility contract in Lebanon aimed to boost access and efficiency, spanning over 5 years

Contract Overview

Contract Amount: $75,074,354 ($75.1M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2015-09-30

End Date: 2021-08-31

Contract Duration: 2,162 days

Daily Burn Rate: $34.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO INCREASE RELIABLE AND SUSTAINABLE ACCESS TO WATER FOR LEBANESE CITIZENS, IMPROVE WATER MANAGEMENT PRACTICES, ENHANCE THE EFFICIENCY AND SUSTAINABILITY FO THE PUBLIC WATER UTILITIES.

Plain-Language Summary

Agency for International Development obligated $75.1 million to DAI GLOBAL LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO INCREASE RELIABLE AND SUSTAINABLE ACCESS TO WATER FOR LEBANESE CITIZENS, IMPROVE WATER MANAGEMENT PRACTICES, ENHANCE THE EFFICIENCY AND SUSTAINABILITY FO THE PUBLIC WATER UTILITIES. Key points: 1. The contract focused on improving water access and management for Lebanese citizens, indicating a strategic investment in essential infrastructure. 2. Competition dynamics were favorable, with a full and open approach suggesting a robust market for such services. 3. Performance context is crucial, as the success of this task order directly impacts public health and resource sustainability. 4. Sector positioning places this within the broader development aid and infrastructure improvement landscape. 5. Risk indicators may include geopolitical instability in the region and the complexity of managing utility infrastructure.

Value Assessment

Rating: good

Benchmarking this contract's value is challenging without specific cost breakdowns or comparable projects. However, the total award of $75 million over approximately five years suggests a significant investment in water infrastructure and management. The 'Cost Plus Fixed Fee' contract type implies that costs were reimbursed, plus a fixed fee for profit, which can sometimes lead to higher overall costs compared to fixed-price contracts if not managed carefully. Further analysis would require detailed cost data to assess true value for money against project outcomes.

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 competitive process is generally expected to drive better pricing and service quality as contractors vie for the award. The presence of four bidders suggests a healthy level of interest and capability within the market for international development services related to water utilities.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price and encourages innovation from multiple providers.

Public Impact

Lebanese citizens are the primary beneficiaries, gaining improved access to reliable and sustainable water services. The contract supports the enhancement of water management practices and the efficiency of public water utilities. Geographic impact is concentrated within Lebanon, addressing critical infrastructure needs in the country. Workforce implications may include local employment opportunities for skilled and unskilled labor involved in project implementation and utility operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee contract type if not rigorously monitored.
Geopolitical instability in Lebanon could disrupt project timelines and operational effectiveness.
Challenges in ensuring long-term sustainability of improved water management practices post-contract.
Dependency on local infrastructure and government cooperation for successful implementation.

Positive Signals

Directly addresses a critical need for improved water access and management, aligning with development goals.
Full and open competition suggests a robust market and potential for competitive pricing.
Focus on enhancing utility efficiency can lead to long-term operational improvements.
The task order aims for sustainable solutions, implying a focus on lasting impact.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on environmental and infrastructure development. The market for international development services, particularly in water and sanitation, is substantial, driven by global needs for improved public health and sustainable resource management. Comparable spending benchmarks would involve other USAID or international aid projects focused on water infrastructure in developing nations, often involving large, multi-year commitments.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly detailed in the provided data. Typically, large federal contracts of this nature may include provisions for small business involvement, either through direct subcontracting or specific set-aside goals. Further investigation into the contract's detailed terms and conditions would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID), likely through its Inspector General's office and program management teams. Accountability measures would be embedded in the contract's performance metrics and reporting requirements. Transparency is generally facilitated through public contract databases, though detailed operational reports may be internal.

Related Government Programs

USAID Water and Development
International Water Infrastructure Projects
Middle East Development Aid
Public Utility Management Contracts

Risk Flags

Geopolitical Instability
Economic Volatility
Infrastructure Complexity
Sustainability of Improvements

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $75.1 million to DAI GLOBAL LLC. IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO INCREASE RELIABLE AND SUSTAINABLE ACCESS TO WATER FOR LEBANESE CITIZENS, IMPROVE WATER MANAGEMENT PRACTICES, ENHANCE THE EFFICIENCY AND SUSTAINABILITY FO THE PUBLIC WATER UTILITIES.

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 $75.1 million.

What is the period of performance?

Start: 2015-09-30. End: 2021-08-31.

What was the contractor's track record with similar USAID water infrastructure projects prior to this award?

Assessing DAI Global LLC's specific track record with USAID water infrastructure projects prior to this award requires a deep dive into their historical contract data and performance evaluations. Generally, large international development firms like DAI have a portfolio of projects across various sectors and geographies. For this particular contract, the agency would have likely reviewed DAI's past performance, technical capabilities, and financial stability to ensure they were qualified. Without access to USAID's internal contractor performance assessment reports (CPARs) or specific project histories, it's difficult to provide a detailed analysis of their prior success rate in similar endeavors. However, their selection for a significant task order like this suggests they met USAID's pre-award requirements and demonstrated relevant experience.

How does the total contract value compare to other USAID water infrastructure projects in the Middle East region?

The total contract value of approximately $75 million for this task order is substantial and aligns with the scale of major infrastructure and development initiatives. Comparing it to other USAID water infrastructure projects in the Middle East requires access to a comprehensive database of historical contract awards. However, projects focused on improving water access, sanitation, and utility management in regions facing water scarcity and infrastructure challenges often involve multi-million dollar investments. This contract's value suggests a significant commitment by USAID to address these critical issues in Lebanon, likely placing it among the larger investments in the sector for the region during its performance period.

What were the key performance indicators (KPIs) for this contract, and how was success measured?

The key performance indicators (KPIs) for this contract would have been designed to measure progress towards its stated objectives: increasing reliable and sustainable access to water, improving water management practices, and enhancing the efficiency and sustainability of public water utilities. Specific KPIs might have included metrics such as the number of additional citizens with improved water access, reduction in water loss rates, improvements in water quality, increased revenue collection by utilities, and successful implementation of new management systems. USAID would have established baseline data and targets for these KPIs, with regular reporting from DAI Global LLC to track performance and ensure accountability against the contract's goals.

What are the potential risks associated with implementing water infrastructure projects in Lebanon, and how were they mitigated?

Implementing water infrastructure projects in Lebanon presents several potential risks, including political instability, economic challenges, security concerns, and bureaucratic hurdles. Geopolitical tensions can affect project continuity and donor confidence. Economic volatility can impact local costs and the financial sustainability of utilities. Security risks, though perhaps less direct for water infrastructure than other sectors, can still affect personnel and supply chains. Bureaucratic processes and potential corruption can lead to delays and inefficiencies. Mitigation strategies would typically involve close coordination with local authorities, flexible project planning to adapt to changing conditions, robust security protocols, and strong financial oversight mechanisms, including regular audits and transparent reporting.

What is the historical spending trend for USAID water and sanitation projects in Lebanon over the last decade?

Analyzing the historical spending trend for USAID water and sanitation projects in Lebanon over the last decade would reveal the agency's consistent or fluctuating commitment to addressing water-related challenges in the country. Such an analysis would require accessing USAID's historical contract and award databases. Generally, USAID's spending in this sector is influenced by the country's development needs, regional stability, and strategic priorities. Significant events, such as humanitarian crises or major infrastructure development plans, can lead to spikes in spending. A consistent or increasing trend would indicate a sustained focus on improving water resources and infrastructure in Lebanon.

How did the 'Cost Plus Fixed Fee' (CPFF) contract type influence the final cost and contractor's incentive structure?

The 'Cost Plus Fixed Fee' (CPFF) contract type means that the contractor (DAI Global LLC) is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing profit. This structure provides the contractor with financial security, as their profit is guaranteed regardless of the final cost, as long as costs are allowable. However, it can reduce the contractor's incentive to control costs tightly, as they bear no direct financial risk from cost overruns. For USAID, this necessitates rigorous oversight, detailed cost auditing, and clear definition of allowable costs to prevent excessive spending. The fixed fee component ensures a predictable profit margin for the contractor.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7600 WISCONSIN AVE STE 200, BETHESDA, MD, 20814

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,074,354

Exercised Options: $75,074,354

Current Obligation: $75,074,354

Actual Outlays: $37,503,757

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $33,736,958

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400049

IDV Type: IDC

Timeline