USAID contract with DT Global Inc. for economic development in Aqaba, Jordan, valued at $19.66 million

Contract Overview

Contract Amount: $19,661,465 ($19.7M)

Contractor: DT Global Inc

Awarding Agency: Agency for International Development

Start Date: 2007-10-11

End Date: 2012-10-10

Contract Duration: 1,826 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO WORK WITH BOTH AQABA SPECIAL ECONOMIC ZONE AUTHORITY (ASEZA) AND AQABA DEVELOPMENT CORPORATION (ADC), TRAINING INSTITUTIONS, COMMUNITY BASED AND NON-GOVERNMENTAL ORGANIZATIONS AS WELL AS THE PRIVATE SECTOR TO ACHIEVE THREE PRINCIPLE GOALS: 1. ENSURE THAT ASEZA AND ADC HAVE THE CAPACITY TO DELIVER SERVICES TO THEIR CLIENTS, 2) PROVIDE THE SKILLS NEEDED BY LOCAL MICRO, SMALL AND MEDIUM ENTERPRISE OWNERS, AND 3) PREPARE CITIZENS LIVING IN AQABA TO PARTICIPATE IN DECISION-MAKING IN THE ZONE AND TO IMPROVE ACCESS TO SOCIAL INFRASTRUCTURE.

Plain-Language Summary

Agency for International Development obligated $19.7 million to DT GLOBAL INC for work described as: THE PURPOSE OF THIS CONTRACT IS TO WORK WITH BOTH AQABA SPECIAL ECONOMIC ZONE AUTHORITY (ASEZA) AND AQABA DEVELOPMENT CORPORATION (ADC), TRAINING INSTITUTIONS, COMMUNITY BASED AND NON-GOVERNMENTAL ORGANIZATIONS AS WELL AS THE PRIVATE SECTOR TO ACHIEVE THREE PRINCIPLE GOALS: 1. … Key points: 1. Focuses on capacity building for local authorities and private sector development. 2. Aims to enhance skills for micro, small, and medium enterprises. 3. Promotes citizen participation in local decision-making and social infrastructure access. 4. Contract duration of five years indicates a long-term commitment to development goals. 5. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope of work.

Value Assessment

Rating: good

The contract value of $19.66 million over five years averages approximately $3.93 million annually. This figure appears reasonable for a comprehensive economic development program involving multiple stakeholders and diverse objectives in a specific economic zone. Benchmarking against similar USAID-funded capacity building and economic development contracts in the Middle East would provide a more precise value-for-money assessment, but the scope suggests a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to drive better pricing and service quality. The presence of six bidders (no) suggests a healthy level of interest and competition for this type of development contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a rigorous selection process and competitive pricing.

Public Impact

Local authorities (ASEZA and ADC) in Aqaba, Jordan, benefit from enhanced service delivery capacity. Micro, small, and medium enterprise owners receive skills training to improve their businesses. Citizens in Aqaba gain improved access to social infrastructure and participation in decision-making. The program aims to foster economic growth and improve the quality of life in the Aqaba Special Economic Zone.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the broad objectives.
Ensuring equitable distribution of benefits across all target groups.
Measuring the long-term sustainability of capacity-building efforts.

Positive Signals

Clear articulation of development goals.
Focus on local capacity building and private sector engagement.
Involvement of multiple stakeholder groups (government, private sector, NGOs).

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on economic development and capacity building. Such contracts are crucial for international development agencies like USAID to implement their foreign policy objectives by fostering stability and growth in partner countries. The market for these services is global, with numerous firms specializing in development consulting, program management, and technical assistance.

Small Business Impact

The contract does not explicitly mention small business set-asides. However, the focus on supporting local micro, small, and medium enterprises suggests that the program's activities will likely involve subcontracting or partnership opportunities with smaller local businesses within Aqaba, thereby contributing to the local small business ecosystem.

Oversight & Accountability

Oversight is likely managed by USAID's contracting officers and program officers, with regular reporting requirements from DT Global Inc. The contract's objectives and performance metrics would be subject to review. Transparency would be facilitated through public contract data and potentially through USAID's Inspector General audits if any concerns arise regarding performance or financial management.

Related Government Programs

USAID Economic Growth Programs
Middle East Economic Development Initiatives
Capacity Building Contracts
Public-Private Partnerships in Development

Risk Flags

Potential for political instability impacting program delivery.
Risk of insufficient local capacity for long-term sustainability.
Coordination challenges among diverse stakeholder groups.
Ensuring equitable benefit distribution and avoiding elite capture.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $19.7 million to DT GLOBAL INC. THE PURPOSE OF THIS CONTRACT IS TO WORK WITH BOTH AQABA SPECIAL ECONOMIC ZONE AUTHORITY (ASEZA) AND AQABA DEVELOPMENT CORPORATION (ADC), TRAINING INSTITUTIONS, COMMUNITY BASED AND NON-GOVERNMENTAL ORGANIZATIONS AS WELL AS THE PRIVATE SECTOR TO ACHIEVE THREE PRINCIPLE GOALS: 1. ENSURE THAT ASEZA AND ADC HAVE THE CAPACITY TO DELIVER SERVICES TO THEIR CLIENTS, 2) PROVIDE THE SKILLS NEEDED BY LOCAL MICRO, SMALL AND MEDIUM ENTERPRISE OWNERS, AND 3) PREPARE CITIZENS LIVING IN AQABA TO PARTICIPATE IN

Who is the contractor on this award?

The obligated recipient is DT GLOBAL 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 $19.7 million.

What is the period of performance?

Start: 2007-10-11. End: 2012-10-10.

What is the track record of DT Global Inc. in managing similar international development contracts?

DT Global Inc. has a significant track record in international development, often taking over projects from previous implementers or winning new contracts through competitive bidding. They specialize in areas such as economic growth, governance, resilience, and humanitarian assistance across various regions. Their experience typically involves working with government agencies, local partners, and communities to achieve development objectives. A detailed review of their past performance on USAID and other donor-funded projects, including client satisfaction and successful project outcomes, would be necessary for a comprehensive assessment. Information on past performance is often available through contract databases and agency performance reports.

How does the cost of this contract compare to similar economic development initiatives in the region?

The total contract value of $19.66 million over five years, averaging approximately $3.93 million annually, needs to be contextualized within the scope and complexity of the program. USAID and other development agencies fund a wide range of economic development projects, from technical assistance to large-scale infrastructure. Contracts for comprehensive capacity building, private sector development, and governance reform in regions like the Middle East can range from a few million to tens of millions of dollars annually, depending on the scale, duration, and specific objectives. Without specific comparable contracts with identical objectives and geographic focus, a precise benchmark is difficult. However, the allocated amount appears to be within a reasonable range for a multi-faceted, five-year development program.

What are the primary risks associated with the execution of this contract?

Key risks include political instability in the region, which could disrupt program activities or alter development priorities. There's also a risk of insufficient local buy-in or capacity to sustain the initiatives after the contract ends. Challenges in coordinating with multiple stakeholders (government bodies, private sector, NGOs) can lead to delays or inefficiencies. Furthermore, economic fluctuations or changes in funding priorities by the donor agency could impact program implementation. Ensuring the effective and transparent use of funds, and mitigating potential corruption risks, are also critical considerations.

How effective has USAID been in achieving similar economic development goals in Jordan or comparable countries?

USAID has a long history of implementing economic growth and development programs globally, including in Jordan and the broader Middle East. Their effectiveness varies by program and country context. Success is often measured by indicators such as job creation, increased investment, improved governance, enhanced skills, and strengthened institutions. While many USAID programs have demonstrated positive impacts, challenges such as sustainability, local ownership, and adapting to complex political and economic environments are common. Specific evaluations of USAID's past projects in Jordan would provide a more direct assessment of their effectiveness in achieving similar goals.

What are the historical spending patterns for similar professional, scientific, and technical services contracts by USAID?

USAID consistently allocates significant portions of its budget to professional, scientific, and technical services, which encompass a broad range of activities including program management, technical assistance, research, and consulting. Historical spending patterns show a strong emphasis on economic growth, democracy and governance, health, and education sectors. Contracts in these categories often range from hundreds of thousands to tens of millions of dollars, with durations varying from a few months to several years. The frequency and value of such contracts reflect the agency's reliance on external expertise to implement its development mandate across diverse global contexts.

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

Parent Company: DT Global LLC (UEI: 117134071)

Address: 2101 WILSON BLVD STE 700, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,921,563

Exercised Options: $22,921,563

Current Obligation: $19,661,465

Actual Outlays: $40,560

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline