DAI GLOBAL LLC awarded $49.7M contract for professional services, with $9.5M incremental funding

Contract Overview

Contract Amount: $49,752,042 ($49.8M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2013-04-04

End Date: 2019-09-13

Contract Duration: 2,353 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF - COMPETITIVNESS PROJECT INCREMENTAL FUND OF $9,500,000

Plain-Language Summary

Agency for International Development obligated $49.8 million to DAI GLOBAL LLC for work described as: IGF::OT::IGF - COMPETITIVNESS PROJECT INCREMENTAL FUND OF $9,500,000 Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Significant incremental funding indicates potential for project expansion or evolving needs. 3. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 4. Services fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract duration of over 6 years suggests a long-term engagement. 6. No small business set-aside was utilized, indicating the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: fair

The total award of $49.7 million over approximately six years for 'All Other Professional, Scientific, and Technical Services' requires benchmarking against similar contracts. The incremental funding of $9.5 million suggests potential cost growth or phased execution. Without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. However, the use of Cost Plus Fixed Fee pricing necessitates close monitoring to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 7 bidders indicates a competitive environment for these services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it drives down prices through market forces and encourages a wider pool of potential contractors to vie for government business.

Public Impact

The primary beneficiaries are likely entities or programs requiring broad professional, scientific, and technical support. Services delivered encompass a wide range of technical and analytical expertise. Geographic impact is not specified but likely tied to the Agency for International Development's global operations. Workforce implications could involve a mix of direct hires by DAI Global LLC and potential subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, requiring diligent oversight to prevent overspending.
The broad nature of 'All Other Professional, Scientific, and Technical Services' may lead to scope creep if not managed tightly.
Long contract durations can sometimes lead to complacency or outdated service delivery if not actively managed and reviewed.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The significant total award value suggests the contractor is capable of handling large-scale, complex projects.
Incremental funding can provide flexibility for adapting to evolving project needs, potentially leading to better outcomes if managed well.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide array of expertise. The market for these services is large and diverse, with many firms competing for government contracts. The Agency for International Development (USAID) frequently procures such services to support its global development and humanitarian missions. Benchmarking would require comparing this award to other large, multi-year professional services contracts awarded by USAID or similar agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This suggests that the primary focus of the competition was on large, capable firms. While DAI Global LLC may engage small businesses as subcontractors, the initial award mechanism did not prioritize them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Agency for International Development. Given the Cost Plus Fixed Fee structure, rigorous financial oversight and performance monitoring are crucial. Transparency would be enhanced through regular reporting requirements and potential audits. Inspector General jurisdiction would apply if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

USAID Global Development Programs
International Technical Assistance Contracts
Professional Services Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of scope creep in broad service category
Uncertainty of future funding with incremental awards

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $49.8 million to DAI GLOBAL LLC. IGF::OT::IGF - COMPETITIVNESS PROJECT INCREMENTAL FUND OF $9,500,000

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 $49.8 million.

What is the period of performance?

Start: 2013-04-04. End: 2019-09-13.

What is the historical spending pattern for DAI GLOBAL LLC with the Agency for International Development?

Analyzing DAI GLOBAL LLC's historical spending with the Agency for International Development (USAID) requires access to detailed contract databases. Generally, firms like DAI GLOBAL LLC, which specialize in international development and technical assistance, often secure multiple large contracts over extended periods. Their spending patterns with USAID would likely reflect the agency's programmatic priorities, such as democracy and governance, economic growth, health, or education. A review of past awards would reveal the types of services most frequently procured, the average contract values, and the duration of these engagements. Significant year-over-year spending fluctuations could indicate shifts in agency funding, new program initiatives, or the completion of major projects. Understanding this history provides context for the current contract's scale and duration, and can highlight the contractor's sustained relationship with the agency.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex services where the scope of work may evolve or is not precisely defined at the outset, such as research and development or certain types of technical assistance. In a CPFF contract, the government reimburses the contractor for allowable costs plus a predetermined fixed fee, which represents the contractor's profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the actual costs incurred, offering the government maximum price certainty but placing cost risk on the contractor. Cost-Reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee) also involve reimbursing costs but may include variable fees based on performance. For services like those procured by USAID, CPFF offers flexibility but requires robust government oversight to manage costs effectively. FFP might be preferred for well-defined, stable requirements, while CPFF is suited for situations demanding adaptability, albeit with higher potential for cost growth if not managed diligently.

What are the key performance indicators (KPIs) typically associated with 'All Other Professional, Scientific, and Technical Services' contracts?

Key Performance Indicators (KPIs) for 'All Other Professional, Scientific, and Technical Services' contracts are highly dependent on the specific nature of the services being rendered. However, common KPIs often revolve around timeliness, quality of deliverables, cost control, and client satisfaction. For technical services, this might include meeting project milestones, adherence to technical specifications, accuracy of analysis, and successful implementation of solutions. For professional services, KPIs could focus on responsiveness to requests, effectiveness of advisory support, successful stakeholder engagement, and knowledge transfer. Client satisfaction surveys or feedback mechanisms are also frequently used. Given the broad nature of this category, specific KPIs would be detailed in the contract's Performance Work Statement (PWS) or Statement of Work (SOW), outlining measurable objectives that the contractor must achieve to be deemed successful and potentially earn performance-based incentives if applicable.

What is the typical profit margin for contractors under Cost Plus Fixed Fee contracts in this sector?

The profit margin, represented by the fixed fee in a Cost Plus Fixed Fee (CPFF) contract, can vary significantly based on the complexity of the work, the perceived risk, market competition, and agency policies. For professional, scientific, and technical services, typical fixed fees might range from 5% to 15% of the estimated cost. However, this is a generalization, and specific contract terms can deviate. Agencies often have guidelines or ceilings for fixed fees. The 'fixed' nature of the fee means the contractor's profit is capped, regardless of how efficiently they manage costs beyond the baseline. This contrasts with other contract types where profit can be directly tied to cost savings or performance achievements. Therefore, while the fee is fixed, the actual profit realized by the contractor depends on their ability to control costs below the estimated amount used to calculate the fee.

How does the incremental funding of $9.5 million impact the overall risk profile of this contract?

Incremental funding, such as the $9.5 million allocated here, typically means that only a portion of the total contract value is obligated at the time of award. This approach is often used to manage budget uncertainty, allow for phased execution of work, or await specific approvals or milestones before committing the full amount. From a risk perspective, incremental funding can reduce the government's upfront financial exposure, which is generally positive. However, it can also introduce risks related to funding continuity; if subsequent funding is not appropriated or approved, the contract could be terminated or significantly curtailed, impacting the contractor's ability to complete the work and potentially leading to termination costs. For the contractor, it necessitates careful resource planning to manage cash flow across different funding increments. The Agency for International Development's budgeting and appropriation cycles heavily influence the certainty of future funding.

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: 7

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: $50,452,042

Exercised Options: $50,452,042

Current Obligation: $49,752,042

Actual Outlays: $520,438

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $8,905,097

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline