USAID's $22.3M Monitoring & Evaluation Support Project awarded to Management Systems International, Inc

Contract Overview

Contract Amount: $22,271,875 ($22.3M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2013-12-01

End Date: 2019-10-31

Contract Duration: 2,160 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF MONITORING&EVALUATION SUPPORT PROJECT

Plain-Language Summary

Agency for International Development obligated $22.3 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: IGF::OT::IGF MONITORING&EVALUATION SUPPORT PROJECT Key points: 1. Contract value represents a significant investment in program oversight. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Contract duration of 6 years indicates a long-term need for these services. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code covers a broad range of activities. 5. Cost Plus Fixed Fee contract type requires careful monitoring of costs to ensure value. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The total contract value of $22.3 million over six years averages approximately $3.7 million annually. Benchmarking this against similar monitoring and evaluation support contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, necessitates robust oversight to control costs and ensure the fixed fee remains reasonable relative to the effort expended. Without comparable data on per-unit costs or specific deliverables, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit a bid. The presence of 9 bidders suggests a healthy level of interest and competition for this type of service. A competitive environment generally leads to better pricing and service offerings for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.

Public Impact

The primary beneficiary is the U.S. Agency for International Development (USAID), which receives support for monitoring and evaluating its programs. Services delivered include professional, scientific, and technical support crucial for program effectiveness assessment. The geographic impact is likely global, supporting USAID's international development initiatives. Workforce implications include the creation of specialized jobs in monitoring, evaluation, and technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs if not properly managed.
The broad NAICS code may obscure the specific nature and cost drivers of the services provided.
Lack of explicit small business participation could limit opportunities for smaller firms in the ecosystem.

Positive Signals

Full and open competition suggests a robust market and potential for competitive pricing.
A significant number of bidders (9) indicates strong contractor interest and capability.
The long contract duration implies a sustained need and potential for stable service delivery.

Sector Analysis

The contract falls under the professional, scientific, and technical services sector, specifically NAICS code 541990. This sector is characterized by a wide array of specialized services supporting government operations and program management. The market for monitoring and evaluation support is competitive, with numerous firms offering expertise in data analysis, program assessment, and reporting. USAID's spending in this area is consistent with its mandate to ensure accountability and effectiveness of its development programs globally.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of mandatory subcontracting goals. While the contract was competed fully and openly, the absence of specific provisions for small business participation means that opportunities for small businesses would depend on the prime contractor's procurement practices. Further analysis would be needed to determine if Management Systems International, Inc. has a history of subcontracting with small businesses on similar contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within USAID. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to ensure that costs are reasonable and allocable to the contract. Transparency is facilitated through contract award databases, but detailed performance reports and audits are typically internal unless released by an Inspector General or through specific Freedom of Information Act requests. The USAID Office of Inspector General would have jurisdiction for audits and investigations.

Related Government Programs

USAID Program Monitoring and Evaluation
Technical Assistance Contracts
International Development Support Services
Professional and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad NAICS code may obscure specific service details and performance metrics.
Lack of explicit small business participation needs monitoring for subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $22.3 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. IGF::OT::IGF MONITORING&EVALUATION SUPPORT PROJECT

Who is the contractor on this award?

The obligated recipient is MANAGEMENT SYSTEMS INTERNATIONAL, 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 $22.3 million.

What is the period of performance?

Start: 2013-12-01. End: 2019-10-31.

What is the track record of Management Systems International, Inc. with USAID and similar contracts?

Management Systems International, Inc. (MSI) has a significant history of working with USAID and other federal agencies on international development projects. They specialize in areas such as monitoring and evaluation, capacity building, and program management. Reviewing their past performance on similar contracts, particularly those involving cost-plus-fixed-fee structures and large dollar values, would provide insight into their ability to manage complex projects effectively and within budget. Data on past performance ratings, any contract disputes, or audit findings related to MSI's work with USAID would be crucial for a comprehensive assessment. Their extensive experience suggests a strong understanding of USAID's operational environment and requirements.

How does the average annual cost of this contract compare to similar M&E support contracts?

The average annual cost for this contract is approximately $3.7 million ($22.3 million / 6 years). Benchmarking this figure against similar Monitoring and Evaluation (M&E) support contracts requires access to detailed data on contract scope, duration, and specific services rendered. Contracts for M&E support can vary widely in cost depending on the complexity of the programs being monitored, the geographic scope, the level of data analysis required, and the specific deliverables. Without comparable contracts that have identical or very similar scopes of work and performance periods, a precise comparison is difficult. However, for large-scale international development programs, an annual spend in the millions for dedicated M&E support is not uncommon, reflecting the specialized expertise and extensive effort required.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract of this magnitude is the potential for cost overruns if not managed diligently. While the fixed fee provides the contractor with a defined profit margin, the government bears the risk of actual costs exceeding estimates. This necessitates robust oversight from USAID to ensure that all incurred costs are reasonable, allocable, and allowable under the contract terms. Inadequate monitoring could lead to inefficiencies or unnecessary expenditures by the contractor, ultimately increasing the total cost to the government. Another risk is ensuring the contractor maintains adequate incentives to control costs once the fee is fixed, although the CPFF structure is generally considered to offer a better balance of risk between the government and contractor compared to pure cost-reimbursement contracts.

What is the potential impact of the 'All Other Professional, Scientific, and Technical Services' NAICS code on service delivery and oversight?

The 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) code is very broad, encompassing a wide range of activities that do not fit into more specific categories. This breadth can present challenges for both service delivery and oversight. For service delivery, it means the scope of work could be highly varied and potentially less defined than in a more specialized contract. For oversight, it makes it more difficult to establish precise performance metrics and benchmarks, as the specific services rendered might differ significantly from one contract to another within the same code. USAID would need to ensure that the contract's Performance Work Statement (PWS) is exceptionally clear and detailed to manage expectations and effectively measure performance and value for money under such a broad classification.

How does the duration of this contract (2160 days) influence its overall value and risk profile?

The contract duration of 2160 days (approximately 6 years) suggests a long-term, strategic need for the monitoring and evaluation support services. A longer duration can offer benefits such as continuity of service, deeper institutional knowledge for the contractor, and potentially economies of scale through sustained operations. This can lead to better overall value by reducing transition costs and fostering a more stable working relationship. However, a longer duration also increases the overall financial exposure for the government and extends the period during which risks associated with cost control, performance, and contractor stability must be managed. It also means that the government is committed to these services for an extended period, potentially limiting flexibility if program priorities shift significantly.

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: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc. (UEI: 045224250)

Address: 600 WATER ST SW STE A, WASHINGTON, DC, 20024

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

Financial Breakdown

Contract Ceiling: $22,377,159

Exercised Options: $22,377,159

Current Obligation: $22,271,875

Actual Outlays: $619,689

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $4,699,829

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline