USAID's $77M contract with Chemonics International for technical services shows strong competition and long-term engagement

Contract Overview

Contract Amount: $77,057,136 ($77.1M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2013-11-07

End Date: 2024-04-29

Contract Duration: 3,826 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: USAID OVERSEAS CONTRACT

Plain-Language Summary

Agency for International Development obligated $77.1 million to CHEMONICS INTERNATIONAL, INC. for work described as: USAID OVERSEAS CONTRACT Key points: 1. The contract demonstrates a significant investment in professional, scientific, and technical services, indicating a need for specialized expertise. 2. Full and open competition suggests a robust market for these services, potentially leading to better pricing and innovation. 3. The extended duration of the contract (over 10 years) points to sustained program needs and a stable relationship with the contractor. 4. While the contract value is substantial, its performance context within USAID's broader mission requires further analysis. 5. The 'All Other Professional, Scientific, and Technical Services' NAICS code covers a broad range of activities, necessitating a deeper dive into specific deliverables. 6. The use of Time and Materials pricing warrants scrutiny to ensure cost control and prevent scope creep.

Value Assessment

Rating: good

The contract value of $77 million over its lifespan is substantial, but without specific performance metrics or comparable contract data, a precise value-for-money assessment is challenging. Benchmarking against similar long-term technical assistance contracts awarded by USAID or other agencies for comparable services would provide a clearer picture of whether the pricing reflects market rates. The Time and Materials (T&M) contract type, while flexible, can sometimes lead to higher costs if not managed diligently, suggesting a need for close oversight to ensure efficiency.

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 compete. This process typically fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions. The presence of two bidders, as indicated, suggests a reasonable level of competition for this specific award, though understanding the total number of proposals received would offer a more complete picture of market engagement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging efficient service delivery. It ensures that the government secures the best possible value by considering a wide range of qualified contractors.

Public Impact

This contract supports USAID's mission to advance global development and humanitarian assistance, likely benefiting developing countries through technical expertise and program implementation. The services delivered are broad, encompassing 'All Other Professional, Scientific, and Technical Services,' which could include areas like program management, policy analysis, research, and capacity building. The geographic impact is likely global, aligning with USAID's international development mandate. Workforce implications could include the employment of technical experts, consultants, and support staff both domestically and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for efficiency and necessity of hours billed.
The broad NAICS code (541990) makes it difficult to ascertain the specific nature and value of services rendered without further detail.
The long contract duration (over 10 years) necessitates ongoing vigilance to ensure continued relevance and effectiveness of services provided.
Limited information on specific performance metrics makes it challenging to evaluate the contractor's effectiveness and impact.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely yielded favorable terms.
The contract has been active for a significant period, indicating a sustained need and potentially successful delivery of services.
The contractor, Chemonics International, is a well-established firm in the international development sector, suggesting experience and capacity.
The contract value, while large, is spread over a long period, implying a steady investment in critical development support.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, a broad category encompassing a wide array of specialized expertise. The market for these services is highly competitive, with numerous firms vying for government contracts. USAID, as a major development agency, frequently procures such services to support its global initiatives. Comparable spending benchmarks would involve analyzing other large, long-term technical assistance contracts awarded by USAID and similar agencies like the Department of State or the World Bank.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors to Chemonics International, depending on the specific nature of the services required and the prime contractor's subcontracting plan, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), specifically the contracting officer and program officials responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. Transparency is facilitated through contract databases like FPDS, which provide basic award information. However, detailed performance reports and audits are typically internal or available through specific Freedom of Information Act (FOIA) requests, limiting public visibility into day-to-day oversight.

Related Government Programs

USAID Technical Assistance Contracts
Global Development Services
Professional and Technical Services Procurement
International Aid Programs

Risk Flags

Long contract duration
Time and Materials pricing
Broad NAICS code classification
Potential for cost overruns
Need for continuous performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $77.1 million to CHEMONICS INTERNATIONAL, INC.. USAID OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is CHEMONICS 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 $77.1 million.

What is the period of performance?

Start: 2013-11-07. End: 2024-04-29.

What specific types of professional, scientific, and technical services are being delivered under this contract, and how do they align with USAID's strategic objectives?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests a wide range of potential activities, which could include program design and implementation support, policy analysis, research and data collection, monitoring and evaluation, technical training, and capacity building in various sectors relevant to USAID's mission, such as health, education, economic growth, democracy, and humanitarian assistance. Without specific task orders or statements of work, it is difficult to pinpoint the exact services. However, these services are generally intended to support USAID's overarching goal of advancing U.S. foreign policy interests and promoting sustainable development globally. The alignment would depend on how the specific services procured contribute to achieving the agency's country development cooperation strategies and global development goals.

How does the pricing structure (Time and Materials) compare to other similar long-term technical assistance contracts awarded by USAID or other federal agencies?

Time and Materials (T&M) contracts are often used when the extent or duration of the work cannot be predetermined, offering flexibility. However, they can be more expensive than fixed-price contracts if not managed carefully, as costs are directly tied to labor hours and material costs. For long-term technical assistance, agencies often prefer cost-plus-fixed-fee (CPFF) or firm-fixed-price (FFP) contracts for better cost predictability. Comparing this T&M contract's effective hourly rates and total expenditure against similar T&M or other contract types for comparable services (e.g., program management, policy advisory) awarded by USAID or agencies like the Department of State or the Millennium Challenge Corporation would be necessary. A higher-than-average effective rate or significant cost growth over time could indicate potential value-for-money concerns, necessitating robust oversight.

What is the track record of Chemonics International in delivering services under similar large, long-term contracts with USAID or other government agencies?

Chemonics International is a prominent contractor in the international development space, with a long history of working with USAID and other government agencies on large-scale, complex projects. Their track record generally includes managing significant portfolios across various sectors and geographies. Performance evaluations and past performance reviews, often documented in federal procurement databases or agency-specific reports, would provide detailed insights. While generally considered an experienced contractor, like any large firm, they may have faced challenges or received mixed reviews on specific contracts. Analyzing their performance on contracts of similar size, duration, and scope, particularly regarding on-time delivery, budget adherence, and achievement of stated objectives, would offer a more nuanced understanding of their capabilities and reliability for this specific award.

Given the contract's duration and value, what are the primary risks associated with its execution and oversight?

The primary risks associated with this contract include: 1) Cost Overruns: The Time and Materials (T&M) pricing structure, if not rigorously monitored, can lead to escalating costs. Unforeseen complexities or scope creep can significantly increase the total expenditure. 2) Performance Drift: Over a long contract period (over 10 years), the relevance and effectiveness of the services may diminish if not continuously adapted to evolving needs and contexts. Ensuring the contractor remains aligned with current strategic objectives is crucial. 3) Contractor Dependency: USAID might become overly reliant on Chemonics International, potentially reducing flexibility or the ability to bring in new approaches or contractors. 4) Oversight Burden: Managing a contract of this magnitude and duration requires substantial oversight resources from USAID to ensure compliance, quality, and value for money. Inadequate oversight increases the risk of inefficiencies or unmet objectives. 5) Data Security and Compliance: Handling sensitive program and beneficiary data requires robust security protocols and adherence to international privacy regulations.

How has USAID's spending in the 'All Other Professional, Scientific, and Technical Services' category evolved over the past five years, and how does this contract fit into that trend?

To assess this, one would need to analyze USAID's historical spending data within NAICS code 541990. This would involve querying federal procurement databases (like FPDS) for all contracts awarded by USAID under this code over the last five fiscal years. The analysis would reveal the total annual spending, the number of contracts awarded, and potentially the dominant contractors. This specific $77 million contract, awarded in 2013 and ending in 2024, represents a significant portion of spending within this category during its active period. Understanding the trend would show whether USAID's reliance on this broad service category has increased, decreased, or remained stable, and whether this contract is an outlier in terms of size or duration compared to other awards in the same category.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SOL-306-13-000043

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1717 H ST NW, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $77,057,136

Exercised Options: $77,057,136

Current Obligation: $77,057,136

Actual Outlays: $-33,927

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $23,957,520

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1200035

IDV Type: IDC

Timeline