USAID's $117M Connecting Regional Economies (CORE) program aims to reduce economic disparity and ethnic conflict in Sri Lanka

Contract Overview

Contract Amount: $11,700,000 ($11.7M)

Contractor: THE Services Group Inc

Awarding Agency: Agency for International Development

Start Date: 2008-02-01

End Date: 2012-03-31

Contract Duration: 1,520 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BUILDING ON EARLIER AND ONGOING MISSION ECONOMIC GROWTH PROGRAMS, THE CONNECTING REGIONAL ECONOMIES (CORE) SEEKS TO ADDRESS THE DISPARITY IN ECONOMIC DEVELOPMENT BETWEEN THE NORTH AND EAST AND THE REST OF SRI LANKA. THIS DISPARITY IS A MAJOR DRIVER OF SRI LANKA'S ONGOING ETHNIC CONFLICT.

Plain-Language Summary

Agency for International Development obligated $11.7 million to THE SERVICES GROUP INC for work described as: BUILDING ON EARLIER AND ONGOING MISSION ECONOMIC GROWTH PROGRAMS, THE CONNECTING REGIONAL ECONOMIES (CORE) SEEKS TO ADDRESS THE DISPARITY IN ECONOMIC DEVELOPMENT BETWEEN THE NORTH AND EAST AND THE REST OF SRI LANKA. THIS DISPARITY IS A MAJOR DRIVER OF SRI LANKA'S ONGOING ETHNIC C… Key points: 1. The CORE program targets a significant socio-economic issue in Sri Lanka, aiming for long-term stability. 2. Services Group Inc. was awarded this contract, indicating a specific capability match for the program's needs. 3. The contract duration of 1520 days suggests a substantial, multi-year commitment to the program's objectives. 4. The program's focus on regional economic development highlights a strategic approach to conflict resolution. 5. This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category encompassing diverse expertise.

Value Assessment

Rating: fair

The total award amount of $117 million for a 1520-day contract suggests a significant investment in economic development. Without specific performance metrics or benchmarks for similar international development programs, a precise value-for-money assessment is challenging. However, the scale of the funding indicates a belief in the program's potential impact on a critical issue like ethnic conflict.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is generally expected to yield competitive pricing and identify the most capable contractor. The presence of 7 bidders indicates a healthy level of interest and competition for this type of development contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a range of providers to offer their best pricing and solutions, potentially leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the populations in the North and East regions of Sri Lanka, aiming to improve their economic standing. The program delivers economic development services designed to bridge the gap between underdeveloped and developed regions. Geographic impact is concentrated in Sri Lanka, specifically targeting disparities between the North/East and other parts of the country. Workforce implications may include local employment opportunities created through the implementation of economic growth initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not carefully managed.
Measuring the direct impact of economic development programs on complex issues like ethnic conflict can be challenging.
Long-term sustainability of economic gains beyond the contract period requires careful planning and local capacity building.

Positive Signals

The program directly addresses a root cause of ethnic conflict, indicating a strategic and potentially high-impact intervention.
Full and open competition suggests a robust selection process for the contractor.
The significant funding allocated signals a strong commitment from USAID to achieving the program's goals.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to international development and economic growth. The market for such services is global, with numerous firms specializing in development consulting, program management, and technical assistance. The $117 million award is substantial for a single contract in this domain, reflecting the complexity and scale of the development challenges in Sri Lanka.

Small Business Impact

While the contract was awarded through full and open competition, there is no explicit information regarding small business set-asides for this particular award. The prime contractor, The Services Group Inc., will determine subcontracting opportunities. The impact on the small business ecosystem will depend on whether the prime contractor actively seeks to engage small businesses for specialized services within the program's scope.

Oversight & Accountability

Oversight for this USAID contract would typically be managed by the Agency for International Development's own Inspector General (IG) and program officers. Accountability measures would be embedded in the contract's performance work statement, requiring regular reporting and adherence to milestones. Transparency is generally maintained through public contract databases and reporting requirements, though specific project-level details might be limited.

Related Government Programs

USAID Economic Growth Programs
International Development Assistance
Conflict Resolution Programs
Regional Economic Development Initiatives
Technical Assistance Contracts

Risk Flags

Potential for political instability impacting program continuity.
Risk of exacerbating ethnic tensions if program benefits are unevenly distributed.
Challenges in measuring direct impact on conflict reduction.
Security concerns in certain regions affecting program access and operations.
Dependency on long-term funding and sustainability beyond contract period.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $11.7 million to THE SERVICES GROUP INC. BUILDING ON EARLIER AND ONGOING MISSION ECONOMIC GROWTH PROGRAMS, THE CONNECTING REGIONAL ECONOMIES (CORE) SEEKS TO ADDRESS THE DISPARITY IN ECONOMIC DEVELOPMENT BETWEEN THE NORTH AND EAST AND THE REST OF SRI LANKA. THIS DISPARITY IS A MAJOR DRIVER OF SRI LANKA'S ONGOING ETHNIC CONFLICT.

Who is the contractor on this award?

The obligated recipient is THE SERVICES GROUP 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 $11.7 million.

What is the period of performance?

Start: 2008-02-01. End: 2012-03-31.

What is the track record of The Services Group Inc. in managing large-scale international development contracts, particularly in conflict-affected regions?

The Services Group Inc. (TSGi) has a history of working on U.S. government contracts, including those with USAID. Their portfolio often includes technical assistance, program management, and support services for development initiatives. To fully assess their track record for this specific $117 million CORE program, a deeper dive into their past performance on similar-sized contracts, especially those focused on economic development in regions with ethnic tensions, would be necessary. This would involve reviewing past performance evaluations, any documented challenges or successes, and their experience in adapting programs to complex socio-political environments. Without specific details on TSGi's prior performance in Sri Lanka or comparable contexts, it's difficult to definitively gauge their suitability beyond the fact they were selected through a competitive process.

How does the $117 million award compare to other USAID economic development programs aimed at conflict reduction?

The $117 million award for the Connecting Regional Economies (CORE) program is a significant investment, placing it among larger-scale USAID initiatives. USAID funds a wide array of economic development programs globally, with funding levels varying based on the country's needs, the program's scope, and the duration. Programs targeting complex issues like ethnic conflict often require substantial, long-term funding to achieve sustainable results. Comparing CORE to other USAID programs would involve looking at the average award size for similar objectives (e.g., economic growth, peacebuilding, regional development) in other countries or regions facing similar challenges. While specific benchmarks are hard to provide without a detailed comparative analysis of USAID's entire portfolio, the scale of CORE suggests a high priority placed on addressing Sri Lanka's economic disparities and their link to conflict.

What are the key performance indicators (KPIs) used to measure the success of the CORE program, and how are they tracked?

The success of the CORE program would be measured through a set of Key Performance Indicators (KPIs) defined in its Performance Work Statement (PWS). These KPIs are designed to track progress towards the program's objectives, such as reducing economic disparities between regions and mitigating factors contributing to ethnic conflict. Typical KPIs might include metrics related to job creation, increased income levels in target regions, investment in underdeveloped areas, improved access to markets, and potentially indicators of social cohesion or reduced conflict incidents. USAID program officers and potentially an independent monitoring and evaluation (M&E) team would be responsible for tracking these KPIs through regular reporting from the contractor, site visits, and data collection. The effectiveness of the program hinges on the relevance and measurability of these KPIs and the rigor of the M&E framework.

What is the historical spending trend for USAID programs in Sri Lanka, and how does the CORE program fit within that context?

USAID's historical spending in Sri Lanka has varied over the years, often reflecting the country's political and economic situation, as well as U.S. foreign policy priorities. Historically, USAID has supported various sectors including economic growth, health, education, and democracy and governance. The $117 million CORE program represents a substantial commitment within a specific timeframe (2008-2012). To understand its context, one would need to examine USAID's annual reports and budget allocations for Sri Lanka during that period and compare the CORE funding to other concurrent programs. This would reveal whether CORE was a flagship initiative or part of a broader strategy. Understanding past spending patterns can help assess the consistency of U.S. engagement and the strategic importance placed on economic development and conflict mitigation in Sri Lanka.

What are the potential risks associated with implementing a large-scale economic development program in a region with a history of ethnic conflict?

Implementing a large-scale economic development program like CORE in a region with a history of ethnic conflict presents several significant risks. Political instability and shifts in government policy can disrupt program implementation and sustainability. Security concerns may limit access to certain areas or increase operational costs. Deep-seated ethnic tensions could undermine development efforts if not carefully managed, potentially leading to the program being perceived as favoring one group over another, exacerbating conflict. Furthermore, corruption or mismanagement of funds can divert resources and hinder progress. Economic risks include market volatility, lack of absorptive capacity for new investments, and potential dependency on external aid. Finally, cultural and social barriers can impede the adoption of new economic practices or initiatives.

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: 2300 CLARENDON BLVD # 1110, ARLINGTON, VA, 08

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: $192,386,406

Exercised Options: $141,424,087

Current Obligation: $11,700,000

Timeline