USAID contract for performance management support awarded to Management Systems International for $51.25M

Contract Overview

Contract Amount: $51,250,000 ($51.3M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2015-05-01

End Date: 2023-12-31

Contract Duration: 3,166 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF USAID/PAKISTAN'S PERFORMANCE MANAGEMENT SUPPORT CONTRACT - PERFORM WITH MANAGEMENT SYSTEMS INTERNATIONAL FOR PROVISION OF TECHNICAL SERVICES TO IMPLEMENT THE PERFORM CONTRACT.

Plain-Language Summary

Agency for International Development obligated $51.3 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: IGF::OT::IGF USAID/PAKISTAN'S PERFORMANCE MANAGEMENT SUPPORT CONTRACT - PERFORM WITH MANAGEMENT SYSTEMS INTERNATIONAL FOR PROVISION OF TECHNICAL SERVICES TO IMPLEMENT THE PERFORM CONTRACT. Key points: 1. Contract value of $51.25M over 8 years suggests a significant investment in performance management. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not carefully managed. 4. Performance context is crucial; the effectiveness of technical services for USAID Pakistan needs detailed evaluation. 5. Sector positioning within professional, scientific, and technical services is broad, requiring specific analysis of the services rendered.

Value Assessment

Rating: fair

The contract value of $51.25M over approximately 8 years averages to about $6.4M annually. Benchmarking this against similar performance management support contracts for USAID missions would be necessary to assess value for money. Without specific details on the services provided and their impact, it's difficult to definitively assess pricing or value. The Cost Plus Fixed Fee (CPFF) contract type, while common, carries inherent risks of cost escalation if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The number of bidders (2) is on the lower side for a full and open competition of this value, which might indicate limited market interest or a highly specialized service. This level of competition generally promotes price discovery, but the actual impact depends on the rigor of the evaluation process and the number of truly qualified bidders.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers, as it aims to secure the best value. However, with only two bidders, the potential for robust price competition may have been constrained.

Public Impact

Beneficiaries include USAID Pakistan mission staff who receive technical assistance to improve program performance. Services delivered focus on performance management, likely encompassing monitoring, evaluation, data analysis, and reporting. Geographic impact is centered on Pakistan, supporting the effectiveness of U.S. foreign assistance programs in the region. Workforce implications may involve local staff in Pakistan being trained or working alongside the contractor to build capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to incur costs to increase the fixed fee.
Limited number of bidders (2) in a full and open competition may suggest potential market concentration or high barriers to entry.
The long duration (8 years) increases the risk of scope creep or misalignment with evolving program needs.

Positive Signals

Awarded through full and open competition, indicating an attempt to maximize the pool of potential offerors.
The contract aims to improve the effectiveness of USAID's performance management, which is critical for aid delivery.
Long-term nature of the contract allows for sustained support and capacity building within the mission.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and technical consulting. The market for such services supporting government agencies, particularly in international development, is substantial. Comparable spending benchmarks would involve analyzing other USAID contracts for similar performance management support across different missions or other agencies with large overseas operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve subcontracting opportunities.

Oversight & Accountability

Oversight mechanisms would typically involve USAID's contracting officers, program officers, and potentially the Office of Inspector General (OIG) for audits and investigations. Transparency is assessed through contract award data availability and reporting requirements. The effectiveness of oversight depends on the diligence of these bodies in monitoring performance and costs.

Related Government Programs

USAID Performance Management Support
USAID Monitoring and Evaluation Contracts
Technical Assistance Contracts for Foreign Aid
Professional and Technical Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Limited number of bidders in full and open competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $51.3 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. IGF::OT::IGF USAID/PAKISTAN'S PERFORMANCE MANAGEMENT SUPPORT CONTRACT - PERFORM WITH MANAGEMENT SYSTEMS INTERNATIONAL FOR PROVISION OF TECHNICAL SERVICES TO IMPLEMENT THE PERFORM CONTRACT.

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 $51.3 million.

What is the period of performance?

Start: 2015-05-01. End: 2023-12-31.

What specific technical services were provided under this contract, and how were they measured for success?

The contract description states 'Provision of technical services to implement the PERFORM contract.' PERFORM likely refers to a broader USAID initiative or framework for performance management. Specific services would typically include developing performance monitoring plans, designing data collection tools, conducting data analysis, facilitating performance review meetings, and preparing performance reports. Success would be measured against predefined performance indicators (KPIs) outlined in the contract's Statement of Work (SOW) and task orders. These KPIs might relate to the timeliness and quality of reports, the accuracy of data collected, the extent to which findings informed program adjustments, and the overall improvement in the mission's ability to track and manage its portfolio.

How does the annual cost of this contract compare to similar performance management support contracts for USAID missions in other countries?

The annual cost averages approximately $6.4 million ($51.25M / 8 years). To benchmark this effectively, one would need to identify comparable contracts awarded by USAID for performance management support to other missions of similar size and scope in regions with comparable operational complexities. Factors such as the number of programs supported, the criticality of the sectors (e.g., health, economic development, security), and the local cost environment in Pakistan versus other countries would influence pricing. A detailed analysis would involve comparing contract values, durations, scope of work, and contractor performance ratings for a statistically relevant sample of similar contracts.

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

The primary risk with a CPFF contract is the potential for cost overruns. While the fee is fixed, the contractor is reimbursed for all allowable costs. This structure can incentivize the contractor to incur higher costs, as the fixed fee remains constant regardless of the total cost incurred. For a contract of $51.25M over 8 years, risks include scope creep, where the project's objectives expand beyond the original agreement without corresponding adjustments to the fee or timeline, leading to increased costs. Inadequate cost monitoring and control by the government can exacerbate these risks. Furthermore, the long duration increases the likelihood of changes in program priorities or the external environment, necessitating contract modifications that could impact costs.

Given the limited number of bidders (2), what does this suggest about the contractor's track record and the market for these services?

A limited number of bidders (2) in a full and open competition could suggest several things. It might indicate that Management Systems International (MSI) has a strong, established track record and specialized expertise that makes them a preferred or dominant player in this specific niche of performance management support for USAID. Alternatively, it could point to high barriers to entry for other potential contractors, such as stringent qualification requirements, complex proposal preparation, or a perception that the contract's profitability or scope is limited. It may also reflect a concentrated market where only a few firms possess the necessary capabilities and security clearances for operating in Pakistan. Without further data on other potential bidders and the solicitation details, it's difficult to definitively conclude.

How has USAID's spending on performance management support in Pakistan evolved over time, and does this contract represent a significant shift?

To answer this, one would need historical spending data for performance management support contracts in Pakistan, not just for USAID but potentially for other donors as well. This specific contract, valued at $51.25M over 8 years, represents a substantial and long-term commitment. If historical spending has been project-based, shorter-term, or significantly lower in aggregate, then this contract could represent a strategic shift towards more integrated and sustained performance management capacity building. Analyzing trends in contract types (e.g., from T&M to CPFF or FFP), competition levels, and average contract values over the past decade would provide context on whether this award is an anomaly or part of a broader pattern.

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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 200 12TH ST SOUTH, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $96,422,338

Exercised Options: $96,422,338

Current Obligation: $51,250,000

Actual Outlays: $4,296,885

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $15,576,067

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline