USAID contract for Indonesia's sustainable ecosystems project awarded to ARD, Inc. for over $31.8 million

Contract Overview

Contract Amount: $31,807,614 ($31.8M)

Contractor: ARD, Inc.

Awarding Agency: Agency for International Development

Start Date: 2016-03-21

End Date: 2021-03-22

Contract Duration: 1,827 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THE INTENT OF THIS CONTRACT IS TO PROVIDE TECHNICAL ASSISTANCE AND SERVICES FOR THE IMPLEMENTATION OF INDONESIA SUSTAINABLE ECOSYSTEM ADVANCED (SEA) PROJECT. THE WORK IS TO ENGAGE THE SERVICES OF A CONTRACTOR AS THE PRIMARY IMPLEMENTER AND COORDINATOR FOR THE USAID/INDONESIA SUSTAINABLE ECOSYSTEMS ADVANCED (SEA) PROJECT. THE SEA PROJECT COLLABORATES WITH THE GOVERNMENT OF INDONESIA (GOI) TO CONSERVE BIOLOGICAL DIVERSITY AND IMPROVE THE GOVERNANCE OF MARINE RESOURCES AT LOCAL, DISTRICT, PROVINCIAL, AND NATIONAL LEVELS IGF::OT::IGF

Plain-Language Summary

Agency for International Development obligated $31.8 million to ARD, INC. for work described as: IGF::OT::IGF THE INTENT OF THIS CONTRACT IS TO PROVIDE TECHNICAL ASSISTANCE AND SERVICES FOR THE IMPLEMENTATION OF INDONESIA SUSTAINABLE ECOSYSTEM ADVANCED (SEA) PROJECT. THE WORK IS TO ENGAGE THE SERVICES OF A CONTRACTOR AS THE PRIMARY IMPLEMENTER AND COORDINATOR FOR THE USAID/… Key points: 1. Contract aims to conserve biodiversity and improve marine resource governance in Indonesia. 2. Services include technical assistance and coordination for the USAID/Indonesia Sustainable Ecosystems Advanced (SEA) Project. 3. The project involves collaboration with the Government of Indonesia at multiple administrative levels. 4. This contract represents a significant investment in environmental conservation and resource management in the region. 5. The duration of the contract was over 5 years, indicating a long-term commitment to the project's goals. 6. The contract type, Cost Plus Fixed Fee, suggests a need for flexibility in project execution while maintaining cost control.

Value Assessment

Rating: good

The contract value of $31.8 million over approximately five years for a complex international development project focused on environmental conservation appears reasonable. Benchmarking against similar USAID-funded environmental or governance projects would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure, while allowing for flexibility, requires careful oversight to ensure costs remain aligned with project objectives and market rates for specialized technical assistance and coordination services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive better pricing and service quality. The number of bidders (6) suggests a healthy level of interest and competition for this type of specialized international development work.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better utilization of public funds.

Public Impact

The primary beneficiaries are the ecosystems and marine resources within Indonesia, aiming for conservation and improved governance. The Government of Indonesia benefits through enhanced capacity and collaboration in managing its natural resources. Local communities and stakeholders in Indonesia will benefit from improved environmental conditions and sustainable resource management practices. The project supports the U.S. government's foreign policy objectives related to environmental sustainability and international development. The workforce implications include employment for technical experts, project managers, and local staff involved in project implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Ensuring effective coordination between ARD, Inc., USAID, and the Government of Indonesia is critical for success.
Measuring and demonstrating tangible conservation outcomes and governance improvements can be challenging in complex ecosystems.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long contract duration (over 5 years) indicates a sustained commitment to achieving project goals.
Focus on biodiversity conservation and marine resource governance aligns with critical global environmental priorities.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting and technical assistance for international development. The market for such services is competitive, with numerous firms specializing in environmental, governance, and development projects. USAID, as a major development agency, frequently procures services of this nature to implement its global programs. Benchmarking would involve comparing the contract's scope and value to other large-scale environmental or governance projects managed by USAID or similar international development organizations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. The primary contractor, ARD, Inc., is a significant entity in the development sector. Further investigation would be needed to determine if any subcontracting opportunities were made available to small businesses, which could have provided them with valuable experience and revenue.

Oversight & Accountability

Oversight for this contract would primarily be conducted by USAID's contracting officers and program managers, ensuring adherence to the contract terms and objectives. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to monitor expenditures and ensure value for money. Transparency would be facilitated through regular reporting requirements from ARD, Inc. and potentially through public dissemination of project progress and outcomes by USAID.

Related Government Programs

USAID Environmental Programs
Biodiversity Conservation Initiatives
Marine Resource Management Projects
International Development Assistance
Sustainable Ecosystem Management

Risk Flags

Potential for cost creep in Cost Plus Fixed Fee contracts.
Complexity of coordinating with multiple government entities.
Measuring tangible conservation outcomes can be challenging.
Geopolitical risks in the region.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $31.8 million to ARD, INC.. IGF::OT::IGF THE INTENT OF THIS CONTRACT IS TO PROVIDE TECHNICAL ASSISTANCE AND SERVICES FOR THE IMPLEMENTATION OF INDONESIA SUSTAINABLE ECOSYSTEM ADVANCED (SEA) PROJECT. THE WORK IS TO ENGAGE THE SERVICES OF A CONTRACTOR AS THE PRIMARY IMPLEMENTER AND COORDINATOR FOR THE USAID/INDONESIA SUSTAINABLE ECOSYSTEMS ADVANCED (SEA) PROJECT. THE SEA PROJECT COLLABORATES WITH THE GOVERNMENT OF INDONESIA (GOI) TO CONSERVE BIOLOGICAL DIVERSITY AND IMPROVE THE GOVERNANCE OF MARINE RESOURCES AT LOCAL, DIST

Who is the contractor on this award?

The obligated recipient is ARD, 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 $31.8 million.

What is the period of performance?

Start: 2016-03-21. End: 2021-03-22.

What is ARD, Inc.'s track record with USAID and similar international development contracts?

ARD, Inc. (now part of Tetra Tech) has a substantial history of working with USAID and other development agencies on a wide range of projects, including environmental management, economic growth, and governance. Their experience often involves complex, multi-year initiatives in developing countries. A review of their past performance on similar contracts would reveal their ability to manage large budgets, coordinate with local governments, and achieve stated development objectives. Past performance evaluations and any past issues or successes would be critical to assessing their suitability and reliability for this specific project. Their extensive portfolio suggests a capacity to handle the technical and logistical demands of the Indonesia SEA Project.

How does the $31.8 million contract value compare to similar USAID environmental projects?

The $31.8 million contract value for the Indonesia SEA Project, spanning over five years, appears to be within the typical range for large-scale, multi-faceted international development initiatives focused on environmental conservation and governance. USAID often awards contracts of this magnitude for complex programs requiring extensive technical expertise, local coordination, and long-term implementation. To provide a precise comparison, one would need to benchmark against other USAID projects with similar scopes (e.g., biodiversity, marine conservation, natural resource management) in comparable geographic regions or countries. Factors such as the specific technical interventions, the number of implementing partners, and the duration would influence the overall cost. Without direct comparable data, the value seems commensurate with the project's ambitious goals.

What are the primary risks associated with implementing the Indonesia SEA Project, and how are they mitigated?

Key risks include political instability in the region affecting project continuity, challenges in coordinating effectively with multiple levels of the Indonesian government, potential for corruption, environmental factors impacting conservation efforts, and difficulties in achieving measurable conservation outcomes. Mitigation strategies likely involve robust stakeholder engagement, clear communication protocols with government counterparts, strong internal controls and auditing by ARD, Inc., and adaptive management approaches to adjust project activities based on monitoring and evaluation findings. USAID's oversight mechanisms also play a crucial role in identifying and addressing risks throughout the project lifecycle. The Cost Plus Fixed Fee contract type allows for flexibility but necessitates vigilant financial oversight to manage cost-related risks.

How effective has ARD, Inc. been in achieving conservation and governance goals in past projects?

Assessing the effectiveness of ARD, Inc. (now Tetra Tech) in past projects requires a detailed review of their final reports, independent evaluations, and USAID's performance assessments. Generally, firms of this size and experience have a mixed record, with successes in some areas and challenges in others. For the Indonesia SEA Project, effectiveness would be measured by indicators related to biodiversity protection, improved marine resource management practices, strengthened governance frameworks, and community engagement. Evidence of successful implementation of similar projects, such as measurable improvements in protected area management or reductions in illegal fishing, would be strong indicators of potential effectiveness. Conversely, any documented failures to meet targets or significant implementation hurdles would raise concerns.

What has been the historical spending trend for similar USAID environmental and governance programs?

USAID's historical spending on environmental and governance programs globally is substantial and has varied based on U.S. foreign policy priorities and budget allocations. Over the years, significant investments have been made in areas like biodiversity conservation, climate change adaptation, sustainable land management, and strengthening democratic institutions. Spending trends can be influenced by global events, emerging environmental challenges, and shifts in development aid strategies. Contracts like the Indonesia SEA Project represent a portion of this broader spending. Analyzing historical data for similar programs would reveal patterns in contract values, durations, and the types of services procured, providing context for the current contract's scale and scope.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-497-15-000007

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Address: 159 BANK ST STE 300, BURLINGTON, VT, 05401

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

Financial Breakdown

Contract Ceiling: $31,857,614

Exercised Options: $31,857,614

Current Obligation: $31,807,614

Actual Outlays: $11,837,195

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $60,398,156

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline