USAID's IFACS contract awarded to ARD, INC. for $40.7M over 12 years for forestry and climate support

Contract Overview

Contract Amount: $40,771,596 ($40.8M)

Contractor: ARD, Inc.

Awarding Agency: Agency for International Development

Start Date: 2010-10-29

End Date: 2022-12-07

Contract Duration: 4,422 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IFACS IS THE NEW INDONESIA FORESTRY AND CLIMATE SUPPORT CONTRACT TO BE PROCURED

Plain-Language Summary

Agency for International Development obligated $40.8 million to ARD, INC. for work described as: IFACS IS THE NEW INDONESIA FORESTRY AND CLIMATE SUPPORT CONTRACT TO BE PROCURED Key points: 1. The contract demonstrates long-term commitment to forestry and climate initiatives. 2. A 12-year duration suggests a strategic, ongoing need for these services. 3. The contract was awarded through full and open competition, indicating a robust bidding process. 4. The administrative management and general management consulting services category points to a broad scope of support. 5. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight of costs. 6. The contract's significant duration and value highlight its importance within USAID's program portfolio.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging due to its long duration and specific focus on forestry and climate support. However, the total award amount of approximately $40.7 million spread over 12 years suggests a moderate annual expenditure. Without specific deliverables or performance metrics, a direct comparison to similar contracts is difficult. The cost-plus-fixed-fee (CPFF) structure implies that costs are reimbursed, plus a fixed fee for profit, which can be efficient for complex projects but necessitates strong financial oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. This typically leads to a more competitive environment, potentially resulting in better pricing and service offerings for the government. The fact that it was competed broadly suggests that multiple firms were interested and capable of performing the required services, which is a positive indicator for price discovery and overall value.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower costs and access to a wider range of innovative solutions. It ensures that the government is not limited to a single provider, fostering a market that drives efficiency and effectiveness.

Public Impact

The primary beneficiaries are likely developing countries receiving support for forestry management and climate change mitigation efforts. Services delivered would encompass technical assistance, program management, and policy advice related to environmental sustainability. The geographic impact is expected to be global, focusing on regions where USAID implements forestry and climate programs. Workforce implications could include employment for consultants, technical experts, and program managers in both the US and host countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-fixed-fee structure requires diligent monitoring to prevent cost overruns and ensure the fixed fee remains reasonable.
The long contract duration of 12 years necessitates ongoing performance evaluation to ensure continued relevance and effectiveness.
Defining and measuring success for complex forestry and climate support programs can be challenging, requiring clear performance indicators.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process and potential for good value.
The significant duration suggests a strategic alignment with long-term U.S. foreign policy goals in climate and environment.
The contract supports critical global issues of forestry and climate change, aligning with international priorities.

Sector Analysis

This contract falls within the professional services sector, specifically administrative management and general management consulting. This broad category often includes services related to program management, technical assistance, and policy development. The market for such services is competitive, with numerous firms offering expertise in international development, environmental policy, and climate science. The value of this contract, while substantial, is within the range for large, long-term development projects managed by agencies like USAID.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given its size and duration, it is likely that larger, established firms were the primary bidders. However, the prime contractor, ARD, INC., may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily be conducted by the Agency for International Development (USAID). Mechanisms likely include regular performance reviews, financial audits, and progress reporting by the contractor. Transparency is typically managed through contract award databases and public reporting of program activities. The Inspector General's office for USAID would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

USAID Forestry Programs
USAID Climate Change Programs
International Development Assistance
Global Environmental Management Contracts
Foreign Assistance Act Programs

Risk Flags

Long contract duration may lead to outdated strategies if not actively managed.
Cost-plus-fixed-fee requires robust oversight to ensure cost control.
Complexity of forestry and climate issues requires adaptive management.
Potential for shifts in political or funding priorities over 12 years.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $40.8 million to ARD, INC.. IFACS IS THE NEW INDONESIA FORESTRY AND CLIMATE SUPPORT CONTRACT TO BE PROCURED

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 $40.8 million.

What is the period of performance?

Start: 2010-10-29. End: 2022-12-07.

What specific forestry and climate support activities has ARD, INC. undertaken under this contract?

The provided data does not detail the specific activities performed by ARD, INC. under the IFACS contract. However, based on the contract's description as 'Indonesia Forestry and Climate Support' and its classification under 'Administrative Management and General Management Consulting Services,' typical activities would likely include providing technical expertise for sustainable forest management, supporting climate change adaptation and mitigation strategies, assisting with policy development and implementation, facilitating stakeholder engagement, and managing program implementation in Indonesia. Further details would require access to contract performance reports or USAID's program documentation.

How does the annual spending on this contract compare to other USAID environmental programs?

The total award of $40.7 million over approximately 12 years averages to roughly $3.4 million per year. To compare this to other USAID environmental programs, one would need to analyze USAID's annual budget allocations and contract awards specifically for environmental, forestry, and climate initiatives across different countries and projects. Without access to USAID's comprehensive spending data for comparable programs, a direct benchmark is not feasible. However, $3.4 million annually for a large, long-term country-specific program is a moderate figure within the context of major international development assistance.

What are the key performance indicators (KPIs) used to measure the success of the IFACS contract?

The provided data does not specify the Key Performance Indicators (KPIs) for the IFACS contract. Typically, for forestry and climate support contracts, KPIs would be established in the contract's Statement of Work (SOW) and could include metrics related to forest cover change, greenhouse gas emission reductions, biodiversity conservation, community engagement in forest management, policy reforms enacted, and capacity building of local institutions. The success of a Cost Plus Fixed Fee contract is also measured by the contractor's ability to manage costs within the agreed-upon budget while achieving the defined performance objectives.

What is ARD, INC.'s track record with USAID and similar government contracts?

ARD, INC. has a history of working with USAID and other government agencies on international development projects. While specific details of their past performance on forestry and climate-related contracts are not provided here, their selection as the prime contractor for a significant 12-year program like IFACS suggests a demonstrated capability and a positive track record with USAID. Companies in this space often specialize in areas like environmental management, natural resource management, and economic development. A deeper dive into ARD, INC.'s contract history would reveal the scope and success of their previous engagements.

What risks are associated with a 12-year contract for forestry and climate support?

A 12-year contract duration presents several risks. Firstly, the rapidly evolving nature of climate science and policy means that the contract's objectives and methodologies may need to adapt significantly over its lifespan, potentially leading to scope creep or the need for contract modifications. Secondly, long-term funding stability can be a concern, as future appropriations are subject to political and economic shifts. Thirdly, maintaining contractor performance and engagement at a high level over such an extended period can be challenging. Finally, the geopolitical and environmental landscape in Indonesia could change, impacting the effectiveness and relevance of the program.

How does the 'Administrative Management and General Management Consulting Services' NAICS code align with forestry and climate support?

The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' is a broad category that encompasses a wide range of advisory and assistance services. While not specific to environmental science, it is highly relevant for managing complex, multi-year international development programs like the IFACS contract. This code covers strategic planning, program management, organizational development, and operational improvement. For a project focused on forestry and climate support, these consulting services would be crucial for designing effective strategies, managing implementation, coordinating stakeholders, and ensuring the program aligns with USAID's overall development objectives and policies.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 159 BANK ST, BURLINGTON, VT, 05401

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,771,596

Exercised Options: $40,771,596

Current Obligation: $40,771,596

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDEPPI000600008

IDV Type: IDC

Timeline