USAID's $48.2M contract for Indonesian water and sanitation services awarded to DAI Global LLC

Contract Overview

Contract Amount: $48,234,795 ($48.2M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2016-06-22

End Date: 2022-02-21

Contract Duration: 2,070 days

Daily Burn Rate: $23.3K/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 INDONESIA URBAN WATER, SANITATION AND HYGIENE PENYEHATAN LINGKUNGAN UNTUK SEMUA (IUWASH PLUS)PROJECT IGF::OT::IGF

Plain-Language Summary

Agency for International Development obligated $48.2 million to DAI GLOBAL LLC for work described as: IGF::OT::IGF INDONESIA URBAN WATER, SANITATION AND HYGIENE PENYEHATAN LINGKUNGAN UNTUK SEMUA (IUWASH PLUS)PROJECT IGF::OT::IGF Key points: 1. Contract aimed to improve water, sanitation, and hygiene in Indonesia. 2. Value-for-money assessment is pending further analysis of performance metrics. 3. Competition dynamics indicate a full and open process. 4. Risk indicators include the complexity of international development projects. 5. Performance context involves a multi-year effort to achieve sustainable outcomes. 6. Sector positioning is within international development assistance for public health. 7. The contract duration was substantial, spanning over 2000 days.

Value Assessment

Rating: fair

The contract value of $48.2 million over approximately 5.7 years represents a significant investment in international development. Benchmarking this against similar USAID-funded projects in the water, sanitation, and hygiene (WASH) sector in Southeast Asia would provide a clearer picture of value for money. Without specific performance data and cost breakdowns per deliverable, a definitive assessment of cost-effectiveness is challenging. However, the fixed-fee structure suggests an attempt to control costs while incentivizing performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but a full and open competition generally fosters a competitive environment, which can lead to better pricing and innovative solutions. This approach allows the agency to select the offer that best meets the technical and cost requirements.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

Beneficiaries include Indonesian communities lacking access to safe water and sanitation. Services delivered encompass technical assistance, capacity building, and program implementation for WASH initiatives. Geographic impact is focused on various regions within Indonesia. Workforce implications include local employment opportunities and capacity development for Indonesian professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of implementing large-scale development projects in a foreign country.
Potential for cost overruns in long-term international contracts.
Ensuring sustainable impact beyond the contract period.
Monitoring and evaluation challenges in diverse geographic locations.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration of over 2000 days indicates a commitment to long-term impact.
Focus on essential services like water, sanitation, and hygiene addresses critical development needs.

Sector Analysis

This contract falls within the international development and technical services sector, specifically focusing on public health and infrastructure in developing nations. The market for such services is characterized by a mix of large international consulting firms and specialized non-governmental organizations. USAID, as a major funder, plays a significant role in shaping this market through its procurement processes. Comparable spending benchmarks would involve looking at other large-scale WASH projects funded by international donors in similar regions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, large international development contracts often include provisions for subcontracting to local entities or smaller specialized firms, which can benefit the small business ecosystem in the host country. Further review of the contract's subcontracting clauses would be necessary for a comprehensive analysis.

Oversight & Accountability

Oversight for this contract would typically be provided by USAID's Inspector General (IG) and relevant program officers. Accountability measures would be embedded in the contract's performance work statement, requiring regular reporting and adherence to milestones. Transparency is generally facilitated through public contract databases, though detailed programmatic data may be less accessible.

Related Government Programs

USAID Global Health Programs
USAID Water and Development Strategy
Millennium Challenge Corporation Projects
World Bank Water Sector Investments

Risk Flags

International development projects carry inherent complexities and risks.
Long contract durations can increase exposure to changing conditions.
Performance data is crucial for a complete value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $48.2 million to DAI GLOBAL LLC. IGF::OT::IGF INDONESIA URBAN WATER, SANITATION AND HYGIENE PENYEHATAN LINGKUNGAN UNTUK SEMUA (IUWASH PLUS)PROJECT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is DAI GLOBAL LLC.

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 $48.2 million.

What is the period of performance?

Start: 2016-06-22. End: 2022-02-21.

What was the specific performance of DAI Global LLC on this contract?

Detailed performance metrics for DAI Global LLC on the IUWASH PLUS project are not fully available in the provided summary data. However, the contract's objective was to improve water, sanitation, and hygiene (WASH) in Indonesia. Success would typically be measured by indicators such as increased access to safe drinking water, improved sanitation facilities, adoption of hygiene practices, and strengthened local institutional capacity for WASH service delivery. USAID's internal evaluations and final reports would contain the most comprehensive assessment of DAI's performance, including achievements against targets and any challenges encountered. The contract's duration and value suggest a significant undertaking, implying that performance monitoring was a key component throughout its lifecycle.

How does the cost of this contract compare to similar international WASH projects?

Direct cost comparison is difficult without specific benchmarks for similar USAID-funded WASH projects in Indonesia or comparable countries over the same period. The total contract value of $48.2 million over approximately 5.7 years averages around $8.4 million per year. This figure needs to be contextualized by the scope of work, the specific regions targeted, the intensity of interventions, and the prevailing costs of goods and services in Indonesia. Factors such as the complexity of the local context, the number of beneficiaries reached, and the sustainability of outcomes are crucial for a true value-for-money assessment. USAID's internal cost-benefit analyses or reports from organizations like the World Bank or Asian Development Bank working on similar initiatives could offer comparative insights.

What were the primary risks associated with this contract, and how were they managed?

Primary risks for a contract of this nature in international development often include political instability, corruption, logistical challenges in remote areas, currency fluctuations, cultural barriers, and the potential for natural disasters impacting project sites. Additionally, ensuring the sustainability of interventions after the contract ends is a significant risk. Risk management strategies would have likely involved thorough due diligence, robust monitoring and evaluation frameworks, contingency planning, strong local partnerships, and adaptive management approaches to address unforeseen issues. USAID's contract oversight and DAI's project management protocols would have been critical in identifying, assessing, and mitigating these risks throughout the contract period.

What was the overall effectiveness of the IUWASH PLUS project in achieving its stated goals?

The overall effectiveness of the IUWASH PLUS project hinges on the achievement of its specific objectives related to improving water, sanitation, and hygiene in Indonesia. While the provided data confirms the contract's existence and funding, it does not detail the project's outcomes. Typically, effectiveness would be gauged by metrics such as the percentage increase in households with access to improved water sources, the reduction in open defecation rates, the number of people adopting key hygiene behaviors, and the strengthening of local government capacity to manage WASH services. A comprehensive assessment would require reviewing USAID's final project reports and independent evaluations to determine the extent to which these goals were met and the long-term impact on public health and well-being.

How has USAID's spending in the Indonesian WASH sector evolved over time?

The provided data focuses on a single contract awarded in 2016. To understand USAID's evolving spending in the Indonesian WASH sector, a broader analysis of historical funding trends would be necessary. This would involve examining annual reports, budget allocations, and the portfolio of awarded contracts and grants over multiple fiscal years. Such an analysis could reveal patterns in funding levels, shifts in programmatic focus (e.g., from infrastructure to behavior change), and the impact of geopolitical or economic factors on USAID's investment in Indonesia's WASH sector. Comparing spending across different administrations or development priorities could also provide valuable context.

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-497-15-000032

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7600 WISCONSIN AVE STE 200, BETHESDA, MD, 20814

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

Financial Breakdown

Contract Ceiling: $48,357,584

Exercised Options: $48,357,584

Current Obligation: $48,234,795

Actual Outlays: $26,359,723

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $3,812,372

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400049

IDV Type: IDC

Timeline