USAID's $76M Colombia Land Conflict Resolution Services Contract Awarded to ARD, Inc

Contract Overview

Contract Amount: $76,257,704 ($76.3M)

Contractor: ARD, Inc.

Awarding Agency: Agency for International Development

Start Date: 2013-07-25

End Date: 2019-09-16

Contract Duration: 2,244 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF - THE PURPOSE OF THIS NEGOTIATION IS TO ISSUE A TASK ORDER FOR THE ACQUISITION OF SERVICES TO SUPPORT THE DEVELOPMENT OF TOOLS, SYSTEMS, AND SKILLS TO ENABLE USAID TO SUPPORT THE GOVERNMENT OF COLOMBIA S (GOC) EFFORTS TO FULFILL ITS MANDATE TO RESOLVE THE LAND ISSUES AT THE HEART OF THE CONFLICT.

Plain-Language Summary

Agency for International Development obligated $76.3 million to ARD, INC. for work described as: IGF::CL::IGF - THE PURPOSE OF THIS NEGOTIATION IS TO ISSUE A TASK ORDER FOR THE ACQUISITION OF SERVICES TO SUPPORT THE DEVELOPMENT OF TOOLS, SYSTEMS, AND SKILLS TO ENABLE USAID TO SUPPORT THE GOVERNMENT OF COLOMBIA S (GOC) EFFORTS TO FULFILL ITS MANDATE TO RESOLVE THE LAND ISSUES… Key points: 1. Contract supports critical development of tools and skills for land issue resolution in Colombia. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial (2244 days), indicating a long-term commitment. 4. Cost-plus-fixed-fee pricing structure may incentivize cost overruns if not closely monitored.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to higher costs than fixed-price contracts if not managed diligently. Benchmarking CPFF contracts for similar professional services is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the CPFF structure means the final price is not fixed upfront, and the agency must actively manage costs to ensure value.

Taxpayer Impact: Taxpayer funds are being used to address complex land issues in Colombia, aiming for conflict resolution and stability, which has indirect long-term benefits.

Public Impact

Supports U.S. foreign policy objectives in conflict resolution and stability. Aims to improve governance and land rights in Colombia. Potential for long-term positive impact on Colombian society and economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee pricing can lead to cost overruns.
Long contract duration requires sustained oversight.
Complexity of land issues may pose execution challenges.

Positive Signals

Addresses a critical development need.
Utilized full and open competition.
Supports U.S. diplomatic and development goals.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically related to international development and conflict resolution. Spending in this sector often involves complex, long-term projects requiring specialized expertise.

Small Business Impact

The data indicates the contract was not set aside for small businesses (sb: false). This suggests larger firms likely competed for and were awarded this contract.

Oversight & Accountability

The contract's long duration and CPFF structure necessitate robust oversight from USAID to ensure cost control, performance, and achievement of objectives. Regular reporting and performance reviews are crucial.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Cost Plus Fixed Fee pricing model.
Long contract duration.
Complexity of the problem domain (land conflict resolution).
Potential for scope creep without strict management.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $76.3 million to ARD, INC.. IGF::CL::IGF - THE PURPOSE OF THIS NEGOTIATION IS TO ISSUE A TASK ORDER FOR THE ACQUISITION OF SERVICES TO SUPPORT THE DEVELOPMENT OF TOOLS, SYSTEMS, AND SKILLS TO ENABLE USAID TO SUPPORT THE GOVERNMENT OF COLOMBIA S (GOC) EFFORTS TO FULFILL ITS MANDATE TO RESOLVE THE LAND ISSUES AT THE HEART OF THE CONFLICT.

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 $76.3 million.

What is the period of performance?

Start: 2013-07-25. End: 2019-09-16.

What specific metrics are used to measure the success of the tools, systems, and skills developed under this contract in resolving land issues?

The success metrics would likely focus on quantifiable outcomes such as the number of land disputes resolved, the efficiency of land titling processes, the reduction in land-related conflicts, and the perceived fairness of resolution mechanisms by affected communities. USAID's program office and the implementing contractor would collaboratively define these KPIs.

How does USAID ensure that the 'fixed fee' in the Cost Plus Fixed Fee contract adequately compensates ARD, Inc. without incentivizing unnecessary cost escalation?

The fixed fee is negotiated based on estimated effort and complexity, intended to represent profit. USAID's oversight involves scrutinizing cost proposals, monitoring expenditures against the estimated cost, and ensuring the contractor meets performance standards. The fee is fixed, but the total cost can vary, requiring diligent cost management.

What is the anticipated long-term impact of this program on the Colombian government's capacity to manage land issues independently after the contract ends?

The program aims to build sustainable capacity within the Colombian government by developing tools, systems, and skills. The long-term impact relies on effective knowledge transfer, institutionalization of developed processes, and ongoing commitment from the GOC. USAID likely includes transition plans and capacity-building components to ensure lasting self-sufficiency.

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-514-13-000007

Offers Received: 2

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: $76,257,704

Exercised Options: $76,257,704

Current Obligation: $76,257,704

Actual Outlays: $352,190

Subaward Activity

Number of Subawards: 102

Total Subaward Amount: $72,879,360

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: AIDOAAI1200032

IDV Type: IDC

Timeline