USAID Spends $57.8M on Colombian Governance to Reduce Conflict, Boosting State Legitimacy

Contract Overview

Contract Amount: $57,802,986 ($57.8M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2015-06-22

End Date: 2021-06-21

Contract Duration: 2,191 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REGIONAL GOVERNANCE ACTIVITY (RGA) WILL IMPROVE SUB-NATIONAL GOVERNANCE IN 40 CONFLICT-AFFECTED MUNICIPALITIES OF COLOMBIA THROUGH BUILDING MUNICIPAL CAPACITY TO EFFECTIVELY DELIVER SERVICES TO CITIZENS AND HENCE INCREASE LEGITIMACY OF THE STATE AT THE LOCAL LEVEL. INCREASED LEGITIMACY WILL CONTRIBUTE TO MINIMIZING CONFLICT. ''IGF::CL::IGF''

Plain-Language Summary

Agency for International Development obligated $57.8 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: REGIONAL GOVERNANCE ACTIVITY (RGA) WILL IMPROVE SUB-NATIONAL GOVERNANCE IN 40 CONFLICT-AFFECTED MUNICIPALITIES OF COLOMBIA THROUGH BUILDING MUNICIPAL CAPACITY TO EFFECTIVELY DELIVER SERVICES TO CITIZENS AND HENCE INCREASE LEGITIMACY OF THE STATE AT THE LOCAL LEVEL. INCREASED LEGI… Key points: 1. Focuses on improving sub-national governance in 40 conflict-affected Colombian municipalities. 2. Aims to increase state legitimacy by enhancing municipal service delivery. 3. Contract awarded via full and open competition, suggesting market availability. 4. Potential for significant impact on conflict minimization through improved local governance.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The total award amount is substantial, but the per-unit cost for improving governance across 40 municipalities is difficult to benchmark without more granular data on specific services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: Taxpayer funds are being used to address a critical development and security issue in Colombia, with the potential for long-term stability benefits.

Public Impact

Enhances citizen access to essential services in underserved regions. Strengthens local government capacity, fostering sustainable development. Aims to reduce the drivers of conflict and promote peace. Increases the perceived legitimacy and effectiveness of the state at the local level. Supports U.S. foreign policy objectives in Latin America.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration (6 years) increases risk of scope creep or changing needs.
Success is highly dependent on local political will and stability.
Measuring direct impact on conflict reduction can be challenging.

Positive Signals

Addresses a critical development and security need.
Full and open competition suggests a robust market and potential for value.
Focus on capacity building offers sustainable, long-term benefits.
Clear objective to increase state legitimacy and service delivery.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically related to governance and public administration. Spending in this sector often focuses on capacity building, policy development, and program implementation in developing or post-conflict regions.

Small Business Impact

The data indicates the primary contractor is Management Systems International, Inc. There is no explicit mention of small business participation in this specific contract award, suggesting it may not have been a primary focus or was subcontracted.

Oversight & Accountability

USAID's oversight is crucial for a Cost Plus Fixed Fee contract of this magnitude and duration. Regular performance reviews, financial audits, and impact assessments will be necessary to ensure funds are used effectively and objectives are met.

Related Government Programs

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

Risk Flags

Dependency on local political stability and cooperation.
Difficulty in isolating the impact of the program on conflict reduction.
Potential for corruption or mismanagement of funds at the municipal level.
Challenges in adapting to evolving conflict dynamics and local needs over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $57.8 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. REGIONAL GOVERNANCE ACTIVITY (RGA) WILL IMPROVE SUB-NATIONAL GOVERNANCE IN 40 CONFLICT-AFFECTED MUNICIPALITIES OF COLOMBIA THROUGH BUILDING MUNICIPAL CAPACITY TO EFFECTIVELY DELIVER SERVICES TO CITIZENS AND HENCE INCREASE LEGITIMACY OF THE STATE AT THE LOCAL LEVEL. INCREASED LEGITIMACY WILL CONTRIBUTE TO MINIMIZING CONFLICT. ''IGF::CL::IGF''

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 $57.8 million.

What is the period of performance?

Start: 2015-06-22. End: 2021-06-21.

How will the effectiveness of improved municipal capacity be measured in relation to conflict minimization?

Effectiveness will likely be measured through a combination of quantitative and qualitative indicators. Quantitative metrics could include increased service delivery rates (e.g., water, sanitation, education), improved local revenue collection, and reduced reported incidents of violence. Qualitative assessments would involve citizen satisfaction surveys, focus groups with community leaders, and expert evaluations of governance reforms and state-citizen interactions.

What are the primary risks associated with the Cost Plus Fixed Fee contract structure in this context?

The primary risk with a Cost Plus Fixed Fee (CPFF) structure is the potential for the contractor to incur higher costs than anticipated, as the government agrees to cover all allowable costs plus a predetermined fixed fee. This can lead to budget overruns if cost controls are weak or if unforeseen challenges significantly inflate expenses. Effective oversight is critical to monitor costs and ensure efficiency.

What is the anticipated return on investment for the $57.8 million expenditure in terms of long-term stability and economic development?

The return on investment is expected to manifest in reduced conflict, increased citizen trust in government, and improved local economic conditions. While difficult to quantify precisely, enhanced governance and service delivery can create a more stable environment attractive to investment, reduce the costs associated with conflict, and foster sustainable development, ultimately yielding significant long-term economic and social benefits.

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

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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: $63,226,742

Exercised Options: $63,226,742

Current Obligation: $57,802,986

Actual Outlays: $11,926,800

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $779,742,403

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1300042

IDV Type: IDC

Timeline