USAID's $71.6M contract for Honduras Local Governance activity to improve basic services

Contract Overview

Contract Amount: $71,582,412 ($71.6M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2016-11-14

End Date: 2025-02-26

Contract Duration: 3,026 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF - TO ACQUIRE PROFESSIONAL AND TECHNICAL SERVICES FOR IMPLEMENTATION OF THE HONDURAS LOCAL GOVERNANCE (HLG) ACTIVITY (HLG, FOR ITS ACRONYM IN ENGLISH). THE ACTIVITY WILL IMPROVE BASIC SERVICE PROVISION SYSTEMS IN THE EDUCATION, NUTRITION, AND WATER MANAGEMENT SECTORS, INCLUDING MANAGEMENT SYSTEMS FOR QUALITY AND ACCESS, THROUGH INCREASED CITIZEN INFLUENCE AND GOVERNANCE.

Plain-Language Summary

Agency for International Development obligated $71.6 million to DAI GLOBAL LLC for work described as: IGF::OT::IGF - TO ACQUIRE PROFESSIONAL AND TECHNICAL SERVICES FOR IMPLEMENTATION OF THE HONDURAS LOCAL GOVERNANCE (HLG) ACTIVITY (HLG, FOR ITS ACRONYM IN ENGLISH). THE ACTIVITY WILL IMPROVE BASIC SERVICE PROVISION SYSTEMS IN THE EDUCATION, NUTRITION, AND WATER MANAGEMENT SECTORS,… Key points: 1. Focuses on improving education, nutrition, and water management through citizen influence. 2. Contract duration extends over 9 years, indicating a long-term commitment. 3. Awarded via full and open competition, suggesting a broad search for qualified contractors. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. The primary contractor, DAI Global LLC, has experience in international development. 6. Performance period spans from late 2016 to early 2025. 7. The contract aims to enhance management systems for quality and access to services.

Value Assessment

Rating: good

The contract's value of $71.6 million over nearly 9 years for a complex international development activity appears reasonable. While direct comparisons are difficult without specific benchmarks for similar USAID governance programs in Honduras, the cost-plus-fixed-fee structure allows for flexibility while aiming for cost efficiency. The fixed fee component provides a clear incentive for the contractor to manage costs effectively to maximize their profit margin.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple potential bidders were solicited and evaluated. The presence of 5 bidders suggests a competitive environment, which generally leads to better pricing and service offerings for the government. This approach maximizes the opportunity to find the most capable and cost-effective solution.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds, ensuring that the contract price reflects market conditions and the capabilities of multiple firms.

Public Impact

Citizens in Honduras will benefit from improved basic services in education, nutrition, and water management. The activity aims to strengthen local governance systems, leading to more responsive and effective service delivery. Geographic impact is focused on local communities within Honduras. Workforce implications include local employment opportunities for implementing the activity and potential capacity building for local institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Complexity of implementing governance reforms in a developing country context presents execution risks.
Dependency on stable political and economic conditions in Honduras for successful program outcomes.
Ensuring equitable distribution of benefits across diverse local communities.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long contract duration allows for sustained impact and adaptive management.
Focus on measurable improvements in basic service provision.
Contractor's experience in international development is a positive signal for execution capability.

Sector Analysis

This contract falls within the broader 'Other Services' category, specifically professional and management development training, often associated with international development and foreign assistance. The market for such services is global, with numerous firms specializing in program implementation, technical assistance, and capacity building for governments and NGOs. USAID is a major procurer in this sector, with significant annual spending on activities aimed at promoting democracy, governance, and economic development worldwide.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this contract (sb: false). However, the prime contractor, DAI Global LLC, may engage small businesses as subcontractors to fulfill specific needs or reach local markets. The extent of subcontracting to small businesses would depend on the contractor's strategy and the specific requirements of the HLG activity.

Oversight & Accountability

Oversight for this contract would typically be managed by USAID's contracting officers and program officials, with potential involvement from USAID's Office of Inspector General (OIG) for audits and investigations. Performance monitoring, regular reporting requirements, and site visits are standard mechanisms to ensure accountability and transparency in the execution of development activities.

Related Government Programs

USAID Development Assistance
International Narcotics Control and Law Enforcement
Peace Corps Programs
Millennium Challenge Corporation

Risk Flags

Political Instability Risk
Corruption Risk
Security Concerns
Capacity Building Challenges
Sustainability of Reforms

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $71.6 million to DAI GLOBAL LLC. IGF::OT::IGF - TO ACQUIRE PROFESSIONAL AND TECHNICAL SERVICES FOR IMPLEMENTATION OF THE HONDURAS LOCAL GOVERNANCE (HLG) ACTIVITY (HLG, FOR ITS ACRONYM IN ENGLISH). THE ACTIVITY WILL IMPROVE BASIC SERVICE PROVISION SYSTEMS IN THE EDUCATION, NUTRITION, AND WATER MANAGEMENT SECTORS, INCLUDING MANAGEMENT SYSTEMS FOR QUALITY AND ACCESS, THROUGH INCREASED CITIZEN INFLUENCE AND GOVERNANCE.

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 $71.6 million.

What is the period of performance?

Start: 2016-11-14. End: 2025-02-26.

What is the track record of DAI Global LLC in managing similar USAID-funded governance projects?

DAI Global LLC has a substantial track record with USAID, having managed numerous contracts focused on economic growth, democracy and governance, and social development across various countries. Their experience often includes implementing complex, multi-year projects similar to the Honduras Local Governance (HLG) Activity. While specific performance metrics for past projects are not detailed here, their consistent award of contracts by USAID suggests a generally satisfactory performance history. However, a deeper dive into past performance evaluations, audit reports, and any past disputes or contract terminations would provide a more comprehensive understanding of their capabilities and potential risks associated with this specific contract.

How does the cost structure (Cost Plus Fixed Fee) typically perform in terms of value for money compared to other contract types for international development?

Cost Plus Fixed Fee (CPFF) contracts are common in international development due to the inherent uncertainties and complexities of operating in foreign environments. This structure allows for flexibility in adapting to changing conditions while providing the contractor with a fixed fee as profit, incentivizing them to control costs to maximize their return. Compared to Cost Plus Incentive Fee (CPIF), CPFF offers less direct incentive for cost savings beyond the fixed fee itself. However, it generally provides better cost predictability than pure cost-plus-award-fee (CPAF) or cost reimbursement contracts. For taxpayers, the value depends heavily on robust oversight and clear performance metrics to ensure that costs are reasonable and that the fixed fee remains appropriate for the services rendered.

What are the primary risks associated with implementing a local governance improvement program in Honduras?

Implementing a local governance improvement program in Honduras carries several significant risks. Political instability and corruption can undermine efforts to strengthen institutions and improve service delivery. Socioeconomic challenges, including poverty and inequality, can create barriers to citizen participation and equitable benefit distribution. Security concerns, such as crime and gang activity, can impede program implementation and affect staff safety. Furthermore, the capacity of local government institutions may be limited, requiring extensive and sustained technical assistance. External factors like natural disasters or economic downturns can also disrupt program activities and impact outcomes. Effective risk mitigation strategies, including strong local partnerships, adaptive management, and robust security protocols, are crucial for success.

What historical spending patterns exist for USAID's governance and basic services programs in Central America?

USAID has consistently allocated significant funding towards governance and basic services programs across Central America, recognizing the region's development challenges. Historical spending patterns show a focus on strengthening democratic institutions, improving rule of law, enhancing public service delivery (education, health, water), and promoting economic opportunities. The scale of funding often varies based on specific country needs, political priorities, and the duration of programs. Contracts in this sector are frequently awarded through full and open competition to a mix of large international development firms and specialized local organizations. Analyzing past spending trends can reveal areas of sustained focus and identify typical contract values and durations for similar initiatives.

How is the success of the Honduras Local Governance (HLG) Activity measured and reported?

The success of the HLG Activity is measured through a defined set of performance indicators outlined in the contract's work plan and monitoring and evaluation (M&E) framework. These indicators likely track improvements in basic service provision (e.g., access to quality education, improved water management systems), enhancements in citizen participation and influence in local governance, and the strengthening of local government management systems. Regular progress reports are submitted by the contractor to USAID, detailing achievements against targets, challenges encountered, and adaptive management strategies. USAID program officers and technical specialists conduct periodic reviews and site visits to verify reported data and assess the overall impact and effectiveness of the activity.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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-522-16-000019

Offers Received: 5

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,582,412

Exercised Options: $71,582,412

Current Obligation: $71,582,412

Actual Outlays: $43,342,423

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $8,666,538

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: AIDOAAI1400061

IDV Type: IDC

Timeline