USAID awards $79.1M contract for integrated development, with a total value of $82.1M over five years

Contract Overview

Contract Amount: $82,178,278 ($82.2M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2007-09-30

End Date: 2012-09-30

Contract Duration: 1,827 days

Daily Burn Rate: $45.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONTRACT AWARD FOR THE PROMOTING INTEGRATED DEVELOPMENT ACTIVITY. TEC $79,112,120, THREE YEAR BASE PERIOD WITH TWO ONE-YEAR OPTIONS. TAS::72 1021::TAS

Plain-Language Summary

Agency for International Development obligated $82.2 million to CHEMONICS INTERNATIONAL, INC. for work described as: CONTRACT AWARD FOR THE PROMOTING INTEGRATED DEVELOPMENT ACTIVITY. TEC $79,112,120, THREE YEAR BASE PERIOD WITH TWO ONE-YEAR OPTIONS. TAS::72 1021::TAS Key points: 1. Contract value appears reasonable given the five-year duration and scope of professional services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract type (Cost Plus Fixed Fee) may allow for cost overruns. 4. Performance period spans five years, indicating a long-term program requirement. 5. The contractor, Chemonics International, Inc., is a known entity in international development. 6. The NAICS code 541990 covers a broad range of professional services, requiring specific performance metrics to ensure value.

Value Assessment

Rating: good

The total contract value of $82.1M over five years averages approximately $16.4M annually. This figure seems within a reasonable range for large-scale international development projects managed by experienced contractors. Benchmarking against similar USAID activities would provide a more precise value-for-money assessment, but the initial indication suggests fair pricing for the anticipated services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This process typically fosters a competitive environment, which should theoretically lead to better pricing and service offerings for the government. The number of bidders is not specified, but the method of competition suggests a robust selection process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider pool of qualified contractors to propose innovative solutions.

Public Impact

Beneficiaries include developing countries targeted by USAID's integrated development initiatives. Services delivered encompass professional, scientific, and technical support for development programs. Geographic impact is likely global, focusing on regions where USAID operates. Workforce implications may include employment for technical experts and support staff in international development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs if not closely monitored, potentially impacting the final price.
The broad NAICS code (541990) requires careful oversight to ensure the services procured align with the intended development objectives and do not stray into unrelated areas.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
The five-year duration indicates a stable, long-term commitment to a development program, allowing for sustained impact.
The contractor, Chemonics International, Inc., has extensive experience in managing large-scale international development projects.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to international development. The market for such services is substantial, with numerous firms specializing in global aid and development consulting. USAID is a major procurer in this space, and contracts of this magnitude are typical for implementing complex, multi-year development strategies across various sectors like health, education, and economic growth.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While large prime contracts often involve subcontracting opportunities for small businesses, the extent of such opportunities is not detailed here. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting plans, which is crucial for fostering the small business ecosystem in government contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by USAID's contracting officers and program officials. Accountability measures would be embedded in the contract's performance work statement, requiring regular reporting and adherence to milestones. Transparency is generally facilitated through contract award databases, though specific programmatic details and performance metrics may be subject to confidentiality. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USAID Development Assistance
USAID Global Health Programs
USAID Economic Growth Programs
USAID Democracy, Human Rights, and Governance Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Broad scope of NAICS code requires diligent oversight to ensure focus.
Dependence on contractor's performance for achieving development outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $82.2 million to CHEMONICS INTERNATIONAL, INC.. CONTRACT AWARD FOR THE PROMOTING INTEGRATED DEVELOPMENT ACTIVITY. TEC $79,112,120, THREE YEAR BASE PERIOD WITH TWO ONE-YEAR OPTIONS. TAS::72 1021::TAS

Who is the contractor on this award?

The obligated recipient is CHEMONICS 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 $82.2 million.

What is the period of performance?

Start: 2007-09-30. End: 2012-09-30.

What is Chemonics International, Inc.'s track record with USAID on similar large-scale development contracts?

Chemonics International, Inc. has a significant history of working with USAID, often securing large prime contracts for international development activities. They are known for their expertise in areas such as economic growth, health, education, and governance. A review of past performance evaluations and contract histories would reveal their success rates, any past performance issues, and their ability to manage complex projects within budget and schedule. Their extensive portfolio suggests a generally positive track record, but specific contract performance data is essential for a complete assessment.

How does the average annual cost of this contract compare to other USAID integrated development activities?

The average annual cost of this contract is approximately $16.4 million ($82.1M / 5 years). To benchmark this effectively, one would need to compare it against a portfolio of similar USAID contracts awarded over the same period, focusing on those with comparable objectives (e.g., integrated development, multi-sectoral interventions) and geographic scope. Factors such as the specific countries of operation, the complexity of the development challenges addressed, and the prevailing market rates for technical expertise would influence these comparisons. Without access to a detailed comparative dataset of USAID's integrated development contracts, a precise benchmark is difficult, but the figure appears substantial and indicative of a significant program.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for international development?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded here, carry inherent risks. The primary risk for the government is that the contractor is reimbursed for all allowable costs plus a fixed fee, which can incentivize higher spending if cost controls are not robust. This structure may not always provide the strongest incentive for the contractor to minimize costs, as their profit (the fixed fee) is predetermined. Effective oversight, detailed cost reporting, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value. USAID's contract management systems and personnel are expected to provide this oversight.

What specific performance metrics are likely being used to evaluate the success of this 'Promoting Integrated Development Activity'?

Given the nature of 'integrated development,' performance metrics would likely be multi-faceted and tied to USAID's strategic objectives for the region or country. These could include indicators related to economic growth (e.g., job creation, increased income), improvements in health outcomes (e.g., reduced mortality rates, increased access to healthcare), enhanced educational attainment (e.g., improved literacy, school enrollment), strengthened governance (e.g., increased citizen participation, reduced corruption), and environmental sustainability. The specific metrics would be detailed in the contract's Performance Work Statement (PWS) and would be subject to rigorous monitoring and reporting by the contractor and USAID.

How has USAID's spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) trended over the past decade?

USAID's spending under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' has likely seen fluctuations driven by global development priorities, geopolitical shifts, and budget allocations. This broad category encompasses a wide array of services, making trend analysis complex without further segmentation. Historically, USAID has consistently procured significant amounts of professional services to support its mission. Analyzing trends would require examining detailed historical contract databases to identify patterns in spending for specific types of services within this NAICS code, such as technical assistance, program management, and research, particularly in relation to major development initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 527-07-004

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1717 H ST NW, WASHINGTON, DC, 20006

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $84,112,087

Exercised Options: $84,112,087

Current Obligation: $82,178,278

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline