USAID's WARIDI Activity Acquisition Reaches $48.5M, Awarded to ARD, Inc. via Full and Open Competition

Contract Overview

Contract Amount: $48,476,773 ($48.5M)

Contractor: ARD, Inc.

Awarding Agency: Agency for International Development

Start Date: 2016-04-01

End Date: 2024-09-06

Contract Duration: 3,080 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE OBJECTIVE OF THIS ACQUISITION IS TO IMPLEMENT THE WATER RESOURCES INTEGRATED DEVELOPMENT INITIATIVE (WARIDI)ACTIVITY. IGF::OT::IGF

Plain-Language Summary

Agency for International Development obligated $48.5 million to ARD, INC. for work described as: THE OBJECTIVE OF THIS ACQUISITION IS TO IMPLEMENT THE WATER RESOURCES INTEGRATED DEVELOPMENT INITIATIVE (WARIDI)ACTIVITY. IGF::OT::IGF Key points: 1. The acquisition supports the Water Resources Integrated Development Initiative (WARIDI). 2. ARD, Inc. is the prime contractor for this Cost Plus Fixed Fee contract. 3. The contract has a long duration of 3080 days, ending in September 2024. 4. The NAICS code 541990 indicates 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The fixed fee component provides some cost control, but the overall value is difficult to assess without detailed performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven a reasonable price. The use of a delivery order indicates a specific task within a larger framework.

Taxpayer Impact: Taxpayer funds are being used for international development initiatives, specifically water resources management. The effectiveness of the program will determine the ultimate value for taxpayers.

Public Impact

Supports international development goals in water resource management. Potential impact on environmental sustainability and community well-being in target regions. Long-term nature of the project suggests sustained investment in development outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can be prone to cost escalation.
Long contract duration requires sustained oversight.
Limited information on specific performance metrics and outcomes.

Positive Signals

Awarded via full and open competition.
Supports a critical development initiative (WARIDI).

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Spending in this sector is often driven by government needs for specialized expertise in areas like international development, research, and consulting.

Small Business Impact

The provided data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The long duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Agency for International Development 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

Potential for cost overruns due to CPFF structure.
Long contract duration requires sustained monitoring.
Lack of specific performance metrics in provided data.
Complexity of international development projects can introduce unforeseen risks.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $48.5 million to ARD, INC.. THE OBJECTIVE OF THIS ACQUISITION IS TO IMPLEMENT THE WATER RESOURCES INTEGRATED DEVELOPMENT INITIATIVE (WARIDI)ACTIVITY. IGF::OT::IGF

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 $48.5 million.

What is the period of performance?

Start: 2016-04-01. End: 2024-09-06.

What are the key performance indicators (KPIs) for the WARIDI activity, and how is ARD, Inc. being measured against them?

Key performance indicators for the WARIDI activity would likely focus on measurable improvements in water resource management, such as increased access to clean water, improved water quality, enhanced community participation in water governance, and sustainable management of water resources. ARD, Inc.'s performance would be evaluated against these KPIs through regular reporting, site visits, and potentially third-party evaluations to ensure the activity is meeting its stated objectives and delivering value for the investment.

What is the risk of cost overruns with a Cost Plus Fixed Fee contract for a long-duration development project?

Cost Plus Fixed Fee contracts carry a risk of cost overruns, particularly for long-duration projects where unforeseen challenges can arise. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' portion means the government reimburses actual costs. Effective oversight, clear scope definition, and proactive risk management are crucial to mitigate overruns and ensure the project stays within budget expectations.

How does the WARIDI activity align with broader US foreign policy objectives in the region?

The WARIDI activity likely aligns with US foreign policy objectives related to promoting stability, economic development, and environmental sustainability in the target region. By addressing water resource challenges, the initiative can contribute to reducing conflict over resources, improving public health, and fostering economic growth, thereby strengthening US influence and partnerships.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

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: $48,823,819

Exercised Options: $48,823,819

Current Obligation: $48,476,773

Actual Outlays: $19,985,864

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400068

IDV Type: IDC

Timeline