USAID's $57.4M TIS Program contract awarded to DAI GLOBAL LLC for support services

Contract Overview

Contract Amount: $56,601,599 ($56.6M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2011-03-22

End Date: 2016-09-30

Contract Duration: 2,019 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: USAID EA/RAAO IS REQUESTED TO NEGOTIATE AND AWARD A FIVE YEAR COST PLUS FIXED FEE CONTRACT FOR TIS PROGRAM TO THE SUCCESSFUL OFFEROR. THE TOTAL ESTIMATED COST OF THE CONTRACT SHOULD NOT EXCEED $57,435,291. THE INITIAL OBLIGATION AVAILABLE IS $10,201,000 AND IS EXPECTED TO FUND CONTRACT PERFORMANCE FOR APPROXIMATELY 11 MONTHS. SUBSEQUENT INCREMENTAL FUNDING IS DEPENDENT UPON SUCCESSFUL PERFORMANCE UNDER THE CONTRACT AND AVAILABILITY OF FUNDING.

Plain-Language Summary

Agency for International Development obligated $56.6 million to DAI GLOBAL LLC for work described as: USAID EA/RAAO IS REQUESTED TO NEGOTIATE AND AWARD A FIVE YEAR COST PLUS FIXED FEE CONTRACT FOR TIS PROGRAM TO THE SUCCESSFUL OFFEROR. THE TOTAL ESTIMATED COST OF THE CONTRACT SHOULD NOT EXCEED $57,435,291. THE INITIAL OBLIGATION AVAILABLE IS $10,201,000 AND IS EXPECTED TO FUND CO… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risks. 3. Initial obligation of $10.2M for approximately 11 months, with subsequent funding contingent on performance. 4. The total estimated cost of $57.4M over five years indicates a significant investment in program support. 5. The North American Industry Classification System (NAICS) code 561990 points to a broad range of support services. 6. The contract duration of approximately 5 years suggests a long-term need for these services.

Value Assessment

Rating: fair

The total estimated cost of $57.4 million over five years for 'All Other Support Services' is substantial. Benchmarking this against similar contracts is challenging without more specific service details. The CPFF structure means the government pays allowable costs plus a fixed fee, which can lead to cost overruns if not managed carefully. The initial obligation of $10.2 million for the first year provides a clearer picture of immediate spending, but the total value is an estimate.

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. The presence of 8 bidders (no) suggests a healthy level of competition for this contract. This competitive environment is generally expected to drive better pricing and service offerings for the government.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it typically leads to more cost-effective solutions and prevents potential price gouging associated with sole-source or limited competition contracts.

Public Impact

The primary beneficiaries are likely USAID's international development programs, which will receive essential support services. The services delivered are broadly categorized under 'All Other Support Services,' implying a wide range of operational and administrative assistance. The geographic impact is likely global, given USAID's mission, though specific regions may be prioritized based on program needs. Workforce implications could include the creation or sustainment of jobs within DAI GLOBAL LLC and potentially local employment in program areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can incentivize contractors to incur more costs to increase their fixed fee, if not carefully monitored.
The long-term nature of the contract (5 years) requires sustained oversight to ensure continued value and performance.
The broad 'support services' category may lead to scope creep if not clearly defined and managed.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The fixed fee component of the CPFF contract provides some cost predictability for the government.
The contract's duration suggests a stable, long-term partnership for critical program support.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically under support services. The market for such services supporting government agencies, particularly in international development, is substantial. Comparable spending benchmarks would depend heavily on the specific nature of the 'support services' provided, but USAID's overall budget for program implementation and administration is in the billions annually.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information on subcontracting plans. This means that opportunities for small businesses to participate would likely be through subcontracting with the prime contractor, DAI GLOBAL LLC, rather than direct set-aside awards.

Oversight & Accountability

Oversight for this contract would primarily reside with USAID's contracting officers and program managers. Given the CPFF structure and international program focus, robust performance monitoring and financial auditing are crucial. Transparency would be enhanced through regular reporting requirements stipulated in the contract. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

USAID Program Support Contracts
International Development Assistance
Professional and Technical Services
Cost-Plus Contracts
Government Support Services

Risk Flags

Potential for cost overruns due to CPFF structure
Ambiguity in 'support services' scope leading to scope creep
Need for robust performance monitoring and oversight
Contingent funding requires successful performance

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $56.6 million to DAI GLOBAL LLC. USAID EA/RAAO IS REQUESTED TO NEGOTIATE AND AWARD A FIVE YEAR COST PLUS FIXED FEE CONTRACT FOR TIS PROGRAM TO THE SUCCESSFUL OFFEROR. THE TOTAL ESTIMATED COST OF THE CONTRACT SHOULD NOT EXCEED $57,435,291. THE INITIAL OBLIGATION AVAILABLE IS $10,201,000 AND IS EXPECTED TO FUND CONTRACT PERFORMANCE FOR APPROXIMATELY 11 MONTHS. SUBSEQUENT INCREMENTAL FUNDING IS DEPENDENT UPON SUCCESSFUL PERFORMANCE UNDER THE CONTRACT AND AVAILABILITY OF FUNDING.

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 $56.6 million.

What is the period of performance?

Start: 2011-03-22. End: 2016-09-30.

What is the historical spending pattern for TIS Program support services under USAID?

The provided data outlines a single definitive contract for the TIS Program with an estimated total cost of $57.4 million over five years, starting in 2011 and ending in 2016. The initial obligation was $10.2 million. Without access to historical financial data or previous contracts for this specific program, it's difficult to establish a comprehensive spending pattern. However, this contract represents a significant, multi-year investment. Future analysis would require examining prior contract awards for similar support functions within USAID or related agencies to identify trends in cost, duration, and contractor performance.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar USAID support services?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded for the TIS Program, are often used when the scope of work is not precisely defined or when there's a high degree of uncertainty. The contractor is reimbursed for allowable costs plus a predetermined fixed fee, representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but can lead to higher costs if the contractor's expenses are not well-managed. Compared to Cost Plus Incentive Fee (CPIF) contracts, the fee is fixed, removing the direct incentive for cost savings tied to performance bonuses. For stable, well-defined services, FFP is often preferred for cost certainty. CPFF is suitable when innovation or adaptation is expected, but requires diligent oversight to prevent cost escalation.

What are the key performance indicators (KPIs) typically used to evaluate contractors under USAID CPFF support service contracts?

Key Performance Indicators (KPIs) for USAID CPFF support service contracts are tailored to the specific objectives of the program. Common KPIs often revolve around the timely and effective delivery of services, adherence to budget parameters (within the scope of allowable costs), quality of deliverables, and stakeholder satisfaction. For a TIS Program, this could include metrics related to program management efficiency, technical support responsiveness, successful implementation of project milestones, and compliance with USAID regulations and reporting requirements. The fixed fee provides a baseline, but performance against these KPIs would determine the overall success and inform future funding decisions and contract renewals.

What is the track record of DAI GLOBAL LLC in managing large-scale USAID contracts, particularly those with a CPFF structure?

DAI GLOBAL LLC is a well-established international development company with extensive experience working with USAID and other government agencies. They have a history of managing numerous contracts, including large-scale, complex projects often utilizing various contract types, including CPFF. Their track record generally involves implementing programs in areas such as economic growth, governance, and health. While specific performance details for every contract are not publicly available, DAI is a recognized player in the field. Evaluating their track record would involve reviewing past performance evaluations (if accessible), project outcomes, and any documented instances of significant challenges or successes on similar USAID engagements.

What are the potential risks associated with the 'All Other Support Services' category in this contract?

The primary risk associated with a broad 'All Other Support Services' category (NAICS 561990) is a lack of specificity, which can lead to scope creep, cost overruns, and performance issues. It implies a wide range of potential tasks, from administrative support to logistical coordination and potentially technical assistance, without clear delineation. This ambiguity makes it challenging for both the contractor to define precise deliverables and for the government to effectively monitor performance and ensure value for money. Without well-defined sub-tasks and measurable outcomes, it's difficult to benchmark performance or ensure that the services provided directly align with USAID's strategic objectives.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

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

Financial Breakdown

Contract Ceiling: $56,601,599

Exercised Options: $56,601,599

Current Obligation: $56,601,599

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $19,910

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline