USAID's $53.7M Biodiversity and Climate Change contract to ARD, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $53,756,083 ($53.8M)

Contractor: ARD, Inc.

Awarding Agency: Agency for International Development

Start Date: 2015-05-05

End Date: 2021-02-28

Contract Duration: 2,126 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF:BIODIVERSITY AND CLIMATE CHANGE

Plain-Language Summary

Agency for International Development obligated $53.8 million to ARD, INC. for work described as: IGF::OT::IGF:BIODIVERSITY AND CLIMATE CHANGE Key points: 1. Contract awarded for a significant duration, indicating a need for sustained support in biodiversity and climate change initiatives. 2. The contract utilized a Cost Plus Fixed Fee pricing structure, which can incentivize cost control but requires careful oversight. 3. The award was made under full and open competition, suggesting a robust market for these specialized services. 4. The North American Industry Classification System (NAICS) code 541990 covers a broad range of professional, scientific, and technical services. 5. The contract's duration of over 2000 days highlights its importance in long-term environmental strategies. 6. The contractor, ARD, Inc., has secured this significant award, suggesting a strong track record in relevant service areas.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, can lead to cost overruns if not managed tightly. Comparing it to similar contracts for biodiversity and climate change initiatives would require detailed analysis of scope, duration, and contractor performance. The fixed fee component offers some predictability, but the overall cost is variable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This process generally fosters a competitive environment, driving down prices and encouraging innovation. The presence of multiple bidders suggests a healthy market for these services, allowing the agency to select the most qualified and cost-effective solution.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of expertise, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are likely international communities and ecosystems impacted by biodiversity loss and climate change, through programs supported by this contract. Services delivered likely include technical assistance, research, policy development, and program implementation related to environmental conservation and climate adaptation. The geographic impact is expected to be global, focusing on regions where biodiversity and climate change pose significant challenges. Workforce implications may include the employment of scientists, researchers, project managers, and technical experts both domestically and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The broad NAICS code (541990) can sometimes obscure the specific nature of services, making detailed performance evaluation more complex.
Long contract durations can sometimes lead to scope creep or a need for contract modifications if initial assumptions change.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that likely yielded a strong value proposition.
The contract addresses critical global issues of biodiversity and climate change, aligning with significant national and international priorities.
The contractor, ARD, Inc., has secured a substantial contract, indicating a level of trust and capability in delivering complex environmental services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on environmental consulting and program support. The market for such services is driven by government and international organization funding for conservation, climate resilience, and sustainable development initiatives. Comparable spending benchmarks would involve analyzing other large-scale environmental service contracts awarded by agencies like USAID, EPA, or international bodies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, ARD, Inc., is likely a large business. There is no explicit information on subcontracting plans, but large contracts often involve opportunities for small businesses to participate as subcontractors, depending on the prime contractor's strategy and the nature of the work.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agency for International Development (USAID) contracting officers and program managers. Accountability measures would be tied to the contract's performance work statement and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting, though specific project details might be sensitive.

Related Government Programs

USAID Biodiversity Programs
Climate Change Adaptation Funding
Environmental Consulting Services
International Development Assistance
Global Environmental Facility (GEF) Projects

Risk Flags

Cost Plus Fixed Fee pricing requires robust oversight to manage potential cost overruns.
Long contract duration increases risk of scope creep and obsolescence.
Broad NAICS code may require careful monitoring to ensure specific service delivery aligns with objectives.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $53.8 million to ARD, INC.. IGF::OT::IGF:BIODIVERSITY AND CLIMATE CHANGE

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 $53.8 million.

What is the period of performance?

Start: 2015-05-05. End: 2021-02-28.

What specific projects or initiatives did ARD, Inc. undertake under this contract?

The provided data does not detail the specific projects or initiatives undertaken by ARD, Inc. under this contract. However, given the contract's focus on 'Biodiversity and Climate Change' and its award to 'ARD, Inc.', it is highly probable that the work involved providing technical assistance, research, analysis, and program support for USAID's efforts in these areas. This could include activities such as assessing ecosystem health, developing climate adaptation strategies, supporting conservation efforts, and implementing projects aimed at mitigating the impacts of climate change in developing countries. Further details would typically be found in the contract's statement of work and performance reports, which are not included in the provided data.

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

The Cost Plus Fixed Fee (CPFF) structure is common for complex service contracts where the scope of work may evolve or is difficult to define precisely at the outset. Unlike Firm-Fixed-Price (FFP) contracts, which offer the most price certainty for the government, CPFF allows for flexibility. The contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can be advantageous when innovation or adaptation is required. However, it carries a higher risk of cost growth for the government compared to FFP. Compared to Cost-Plus-Incentive-Fee (CPIF) contracts, CPFF offers less direct incentive for the contractor to control costs beyond achieving the fixed fee, whereas CPIF includes mechanisms to adjust the fee based on performance against cost targets.

What is ARD, Inc.'s track record with USAID and similar government contracts?

While the provided data confirms ARD, Inc. was awarded this specific $53.7 million contract by USAID, it does not offer a comprehensive track record. To assess ARD, Inc.'s performance history, one would need to examine other contracts awarded to the company by USAID and other federal agencies. Key indicators would include past performance evaluations, any instances of contract disputes or terminations, and the successful completion of projects similar in scope and complexity. A thorough review of federal procurement databases (like SAM.gov or FPDS) and agency-specific contract award histories would be necessary to build a complete picture of their reliability and expertise.

What are the potential risks associated with a contract of this duration and type?

Contracts with long durations, like this 2126-day (approximately 5.8 years) award, carry inherent risks. One primary risk is the potential for scope creep, where the project's objectives expand beyond the original agreement, leading to increased costs and delays. Another risk is technological or environmental obsolescence; the conditions or technologies relevant at the start of the contract might be outdated by its end. For Cost Plus Fixed Fee (CPFF) contracts, there's a risk that the contractor may not be sufficiently incentivized to control costs rigorously, as their profit is fixed regardless of the final cost. Furthermore, changes in agency priorities or funding availability over such a long period could impact the contract's execution or relevance.

How does the spending on this contract compare to overall USAID spending on environmental programs?

The provided data indicates a contract value of $53,756,083. To compare this to overall USAID spending on environmental programs, one would need access to USAID's comprehensive budget and spending reports. USAID allocates significant resources to international development, including environmental initiatives, climate change mitigation, and biodiversity conservation. This $53.7 million contract represents a substantial investment in these areas for the period it covers. However, without USAID's total annual budget or specific allocations for environmental programs, it's difficult to quantify its relative significance. It likely represents a notable portion of funding for specific biodiversity and climate change projects managed by the agency during its performance period.

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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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: $53,756,083

Exercised Options: $53,756,083

Current Obligation: $53,756,083

Actual Outlays: $16,108,173

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $6,919,942

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1300058

IDV Type: IDC

Timeline