USAID's $13.5M contract for consulting services awarded to The Louis Berger Group, Inc. shows a 5-year duration

Contract Overview

Contract Amount: $13,506,000 ($13.5M)

Contractor: THE Louis Berger Group, Inc.

Awarding Agency: Agency for International Development

Start Date: 2007-08-31

End Date: 2012-02-29

Contract Duration: 1,643 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INCREMENTAL FUNDING FOR FY 2009

Plain-Language Summary

Agency for International Development obligated $13.5 million to THE LOUIS BERGER GROUP, INC. for work described as: INCREMENTAL FUNDING FOR FY 2009 Key points: 1. The contract's value of $13.5 million over 5 years suggests a moderate annual spend for consulting services. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of over 1600 days suggests a long-term need for the services provided. 5. The North American Industry Classification System (NAICS) code 541618 points to a focus on other management consulting services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. The annual value, approximately $2.7 million, is within a typical range for large-scale consulting engagements, but its true value-for-money depends heavily on the effectiveness and impact of the services rendered by The Louis Berger Group, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. This typically leads to a more robust selection process and potentially better pricing due to market forces. The number of bidders is not specified, but the open competition framework implies that multiple firms likely vied for this opportunity, fostering price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely USAID programs requiring management consulting expertise to improve operational efficiency and project outcomes. Services delivered are expected to encompass strategic planning, organizational development, and other management advisory functions. The geographic impact is likely global, aligning with USAID's international development mission, though specific regions are not detailed. Workforce implications could include the engagement of specialized consultants and potential capacity building within USAID.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs if not rigorously monitored.
Long contract duration (over 4 years) increases the risk of scope creep or evolving requirements not being adequately addressed.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
The Louis Berger Group's track record on similar contracts would need further review to identify potential performance risks.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contract duration indicates a sustained need for the services, potentially leading to deep expertise development.
USAID's engagement of consulting services suggests a commitment to improving program effectiveness and efficiency.

Sector Analysis

Management consulting services are a significant sector within professional services, supporting government agencies in areas like strategy, operations, and technology. The market is characterized by a mix of large, established firms and specialized boutiques. This contract fits within the broader category of government support services, where agencies often procure external expertise to supplement internal capabilities or address complex challenges. Comparable spending benchmarks would depend on the specific nature of the consulting services, but agencies like USAID frequently invest in such support to achieve their development and foreign policy objectives.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, The Louis Berger Group, Inc., is likely a large business. There is no information provided regarding subcontracting plans or goals for small businesses. This suggests that opportunities for small businesses may be limited unless they are prime contractors on other related efforts or are subcontracted by The Louis Berger Group, Inc. independently.

Oversight & Accountability

Oversight for this contract would primarily fall under USAID's contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure cost control and adherence to the fixed fee. Transparency is facilitated through contract award databases, but detailed performance reports and audits would be internal to USAID. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USAID Consulting Services Contracts
Management and Professional Services Contracts
Cost Plus Fixed Fee Contracts
Delivery Orders
Federal Management Consulting Spending

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases risk of requirement evolution and scope creep.
Performance metrics are not detailed, making value assessment difficult.
Potential for contractor personnel turnover over the contract's extended period.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $13.5 million to THE LOUIS BERGER GROUP, INC.. INCREMENTAL FUNDING FOR FY 2009

Who is the contractor on this award?

The obligated recipient is THE LOUIS BERGER GROUP, 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 $13.5 million.

What is the period of performance?

Start: 2007-08-31. End: 2012-02-29.

What specific types of management consulting services were provided under this contract?

The contract falls under NAICS code 541618, 'Other Management Consulting Services.' While the specific deliverables are not detailed in the provided data, this category typically encompasses a broad range of advisory services. These can include strategic planning, organizational assessment and design, process improvement, program management support, policy analysis, and general management advice aimed at enhancing the efficiency and effectiveness of USAID's operations and programs. The 'INCREMENTAL FUNDING FOR FY 2009' designation suggests the services were ongoing and potentially adapted to evolving needs during that fiscal year and beyond.

How does the Cost Plus Fixed Fee (CPFF) structure impact the cost-effectiveness of this contract?

The Cost Plus Fixed Fee (CPFF) contract structure allows the contractor to recover all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve. While it provides flexibility for the government and contractor, it carries a risk of cost overruns if the contractor's costs exceed estimates. The fixed fee, however, incentivizes the contractor to control costs to maximize their profit margin relative to the fee. Effective oversight by USAID is critical to scrutinize allowable costs and ensure the contractor operates efficiently to achieve the contract's objectives within the anticipated cost envelope.

What is the historical spending trend for similar management consulting services at USAID?

USAID, like many large federal agencies involved in international development and foreign assistance, consistently utilizes management consulting services to enhance program delivery, operational efficiency, and strategic planning. Historical spending data would reveal a significant and often increasing reliance on these services over the years, particularly in areas requiring specialized expertise not readily available in-house. Trends often show a mix of contract types, including CPFF, Time and Materials, and Fixed Price, depending on the nature of the requirement. Benchmarking this $13.5 million contract against overall USAID consulting expenditures would place it as a moderately sized, long-term engagement.

What is The Louis Berger Group, Inc.'s track record with USAID and similar government contracts?

The Louis Berger Group, Inc. has historically been a significant contractor for various U.S. government agencies, including USAID, often involved in large-scale infrastructure, engineering, and program management projects globally. Their track record typically includes managing complex, long-term contracts in challenging environments. A thorough review would involve examining past performance evaluations, any past disputes or contract terminations, and their success in delivering on similar consulting or program management contracts. Understanding their specific performance on prior USAID engagements would provide valuable insight into their reliability and capability for this particular contract.

What are the potential risks associated with the long duration (1643 days) of this contract?

A contract duration of 1643 days (approximately 4.5 years) presents several potential risks. Firstly, the requirements and objectives may evolve significantly over such a long period, potentially rendering the original scope of work outdated or less relevant. This necessitates robust contract modification processes and continuous communication to adapt. Secondly, maintaining consistent performance and engagement from the contractor over an extended duration can be challenging. Thirdly, there's an increased risk of 'scope creep,' where additional tasks or responsibilities are added without commensurate adjustments to cost or schedule. Finally, the long timeframe increases the potential for personnel turnover within the contractor's team, which could impact institutional knowledge and service continuity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Berger Group Holdings, Inc. (UEI: 789092293)

Address: 100 HALSTED ST, EAST ORANGE, NJ, 07018

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,506,000

Exercised Options: $13,506,000

Current Obligation: $13,506,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AID650I000600010

IDV Type: IDC

Timeline