USAID Reduces Contract Amount by $1.4M, Totaling $4M for Management Systems International

Contract Overview

Contract Amount: $25,319,743 ($25.3M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-01-17

End Date: 2023-09-25

Contract Duration: 2,442 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF MEMMS. THE AUTHORIZED AGENT IS REQUESTED TO AMEND THE GLAAS REQUISITION REQ- 656-15-000001 TO DE-SUBCOMMIT THE AMOUNT OF $1,438,568.35, REDUCING COMMITED AMOUNT FROM $5,456,569.19 TO $4,018,090.84. THE TOTAL ESTIMATED AMOUNT OF THIS ACTIVITY IS $25,362,550.

Plain-Language Summary

Agency for International Development obligated $25.3 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: IGF::CL::IGF MEMMS. THE AUTHORIZED AGENT IS REQUESTED TO AMEND THE GLAAS REQUISITION REQ- 656-15-000001 TO DE-SUBCOMMIT THE AMOUNT OF $1,438,568.35, REDUCING COMMITED AMOUNT FROM $5,456,569.19 TO $4,018,090.84. THE TOTAL ESTIMATED AMOUNT OF THIS ACTIVITY IS $25,362,550. Key points: 1. The contract modification reduces the committed amount by $1,438,568.35, bringing the total to $4,018,090.84. 2. The total estimated amount for this activity remains substantial at $25,362,550. 3. This is a definitive contract awarded under full and open competition. 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 reduction in committed funds suggests a potential adjustment in scope or performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. The price discovery is likely robust, but the subsequent modification warrants scrutiny.

Taxpayer Impact: The reduction in committed funds is a positive sign for taxpayer value, though the overall estimated cost remains high.

Public Impact

Taxpayers benefit from a reduction in committed funds, saving over $1.4 million. The contract supports professional, scientific, and technical services, potentially impacting international development efforts. The significant total estimated amount suggests a long-term or large-scale project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Fixed Fee contract type.
Large total estimated amount requires ongoing monitoring for efficiency.

Positive Signals

Awarded through full and open competition.
Reduction in committed funds demonstrates fiscal responsibility.

Sector Analysis

This contract falls under professional, scientific, and technical services, a broad category often supporting government operations and specialized projects. Benchmarks for this sector vary widely based on specific services.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The modification to de-subcommit funds suggests active contract management. However, the large total estimated amount necessitates continued oversight to ensure funds are used effectively and efficiently.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Large total estimated contract value.
Lack of detail on specific services provided.
Unclear reasons for committed amount reduction.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $25.3 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. IGF::CL::IGF MEMMS. THE AUTHORIZED AGENT IS REQUESTED TO AMEND THE GLAAS REQUISITION REQ- 656-15-000001 TO DE-SUBCOMMIT THE AMOUNT OF $1,438,568.35, REDUCING COMMITED AMOUNT FROM $5,456,569.19 TO $4,018,090.84. THE TOTAL ESTIMATED AMOUNT OF THIS ACTIVITY IS $25,362,550.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT SYSTEMS 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 $25.3 million.

What is the period of performance?

Start: 2017-01-17. End: 2023-09-25.

What specific services are covered under 'All Other Professional, Scientific, and Technical Services' for this contract, and how does the $25.3 million estimate align with industry standards for such

The specific services are not detailed in the provided data. However, NAICS code 541990 encompasses a wide range of activities, including research, development, and consulting. A precise cost benchmark is difficult without knowing the exact nature of the services. A thorough review of the contract's statement of work and historical spending on similar projects would be necessary to assess the estimate's alignment with industry standards.

What factors led to the reduction of $1.4 million in the committed amount, and does this indicate a change in the project's scope or expected outcomes?

The data does not specify the reasons for the $1.4 million reduction. Potential causes include revised project needs, contractor performance adjustments, or early completion of certain tasks. Understanding the underlying reasons is crucial to determine if the project's scope or expected outcomes have been altered, which could impact the overall effectiveness and value delivered.

Given the Cost Plus Fixed Fee contract type and the substantial total estimated amount, what mechanisms are in place to ensure cost control and prevent potential overruns?

Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns. Effective oversight mechanisms would include detailed performance metrics, regular financial reviews, robust auditing processes, and clear communication channels between the agency and the contractor. The agency must actively monitor expenditures against the fixed fee and the estimated cost to ensure the project remains within budget and delivers the intended value.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-656-15-000003

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 200 12TH ST SOUTH, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,362,550

Exercised Options: $25,362,550

Current Obligation: $25,319,743

Actual Outlays: $14,889,057

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline