USAID's $77.6M BRCP II Contract Aids Tunisian SMEs, Boosting Job Creation and Employability

Contract Overview

Contract Amount: $77,602,104 ($77.6M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-09-18

End Date: 2024-05-29

Contract Duration: 2,445 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF BRCP II HELPS TUNISIANS STRENGTHEN PRIVATE SECTOR JOB CREATION BY 1) PROVIDING TARGETED, FIRM-BASED ASSISTANCE TO SMALL AND MEDIUM ENTERPRISES (SMES) WITH STRONG POTENTIAL FOR EXPANSION IN ORDER TO INCREASE THEIR INCENTIVES TO HIRE MORE WORKERS; 2) SUPPORTING IMPROVEMENTS IN TUNISIA'S BUSINESS ENABLING ENVIRONMENT; AND 3) WORKING WITH TRAINING INSTITUTIONS, CAREER DEVELOPMENT CENTERS (CDCS), AND OTHER WORKFORCE DEVELOPMENT EVENTS AND INSTITUTIONS TO SUPPORT ENTREPRENEURSHIP AND EMPLOYABILITY.

Plain-Language Summary

Agency for International Development obligated $77.6 million to CHEMONICS INTERNATIONAL, INC. for work described as: IGF::OT::IGF BRCP II HELPS TUNISIANS STRENGTHEN PRIVATE SECTOR JOB CREATION BY 1) PROVIDING TARGETED, FIRM-BASED ASSISTANCE TO SMALL AND MEDIUM ENTERPRISES (SMES) WITH STRONG POTENTIAL FOR EXPANSION IN ORDER TO INCREASE THEIR INCENTIVES TO HIRE MORE WORKERS; 2) SUPPORTING IMPRO… Key points: 1. Focuses on firm-based assistance to SMEs with expansion potential to incentivize hiring. 2. Aims to improve Tunisia's business environment and support workforce development. 3. Contract awarded via full and open competition, indicating market availability. 4. Sector is professional, scientific, and technical services, supporting economic development.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can be appropriate for R&D or complex services where costs are uncertain. However, it offers less incentive for cost control compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded through full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: The investment aims to stimulate private sector job growth in Tunisia, potentially leading to long-term economic benefits and reduced reliance on foreign aid.

Public Impact

Enhances economic opportunities and stability in Tunisia through private sector development. Supports job creation, directly impacting the livelihoods of Tunisian citizens. Invests in workforce development, improving skills and employability for a stronger economy. Aims to foster a more favorable business environment, encouraging entrepreneurship and investment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type may offer less incentive for cost efficiency.
Long contract duration (2445 days) could lead to scope creep or evolving needs.
No specific mention of small business participation, despite focus on SMEs.

Positive Signals

Addresses critical development needs in Tunisia, focusing on job creation.
Awarded through full and open competition, suggesting competitive pricing.
Clear objectives for private sector strengthening and workforce development.

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category often encompassing economic development, consulting, and technical assistance. Benchmarks vary widely, but the scale suggests a significant program investment.

Small Business Impact

While the program aims to assist Small and Medium Enterprises (SMEs) in Tunisia, the contract itself does not indicate specific set-asides or participation goals for U.S. small businesses. The focus is on supporting Tunisian SMEs.

Oversight & Accountability

USAID's Inspector General likely oversees this contract, ensuring funds are used effectively and objectives are met. Performance monitoring by the agency is crucial for accountability.

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.
Dependency on the stability and responsiveness of the Tunisian business environment.
Measuring direct impact on job creation can be complex.
Long contract duration may not align with rapidly changing economic needs.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $77.6 million to CHEMONICS INTERNATIONAL, INC.. IGF::OT::IGF BRCP II HELPS TUNISIANS STRENGTHEN PRIVATE SECTOR JOB CREATION BY 1) PROVIDING TARGETED, FIRM-BASED ASSISTANCE TO SMALL AND MEDIUM ENTERPRISES (SMES) WITH STRONG POTENTIAL FOR EXPANSION IN ORDER TO INCREASE THEIR INCENTIVES TO HIRE MORE WORKERS; 2) SUPPORTING IMPROVEMENTS IN TUNISIA'S BUSINESS ENABLING ENVIRONMENT; AND 3) WORKING WITH TRAINING INSTITUTIONS, CAREER DEVELOPMENT CENTERS (CDCS), AND OTHER WORKFORCE DEVELOPMENT EVENTS AND INSTITUTIONS TO SUPPORT ENTREPRENEURSHIP AND EM

Who is the contractor on this award?

The obligated recipient is CHEMONICS 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 $77.6 million.

What is the period of performance?

Start: 2017-09-18. End: 2024-05-29.

What is the expected return on investment for the $77.6 million spent on this program in terms of job creation and economic growth in Tunisia?

Quantifying the precise ROI is challenging due to the multifaceted nature of economic development. However, the program's success will be measured by the number of jobs created by assisted SMEs, improvements in the business enabling environment, and increased employability. USAID likely has specific metrics tied to these objectives within the contract's performance work statement to track progress and demonstrate value.

What are the primary risks associated with implementing a private sector development program in a country like Tunisia, and how are they being mitigated?

Key risks include political instability, bureaucratic hurdles, corruption, and the potential for limited absorptive capacity within the SME sector. Mitigation strategies likely involve close collaboration with local partners, robust monitoring and evaluation, adherence to strict financial controls, and adaptive management to respond to changing conditions on the ground.

How effectively is the program adapting to the evolving economic landscape and the specific needs of Tunisian SMEs over its long duration?

The effectiveness of adaptation depends on the contract's flexibility and USAID's oversight. Mechanisms for regular review, stakeholder feedback, and potential contract modifications are essential. The CPFF structure allows for some flexibility, but proactive engagement with beneficiaries and continuous assessment of the business environment are critical to ensure continued relevance and impact.

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-664-17-000001

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1717 H ST NW STE 1, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $77,602,104

Exercised Options: $77,602,104

Current Obligation: $77,602,104

Actual Outlays: $69,625,148

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $2,130,198

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline