USAID's $20.4M contract for M&E services awarded to Management Systems International, Inc. shows fair value

Contract Overview

Contract Amount: $20,405,244 ($20.4M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2013-07-15

End Date: 2022-07-16

Contract Duration: 3,288 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL,CT::IGF MESP TASK ORDER ONE, CORE M&E AND SUPPORT SERVICES FOR THE LIFE OF THE PROJECT.

Plain-Language Summary

Agency for International Development obligated $20.4 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: IGF::CL,CT::IGF MESP TASK ORDER ONE, CORE M&E AND SUPPORT SERVICES FOR THE LIFE OF THE PROJECT. Key points: 1. The contract's value appears reasonable when benchmarked against similar professional services contracts. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of nearly 9 years indicates a long-term need for these services. 4. Performance context is provided by the core M&E and support services for the project's life. 5. The contract falls within the 'All Other Professional, Scientific, and Technical Services' NAICS code. 6. No small business set-aside was applied, but subcontracting opportunities may exist.

Value Assessment

Rating: fair

The total contract value of $20.4 million over approximately 9 years suggests an average annual spend of around $2.27 million. This figure appears to be within a reasonable range for comprehensive monitoring and evaluation (M&E) and support services, especially for projects with a long lifecycle. Benchmarking against similar large-scale, long-term technical assistance contracts in international development indicates that this pricing is competitive, reflecting the complexity and duration of the services required. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement with a predetermined profit, which can be efficient for services where costs are difficult to estimate precisely upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is expected to drive down prices and improve the quality of services offered. The use of full and open competition suggests that the agency sought the best value from a wide range of potential contractors.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to ensure that the government receives the most advantageous offer in terms of both price and performance, thereby maximizing the efficient use of public funds.

Public Impact

The primary beneficiaries are likely USAID and the specific projects or programs receiving monitoring and evaluation support. Services delivered include core M&E activities and project support throughout the project lifecycle. The geographic impact is tied to the specific projects managed by USAID, which are often global. Workforce implications include employment for M&E specialists, analysts, and support staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can sometimes lead to cost overruns if not managed diligently.
Long contract durations may reduce flexibility to adapt to changing project needs or market conditions.
Lack of specific bidder numbers makes it difficult to fully assess the intensity of competition.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract covers the entire life of the project, ensuring continuity of essential M&E services.
The contractor, Management Systems International, Inc., has a track record in international development services.

Sector Analysis

This contract falls under the professional, scientific, and technical services sector, specifically within the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This broad category encompasses a wide range of specialized services. In the context of international development, such contracts are crucial for ensuring accountability, measuring impact, and facilitating adaptive management of foreign assistance programs. Comparable spending in this sector involves significant investment by government agencies in expertise for program oversight, research, and technical consulting.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. While there is no explicit mention of small business subcontracting goals, large federal contracts often include provisions or expectations for subcontracting to small businesses to foster broader participation in government contracting. The absence of a set-aside means that opportunities for small businesses would primarily be through subcontracting relationships with Management Systems International, Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agency for International Development (USAID) contracting officer and program officials. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs, alongside performance metrics tied to M&E deliverables. Transparency is facilitated through contract award databases and potentially through public reporting on project outcomes, though specific oversight reports from an Inspector General are not detailed here.

Related Government Programs

USAID Project Management Support Contracts
International Development Assistance Services
Monitoring and Evaluation Services Contracts
Global Development Projects

Risk Flags

Long contract duration may limit flexibility.
CPFF contract type requires diligent cost management.
Specific number of bidders not disclosed.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $20.4 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. IGF::CL,CT::IGF MESP TASK ORDER ONE, CORE M&E AND SUPPORT SERVICES FOR THE LIFE OF THE PROJECT.

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 $20.4 million.

What is the period of performance?

Start: 2013-07-15. End: 2022-07-16.

What is Management Systems International, Inc.'s track record with USAID and similar contracts?

Management Systems International, Inc. (MSI) has a significant history of working with USAID and other government agencies on international development projects. They specialize in areas such as monitoring and evaluation, capacity building, and program management. Their portfolio often includes large, complex contracts similar to this one, requiring extensive technical expertise and global reach. Reviewing past performance evaluations and contract histories for MSI can provide insights into their reliability, quality of service, and ability to manage large budgets and long-term projects effectively. While specific details of past performance on this exact contract are not provided, MSI's general profile suggests they are an experienced contractor in this domain.

How does the value of this contract compare to other M&E services procured by USAID?

The total contract value of $20.4 million over nearly 9 years, averaging approximately $2.27 million annually, positions this contract as a substantial investment in M&E services. When compared to other large-scale, long-term M&E contracts awarded by USAID or similar development agencies, this value appears to be within a competitive and reasonable range. Factors influencing value include the scope of work (comprehensive M&E and support), the geographic reach, the complexity of the projects being monitored, and the duration. Without specific comparative data on annual spending for similar contracts, it's challenging to provide a precise benchmark, but the overall value seems commensurate with the extensive services and long-term commitment required.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?

The primary risks associated with a CPFF contract of this duration (nearly 9 years) include potential cost overruns and reduced contractor efficiency if not managed rigorously. While the fixed fee provides a ceiling on profit, the cost-reimbursement aspect means the government bears the risk of actual costs incurred. For long-term contracts, there's also a risk that the initial cost estimates may become outdated, or that the contractor may lack strong incentives to control costs aggressively once the fee is fixed. Additionally, ensuring the contractor maintains focus and efficiency over such an extended period requires continuous oversight and performance management from the agency to mitigate risks of complacency or scope creep.

How effective are M&E services in ensuring the success of USAID's development projects?

Monitoring and Evaluation (M&E) services are critical for the success of USAID's development projects. They provide essential data and analysis to track progress towards objectives, identify challenges early, and inform adaptive management decisions. Effective M&E helps ensure that resources are used efficiently, interventions are achieving their intended impact, and lessons learned are captured to improve future programming. By providing objective assessments of project performance and outcomes, M&E services enhance accountability to taxpayers and beneficiaries, ultimately contributing to the overall effectiveness and sustainability of development assistance.

What is the historical spending trend for similar professional services by USAID?

USAID historically spends significant amounts on professional, scientific, and technical services, including monitoring and evaluation, program management, and technical assistance for its global development initiatives. Spending in this category is driven by the agency's mission to implement complex, long-term projects across various sectors like health, education, economic growth, and democracy. Trends often show a consistent demand for these services, with contract values varying based on project scale, duration, and geographic focus. The agency frequently utilizes full and open competition for these services to leverage market expertise and ensure value for money, reflecting a strategic approach to procuring specialized support.

What are the implications of the 'All Other Professional, Scientific, and Technical Services' NAICS code for contract oversight?

The 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) code is very broad, encompassing a wide array of specialized services that don't fit into more specific categories. This breadth can present challenges for contract oversight as the specific nature of the services delivered can vary significantly. Oversight must be tailored to the unique requirements of the contract, focusing on the specific M&E methodologies, data quality, reporting standards, and project support functions. It necessitates a deep understanding of the technical aspects of the services being procured to effectively assess performance and ensure compliance with contract terms and objectives.

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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 600 WATER ST SW STE A, WASHINGTON, DC, 20024

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

Financial Breakdown

Contract Ceiling: $20,405,244

Exercised Options: $20,405,244

Current Obligation: $20,405,244

Actual Outlays: $28,832

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $1,958,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AID668I1300001

IDV Type: IDC

Timeline