USAID's $55.7M Southern Africa Trade Hub contract to DAI Global LLC shows fair value with 6 bidders

Contract Overview

Contract Amount: $55,671,230 ($55.7M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2016-10-12

End Date: 2022-09-30

Contract Duration: 2,179 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF SOUTHERN AFRICA TRADE AND INVESTMENT HUB

Plain-Language Summary

Agency for International Development obligated $55.7 million to DAI GLOBAL LLC for work described as: IGF::CL::IGF SOUTHERN AFRICA TRADE AND INVESTMENT HUB Key points: 1. Contract awarded through full and open competition, indicating a robust market. 2. Performance period of nearly 6 years suggests a significant, long-term program. 3. Cost-plus-fixed-fee structure requires careful monitoring of contractor expenses. 4. The contract's broad scope in professional, scientific, and technical services covers diverse development objectives. 5. No small business set-aside was utilized, potentially limiting direct small business participation. 6. The definitive contract type provides flexibility but necessitates clear performance metrics.

Value Assessment

Rating: good

The contract's total value of $55.7 million over nearly 6 years suggests a substantial investment in development assistance. Benchmarking against similar USAID-funded technical assistance contracts indicates that the pricing is within a reasonable range for the scope of work. The cost-plus-fixed-fee structure, while common, necessitates diligent oversight to ensure costs remain controlled and that the fixed fee represents fair compensation for the contractor's efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders vying for the opportunity. This level of competition is generally positive, suggesting that multiple capable firms were interested and that the agency sought a broad range of solutions. The presence of six bidders implies a healthy market for these types of services and likely contributed to competitive pricing.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

The primary beneficiaries are businesses and governments in Southern Africa, aiming to enhance trade and investment. Services delivered include technical assistance, capacity building, and policy reform support to foster economic growth. The geographic impact is focused on the Southern Africa region, addressing specific development challenges. Workforce implications include the creation of jobs both within the implementing contractor and through the economic activities stimulated by the program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require vigilant oversight to prevent cost overruns.
The broad nature of 'All Other Professional, Scientific, and Technical Services' can sometimes lead to scope creep if not managed tightly.
Lack of specific small business set-aside may limit direct opportunities for smaller firms in prime contracting roles.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
A significant contract value suggests a comprehensive and impactful program design.
The long performance period allows for sustained engagement and measurable results.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, a significant area of federal spending. This specific contract targets economic development and trade promotion within Southern Africa, aligning with USAID's mission. Comparable spending benchmarks in international development assistance show a wide range, but contracts of this magnitude are typical for large-scale, multi-year development initiatives aimed at fostering economic growth and stability in developing regions.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This means that while large businesses were eligible to compete and win, direct opportunities for small businesses to participate as prime contractors were absent. Subcontracting opportunities may exist, but their extent and focus would depend on the prime contractor's strategy and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, USAID is responsible for monitoring the contractor's expenditures to ensure they are reasonable and allocable to the contract. Transparency is facilitated through regular reporting requirements from the contractor. The Inspector General of USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USAID Economic Growth Programs
Trade Capacity Building Initiatives
African Development Fund
Millennium Challenge Corporation

Risk Flags

Potential for scope creep due to broad service description.
Cost-plus-fixed-fee requires diligent financial oversight.
Long contract duration increases exposure to changing geopolitical or economic conditions.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $55.7 million to DAI GLOBAL LLC. IGF::CL::IGF SOUTHERN AFRICA TRADE AND INVESTMENT HUB

Who is the contractor on this award?

The obligated recipient is DAI GLOBAL LLC.

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 $55.7 million.

What is the period of performance?

Start: 2016-10-12. End: 2022-09-30.

What is the track record of DAI Global LLC in managing similar USAID development contracts?

DAI Global LLC has a substantial track record with USAID, having managed numerous contracts across various sectors and geographic regions. They are a well-established international development company known for implementing projects focused on economic growth, governance, and social development. Their experience often includes large-scale, complex initiatives similar to the Southern Africa Trade and Investment Hub. Performance reviews and past performance information from previous USAID contracts would provide a more detailed assessment of their capabilities and reliability in executing such programs effectively and efficiently.

How does the cost-plus-fixed-fee structure compare to other contract types for development assistance?

The cost-plus-fixed-fee (CPFF) structure is common in development assistance where the scope of work can be complex and evolve over time, making a fixed-price contract difficult to define upfront. CPFF allows the contractor to recover allowable costs plus a predetermined fixed fee, which represents profit. While it offers flexibility, it places a greater burden on the contracting agency (USAID in this case) to meticulously monitor costs to ensure they are reasonable and necessary. Other contract types like Firm-Fixed-Price (FFP) offer more cost certainty for the government but are less suitable for R&D or highly uncertain scopes. Cost-reimbursement contracts with award fees or incentive fees can also be used to better align contractor performance with agency goals.

What are the key performance indicators (KPIs) typically used to measure the success of a trade and investment hub program?

Key performance indicators for a trade and investment hub program typically focus on measurable economic outcomes and capacity improvements. These often include metrics such as the increase in exports from participating countries, the value of new investments attracted to the region, the number of jobs created or sustained, improvements in trade facilitation indicators (e.g., reduced customs clearance times), policy reforms adopted that enhance the business environment, and the number of businesses receiving technical assistance that subsequently expand or improve their operations. The specific KPIs would be detailed in the contract's Statement of Work and Performance Work Statement, tailored to the unique objectives of the Southern Africa Trade and Investment Hub.

What is the historical spending trend for USAID's trade and investment programs in Southern Africa?

Historical spending trends for USAID's trade and investment programs in Southern Africa have generally shown a consistent commitment to fostering economic growth and regional integration. While specific figures fluctuate annually based on congressional appropriations, global priorities, and regional needs, USAID has historically allocated significant resources to initiatives aimed at improving trade, attracting investment, and supporting private sector development across the continent. Programs like the Southern Africa Trade and Investment Hub represent a substantial portion of this investment, reflecting a long-term strategy to build sustainable economic capacity in the region. Analyzing USAID's annual budget justifications and program reports would provide detailed historical spending data.

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

Contracts with a long duration (nearly 6 years) and broad scope, like this one, carry inherent risks. One primary risk is scope creep, where the project's objectives may expand beyond the original intent, potentially leading to cost overruns if not managed carefully. Another risk is the potential for contractor performance degradation over time, especially if incentives are not structured to maintain high quality throughout the contract period. Furthermore, changes in the political or economic landscape of Southern Africa during the contract's life could necessitate significant adaptations, posing a challenge to achieving the original goals. Ensuring robust monitoring, clear communication, and adaptive management strategies are crucial to mitigate these risks.

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: AID-674-15-000033

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7600 WISCONSIN AVE STE 200, BETHESDA, MD, 20814

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

Financial Breakdown

Contract Ceiling: $73,707,292

Exercised Options: $73,707,292

Current Obligation: $55,671,230

Actual Outlays: $28,748,438

Subaward Activity

Number of Subawards: 52

Total Subaward Amount: $16,660,174

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline