USAID's $130.9M contract with SAA SOLUTIONS INC for administrative management consulting services

Contract Overview

Contract Amount: $13,091,822 ($13.1M)

Contractor: SAA Solutions Inc

Awarding Agency: Agency for International Development

Start Date: 2007-09-28

End Date: 2010-09-30

Contract Duration: 1,098 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EXERCISE OPTION YEAR; PROVIDE INCREMENTAL FUNDING; AUTHORIZE CONTRACTOR TO EXECUTE GRANTS WITH NON-GOVERNMENTAL ORGANIZATIONS; AND REVISE SOW

Plain-Language Summary

Agency for International Development obligated $13.1 million to SAA SOLUTIONS INC for work described as: EXERCISE OPTION YEAR; PROVIDE INCREMENTAL FUNDING; AUTHORIZE CONTRACTOR TO EXECUTE GRANTS WITH NON-GOVERNMENTAL ORGANIZATIONS; AND REVISE SOW Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 3. Option year exercise indicates continued need and satisfactory performance by the contractor. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. The contract duration of 1098 days spans over three years, indicating a significant, long-term engagement. 6. The contract allows for grants with non-governmental organizations, suggesting a broad scope of work.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing this to similar administrative management consulting contracts would require detailed analysis of the scope of work and the specific services provided. The fixed fee component aims to provide some cost certainty, but the overall value is contingent on efficient execution and effective management of the awarded grants.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of 5 bids suggests a reasonably competitive environment. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government. However, the ultimate impact on price depends on the specific evaluation criteria and the quality of the proposals received.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors vie for the best price and performance, potentially leading to savings and higher quality services.

Public Impact

The primary beneficiaries are likely the Agency for International Development (USAID) and the non-governmental organizations (NGOs) that will receive grants. The services delivered include administrative management and general management consulting, supporting USAID's operational efficiency and program execution. The geographic impact is likely global, given USAID's mission to support international development and humanitarian efforts. Workforce implications could include support for USAID staff and potentially personnel involved in managing or implementing grant-funded projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can incentivize contractors to incur more costs to increase their fixed fee, if not properly managed.
The broad scope allowing grants to NGOs may introduce complexities in oversight and performance monitoring.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency.
The contract's duration suggests a long-term reliance on external consulting services, potentially impacting internal capacity development.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Option year exercise suggests contractor performance has met or exceeded expectations.
The contract's structure allows for flexibility in executing grants, potentially enabling wider program reach.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is characterized by a wide range of firms, from large global consultancies to specialized boutique firms. Spending in this area often supports government agencies in improving efficiency, implementing new strategies, and managing complex programs. Comparable spending benchmarks would depend on the specific nature of the administrative and grant management services provided, but consulting services represent a significant portion of federal contracting.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the contract was not specifically targeted towards small businesses. Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals, it's difficult to assess the extent to which small businesses will benefit from this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). Mechanisms likely include regular progress reports from SAA SOLUTIONS INC, performance reviews, and potentially site visits or audits, especially concerning the grants being executed. Accountability is tied to the Cost Plus Fixed Fee structure, where the contractor must justify costs and deliver on the agreed-upon fixed fee. Transparency would be enhanced through contract award notices and potentially public reporting on grant activities, though specific oversight details are not provided.

Related Government Programs

USAID Grant Management Support
Federal Management Consulting Services
International Development Assistance Programs
Administrative Support Services Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent cost overrun risks.
Grant execution with NGOs requires robust oversight to ensure compliance and prevent misuse of funds.
Scope of work is broad, potentially leading to challenges in performance monitoring and management.
Limited public information on specific performance metrics makes independent value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $13.1 million to SAA SOLUTIONS INC. EXERCISE OPTION YEAR; PROVIDE INCREMENTAL FUNDING; AUTHORIZE CONTRACTOR TO EXECUTE GRANTS WITH NON-GOVERNMENTAL ORGANIZATIONS; AND REVISE SOW

Who is the contractor on this award?

The obligated recipient is SAA SOLUTIONS 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 $13.1 million.

What is the period of performance?

Start: 2007-09-28. End: 2010-09-30.

What is the track record of SAA SOLUTIONS INC with federal contracts, particularly with USAID?

Without access to a comprehensive federal procurement database or specific contract performance history for SAA SOLUTIONS INC, a detailed assessment of their track record is limited. However, the fact that USAID exercised an option year on this contract (indicated by 'EXERCISE OPTION YEAR') suggests a level of satisfaction with the contractor's performance during the initial period. Option exercises typically occur when the government deems the contractor's services to be necessary and satisfactory. Further investigation into past performance evaluations, any contract disputes, or awards received by SAA SOLUTIONS INC would provide a more complete picture of their reliability and effectiveness in fulfilling federal obligations.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar administrative consulting services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is uncertainty about the costs involved, as is common in consulting and research. It reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if the scope changes but carries a higher risk of cost growth, as the government bears the cost risk. Cost-reimbursement contracts like CPFF are generally considered less cost-effective for the government than FFP when requirements are well-defined. For administrative management and general consulting, FFP might be preferred if specific deliverables and timelines are clear, while CPFF might be chosen for more exploratory or complex program support where costs are harder to predict upfront.

What are the potential risks associated with SAA SOLUTIONS INC executing grants with non-governmental organizations (NGOs)?

Executing grants with NGOs introduces several risks for the prime contractor and the government. These include ensuring NGO compliance with federal regulations (e.g., 2 CFR Part 200), monitoring their financial health and performance, and preventing fraud, waste, and abuse. There's also the risk of mission creep or misalignment between the contractor's objectives and the NGOs' activities. Furthermore, managing a portfolio of grants requires robust oversight mechanisms, clear communication channels, and the capacity to address performance issues or disputes with multiple sub-recipients. The success of these grants hinges on SAA SOLUTIONS INC's ability to effectively manage, monitor, and report on the activities of diverse NGOs, which can be resource-intensive and complex.

What is the typical cost range for administrative management and general management consulting services for a contract of this duration and scope?

Determining a typical cost range for administrative management and general management consulting services is highly dependent on the specific tasks, deliverables, geographic locations, and the level of expertise required. For a contract spanning approximately three years (1098 days) with a total award amount of $130.9 million, the average annual value is roughly $43.6 million. This figure encompasses all direct costs, indirect costs, and the fixed fee. Benchmarking requires comparing the contractor's proposed labor mix (e.g., senior consultants, analysts, support staff), overhead rates, and the fixed fee percentage against similar contracts awarded by USAID or other agencies for comparable services. Without detailed breakdowns of labor categories, hours, and rates, providing a precise cost comparison is difficult, but this award suggests a significant scale of operations and support.

How does the 'EXERCISE OPTION YEAR' action impact the overall value and risk assessment of this contract?

Exercising an option year signifies that the government has decided to extend the contract beyond its initial term, based on the contractor's satisfactory performance and the continued need for the services. From a value perspective, it suggests that the services provided under the initial term were deemed beneficial and cost-effective enough to warrant further investment. This can reduce the government's risk associated with finding and onboarding a new contractor, potentially saving time and resources. However, it also means continued exposure to the risks inherent in the contract type (CPFF in this case). The decision to exercise an option is typically based on meeting pre-defined performance standards and favorable pricing, implying that the value proposition remained strong.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 8122 FOREST HILL COURT, WEST CHESTER, OH, 08

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $74,322,382

Exercised Options: $67,983,062

Current Obligation: $13,091,822

Parent Contract

Parent Award PIID: GS10F0227P

IDV Type: FSS

Timeline