USAID contract for Sudan program implementation awarded to DAI GLOBAL LLC for over $49.7 million

Contract Overview

Contract Amount: $49,751,928 ($49.8M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2005-02-18

End Date: 2008-01-31

Contract Duration: 1,077 days

Daily Burn Rate: $46.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TO IMPLEMENT A TWO YEAR PROGRAM IN SUDAN. NEW TO DAI/SUDAN, PROGRAM IMPLEMENTATION FOR 2 YEARS TAS::72 1035::TAS

Plain-Language Summary

Agency for International Development obligated $49.8 million to DAI GLOBAL LLC for work described as: TO IMPLEMENT A TWO YEAR PROGRAM IN SUDAN. NEW TO DAI/SUDAN, PROGRAM IMPLEMENTATION FOR 2 YEARS TAS::72 1035::TAS Key points: 1. Contract awarded for a two-year program in Sudan, indicating a significant commitment to the region. 2. The contractor, DAI GLOBAL LLC, is new to this specific program implementation in Sudan, presenting potential learning curve risks. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored. 4. The duration of the contract is over 35 months (February 2005 to January 2008), suggesting a substantial and ongoing need. 5. The contract was awarded as a competitive delivery order, implying some level of market vetting. 6. The North American Industry Classification System (NAICS) code 541611 points to administrative management and general management consulting services.

Value Assessment

Rating: fair

The contract's value of approximately $49.7 million for a two-year program in Sudan appears substantial, but a direct comparison to similar USAID programs in the region is needed for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex or uncertain projects, carries inherent risks of cost escalation if not managed with rigorous oversight. Benchmarking the fixed fee component against industry standards for similar consulting services would provide further insight into pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, suggesting that multiple vendors had the opportunity to bid. The presence of 5 bids indicates a degree of competition. However, the specifics of the competition, such as the number of proposals received and the evaluation criteria, are not detailed here. A competitive award is generally positive for price discovery, but the ultimate value achieved depends on the rigor of the competition and the agency's negotiation.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by fostering a marketplace where contractors vie for the best price and performance.

Public Impact

The primary beneficiaries are the populations in Sudan who will receive services and support through the implemented program. The program aims to deliver administrative management and general management consulting services, likely focused on development or humanitarian aid. The geographic impact is concentrated in Sudan, a region often requiring significant international assistance. The contract may have implications for the local workforce in Sudan through job creation and capacity building, as well as for the international development sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

New contractor (DAI GLOBAL LLC) to this specific program implementation in Sudan may lead to initial inefficiencies or delays.
Cost Plus Fixed Fee contract type can lead to higher costs if not managed tightly, especially in a challenging operating environment like Sudan.
The extended duration (over 35 months) increases the risk of scope creep or changing requirements that could impact cost and effectiveness.
Limited information on the specific services and expected outcomes makes it difficult to assess performance risks upfront.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
The contract addresses a critical need for program implementation in Sudan, aligning with USAID's development objectives.
The fixed fee component, if set appropriately, can provide cost certainty for a portion of the contract.
The duration allows for sustained effort and potential for significant impact in the target region.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The global development and humanitarian aid market is substantial, with agencies like USAID being major spenders. Comparable spending benchmarks would involve looking at other large-scale program implementation contracts awarded by USAID or similar international development organizations for work in complex environments. The NAICS code 541611 is broad, encompassing various consulting services, so direct comparisons should ideally focus on contracts with similar objectives and geographic scope.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The contract was awarded to DAI GLOBAL LLC, a known entity in international development. Subcontracting opportunities for small businesses are not specified but are common in large development contracts, potentially offering avenues for smaller firms to participate. The impact on the small business ecosystem would depend on the extent and nature of any subcontracting arrangements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure funds are used effectively and as intended. Transparency would be enhanced through regular reporting requirements from the contractor and potentially through USAID's public contract databases. Inspector General jurisdiction would apply for any allegations of fraud, waste, or abuse.

Related Government Programs

USAID Sudan Country Program
International Development Assistance
Management and Consulting Services
Humanitarian Aid Programs
Global Health Initiatives
Economic Development Programs

Risk Flags

New Contractor in Specific Program/Region
Cost Plus Fixed Fee Contract Type
Challenging Operating Environment (Sudan)
Extended Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $49.8 million to DAI GLOBAL LLC. TO IMPLEMENT A TWO YEAR PROGRAM IN SUDAN. NEW TO DAI/SUDAN, PROGRAM IMPLEMENTATION FOR 2 YEARS TAS::72 1035::TAS

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 $49.8 million.

What is the period of performance?

Start: 2005-02-18. End: 2008-01-31.

What is the track record of DAI GLOBAL LLC in implementing similar programs in Sudan or comparable complex environments?

The provided data indicates that DAI GLOBAL LLC is 'NEW TO DAI/SUDAN, PROGRAM IMPLEMENTATION FOR 2 YEARS'. This suggests that while DAI may have experience in international development, this specific contract represents a new venture for them in Sudan or for this particular type of program implementation. Without further information on their broader portfolio, it's difficult to definitively assess their track record for this specific context. Agencies typically conduct pre-award responsibility determinations, which would have evaluated DAI's past performance on other contracts, even if not identical. However, the explicit mention of being 'new' warrants close monitoring of their initial performance and adherence to project timelines and budgets.

How does the total contract value of $49.7 million compare to other USAID program implementation contracts in Sudan or similar regions?

The total contract value of $49.7 million for a two-year program implementation in Sudan is substantial. To benchmark this effectively, one would need to analyze historical USAID spending data for similar program types (e.g., administrative management, general consulting, development assistance) in countries with comparable political, economic, and security challenges. Factors such as the specific objectives of the program (e.g., health, education, governance, economic growth), the scale of the target population, and the duration of the implementation period significantly influence contract values. A preliminary assessment suggests this is a significant investment, implying a complex and potentially large-scale program. Further analysis would involve comparing the cost per beneficiary or cost per unit of service delivered against similar contracts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract in a challenging environment like Sudan?

The Cost Plus Fixed Fee (CPFF) contract type presents specific risks, particularly in challenging environments like Sudan. The 'cost plus' element means the contractor is reimbursed for allowable costs incurred, plus a fixed fee representing profit. The primary risk is that the contractor may have less incentive to control costs rigorously, as cost overruns are generally covered, potentially leading to budget blowouts. The 'fixed fee' provides some predictability for the contractor's profit but does not cap the total contract cost. In Sudan, factors such as security concerns, logistical difficulties, potential for corruption, and fluctuating local conditions can increase costs unpredictably. Effective oversight by USAID is paramount to scrutinize all claimed costs, ensure they are reasonable and allocable, and manage the scope of work to prevent unnecessary expenditures.

What specific administrative management and general management consulting services are being procured under this contract?

The NAICS code 541611 indicates 'Administrative Management and General Management Consulting Services.' While the data doesn't detail the specific services, these typically encompass a broad range of activities aimed at improving organizational efficiency and effectiveness. For a program implementation contract in Sudan, this could include strategic planning, organizational development, process improvement, human capital management, financial management systems, operational support, and policy advice. The 'program implementation' aspect suggests these consulting services are geared towards executing a specific development or humanitarian initiative, potentially involving setting up or managing local operations, coordinating stakeholders, and ensuring project milestones are met within the defined timeframe and budget.

How does the contract duration of over 35 months (Feb 2005 - Jan 2008) align with typical program implementation cycles for USAID in similar regions?

A contract duration of over 35 months (February 2005 to January 2008) for program implementation in a region like Sudan is not uncommon for USAID projects. Development and humanitarian programs often require sustained effort over several years to achieve meaningful and lasting impact. This duration allows for the establishment of programs, adaptation to evolving local conditions, capacity building, and the monitoring and evaluation of results. Shorter durations might be suitable for specific, time-bound interventions, but comprehensive program implementation, especially in complex environments, benefits from longer-term engagement. The extended period also necessitates robust contract management to ensure continued relevance and effectiveness throughout its life.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

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, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $51,031,054

Exercised Options: $51,031,054

Current Obligation: $49,751,928

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDDOTI000300004

IDV Type: IDC

Timeline