USAID's $49.7M contract with ABT GLOBAL LLC for technical services shows fair value, with a 5-year performance period

Contract Overview

Contract Amount: $49,691,415 ($49.7M)

Contractor: ABT Global LLC

Awarding Agency: Agency for International Development

Start Date: 2010-02-18

End Date: 2015-04-17

Contract Duration: 1,884 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FOOD AND AGRIBUSINESS AND RURAL MARKETS (FARM)

Plain-Language Summary

Agency for International Development obligated $49.7 million to ABT GLOBAL LLC for work described as: FOOD AND AGRIBUSINESS AND RURAL MARKETS (FARM) Key points: 1. The contract's total value of $49.7 million over 5 years suggests a moderate annual spend. 2. Competition dynamics indicate a full and open competition, likely fostering competitive pricing. 3. Risk indicators appear low given the contract's duration and established performance period. 4. Performance context is framed by 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. Sector positioning places this within professional services supporting international development initiatives.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details. However, a $49.7 million spend over five years averages approximately $9.9 million annually. This figure needs to be compared against the scale and complexity of the technical services provided to the Agency for International Development (USAID). The cost-plus-fixed-fee (CPFF) contract type suggests that costs are reimbursed, with a fixed fee for profit, which can sometimes lead to higher overall costs if not managed tightly. Without comparable contracts for similar technical assistance in international development, a definitive value-for-money assessment is difficult, but the duration and total value do not immediately suggest overspending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically leads to a wider pool of potential bidders and encourages competitive pricing. The presence of 4 bids (no: 4) suggests a reasonable level of interest, though the exact number of bidders does not inherently guarantee the most competitive outcome without knowing the quality and scope of each bid. The open competition is a positive signal for price discovery and ensuring the government receives offers from a diverse range of capable contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government secures services from the most cost-effective and capable providers.

Public Impact

Beneficiaries include USAID in its mission to advance global development and humanitarian assistance. Services delivered encompass a broad range of professional, scientific, and technical support. Geographic impact is likely global, aligning with USAID's international development mandate. Workforce implications involve skilled professionals contributing to development projects, potentially including local hires in recipient countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad 'All Other Professional, Scientific, and Technical Services' category lacks specificity, potentially obscuring the exact nature of services and associated costs.
Cost-plus-fixed-fee contracts can incentivize cost overruns if not rigorously monitored, potentially impacting the final cost to taxpayers.
Limited public information on specific deliverables makes it difficult to assess performance against expectations and ensure full value realization.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
A defined performance period (2010-2015) indicates a structured engagement with clear start and end dates.
The contract was awarded to ABT GLOBAL LLC, a known entity in the government contracting space, implying some level of established capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a significant segment of federal spending. This sector encompasses a wide array of support functions, from research and development to management consulting and specialized technical expertise. Federal spending in this area often supports agency missions that require external expertise or capacity augmentation. Comparable spending benchmarks would depend heavily on the specific sub-sector and the nature of the technical services provided, but overall federal spending on professional services is in the tens of billions annually.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without explicit set-aside goals or reporting on subcontracting, it is difficult to assess the direct impact on small businesses for this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned through satisfactory performance. Transparency would be facilitated through contract reporting mechanisms and potentially through USAID's Inspector General's office, which would have jurisdiction to investigate fraud, waste, and abuse.

Related Government Programs

USAID Technical Assistance Contracts
Professional and Technical Services
International Development Support
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Broad NAICS code limits specificity of services.
CPFF contract type requires diligent cost oversight.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $49.7 million to ABT GLOBAL LLC. FOOD AND AGRIBUSINESS AND RURAL MARKETS (FARM)

Who is the contractor on this award?

The obligated recipient is ABT 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 $49.7 million.

What is the period of performance?

Start: 2010-02-18. End: 2015-04-17.

What specific technical services did ABT GLOBAL LLC provide under this contract?

The contract falls under the North American Industry Classification System (NAICS) code 541990, which is defined as 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can encompass a wide range of activities, including but not limited to, research services, laboratory testing, environmental consulting, and specialized technical support not elsewhere classified. Without more specific contract line item details or a statement of work, the precise nature of the technical services provided by ABT GLOBAL LLC remains unspecified. These services likely supported USAID's mission in areas such as program evaluation, policy analysis, technical assistance for development projects, or scientific research relevant to international development goals.

How does the $49.7 million contract value compare to similar USAID technical services contracts?

Comparing the $49.7 million contract value to similar USAID technical services contracts requires access to a database of historical and current USAID procurements, specifically those categorized under broad technical services. USAID frequently awards large contracts for technical assistance and program support, often in the tens to hundreds of millions of dollars, especially for multi-year engagements in complex development environments. The $49.7 million over five years averages approximately $9.9 million annually. This annual figure is within a plausible range for significant technical support contracts, but a precise comparison would necessitate analyzing contracts with similar scopes of work, geographic focus, and duration. Without such a comparative dataset, it's difficult to definitively state whether this contract represents a particularly high or low value.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, such as this one awarded to ABT GLOBAL LLC, is the potential for cost escalation. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is not. This structure can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total expenditure, provided the work is completed satisfactorily. Effective oversight by the contracting agency (USAID in this case) is critical to scrutinize allowable costs, prevent inefficiencies, and ensure that the government is not overpaying. The risk is mitigated by robust contract administration, clear performance metrics, and regular audits.

What is the historical spending pattern for 'All Other Professional, Scientific, and Technical Services' by USAID?

Analyzing the historical spending patterns for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) by USAID requires access to historical federal procurement data, such as from USAspending.gov or FPDS. Generally, USAID, like many large federal agencies, relies heavily on professional and technical services to execute its diverse mission. Spending in this broad category can fluctuate year-to-year based on program needs, specific project requirements, and the availability of internal expertise. Without specific historical data for USAID's spending under NAICS 541990, it's difficult to establish a precise pattern. However, it is reasonable to assume that such services constitute a consistent and significant portion of USAID's contracting budget, supporting various aspects of international development, research, and program implementation.

What does the '4' in the 'number of offers' field signify for taxpayer value?

The 'number of offers' (no: 4) field indicates that four distinct bids were received by the Agency for International Development (USAID) for this contract. In the context of a 'full and open competition,' having multiple offers is generally a positive indicator for taxpayer value. It suggests that the contract announcement reached a sufficient number of potential bidders, fostering a competitive environment. More bidders typically increase the likelihood that the government will receive a range of proposals at different price points and with varying technical approaches. This competition puts downward pressure on prices and encourages offerors to present their best value proposition, ultimately aiming to secure the contract. While four offers are a reasonable number, the true measure of taxpayer value also depends on the quality of those offers and the effectiveness of the evaluation process.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4800 MONTGOMERY LN 600, BETHESDA, MD, 20814

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,691,415

Exercised Options: $49,691,415

Current Obligation: $49,691,415

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDEDHI000500005

IDV Type: IDC

Timeline