USAID's $30.3M contract for microenterprise development knowledge management and training awarded to The QED Group LLC

Contract Overview

Contract Amount: $30,330,298 ($30.3M)

Contractor: THE QED Group LLC

Awarding Agency: Agency for International Development

Start Date: 2008-05-09

End Date: 2022-09-26

Contract Duration: 5,253 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS PROCUREMENT IS TO AWARD A COST PLUS FIXED FEE COMPLETION CONTRACT. THIS IS AN 8(A) SET-ASIDE. THIS ACTIVITY WILL BUILD ON SUCCESSFUL PRIOR UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) INVESTMENT IN KNOWLEDGE MANAGEMENT & COMMUNICATIONS AND TRAINING ACTIVITIES TO PROMOTE ADOPTION OF GOOD PRACTICE IN MICROENTERPRISE DEVELOPMENT ACTIVITIES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $30.3 million to THE QED GROUP LLC for work described as: THE PURPOSE OF THIS PROCUREMENT IS TO AWARD A COST PLUS FIXED FEE COMPLETION CONTRACT. THIS IS AN 8(A) SET-ASIDE. THIS ACTIVITY WILL BUILD ON SUCCESSFUL PRIOR UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) INVESTMENT IN KNOWLEDGE MANAGEMENT & COMMUNICATIONS AND TRAINI… Key points: 1. Contract supports USAID's prior investments in knowledge management and communications for microenterprise development. 2. The QED Group LLC, a small business, received this cost-plus-fixed-fee contract. 3. The contract duration of over 5200 days (approx. 14 years) suggests a long-term program. 4. This procurement was an 8(a) set-aside, indicating a focus on small disadvantaged businesses. 5. The contract falls under the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' NAICS code. 6. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', which is unusual for an 8(a) set-aside.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its long duration and specific focus on USAID's microenterprise development initiatives. The cost-plus-fixed-fee structure can lead to cost overruns if not managed carefully. Without comparable contracts for similar knowledge management and training services within international development, a precise value-for-money assessment is difficult. The total award amount of $30.3 million over nearly 15 years averages to approximately $2 million per year, which may be reasonable for a specialized program of this scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources' and was also an 8(a) set-aside. This combination is somewhat contradictory. Typically, an 8(a) set-aside restricts competition to eligible small disadvantaged businesses. The 'exclusion of sources' phrasing might imply that only certain types of firms were considered, or that it was a sole-source award to an 8(a) firm after a limited competition. The presence of '3' bidders suggests some level of competition, but the specific nature of the competition is unclear.

Taxpayer Impact: The 8(a) set-aside aims to provide opportunities for small disadvantaged businesses, which can foster economic growth. However, the limited competition may mean taxpayers did not benefit from the most competitive pricing possible.

Public Impact

Beneficiaries include individuals and organizations involved in microenterprise development, particularly in regions where USAID operates. Services delivered include knowledge management, communications, and training to promote good practices in microenterprise development. The geographic impact is likely global, focusing on areas targeted by USAID's international development programs. Workforce implications may include employment for individuals in program management, training, and knowledge management within the contractor's organization and potentially within partner organizations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-fixed-fee contract type carries inherent risks of cost escalation if not rigorously managed.
The long contract duration (over 14 years) could lead to scope creep or a misalignment with evolving program needs.
The 'Full and Open Competition After Exclusion of Sources' designation is ambiguous and warrants further clarification regarding the competitive process.
The specific metrics for success and performance evaluation are not detailed, making it difficult to assess program effectiveness.
The reliance on prior USAID investments suggests a need to ensure this contract builds effectively on existing frameworks without duplicating efforts.

Positive Signals

The contract directly supports USAID's strategic goals in microenterprise development, aligning with established agency priorities.
The 8(a) set-aside designation supports small disadvantaged businesses, fostering economic inclusion.
The contractor, The QED Group LLC, has experience in international development and related services.
The contract aims to promote the adoption of good practices, suggesting a focus on sustainable development outcomes.
The long duration indicates a commitment to a sustained program effort, potentially leading to more impactful results.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sectors, specifically related to data processing, web hosting, and IT support services, but with a strong application in international development and capacity building. The market for such services is competitive, with numerous firms offering IT solutions and program support. Comparable spending benchmarks are difficult to establish due to the specialized nature of combining IT services with international microenterprise development expertise. However, IT services for government agencies represent a significant portion of federal spending, with various sub-sectors like data hosting and management having established market rates.

Small Business Impact

This contract was designated as an 8(a) set-aside, specifically targeting small disadvantaged businesses. The QED Group LLC, the awardee, is a small business. This designation is intended to provide significant opportunities for small businesses to compete for and perform federal contracts. It implies a focus on developing the capacity of small businesses within the federal contracting ecosystem. There is no explicit information on subcontracting requirements, but typically, prime contractors on larger awards are encouraged or required to subcontract portions of the work to other small businesses, further benefiting the small business community.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, USAID would be responsible for monitoring expenditures to ensure they are reasonable and allocable to the contract's objectives. Performance reviews and regular reporting by the contractor would be crucial oversight mechanisms. Transparency would be enhanced through public contract databases, though detailed program performance data might be less accessible due to the nature of international development work. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

USAID Microenterprise Development Programs
USAID Knowledge Management Initiatives
Small Business Administration (SBA) 8(a) Program
Federal IT Services Contracts
International Development Assistance

Risk Flags

Ambiguous competition designation
Potential for cost overruns in CPFF contract
Long contract duration may lead to misalignment with evolving needs
Need for clear performance metrics to assess effectiveness

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $30.3 million to THE QED GROUP LLC. THE PURPOSE OF THIS PROCUREMENT IS TO AWARD A COST PLUS FIXED FEE COMPLETION CONTRACT. THIS IS AN 8(A) SET-ASIDE. THIS ACTIVITY WILL BUILD ON SUCCESSFUL PRIOR UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) INVESTMENT IN KNOWLEDGE MANAGEMENT & COMMUNICATIONS AND TRAINING ACTIVITIES TO PROMOTE ADOPTION OF GOOD PRACTICE IN MICROENTERPRISE DEVELOPMENT ACTIVITIES.

Who is the contractor on this award?

The obligated recipient is THE QED GROUP 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 $30.3 million.

What is the period of performance?

Start: 2008-05-09. End: 2022-09-26.

What is the track record of The QED Group LLC with USAID and similar federal agencies?

The QED Group LLC has a history of working with USAID and other federal agencies on international development projects. Their portfolio often includes technical assistance, capacity building, and program management in areas such as education, health, and economic growth. Specific to this contract, their experience in knowledge management and communications for development initiatives is a key factor. A review of their past performance on similar contracts would reveal their ability to manage complex projects, deliver results within budget, and meet client expectations. Data on past performance, including client feedback and project outcomes, would be essential for a comprehensive assessment of their capabilities and reliability in executing this significant award.

How does the $30.3 million award compare to similar knowledge management and training contracts for international development?

Comparing this $30.3 million award requires careful consideration of its 14-year duration and specific focus on microenterprise development knowledge management and training. Annualized, the contract value is approximately $2 million per year. This figure needs to be benchmarked against other long-term, specialized international development support contracts. Contracts for broader IT services or general program management might have different cost structures. The value is likely influenced by the specialized expertise required, the geographic scope of USAID's operations, and the complexity of fostering knowledge sharing and adoption of best practices in developing economies. Without direct comparisons for identical services and scope, assessing its competitiveness is challenging, but the annual spend appears within a reasonable range for sustained, expert-led development support.

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

The primary risks associated with a CPFF contract of this magnitude and duration include potential cost overruns and contractor inefficiency. While the fixed fee provides the contractor with an incentive to control costs, the 'cost plus' portion means the government reimburses allowable costs. If costs escalate beyond initial projections, the total expenditure could exceed the anticipated $30.3 million, especially over a 14-year period. Rigorous oversight by USAID is crucial to scrutinize all incurred costs and ensure they are reasonable, allocable, and necessary. Furthermore, the long duration increases the risk of the program's objectives becoming misaligned with evolving development needs or technological advancements, potentially leading to reduced effectiveness or the need for costly contract modifications.

What are the expected program effectiveness metrics and how will they be measured?

The effectiveness of this contract is expected to be measured by the successful adoption of good practices in microenterprise development activities, facilitated by enhanced knowledge management and communications. Key metrics would likely include the reach and impact of training programs, the utilization of knowledge resources developed, and the demonstrable improvement in microenterprise performance in target regions. USAID would establish specific performance work statements (PWS) outlining measurable objectives and key performance indicators (KPIs). These could involve tracking the number of individuals trained, the dissemination rate of knowledge products, feedback from beneficiaries, and, ultimately, evidence of increased sustainability and growth among microenterprises. Regular performance reviews and reporting by The QED Group LLC would be essential for monitoring progress against these metrics.

How has USAID's spending in microenterprise development and knowledge management evolved over time, and how does this contract fit into that trend?

USAID's spending in microenterprise development and knowledge management has likely evolved in response to global development priorities and the increasing recognition of the importance of information sharing and capacity building. Historically, development aid has shifted towards more targeted, evidence-based interventions. This contract, building on 'successful prior investment,' suggests a strategic continuation and expansion of USAID's commitment to these areas. It reflects a trend towards institutionalizing knowledge management within development programs to ensure sustainability and maximize impact. By consolidating knowledge management, communications, and training under a single, long-term contract, USAID aims for greater efficiency and coherence in its efforts to foster microenterprise growth, indicating a mature approach to program design and implementation.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' designation in conjunction with an 8(a) set-aside?

The designation 'Full and Open Competition After Exclusion of Sources' alongside an 8(a) set-aside presents a complex procurement scenario. Typically, an 8(a) set-aside restricts competition to eligible small disadvantaged businesses, effectively excluding other sources from the outset. 'Full and Open Competition' implies that all responsible sources were allowed to compete. The 'Exclusion of Sources' phrase suggests that while competition occurred, certain types of firms or specific sources were intentionally excluded. In the context of an 8(a) set-aside, this likely means the competition was open to all eligible 8(a) firms, but perhaps not to larger businesses or firms that did not meet specific criteria defined by the agency. The presence of 3 bidders indicates some level of competition within the defined parameters, but the exact nature of the exclusion warrants clarification to fully understand the competitive landscape and its impact on price discovery.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1250 EYE ST NW, STE 1100, WASHINGTON, DC, 20005

Business Categories: 8(a) Program Participant, Category Business, Community Developed Corporation Owned Firm, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $84,383,688

Exercised Options: $78,735,930

Current Obligation: $30,330,298

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline