USAID's $40.5M water and sanitation contract supports reforms across Africa, focusing on underserved areas

Contract Overview

Contract Amount: $40,460,563 ($40.5M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Agency for International Development

Start Date: 2009-09-30

End Date: 2022-12-15

Contract Duration: 4,824 days

Daily Burn Rate: $8.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE ACTIVITY WILL PROVIDE TECHNICAL ASSISTANCE, COMMODITIES, AND SMALL CAPITAL INVESTMENTS TO SUPPORT SPECIFIC REFORM INITIATIVES THAT IMPROVE MANAGEMENT, DELIVERY AND FINANCE OF WATER AND SANITATION SERVICES. ALL USAID PRESENCE COUNTRIES IN AFRICA WILL BE ELIGIBLE FOR REFORM SUPPORT UNDER THIS CONTRACT. THE AUTHORIZED GEOGRAPHIC CODE IS 935. THE ACTIVITY WILL ALSO SUPPORT INNOVATIVE APPROACHES TO (1) EXPAND WATER AND SANITATION SERVICES INTO SLUM AND PERI-URBAN AREAS AND (2) PROVIDE FOR STRONGER INSTITUTIONAL AND FINANCING FRAMEWORKS FOR WATER AND SANITATION SERVICES IN RURAL VILLAGES. IN ADDITION, SUWASA MAY ALSO HELP TO ESTABLISH SUSTAINABLE FINANCING MECHANISMS FOR THE WATER SECTOR BY ASSISTING TO DEVELOP WATER REVOLVING FUNDS IN COUNTRIES THAT HAVE CREDIBLE PLANS FOR THE DEVELOPMENT OF SUCH FUNDS. PARTNERSHIPS WITH THE PRIVATE SECTOR WILL BE ENCOURAGED DURING TECHNICAL ASSISTANCE UNDER THIS CONTRACT, AND WILL BE CRITICAL TO THE SUCCESS OF THIS PROGRAM.

Place of Performance

Location: BURLINGTON, CHITTENDEN County, VERMONT, 05401

State: Vermont Government Spending

Plain-Language Summary

Agency for International Development obligated $40.5 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: THE ACTIVITY WILL PROVIDE TECHNICAL ASSISTANCE, COMMODITIES, AND SMALL CAPITAL INVESTMENTS TO SUPPORT SPECIFIC REFORM INITIATIVES THAT IMPROVE MANAGEMENT, DELIVERY AND FINANCE OF WATER AND SANITATION SERVICES. ALL USAID PRESENCE COUNTRIES IN AFRICA WILL BE ELIGIBLE FOR REFORM SUP… Key points: 1. Contract aims to improve management, delivery, and financing of water and sanitation services. 2. Focus on expanding services to slum and peri-urban areas, and strengthening rural frameworks. 3. Supports innovative approaches to water sector financing and institutional development. 4. Eligible countries span all USAID presence countries in Africa. 5. Contract duration is over 4,000 days, indicating a long-term program. 6. Awardee is a domestic entity, but specific contractor is undisclosed.

Value Assessment

Rating: fair

The contract's value of $40.5 million over approximately 13 years suggests a significant investment in water and sanitation infrastructure and reform across Africa. Benchmarking this value is challenging without specific details on the scope of technical assistance, commodities, and small capital investments provided. However, the broad geographic reach and long duration imply a substantial program. The cost-plus-fixed-fee contract type suggests that costs are reimbursed, with a fixed fee negotiated upfront, which can lead to cost overruns if not managed carefully. Further analysis would require comparing the per-unit cost of services or outcomes achieved against similar international development projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded as a competitive delivery order, indicating that it was competed among multiple potential offerors. The specific number of bidders is not disclosed, but the 'full-and-open' competition suggests a robust process designed to solicit a wide range of proposals. This level of competition is generally expected to drive better pricing and service quality by allowing the government to select the most advantageous offer.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best value for money by fostering a competitive environment among contractors.

Public Impact

Benefits include improved access to water and sanitation services for populations in USAID presence countries in Africa. Services delivered encompass technical assistance, commodities, and small capital investments for reform initiatives. Geographic impact is broad, covering all USAID presence countries in Africa. Workforce implications may include local employment opportunities in project implementation and capacity building within partner institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific contractor information hinders assessment of past performance and potential risks.
Cost-plus-fixed-fee structure requires diligent oversight to manage potential cost escalations.
Broad scope across multiple countries presents logistical and management complexities.
Measuring the impact of technical assistance and small capital investments can be challenging.

Positive Signals

Competitive award process suggests potential for good value and quality.
Focus on sustainable financing mechanisms indicates a forward-looking approach.
Long contract duration allows for sustained impact and deep engagement.
Support for underserved areas aligns with development goals.

Sector Analysis

This contract falls within the broader sector of international development, specifically focusing on water and sanitation infrastructure and governance. The market for such services involves a mix of consulting firms, engineering companies, and non-governmental organizations specializing in development aid. USAID's spending in this area is part of a global effort to achieve Sustainable Development Goal 6 (Clean Water and Sanitation). Comparable spending benchmarks would involve analyzing other large-scale water and sanitation projects funded by international development agencies in similar regions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the available data. As this is a competitive delivery order, it's possible that opportunities for small businesses could arise through subcontracting by the prime awardee. However, without specific details on the prime contractor's small business utilization goals or subcontracting targets, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve regular reporting from the contractor to USAID, performance reviews, and financial audits. The Agency for International Development has established procedures for monitoring contract performance and ensuring accountability. Transparency is facilitated through contract databases and public reporting, although specific details of the contractor's activities and expenditures may be subject to confidentiality. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse.

Related Government Programs

USAID Water and Sanitation Programs
Global Water Security Initiatives
African Development Bank Water Projects
World Bank Water Sector Investments

Risk Flags

Undisclosed Contractor
Cost-Plus-Fixed-Fee Contract Type
Broad Geographic Scope
Measuring Impact of Technical Assistance

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $40.5 million to DOMESTIC AWARDEES (UNDISCLOSED). THE ACTIVITY WILL PROVIDE TECHNICAL ASSISTANCE, COMMODITIES, AND SMALL CAPITAL INVESTMENTS TO SUPPORT SPECIFIC REFORM INITIATIVES THAT IMPROVE MANAGEMENT, DELIVERY AND FINANCE OF WATER AND SANITATION SERVICES. ALL USAID PRESENCE COUNTRIES IN AFRICA WILL BE ELIGIBLE FOR REFORM SUPPORT UNDER THIS CONTRACT. THE AUTHORIZED GEOGRAPHIC CODE IS 935. THE ACTIVITY WILL ALSO SUPPORT INNOVATIVE APPROACHES TO (1) EXPAND WATER AND SANITATION SERVICES INTO SLUM AND PERI-URBAN AREAS AND (2) PROVIDE FOR STRONG

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

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 $40.5 million.

What is the period of performance?

Start: 2009-09-30. End: 2022-12-15.

What specific technical assistance, commodities, and small capital investments are being provided under this contract?

The provided data indicates that the contract supports 'technical assistance, commodities, and small capital investments' to improve water and sanitation services. However, the exact nature and quantity of these provisions are not detailed. Technical assistance likely involves expertise in management, delivery, and financing reforms. Commodities could range from water testing equipment to basic sanitation supplies. Small capital investments might include funding for minor infrastructure upgrades or pilot projects. A more granular breakdown of these components would be necessary to fully assess the contract's scope and value.

How is the success of reform initiatives measured and evaluated under this contract?

The provided data does not specify the metrics or evaluation frameworks used to measure the success of the reform initiatives. Typically, such contracts would include performance work statements with clearly defined objectives, deliverables, and key performance indicators (KPIs). USAID would likely monitor progress through regular reports, site visits, and potentially independent evaluations. Measuring the impact on management, delivery, and financing of water and sanitation services across multiple countries presents significant challenges, requiring robust data collection and analysis to demonstrate tangible improvements and return on investment.

What is the track record of the undisclosed domestic awardee in similar international development projects?

As the domestic awardee is undisclosed, it is impossible to assess their specific track record. In a full and open competition, the selection process would have evaluated offerors based on their past performance, technical capabilities, and financial stability. Without knowing the contractor's identity, we cannot reference their previous projects, client satisfaction, or history of delivering similar services in water and sanitation or international development. This lack of transparency regarding the awardee limits a comprehensive risk assessment.

How does the $40.5 million investment compare to other USAID water and sanitation initiatives in Africa?

The $40.5 million allocated to this contract represents a significant investment over its extended duration. To compare it effectively with other USAID water and sanitation initiatives, one would need to analyze the average funding levels, contract durations, and scope of work for similar programs. USAID funds a wide array of projects, and this particular contract's value should be viewed in the context of its broad geographic coverage (all USAID presence countries in Africa) and its focus on systemic reforms rather than solely infrastructure development. Benchmarking would require access to USAID's portfolio data.

What are the primary risks associated with implementing water and sanitation reforms across diverse African countries under this contract?

Key risks include political instability in recipient countries, corruption, lack of local capacity to sustain reforms, cultural barriers to adoption of new practices, and challenges in ensuring equitable access to services, particularly in informal settlements. Furthermore, the long duration and broad scope increase logistical complexities and the potential for unforeseen challenges. Ensuring effective coordination among various stakeholders, including governments, local communities, and other development partners, is also critical. The cost-plus-fixed-fee contract type necessitates vigilant financial oversight to mitigate risks of cost overruns.

What is the expected long-term impact on water and sanitation service delivery and financing frameworks in eligible African countries?

The intended long-term impact is the establishment of more sustainable, efficient, and equitable water and sanitation service delivery systems. This includes strengthening institutional capacity for management and regulation, improving financial sustainability through mechanisms like revolving funds, and expanding access to underserved populations. By fostering stronger governance and financing frameworks, the contract aims to create lasting improvements that extend beyond the contract's lifespan, contributing to public health and economic development.

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: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,983,274

Exercised Options: $40,983,274

Current Obligation: $40,460,563

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDEPPI000400019

IDV Type: IDC

Timeline