Over $145M awarded for sustainable natural resource management, focusing on reducing environmental and economic vulnerability

Contract Overview

Contract Amount: $145,428,514 ($145.4M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2009-06-01

End Date: 2022-06-27

Contract Duration: 4,774 days

Daily Burn Rate: $30.5K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO IMPLEMENT BROAD SCALE INVESTMENTS IN SUSTAINABLE NATURAL RESOURCE MANAGEMENT AT THE SCALE AND DENSITY NEEDED TO PRODUCE FUTURE POSITIVE LANDSCAPE LEVEL REDUCTIONS IN ENVIRONMENTAL, INFRASTRUCTURAL, AND ECONOMIC VULNERABILITY IN THE CUL-DE-SAC, CABARET, GONAIVES / LA QUINTE, AND OTHER SELECTED WATERSHEDS. THIS TASK ORDER IS TO IMPLEMENT BROAD SCALE INVESTMENTS IN SUSTAINABLE NATURAL RESOURCE MANAGEMENT AT THE SCALE AND DENSITY NEEDED TO PRODUCE FUTURE POSITIVE LANDSCAPE LEVEL REDUCTIONS IN ENVIRONMENTAL , INFRASTRUCTURAL AND ECONOMIC VULNERABILITY IN THE CUL-DE-SAC, CABARET, GONAIVES/ LA QUINTE AN OTHER SELECTED WATERSHEDS.

Plain-Language Summary

Agency for International Development obligated $145.4 million to CHEMONICS INTERNATIONAL, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO IMPLEMENT BROAD SCALE INVESTMENTS IN SUSTAINABLE NATURAL RESOURCE MANAGEMENT AT THE SCALE AND DENSITY NEEDED TO PRODUCE FUTURE POSITIVE LANDSCAPE LEVEL REDUCTIONS IN ENVIRONMENTAL, INFRASTRUCTURAL, AND ECONOMIC VULNERABILITY IN THE CUL-DE-SAC,… Key points: 1. Significant investment in long-term environmental and economic resilience across multiple watersheds. 2. Contract duration of nearly 10 years suggests a sustained, large-scale effort. 3. Focus on sustainable natural resource management indicates a proactive approach to climate and infrastructure risks. 4. Administrative Management and General Management Consulting Services category points to a focus on planning, coordination, and oversight. 5. The non-competitive nature of this delivery order warrants scrutiny regarding value and necessity. 6. Fixed Price Award Fee contract type implies performance incentives tied to achieving specific outcomes.

Value Assessment

Rating: questionable

The award amount of over $145 million for a nearly 10-year period for consulting services in natural resource management is substantial. Without comparable contracts for similar large-scale, multi-watershed sustainability initiatives, it is difficult to benchmark value. The fixed-price award fee structure suggests that a portion of the payment is contingent on performance, which is a positive indicator. However, the lack of competition raises concerns about whether this represents the best possible price and value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a non-competitive delivery order. This means that the Agency for International Development did not solicit bids from multiple offerors. While non-competitive awards can be justified in certain circumstances, such as when only one source can fulfill the requirement, the lack of a competitive process limits the government's ability to ensure it is receiving the most advantageous pricing and terms.

Taxpayer Impact: A non-competitive award means taxpayers may not have benefited from the cost savings that could arise from a robust bidding process, potentially leading to a higher overall cost for the services rendered.

Public Impact

Residents and economies within the Cul-de-Sac, Cabaret, and Gonaives/La Quinte watersheds are direct beneficiaries through reduced environmental and economic vulnerability. Services delivered include broad-scale investments in sustainable natural resource management, aiming for long-term landscape-level improvements. The geographic impact is concentrated in specific Haitian watersheds, addressing critical local environmental challenges. The project's success could lead to improved agricultural yields, reduced disaster impact, and enhanced economic stability for local populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer funds.
The extended duration of nearly 10 years for a consulting service contract requires robust oversight to ensure continued relevance and effectiveness.
The broad scope of 'sustainable natural resource management' could lead to scope creep if not tightly managed.
Performance metrics for the 'award fee' component need to be clearly defined and rigorously assessed to ensure accountability.

Positive Signals

Focus on sustainable natural resource management addresses critical long-term environmental and economic resilience needs.
The substantial investment signals a commitment to tackling complex, large-scale environmental challenges.
The fixed-price award fee structure provides an incentive for the contractor to meet performance objectives.
The project aims to deliver tangible benefits by reducing vulnerability in targeted watersheds.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. The market for such services is broad, but large-scale, multi-year international development projects focused on environmental resilience are a specialized niche. Comparable spending would likely be found within other USAID or international development agency contracts focused on infrastructure, environmental protection, and disaster risk reduction in developing nations. The scale of this award suggests it is a significant undertaking within this specialized area.

Small Business Impact

The data provided does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. As a non-competitive award to a large prime contractor (Chemonics International, Inc.), it is less likely to have direct set-aside components. However, the scale of the project could offer subcontracting opportunities for specialized services, though these are not explicitly detailed in the provided information. Further investigation into the contract's detailed terms would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a delivery order under a larger contract vehicle, oversight mechanisms would likely be defined within the parent contract and the specific task order. Transparency would depend on USAID's reporting practices for international development projects. Given the substantial funding and long duration, robust oversight is crucial to ensure funds are used effectively and objectives are met. The Inspector General's office for USAID would have jurisdiction for audits and investigations.

Related Government Programs

USAID International Development Programs
Environmental Resilience Initiatives
Disaster Risk Reduction Programs
Natural Resource Management Contracts
Global Infrastructure Investment

Risk Flags

Non-competitive award
Large contract value
Long contract duration
International development context

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $145.4 million to CHEMONICS INTERNATIONAL, INC.. THE PURPOSE OF THIS TASK ORDER IS TO IMPLEMENT BROAD SCALE INVESTMENTS IN SUSTAINABLE NATURAL RESOURCE MANAGEMENT AT THE SCALE AND DENSITY NEEDED TO PRODUCE FUTURE POSITIVE LANDSCAPE LEVEL REDUCTIONS IN ENVIRONMENTAL, INFRASTRUCTURAL, AND ECONOMIC VULNERABILITY IN THE CUL-DE-SAC, CABARET, GONAIVES / LA QUINTE, AND OTHER SELECTED WATERSHEDS. THIS TASK ORDER IS TO IMPLEMENT BROAD SCALE INVESTMENTS IN SUSTAINABLE NATURAL RESOURCE MANAGEMENT AT THE SCALE AND DENSITY NEEDED TO PRODUCE FUTURE POSITIVE

Who is the contractor on this award?

The obligated recipient is CHEMONICS INTERNATIONAL, 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 $145.4 million.

What is the period of performance?

Start: 2009-06-01. End: 2022-06-27.

What is the track record of Chemonics International, Inc. in managing large-scale natural resource management projects, particularly in complex international environments?

Chemonics International, Inc. is a well-established private international development company that has worked on numerous projects funded by USAID and other government agencies. They have a significant portfolio in areas such as agriculture, economic growth, health, and democracy and governance. While their expertise in natural resource management is evident across various projects, the specific scale and focus of this task order (over $145M for nearly 10 years) represent a substantial commitment. Evaluating their past performance on similar large-scale, long-duration environmental resilience projects, especially those involving complex watershed management and disaster risk reduction in challenging geopolitical contexts, would be crucial. A review of past performance evaluations, audit reports, and project outcomes related to their environmental and infrastructure work would provide a clearer picture of their capabilities and potential risks associated with this contract.

How does the cost of this contract compare to similar large-scale sustainable natural resource management initiatives funded by USAID or other development agencies?

Benchmarking the cost of this $145M+ contract against similar initiatives is challenging without access to detailed comparative data. Large-scale international development projects focused on environmental resilience and natural resource management are highly context-specific, influenced by geographic location, political stability, local capacity, and the specific environmental challenges addressed. However, given the nearly 10-year duration and the broad scope covering multiple watersheds, the investment appears substantial. A comparative analysis would ideally look at contracts with similar objectives (e.g., watershed restoration, climate adaptation, disaster mitigation) in comparable regions, considering factors like project duration, geographic scale, and the types of interventions planned. The non-competitive nature of this award further complicates direct cost comparisons, as a competitive process often drives down prices.

What are the key performance indicators (KPIs) tied to the 'award fee' component of this contract, and how are they measured?

The provided data indicates a 'FIXED PRICE AWARD FEE' (FP-AF) contract type. In such contracts, a portion of the total payment is contingent upon the contractor achieving specific performance objectives, often outlined in a Performance Work Statement (PWS) or similar document. For this task order, the KPIs would likely relate directly to the stated purpose: implementing 'broad scale investments in sustainable natural resource management' to achieve 'positive landscape level reductions in environmental, infrastructural, and economic vulnerability.' Specific KPIs could include metrics related to reforestation rates, water quality improvements, soil erosion reduction, successful implementation of climate adaptation measures, community engagement levels, and demonstrable economic benefits to local populations. The measurement of these KPIs would require rigorous monitoring, evaluation, and reporting by USAID, potentially involving third-party assessments to ensure objectivity and accountability in determining the award fee.

What specific environmental, infrastructural, and economic vulnerabilities are being targeted in the Cul-de-Sac, Cabaret, and Gonaives/La Quinte watersheds?

The task order broadly states the goal of reducing environmental, infrastructural, and economic vulnerability in the specified watersheds. To understand the specific vulnerabilities, one would need to consult the detailed project documentation. However, based on the context of natural resource management in developing regions, common vulnerabilities include: Environmental: Deforestation leading to soil erosion and loss of biodiversity; water scarcity or contamination; increased susceptibility to natural disasters like floods and landslides due to degraded ecosystems. Infrastructural: Damage to roads, bridges, and buildings from erosion, landslides, or flooding; inadequate water management infrastructure (irrigation, drainage). Economic: Reduced agricultural productivity due to land degradation and water issues; loss of livelihoods dependent on natural resources; increased costs associated with disaster recovery and rebuilding; limited economic diversification opportunities.

Given the nearly 10-year duration, what mechanisms are in place to ensure the long-term sustainability and impact of the natural resource management interventions beyond the contract period?

Ensuring the long-term sustainability of natural resource management interventions is critical for projects of this scale and duration. Mechanisms typically include building local capacity through training and technical assistance for community groups, local government agencies, and relevant ministries. The project likely aims to foster local ownership and stewardship of the natural resources. Furthermore, successful projects often integrate interventions with existing national or regional policies and strategies for environmental management and development. Establishing community-based management plans, promoting sustainable livelihood alternatives that reduce pressure on natural resources, and facilitating partnerships between government, NGOs, and the private sector are also key strategies. The contract's success would be measured not just by activities completed, but by the lasting positive changes in resource condition and community resilience.

What is the rationale behind awarding this significant contract on a non-competitive basis, and were alternative procurement methods considered?

The rationale for a non-competitive award (often referred to as sole-source or limited competition) typically stems from specific circumstances outlined in federal acquisition regulations. For USAID, this could include situations where only one responsible source can provide the required services, an urgent need arises that cannot be met through competition, or a previous contract needs to be extended under specific conditions. Without further details on the justification provided by USAID for this specific delivery order, it's difficult to ascertain the exact rationale. However, common justifications for non-competitive awards in international development might involve unique expertise required, the need to build upon existing project momentum and infrastructure, or specific security or political considerations. Federal regulations require agencies to justify non-competitive actions and demonstrate that competition was not feasible or practicable.

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: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 1717 H ST NW STE 1, WASHINGTON, DC, 20006

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $425,069,923

Exercised Options: $425,069,923

Current Obligation: $145,428,514

Actual Outlays: $90,666

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDEPPI000400020

IDV Type: IDC

Timeline