USAID's $75.1M contract for administrative management services awarded to HIGHLIGHT TECHNOLOGIES, INC. shows strong competition

Contract Overview

Contract Amount: $75,107,997 ($75.1M)

Contractor: Highlight Technologies, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-07-01

End Date: 2024-11-30

Contract Duration: 2,709 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF PPL ISSC CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $75.1 million to HIGHLIGHT TECHNOLOGIES, INC. for work described as: IGF::CL::IGF PPL ISSC CONTRACT Key points: 1. The contract's value of $75.1 million over its period of performance suggests a significant investment in administrative management. 2. Full and open competition indicates a robust bidding process, potentially leading to better pricing and service quality. 3. The contract's duration and delivery order nature imply ongoing needs for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on management consulting. 5. The contract's performance is geographically centered in Washington D.C. 6. The absence of small business set-aside flags suggests larger prime contractors are expected to handle this work.

Value Assessment

Rating: good

The contract's total value of $75.1 million for administrative management services appears substantial. Benchmarking against similar contracts for management consulting services would be necessary for a precise value-for-money assessment. However, the fact that it was awarded under full and open competition suggests that the pricing was likely competitive. The delivery order structure also allows for flexibility in managing costs based on actual service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a healthy level of interest and competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a diverse range of qualified contractors.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely drove down prices through competitive bidding and ensured the government secured services from the most capable and cost-effective provider.

Public Impact

The primary beneficiaries of this contract are likely federal agencies requiring administrative management and general management consulting services, specifically the Agency for International Development (USAID). The services delivered encompass administrative management and general management consulting, crucial for efficient agency operations. The contract's primary geographic impact is in Washington D.C., where the services are likely performed. The contract supports a workforce skilled in administrative and management consulting, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (2017-2024) could lead to potential cost overruns if not closely monitored for scope creep.
Reliance on a single contractor for a significant period may reduce flexibility in adapting to evolving administrative needs.
The 'Time and Materials' contract type, while flexible, can sometimes lead to higher costs if not managed with strict oversight on labor hours and rates.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that likely secured favorable pricing.
The contract has a clear defined period of performance, allowing for structured management and evaluation.
The agency (USAID) is a well-established entity with experience in managing large service contracts.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a high degree of specialization and is crucial for supporting government operations. Spending in this area often reflects the need for expertise in areas such as organizational efficiency, strategic planning, and operational support. Comparable spending benchmarks would typically be found within government-wide IT and professional services contract vehicles.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely too large or complex for small business set-asides, or that the competition was open to all business sizes. Consequently, there may be limited direct subcontracting opportunities for small businesses unless the prime contractor voluntarily includes them in their subcontracting plan. The overall impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a delivery order under a larger contract, oversight mechanisms would include regular performance reviews, monitoring of labor hours and costs (especially given the Time and Materials type), and adherence to the Statement of Work. Transparency is generally facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Administrative Management Support Services
Management and Consulting Services
Professional Services Contracts
Federal IT and Management Consulting
USAID Operational Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage labor hours and material costs.
Risk of scope creep without strict management.
Long contract duration may limit flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $75.1 million to HIGHLIGHT TECHNOLOGIES, INC.. IGF::CL::IGF PPL ISSC CONTRACT

Who is the contractor on this award?

The obligated recipient is HIGHLIGHT TECHNOLOGIES, 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 $75.1 million.

What is the period of performance?

Start: 2017-07-01. End: 2024-11-30.

What is the track record of HIGHLIGHT TECHNOLOGIES, INC. in performing similar government contracts?

A thorough review of HIGHLIGHT TECHNOLOGIES, INC.'s contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any past performance issues or disputes, and the types and values of contracts they have previously held. For this specific contract, the 'no' value of 5 indicates the number of bids received, not necessarily the number of contracts HIGHLIGHT TECHNOLOGIES, INC. has held. Without access to detailed past performance data, it's difficult to definitively assess their reliability and expertise for this particular administrative management and consulting service requirement. However, being awarded a contract of this magnitude suggests they met the minimum qualifications and demonstrated capability during the bidding process.

How does the awarded price compare to market rates for similar administrative management consulting services?

Directly comparing the awarded price to market rates for similar administrative management consulting services is challenging without specific details on the labor categories, hours, and specific services rendered under this contract. The 'Time and Materials' (pt: TIME AND MATERIALS) contract type means the final cost is dependent on actual hours worked and material costs, making a fixed price comparison difficult. However, the fact that the contract was awarded under 'Full and Open Competition' (ct: FULL AND OPEN COMPETITION) with 5 bids (no: 5) suggests that the pricing was likely competitive within the market at the time of award. Further analysis would require access to the contract's detailed pricing structure and labor rates, benchmarked against industry data for comparable roles and services in the Washington D.C. area.

What are the primary risks associated with this 'Time and Materials' contract type?

The primary risks associated with a 'Time and Materials' (pt: TIME AND MATERIALS) contract type, such as this one, revolve around cost control and potential for overruns. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, making it crucial for the government to have robust oversight to monitor labor hours, rates, and material costs. There is a risk that the contractor may not be as incentivized to control costs as they would be under a fixed-price arrangement. Scope creep can also be a significant risk, as additional work may be added without a clear understanding of its ultimate cost impact. Effective risk mitigation requires diligent contract administration, regular performance reviews, and clear communication between the government and the contractor.

How effective is the Agency for International Development (USAID) in managing large service contracts like this one?

Assessing the overall effectiveness of USAID in managing large service contracts requires a broader analysis of their procurement and contract management performance across their portfolio. This specific contract, awarded under full and open competition and with a defined period, suggests a structured approach to procurement. USAID, as a major federal agency, typically has established policies and procedures for contract oversight. However, the effectiveness can vary based on the specific contracting officers, program managers, and the complexity of the services. Factors such as timely payments, effective performance monitoring, and successful resolution of any contract disputes would be indicators of effective management. Without specific performance data for this contract, a definitive judgment on USAID's effectiveness here is limited.

What is the historical spending trend for administrative management and general management consulting services at USAID?

To determine the historical spending trend for administrative management and general management consulting services at USAID, one would need to analyze procurement data over several fiscal years. This would involve querying databases for contracts awarded under NAICS code 541611 and similar codes, specifically attributed to USAID. Examining the total dollar amounts awarded, the number of contracts, and the types of services procured would reveal trends. This particular contract represents a significant single award, but understanding its place within USAID's overall spending on these services would require a multi-year analysis to identify patterns of increase, decrease, or stability in this spending category.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Highlight Technologies Inc.

Address: 9990 FAIRFAX BLVD, FAIRFAX, VA, 22030

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $77,319,000

Exercised Options: $77,319,000

Current Obligation: $75,107,997

Actual Outlays: $60,111,924

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $11,255,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F133DA

IDV Type: FSS

Timeline