USAID's $30M Management Consulting Contract Awarded to Management Systems International, Inc

Contract Overview

Contract Amount: $30,360,816 ($30.4M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2014-09-03

End Date: 2023-01-25

Contract Duration: 3,066 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF NEW: SWIFT IV TASK ORDER - LEBANON

Plain-Language Summary

Agency for International Development obligated $30.4 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: IGF::CL::IGF NEW: SWIFT IV TASK ORDER - LEBANON Key points: 1. Contract provides administrative management and general management consulting services. 2. Awarded under the SWIFT IV multiple-award contract vehicle. 3. Duration of the contract is over 8 years. 4. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 5. Services are for operations in Lebanon. 6. The North American Industry Classification System (NAICS) code is 541611.

Value Assessment

Rating: fair

The contract value of $30.3 million over more than 8 years averages to approximately $3.7 million per year. Benchmarking this against similar management consulting contracts for international development requires detailed analysis of the specific services rendered. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly, as it allows the contractor to recover all allowable costs plus a fixed fee. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, likely utilizing the SWIFT IV multiple-award contract vehicle. This suggests that multiple qualified bidders had the opportunity to compete for this task order. The presence of full and open competition generally promotes a more competitive pricing environment and allows the agency to select from a wider pool of potential contractors, theoretically leading to better value.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the selection of the most capable contractor through a broad solicitation process.

Public Impact

The primary beneficiaries are likely the Agency for International Development (USAID) and its programs operating in Lebanon. Services delivered include administrative management and general management consulting, supporting the execution of USAID's mission. The geographic impact is focused on Lebanon, where USAID implements development and humanitarian assistance projects. Workforce implications may include the employment of consultants and support staff for the contractor, as well as impact on USAID personnel managing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not rigorously overseen.
Long contract duration (over 8 years) increases the risk of scope creep or evolving needs not being optimally addressed.
Geographic focus on Lebanon presents inherent operational and security risks that could impact cost and performance.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Contractor Management Systems International, Inc. has experience in government contracting.
The SWIFT IV vehicle itself is designed to streamline procurement for complex needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for these services is vast, with numerous firms competing for government contracts. USAID, like other federal agencies, frequently procures management and administrative support services to enhance operational efficiency and program delivery, particularly in complex international environments. Benchmarking spending would involve comparing this contract's value and duration against similar consulting engagements for development agencies.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. As a task order under a larger vehicle, subcontracting opportunities might exist, but their extent and impact on the small business ecosystem are not detailed here. Further investigation into the SWIFT IV vehicle's structure and the specific task order's terms would be needed to assess small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), specifically the contracting officer and program managers responsible for the Lebanon mission. The Cost Plus Fixed Fee structure necessitates robust oversight to ensure costs are allowable, reasonable, and allocable. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits. The Inspector General for USAID would have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

USAID Foreign Assistance
Management and Consulting Services
International Development Contracts
Middle East Operations Support
SWIFT IV Contract Vehicle

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration increases potential for scope drift.
Operating in Lebanon presents security and logistical risks.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $30.4 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. IGF::CL::IGF NEW: SWIFT IV TASK ORDER - LEBANON

Who is the contractor on this award?

The obligated recipient is MANAGEMENT SYSTEMS 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 $30.4 million.

What is the period of performance?

Start: 2014-09-03. End: 2023-01-25.

What is the specific nature of the administrative management and general management consulting services provided under this contract?

The contract specifies services under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. For USAID in Lebanon, this likely entails providing expertise to enhance the efficiency and effectiveness of USAID's programs and operations. This could include strategic planning, organizational development, program management support, financial management consulting, logistical support coordination, and policy analysis related to development initiatives. The exact scope would be detailed in the task order's statement of work, outlining specific deliverables and objectives aimed at supporting USAID's mission objectives in the region.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar USAID consulting contracts?

The Cost Plus Fixed Fee (CPFF) contract type is common for services where the scope is not precisely defined at the outset or involves significant uncertainty, such as complex international development projects. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the agency if the scope changes but can potentially lead to higher costs for the government if cost controls are not stringent, as the contractor has less incentive to minimize costs. Fixed-Price Incentive (FPI) contracts offer a middle ground, sharing cost savings or overruns between the government and contractor. For USAID, the choice of CPFF often reflects the unpredictable nature of operating environments and program needs in developing countries.

What is Management Systems International, Inc.'s track record with USAID and other federal agencies?

Management Systems International, Inc. (MSI) has a significant history of working with USAID and other federal agencies on international development and assistance programs. As a subsidiary of Tetra Tech, MSI has been involved in numerous contracts focused on program management, monitoring and evaluation, technical assistance, and capacity building across various sectors and geographies. Their portfolio often includes projects related to democracy and governance, economic growth, education, and health. A review of federal procurement databases (like FPDS or SAM.gov) would reveal the extent and nature of their past awards, performance ratings, and any significant issues or successes, providing a basis for assessing their suitability and past performance on contracts similar to this one.

What are the potential risks associated with a contract of this duration and geographic focus?

A contract spanning over 8 years and operating in Lebanon carries several inherent risks. Programmatic risks include the potential for shifting political landscapes, security concerns impacting personnel and operations, and evolving development needs that may render initial strategies obsolete. Financial risks involve potential cost increases due to inflation, unforeseen operational challenges, or changes in local regulations. Performance risks can arise from difficulties in recruiting and retaining qualified personnel in a challenging environment, or from the complexities of managing a long-term project with potentially changing objectives. Effective risk mitigation strategies, including robust security protocols, flexible program design, and strong contract oversight, are crucial for success.

How does this contract's value compare to other USAID management consulting contracts in the Middle East region?

Comparing this $30.3 million contract value requires context regarding the specific services, duration, and complexity. USAID procures a wide range of consulting services across the Middle East, from large-scale program management to specialized technical assistance. Contracts can range from a few million dollars for specific projects to tens or hundreds of millions for multi-year, comprehensive support efforts. This particular contract, averaging around $3.7 million annually over 8+ years, appears to be a substantial engagement, likely supporting significant programmatic activities or overarching management functions for USAID's presence in Lebanon. A direct comparison would necessitate identifying contracts with similar scopes of work, geographic focus, and timeframes within the region.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 200 12TH ST SOUTH, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,738,863

Exercised Options: $69,738,863

Current Obligation: $30,360,816

Actual Outlays: $59,460

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400012

IDV Type: IDC

Timeline