USAID's $45.2M contract to ARD, INC. for professional development training shows fair value with 5 bidders

Contract Overview

Contract Amount: $45,216,881 ($45.2M)

Contractor: ARD, Inc.

Awarding Agency: Agency for International Development

Start Date: 2016-09-23

End Date: 2023-09-14

Contract Duration: 2,547 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF 99999_E3W_WASH-FIN OBLIGATION TO NEW TASK ORDER TO BE ISSUED UNDER MAKING CITIES WORK IDIQ

Place of Performance

Location: BURLINGTON, CHITTENDEN County, VERMONT, 05401

State: Vermont Government Spending

Plain-Language Summary

Agency for International Development obligated $45.2 million to ARD, INC. for work described as: IGF::CL::IGF 99999_E3W_WASH-FIN OBLIGATION TO NEW TASK ORDER TO BE ISSUED UNDER MAKING CITIES WORK IDIQ Key points: 1. The contract's value appears reasonable given the duration and scope of professional development services. 2. Full and open competition with five bidders suggests a healthy market for these services. 3. The cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 4. Performance context is limited without specific metrics on training effectiveness. 5. This contract aligns with USAID's broader mission of capacity building in developing nations. 6. The relatively long duration of the contract may indicate a sustained need for these services.

Value Assessment

Rating: fair

The total obligation of $45.2 million over approximately seven years suggests a significant investment in professional development. Benchmarking against similar contracts for large-scale international training programs is challenging without more granular data on the specific services provided and the number of individuals trained. However, the fixed fee component provides some cost control, though the cost-plus nature of the contract requires careful monitoring to ensure efficiency and prevent scope creep. The value proposition hinges on the demonstrable impact of the training on recipient capacity and program outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bidders submitting proposals. This level of competition is generally positive, indicating that multiple capable firms were interested and able to compete for the work. A competitive process helps to ensure that the government receives fair pricing and that the most qualified contractor is selected. The presence of five bidders suggests a robust market for these types of professional development and management consulting services.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the selection of a contractor offering the best value for the government's investment.

Public Impact

International development professionals and local partners in recipient countries benefit from enhanced skills and knowledge. Services delivered include management training, capacity building, and technical assistance to support development programs. Geographic impact is global, supporting USAID's diverse portfolio of international development projects. Workforce implications include upskilling of development practitioners, potentially leading to more effective program implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can incentivize higher costs if not closely managed.
Long contract duration (over 7 years) increases the risk of changing needs or market conditions rendering services less relevant.
Lack of specific performance metrics makes it difficult to assess the true impact and value of the training provided.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace and potential for good value.
Multiple bidders (5) suggest a healthy level of interest and capability in the market for these services.
The contract supports critical USAID objectives for capacity building and program effectiveness.

Sector Analysis

This contract falls within the professional and management development training sector, a segment of the broader professional services industry that supports government agencies and international organizations. The market for such services is competitive, with numerous firms offering expertise in training, capacity building, and technical assistance. Spending in this area is often driven by the need to enhance the skills of personnel involved in complex, long-term projects, particularly in international development contexts. Comparable spending benchmarks would typically involve analyzing other large-scale training and capacity-building contracts awarded by agencies like USAID, the Department of State, or other multilateral organizations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While ARD, INC. may be a large business, there is no explicit information on subcontracting plans for small businesses within this specific award. Analysis of subcontracting performance would be necessary to determine the extent to which small businesses participated in fulfilling this contract. Without this information, it's difficult to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). Mechanisms likely include regular progress reports from the contractor, performance reviews, and potentially site visits or evaluations of training programs. Accountability is typically managed through contract clauses, performance standards, and the potential for award modifications or termination if performance is unsatisfactory. Transparency would be enhanced through public contract data, but detailed programmatic oversight information may be less accessible.

Related Government Programs

USAID Capacity Building Programs
International Development Professional Services
Global Training and Education Contracts
Management Consulting for Government Agencies

Risk Flags

Cost-plus-fixed-fee contract type requires careful oversight to manage costs.
Long contract duration may lead to outdated training or changing needs.
Lack of specific performance metrics hinders objective evaluation of training effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $45.2 million to ARD, INC.. IGF::CL::IGF 99999_E3W_WASH-FIN OBLIGATION TO NEW TASK ORDER TO BE ISSUED UNDER MAKING CITIES WORK IDIQ

Who is the contractor on this award?

The obligated recipient is ARD, 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 $45.2 million.

What is the period of performance?

Start: 2016-09-23. End: 2023-09-14.

What is the track record of ARD, INC. in delivering similar professional development and training services for USAID or other federal agencies?

A review of ARD, INC.'s contract history reveals a significant presence in the federal contracting space, particularly with agencies involved in international development and foreign assistance, such as USAID. They have a history of performing contracts related to capacity building, technical assistance, and training in various sectors, including economic growth, democracy and governance, and health. While specific performance ratings for individual contracts are not publicly detailed in this summary, their continued award of contracts suggests a generally satisfactory performance history. Further investigation into specific past performance evaluations and any past issues or commendations would provide a more comprehensive understanding of their capabilities and reliability in delivering complex training programs.

How does the per-person cost of this training compare to similar programs offered by other organizations or government initiatives?

Determining a precise per-person cost for this contract is challenging without knowing the total number of individuals trained over its duration and the specific types of training delivered. The total obligation is $45.2 million. If, for example, 10,000 individuals were trained over the contract period, the average cost per person would be approximately $4,520. This figure needs to be contextualized by the complexity and duration of the training, the geographic locations where it was delivered, and the specialized expertise required. Benchmarking against other large-scale international development training programs, which can range from a few hundred to several thousand dollars per participant depending on these factors, would be necessary for a meaningful comparison. Without more granular data on training delivery, a definitive value-for-money assessment on a per-person basis is difficult.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of the training provided under this contract?

The provided data does not specify the key performance indicators (KPIs) used to measure the success and effectiveness of the training. Typically, for such contracts, KPIs might include metrics like participant satisfaction surveys, pre- and post-training knowledge assessments, demonstrated application of learned skills in the workplace, achievement of specific project outcomes linked to the training, and long-term impact on organizational capacity. The effectiveness of professional development training is often evaluated through a combination of immediate feedback and longer-term impact assessments. Without access to the contract's statement of work or performance reports, it is impossible to detail the specific KPIs employed for this particular award.

What is the historical spending trend for professional and management development training by USAID over the past five years?

Analyzing USAID's historical spending on professional and management development training requires access to detailed budget and contract databases. Generally, USAID, like other development agencies, invests significantly in capacity building for its staff, implementing partners, and local stakeholders. Spending in this area can fluctuate based on strategic priorities, program needs, and the availability of funding. Trends might show an increase in demand for training related to emerging development challenges such as climate change adaptation, digital transformation, or global health security. A comprehensive analysis would involve querying federal procurement data (e.g., FPDS-NG or USASpending.gov) for relevant NAICS codes (like 611430) and contract descriptions associated with USAID over the specified period.

Are there any known risks or challenges associated with ARD, INC.'s performance on this or similar contracts?

Without specific performance reviews or IG reports related to this contract, identifying concrete risks associated with ARD, INC.'s performance is speculative. However, general risks inherent in large, long-term international development contracts include logistical challenges in remote areas, political instability in host countries, currency fluctuations, difficulties in accurately assessing training needs, and ensuring the long-term sustainability of training impacts. For cost-plus-fixed-fee contracts, a key risk is ensuring that the contractor maintains cost control and does not inflate expenses to maximize profit, which requires diligent oversight from the agency. Any past performance issues, if they exist, would be detailed in contract performance reports.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 159 BANK ST STE 300, BURLINGTON, VT, 05401

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

Financial Breakdown

Contract Ceiling: $45,216,881

Exercised Options: $45,216,881

Current Obligation: $45,216,881

Actual Outlays: $29,110,501

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $10,910,748

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400059

IDV Type: IDC

Timeline