USAID's $57.1M contract for administrative management consulting services awarded to Management Systems International, Inc

Contract Overview

Contract Amount: $57,144,824 ($57.1M)

Contractor: Management Systems International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2004-09-22

End Date: 2022-05-25

Contract Duration: 6,454 days

Daily Burn Rate: $8.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EGATCORE GHFP GH DEI EL SAL SERBIA13 22

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $57.1 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC. for work described as: EGATCORE GHFP GH DEI EL SAL SERBIA13 22 Key points: 1. Contract value of $57.1 million over its period of performance. 2. Awarded to Management Systems International, Inc. for administrative management and general management consulting. 3. Contract type is a competitive delivery order under a larger contract vehicle. 4. Performance period spans from September 2004 to May 2022. 5. The contract was awarded to a single vendor, Management Systems International, Inc. 6. The North American Industry Classification System (NAICS) code is 541611.

Value Assessment

Rating: fair

The contract value of $57.1 million over nearly 18 years suggests a moderate annual spend. Without specific deliverables or performance metrics, it's difficult to definitively benchmark value for money. However, the duration indicates a long-term relationship, which can sometimes lead to cost efficiencies or, conversely, potential for cost overruns if not managed tightly. Comparing this to similar long-term management consulting contracts would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that the underlying contract vehicle allowed for full and open competition. The specific details of how many bids were received for this particular delivery order are not provided, but the 'competitive' designation suggests multiple potential offerors were considered. This competitive process is intended to foster price discovery and ensure fair market pricing.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs through market forces, ensuring the government receives services at a reasonable price.

Public Impact

The primary beneficiaries are likely USAID and its various programs, receiving support for administrative and management functions. Services delivered include consulting on administrative management and general management. The contract's geographic impact is centered in Washington D.C., where the agency is headquartered. Workforce implications could include the employment of consultants and administrative staff supporting USAID's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 18 years) could indicate potential for scope creep or evolving needs not fully captured in initial pricing.
Lack of specific performance metrics makes it challenging to assess the true value and impact of the consulting services provided.
The contract is a delivery order, suggesting it's part of a larger IDIQ or similar vehicle; understanding the overall structure and competition at that level is crucial.

Positive Signals

Awarded through a competitive process, suggesting a degree of market vetting and potential for cost-effectiveness.
The long performance period implies a stable, ongoing need for these services, potentially indicating successful past performance.
The contract is firm fixed price, which shifts cost risk to the contractor and provides budget certainty for the government.

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 wide range of firms, from large established consultancies to smaller specialized providers. Spending in this area often supports government agencies in optimizing operations, strategic planning, and implementing new policies. Benchmarking would require comparing the annual spend against similar long-term consulting engagements for federal agencies of USAID's size and scope.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Management Systems International, Inc. chose to engage them. Without further information on subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

As a delivery order under a larger contract, oversight would likely be managed through the contracting officer and the contract administration team at USAID. The firm fixed price nature provides some level of financial oversight by capping costs. Transparency is generally facilitated by federal procurement data systems, though detailed performance reports or specific oversight findings are not publicly available through this data alone. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Consulting Services
Administrative Support Services
International Development Assistance
Federal Consulting Contracts
USAID Procurement

Risk Flags

Long contract duration may lead to misalignment with current needs.
Lack of detailed performance metrics hinders value assessment.
Potential for scope creep over the extended period.
Reliance on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $57.1 million to MANAGEMENT SYSTEMS INTERNATIONAL, INC.. EGATCORE GHFP GH DEI EL SAL SERBIA13 22

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 $57.1 million.

What is the period of performance?

Start: 2004-09-22. End: 2022-05-25.

What specific types of administrative and management consulting services were provided under this contract?

The contract's NAICS code (541611) indicates services related to 'Administrative Management and General Management Consulting Services.' This typically encompasses a broad range of activities, including organizational structure analysis, process improvement, strategic planning, policy development, operational efficiency assessments, and general management advice. For USAID, these services likely supported the agency's internal operations, program management, and potentially the implementation of its foreign assistance programs. However, the specific tasks and deliverables would be detailed in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with this delivery order, which are not provided in the given data.

How does the total contract value of $57.1 million compare to typical spending on similar consulting services by federal agencies?

A total contract value of $57.1 million spread over nearly 18 years (September 2004 to May 2022) translates to an average annual spend of approximately $3.17 million. This figure is moderate for long-term, high-level consulting services provided to a major federal agency like USAID. Larger agencies or those with extensive operational needs might engage in consulting contracts worth tens or even hundreds of millions annually. However, without knowing the specific scope, complexity, and criticality of the services rendered, a direct comparison is challenging. It is within the expected range for sustained, specialized support but not exceptionally large in the context of overall federal consulting expenditures.

What are the key risks associated with a contract of this duration and value?

A primary risk with a contract spanning nearly 18 years is the potential for the services to become outdated or misaligned with evolving agency needs, leading to diminished value. Scope creep is another significant risk, where the services gradually expand beyond the original intent without corresponding adjustments in cost or oversight. Contractor performance degradation over time is also a concern, as initial success doesn't guarantee sustained high quality. Furthermore, the long duration might reduce the incentive for the contractor to innovate or propose more cost-effective solutions if the current arrangement is profitable and stable. Finally, the government risks becoming overly reliant on a single contractor, potentially hindering flexibility and future competition.

What does the 'competitive delivery order' designation imply about the procurement process?

The term 'competitive delivery order' suggests that this specific task order was awarded under a larger contract vehicle (like an Indefinite Delivery/Indefinite Quantity - IDIQ) that was itself competed on a full and open basis. For this particular delivery order, multiple qualified vendors who held positions on the base contract were likely solicited, and Management Systems International, Inc. was selected based on factors such as price, technical approach, and past performance. This implies that while the base contract vehicle may have had multiple awardees, the competition for this specific order was intended to ensure the government received the best value among those eligible. It contrasts with sole-source or limited-competition awards.

What is the significance of the contract being 'Firm Fixed Price' (FFP)?

A Firm Fixed Price (FFP) contract type means that the contractor, Management Systems International, Inc., is obligated to perform the work for a predetermined, fixed price. This structure places the majority of the cost risk on the contractor. If the contractor's costs exceed the fixed price, their profit margin decreases, or they may incur a loss. Conversely, if they can perform the work for less than the fixed price, their profit increases. For the government (USAID), FFP provides budget certainty and predictability, as the total cost is known upfront, assuming the scope of work does not change. It incentivizes the contractor to control costs and manage performance efficiently to maximize their profit.

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

Solicitation ID: M/OAA/GRO/ALPS-05-1893

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

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

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

Financial Breakdown

Contract Ceiling: $2,726,098,446

Exercised Options: $1,875,910,354

Current Obligation: $57,144,824

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F8012H

IDV Type: FSS

Timeline