Foreign Assistance Program contract awarded to Bechtel National, Inc. for $56.7M by USAID

Contract Overview

Contract Amount: $56,743,573 ($56.7M)

Contractor: Bechtel National, Inc.

Awarding Agency: Agency for International Development

Start Date: 2004-12-13

End Date: 2007-03-31

Contract Duration: 838 days

Daily Burn Rate: $67.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FOREIGN ASSISTANCE PROGRAM

Plain-Language Summary

Agency for International Development obligated $56.7 million to BECHTEL NATIONAL, INC. for work described as: FOREIGN ASSISTANCE PROGRAM Key points: 1. Contract value of $56.7 million for management consulting services. 2. Awarded by the Agency for International Development (USAID). 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Duration of 838 days suggests a significant project scope. 5. No small business set-aside, raising questions about broader economic impact. 6. Competition level was 'Full and Open', suggesting a robust bidding process.

Value Assessment

Rating: fair

The contract value of $56.7 million for 'Other Management Consulting Services' appears substantial. Benchmarking this against similar foreign assistance program management contracts is difficult without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex projects, carries inherent risks of cost escalation compared to fixed-price contracts. The awarded amount should be assessed against the scope of work and expected deliverables to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 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 reasonable level of competition for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through competitive pressure and ensuring the government receives the best value.

Public Impact

This contract supports the Agency for International Development's foreign assistance programs, likely impacting international development initiatives. The services provided are categorized as 'Other Management Consulting Services', suggesting support for program planning, execution, or oversight. The geographic impact is likely global, aligning with USAID's mission to advance interests of the United States through foreign assistance. Workforce implications could include employment for consultants and project managers involved in international development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts if not managed carefully.
The broad category of 'Other Management Consulting Services' makes it difficult to assess the specific value and necessity of the services rendered.
Lack of small business participation noted, potentially limiting opportunities for smaller firms in this significant contract.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
Multiple bids received (5) indicate a competitive environment for this contract.
The contract duration (838 days) suggests a sustained effort towards achieving program objectives.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting, applied to the realm of foreign assistance. The market for such services is often driven by government agencies with international mandates. Benchmarking requires comparison with other large-scale program management contracts awarded by agencies like USAID, State Department, or DoD for similar international development or humanitarian aid efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This means large businesses were eligible to compete and potentially win. Without specific subcontracting plans mentioned, it's unclear if small businesses will have opportunities to participate indirectly. This could limit the direct economic benefit to the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain reasonable and deliverables are met. Transparency would depend on USAID's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.

Related Government Programs

USAID Foreign Assistance Programs
Management and Consulting Services
International Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost risk.
Broad service category ('Other Management Consulting Services') lacks specificity.
No explicit small business set-aside noted.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $56.7 million to BECHTEL NATIONAL, INC.. FOREIGN ASSISTANCE PROGRAM

Who is the contractor on this award?

The obligated recipient is BECHTEL NATIONAL, 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 $56.7 million.

What is the period of performance?

Start: 2004-12-13. End: 2007-03-31.

What specific management consulting services were rendered under this contract?

The contract is broadly categorized under NAICS code 541618, 'Other Management Consulting Services'. This typically encompasses a wide range of advisory and assistance services related to management and operations. For a foreign assistance program, these services could include strategic planning, program design and evaluation, organizational development, financial management consulting, policy analysis, and technical assistance related to development goals. Without more granular detail from the contract award or performance reports, it is difficult to pinpoint the exact nature of the services provided. However, given the awarding agency (USAID) and the contract's purpose, the services likely supported the effective and efficient delivery of foreign aid programs, potentially in areas such as economic development, health, education, or governance in recipient countries.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money compared to other contract types?

The Cost Plus Fixed Fee (CPFF) contract structure is often used when the scope of work is not clearly defined or is subject to change, as is common in complex foreign assistance programs. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this allows for flexibility, it shifts much of the cost risk to the government. If costs escalate beyond initial estimates, the government pays more. Value for money under a CPFF contract is highly dependent on robust government oversight to control costs and ensure the contractor is performing efficiently and effectively. Compared to a Firm-Fixed-Price (FFP) contract, where the price is set regardless of costs, CPFF generally offers less cost certainty for the government and may result in higher overall spending if not managed diligently. However, for highly uncertain or R&D-intensive projects, CPFF can be more appropriate than FFP.

What is the historical spending trend for 'Other Management Consulting Services' by the Agency for International Development?

Analyzing historical spending trends for 'Other Management Consulting Services' (NAICS 541618) by USAID requires access to detailed federal procurement data over multiple fiscal years. Generally, agencies like USAID rely on consulting services to support program implementation, policy development, and operational efficiency in complex international environments. Spending in this category can fluctuate based on program priorities, geopolitical events, and the availability of internal expertise. A review of historical data would likely show periods of increased spending during the initiation of new large-scale foreign aid initiatives or during times of significant program restructuring. Conversely, spending might decrease during budget austerity or when programs are nearing completion. Without specific data, it's presumed that USAID's utilization of management consulting services is consistent with its mission to deliver effective foreign assistance, adapting to evolving global challenges and U.S. foreign policy objectives.

What are the potential risks associated with a contract duration of 838 days?

A contract duration of 838 days (approximately 2.3 years) for 'Other Management Consulting Services' within a foreign assistance program presents several potential risks. Firstly, the longer duration increases the risk of scope creep, where the project's objectives or requirements expand beyond the original agreement without corresponding adjustments to cost or timeline, potentially leading to cost overruns. Secondly, maintaining consistent quality and relevance of services over an extended period can be challenging; consultant expertise may need to be updated, or the project's strategic alignment might drift. Thirdly, there's a risk of vendor lock-in, making it difficult or costly to switch providers if performance issues arise or if market conditions change. Finally, the extended timeline necessitates sustained government oversight and engagement to ensure the contractor remains focused on delivering value and achieving the intended outcomes throughout the contract's life.

How does the 'full and open competition' status influence the contractor's performance and accountability?

Awarding a contract under 'full and open competition' implies that a wide range of potential contractors had the opportunity to bid, fostering a competitive environment. This competitive pressure can incentivize the winning contractor, Bechtel National, Inc., to perform diligently and deliver high-quality services to justify their bid and secure future contracts. Accountability is typically managed through the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to milestones. USAID, as the contracting agency, is responsible for monitoring performance and enforcing these terms. The transparency inherent in a competitive process can also indirectly enhance accountability, as the contractor is aware that their performance is being evaluated against a benchmark set by other bidders and potentially scrutinized by the public.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT OF RESTORATION ACTIVITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bechtel Group, Inc. (UEI: 094878980)

Address: 50 BEALE ST, SAN FRANCISCO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,253,415,831

Exercised Options: $15,593,592,473

Current Obligation: $56,743,573

Timeline