USAID's $196M Catalyze Platform Awarded to Palladium International LLC for Consulting Services

Contract Overview

Contract Amount: $196,495,847 ($196.5M)

Contractor: Palladium International LLC

Awarding Agency: Agency for International Development

Start Date: 2019-09-30

End Date: 2025-02-11

Contract Duration: 1,961 days

Daily Burn Rate: $100.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: CATALYZE BLENDED CAPITAL INVESTMENT PLATFORM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $196.5 million to PALLADIUM INTERNATIONAL LLC for work described as: CATALYZE BLENDED CAPITAL INVESTMENT PLATFORM Key points: 1. The contract value is substantial at $196.5 million, indicating a significant investment in consulting services. 2. Palladium International LLC is the sole awardee, raising questions about the breadth of competition. 3. The 'Other Scientific and Technical Consulting Services' category suggests a focus on specialized expertise. 4. The contract duration extends to February 2025, implying a long-term need for these services.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee (CPAF), which allows for performance-based incentives. Without specific performance metrics and outcomes, it's difficult to assess if the pricing is truly competitive or if it incentivizes optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad outreach for potential bidders. However, the single awardee implies that only one entity met the agency's requirements or offered the most competitive proposal.

Taxpayer Impact: The significant contract value means taxpayer funds are being utilized for specialized consulting services, necessitating close monitoring to ensure value for money.

Public Impact

This platform aims to mobilize private capital for development projects, potentially impacting economic growth in recipient countries. The use of consulting services suggests a need for expertise in financial structuring, project management, and market analysis. The success of this platform could influence future USAID strategies for public-private partnerships in development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on specific performance metrics for the award fee.
Potential for cost overruns given the CPAF contract type without clear performance benchmarks.
Limited visibility into the specific development projects funded and their impact.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Focus on blended finance aims to leverage private sector investment, potentially increasing development impact.
Long contract duration allows for sustained support and relationship building.

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector is broad and can encompass a wide range of specialized expertise. Benchmarking requires understanding the specific nature of the consulting provided, but typical government spending in this area can vary widely based on agency needs.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, nor is there information suggesting subcontracting opportunities. Further investigation would be needed to determine if small businesses are involved in any capacity.

Oversight & Accountability

Oversight will be crucial to ensure Palladium International LLC meets performance objectives and manages funds effectively. USAID's internal review processes and potential external audits will be key accountability mechanisms.

Related Government Programs

Other Scientific and Technical Consulting Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Sole awardee despite full and open competition.
Cost Plus Award Fee (CPAF) contract type can lead to higher costs if not managed tightly.
Lack of specific performance metrics in the provided data.
Potential for limited small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $196.5 million to PALLADIUM INTERNATIONAL LLC. CATALYZE BLENDED CAPITAL INVESTMENT PLATFORM

Who is the contractor on this award?

The obligated recipient is PALLADIUM INTERNATIONAL LLC.

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 $196.5 million.

What is the period of performance?

Start: 2019-09-30. End: 2025-02-11.

What specific performance metrics are tied to the award fee structure, and how are they measured to ensure value for money?

The effectiveness of the Cost Plus Award Fee (CPAF) structure hinges on clearly defined, measurable, achievable, relevant, and time-bound (SMART) performance objectives. Without access to the contract's Statement of Work and performance evaluation criteria, it's impossible to determine if the award fee truly incentivizes optimal performance and cost efficiency. Transparency regarding these metrics is essential for public accountability.

What is the risk of cost overruns or inefficiencies given the CPAF contract type and the nature of 'blended capital investment platform' services?

CPAF contracts carry inherent risks of cost overruns if performance targets are not rigorously defined and monitored. For a 'blended capital investment platform,' the complexity of mobilizing private capital and managing diverse projects increases this risk. Inefficiencies could arise if the award fee structure doesn't adequately penalize suboptimal performance or if the scope of work is not precisely managed, leading to scope creep.

How effectively is this platform expected to mobilize private capital and achieve its development objectives compared to alternative approaches?

The effectiveness of the Catalyze platform in mobilizing private capital and achieving development goals depends heavily on Palladium International LLC's execution, the specific market conditions in target regions, and the alignment of incentives. While blended finance is a promising approach, its success is not guaranteed. A comparative analysis with other development finance mechanisms and rigorous impact evaluations post-award are necessary to assess its true effectiveness.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: BAA-OAA-PCM-2017

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1331 PENNSYLVANIA AVE NW STE 600, WASHINGTON, DC, 20004

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

Financial Breakdown

Contract Ceiling: $249,999,999

Exercised Options: $249,999,999

Current Obligation: $196,495,847

Actual Outlays: $156,547,962

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $32,988,071

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline