ABT Global LLC awarded $240M contract for sustainability initiatives by USAID, spanning over 5 years

Contract Overview

Contract Amount: $240,176,358 ($240.2M)

Contractor: ABT Global LLC

Awarding Agency: Agency for International Development

Start Date: 2019-08-29

End Date: 2025-02-26

Contract Duration: 2,008 days

Daily Burn Rate: $119.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ACHIEVING SUSTAINABILITY THROUGH LOCAL HEALTH SYSTEMS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $240.2 million to ABT GLOBAL LLC for work described as: ACHIEVING SUSTAINABILITY THROUGH LOCAL HEALTH SYSTEMS Key points: 1. Contract value suggests significant investment in long-term sustainability goals. 2. Competition dynamics indicate a robust market for professional, scientific, and technical services. 3. Contract duration of over 5 years points to complex, ongoing project requirements. 4. Performance context likely involves extensive research, analysis, and implementation support. 5. Sector positioning aligns with USAID's mission to foster global development and stability. 6. The contract's focus on local health systems implies a targeted approach to development aid.

Value Assessment

Rating: good

The contract value of $240 million over approximately 5.5 years suggests a substantial investment. Benchmarking against similar large-scale USAID contracts for technical assistance and program support indicates this is within a reasonable range for comprehensive, multi-year initiatives. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex services, requires careful monitoring to ensure cost efficiencies. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the scale implies a significant scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of 4 bidders, as indicated by the 'no' field, points to a healthy level of competition for this significant contract. This competitive process is expected to drive more favorable pricing and innovative solutions for USAID.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

Beneficiaries include local health systems and communities in developing regions targeted by USAID. Services delivered likely encompass technical assistance, program management, research, and capacity building for sustainable health initiatives. Geographic impact is global, focusing on areas where USAID implements its development programs. Workforce implications include employment opportunities for technical experts, researchers, and program managers, both domestically and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Ensuring equitable distribution of benefits across diverse local health systems requires careful oversight.
Measuring the long-term sustainability impact of interventions can be complex and data-intensive.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long contract duration allows for sustained impact and deep engagement with local partners.
Focus on local health systems aligns with best practices in sustainable development.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide range of specialized services. USAID's spending in this area is crucial for its mission to advance development and humanitarian assistance globally. Comparable spending benchmarks would involve other large, multi-year contracts awarded by development agencies for technical assistance, program evaluation, and capacity building in sectors like health, education, and governance.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions (ss: false, sb: false), the prime contractor, ABT GLOBAL LLC, may engage small businesses as subcontractors. The scale of the contract suggests potential opportunities for specialized small businesses to contribute to specific project components, provided they can meet the requirements and compete for subcontracts. The impact on the small business ecosystem depends on ABT GLOBAL LLC's subcontracting strategy.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, USAID will need to closely monitor costs incurred by ABT GLOBAL LLC to ensure they are reasonable and allocable to the contract's objectives. Accountability measures are typically embedded in the contract's performance work statement, with regular reporting requirements and performance reviews. Transparency is facilitated through contract award databases and potentially through USAID's public reporting on its development programs.

Related Government Programs

USAID Global Health Programs
USAID Technical Assistance Contracts
International Development Aid
Public Health System Strengthening
Sustainable Development Goals Initiatives

Risk Flags

Cost Overrun Risk (CPFF)
Performance Measurement Complexity
Long-Term Sustainability Assurance

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $240.2 million to ABT GLOBAL LLC. ACHIEVING SUSTAINABILITY THROUGH LOCAL HEALTH SYSTEMS

Who is the contractor on this award?

The obligated recipient is ABT GLOBAL 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 $240.2 million.

What is the period of performance?

Start: 2019-08-29. End: 2025-02-26.

What is ABT GLOBAL LLC's track record with USAID and similar federal agencies, particularly on large-scale international development contracts?

ABT GLOBAL LLC has a history of working with federal agencies, including USAID, on various projects. Their experience often spans areas like international development, technical assistance, and program management. For large-scale contracts, their track record would be assessed based on past performance evaluations, successful delivery of project objectives, adherence to budget, and compliance with federal regulations. Specific details on their performance on similar USAID contracts, including client satisfaction and any past performance issues, would be available through federal procurement databases and past performance reviews conducted by agencies. A review of their contract history would reveal the types of services they have provided, the value of those contracts, and the agencies they have served, offering insight into their capacity to manage a $240 million initiative.

How does the $240 million contract value compare to other USAID sustainability or health system development contracts?

The $240 million contract value is substantial and indicative of a large-scale, multi-year initiative. When compared to other USAID contracts in the realm of global health and sustainability, it falls within the upper tier of significant investments. USAID often awards large contracts for major program implementation, technical assistance, and research over extended periods, sometimes exceeding five years. Contracts of this magnitude typically involve comprehensive support across multiple countries or regions, addressing complex challenges. Smaller contracts might focus on specific technical areas, pilot projects, or shorter durations. Therefore, this award suggests a high level of strategic importance and a broad scope of work aimed at achieving significant, long-term impact in local health systems.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude and duration revolve around cost control and contractor incentive. For USAID, the risk is that ABT GLOBAL LLC may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual costs incurred (within allowable limits). This can lead to cost overruns if the contractor's actual expenses exceed initial estimates. Another risk is the potential for scope creep, where the project's objectives expand over the contract's long duration, leading to increased costs and potentially delaying the achievement of original goals. Effective oversight by USAID is crucial to mitigate these risks, involving rigorous monitoring of expenditures, regular performance reviews, and strict change management processes to ensure the contractor remains focused on delivering value within the agreed-upon framework.

How will the effectiveness and sustainability of the 'ACHIEVING SUSTAINABILITY THROUGH LOCAL HEALTH SYSTEMS' initiative be measured?

The effectiveness and sustainability of the 'ACHIEVING SUSTAINABILITY THROUGH LOCAL HEALTH SYSTEMS' initiative will likely be measured through a robust monitoring and evaluation (M&E) framework established by USAID and implemented by ABT GLOBAL LLC. Key performance indicators (KPIs) will be defined in the contract's Performance Work Statement (PWS), focusing on measurable outcomes related to health system strengthening, such as improved service delivery, increased access to healthcare, enhanced local capacity, and financial resilience of health systems. Sustainability will be assessed by tracking the extent to which local entities can maintain and continue the improvements initiated under the contract after its conclusion, potentially measured by indicators like local funding contributions, institutionalized management practices, and sustained health outcomes. Regular progress reports, site visits, and independent evaluations will be critical components of the measurement process.

What is the historical spending pattern of USAID on professional, scientific, and technical services related to health systems development?

USAID has a consistent and significant historical spending pattern on professional, scientific, and technical services related to health systems development, reflecting its commitment to global health. This spending is channeled through various mechanisms, including large-scale contracts, grants, and cooperative agreements, to support a wide range of activities. These activities often include technical assistance for policy development, strengthening health infrastructure, improving supply chains, training healthcare workers, and implementing disease-specific programs. The total annual expenditure can fluctuate based on global health priorities, funding appropriations, and the initiation of new large-scale programs. Analyzing historical data from USAID's procurement records and budget allocations would reveal trends in spending across different health sectors (e.g., maternal and child health, infectious diseases, health systems strengthening) and geographic regions, providing context for the current $240 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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

Solicitation ID: 7200AA18R00087

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6130 EXECUTIVE BOULEVARD, ROCKVILLE, MD, 20852

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

Financial Breakdown

Contract Ceiling: $251,772,216

Exercised Options: $251,772,216

Current Obligation: $240,176,358

Actual Outlays: $220,437,129

Subaward Activity

Number of Subawards: 97

Total Subaward Amount: $124,793,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 7200AA18D00023

IDV Type: IDC

Timeline