USAID's $138.7M contract for famine early warning systems awarded to Chemonics International

Contract Overview

Contract Amount: $138,682,426 ($138.7M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2019-10-15

End Date: 2024-10-14

Contract Duration: 1,826 days

Daily Burn Rate: $75.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ISSUE PILLAR 1 TASK ORDER FOR FAMINE EARLY WARNING SYSTEMS NETWORK TO PROVIDE TIMELY, ACCURATE, AND TRANSPARENT EARLY WARNING TO THE U.S. GOVERNMENT AND ITS PARTNERS ON CURRENT AND FUTURE ACUTE FOOD INSECURITY WORLDWIDE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $138.7 million to CHEMONICS INTERNATIONAL, INC. for work described as: ISSUE PILLAR 1 TASK ORDER FOR FAMINE EARLY WARNING SYSTEMS NETWORK TO PROVIDE TIMELY, ACCURATE, AND TRANSPARENT EARLY WARNING TO THE U.S. GOVERNMENT AND ITS PARTNERS ON CURRENT AND FUTURE ACUTE FOOD INSECURITY WORLDWIDE. Key points: 1. Contract focuses on providing critical food insecurity data to the U.S. government and partners. 2. Awarded via full and open competition, suggesting a robust market for these services. 3. The contract duration of 5 years indicates a long-term need for these analytical capabilities. 4. The professional, scientific, and technical services sector is vital for global development efforts. 5. The cost-plus-fixed-fee pricing structure allows for flexibility while managing contractor profit. 6. This award represents a significant investment in proactive global food security monitoring.

Value Assessment

Rating: good

The contract value of $138.7 million over five years for famine early warning systems appears reasonable given the critical nature of the services. Benchmarking against similar large-scale international development support contracts suggests that the pricing is within an expected range for comprehensive data analysis and reporting. The cost-plus-fixed-fee structure, while potentially leading to higher costs than fixed-price contracts, allows for adaptation to evolving needs in a complex global environment. The fixed fee component provides a degree of cost control for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders suggests a competitive environment for these specialized services. A competitive process generally leads to better price discovery and ensures that the government receives a fair market price for the services rendered. The agency likely benefited from a range of proposals and technical approaches.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it helps ensure that funds are used efficiently and that the most capable contractor is selected at a reasonable cost.

Public Impact

The U.S. government and its international partners benefit from timely and accurate information on acute food insecurity. The services delivered include data analysis, reporting, and early warning dissemination to prevent and mitigate famine. The geographic impact is global, focusing on regions at risk of food insecurity. The contract supports a specialized workforce of analysts, scientists, and technical experts in food security and international development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a long-term, complex project.
Reliance on accurate data from potentially unstable regions.
Ensuring continued innovation and adaptation to new threats.

Positive Signals

Clear objective to provide critical early warning information.
Awarded through full and open competition, indicating strong market interest and capability.
Long-term contract duration allows for sustained impact and relationship building.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on data analysis and early warning systems for global food security. This sector is crucial for government agencies involved in international development, humanitarian aid, and national security. Comparable spending in this area often involves large, multi-year contracts for complex analytical and advisory services, supporting efforts to address global challenges. The market for such services is characterized by specialized expertise and a need for reliable, data-driven insights.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. As a large prime contract awarded through full and open competition, the primary focus is likely on large, established firms with the capacity to manage such a significant global program. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). Mechanisms likely include regular performance reviews, milestone reporting, and financial audits. The contract's cost-plus-fixed-fee structure necessitates close monitoring of expenditures to ensure compliance with the fixed fee and overall budget. Transparency is expected through the reporting of early warning data and program performance metrics.

Related Government Programs

Famine Early Warning Systems Network (FEWS NET)
USAID Global Food Security Strategy
Office of Food for Peace
Bureau for Humanitarian Assistance

Risk Flags

Data reliability in conflict zones
Timeliness of information dissemination
Effectiveness of early warning triggers

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $138.7 million to CHEMONICS INTERNATIONAL, INC.. ISSUE PILLAR 1 TASK ORDER FOR FAMINE EARLY WARNING SYSTEMS NETWORK TO PROVIDE TIMELY, ACCURATE, AND TRANSPARENT EARLY WARNING TO THE U.S. GOVERNMENT AND ITS PARTNERS ON CURRENT AND FUTURE ACUTE FOOD INSECURITY WORLDWIDE.

Who is the contractor on this award?

The obligated recipient is CHEMONICS 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 $138.7 million.

What is the period of performance?

Start: 2019-10-15. End: 2024-10-14.

What is the historical spending pattern for famine early warning systems by USAID?

USAID has a long-standing commitment to famine early warning systems, with significant investments made over many years. The Famine Early Warning Systems Network (FEWS NET) itself has been operational since the mid-1980s, supported by USAID and other partners. While specific historical dollar amounts for individual contracts can fluctuate based on program needs and global events, the consistent funding reflects the ongoing importance of this function. Prior contracts have also been awarded to organizations like Chemonics International and others specializing in food security analysis, indicating a sustained need for these services and a competitive landscape for their provision. The current $138.7 million award represents a substantial, multi-year commitment to this critical area.

How does the cost of this contract compare to similar global food security analysis contracts?

Benchmarking the cost of this $138.7 million, five-year contract requires comparing it to similar large-scale, multi-year contracts for global food security analysis and early warning systems. Contracts of this nature, especially those involving extensive data collection, analysis, and dissemination across multiple regions, are typically substantial. Given the complexity, the global reach, and the critical nature of providing timely famine warnings, the per-year cost of approximately $27.7 million appears to be within the expected range for such specialized services. Factors influencing cost include the number of countries covered, the sophistication of analytical tools, the required reporting frequency, and the expertise of the personnel involved. Without direct access to proprietary pricing data for comparable contracts, this assessment relies on general market understanding of large international development support services.

What are the primary risks associated with this contract and how are they being managed?

The primary risks associated with this contract revolve around the accuracy and timeliness of the early warning data, the potential for geopolitical instability in regions where data is collected, and the effective dissemination of critical information. USAID manages these risks through several mechanisms. The contractor, Chemonics International, is expected to employ robust data validation processes and maintain strong relationships with in-country sources. The contract's duration allows for adaptive management, enabling adjustments to data collection and analysis strategies as conditions change. Furthermore, the full and open competition process likely selected a contractor with a proven track record in managing complex international projects and mitigating risks. Regular performance reviews and reporting requirements also serve as oversight mechanisms to identify and address emerging issues promptly.

What is the track record of Chemonics International in delivering similar services?

Chemonics International has a well-established and extensive track record in implementing large-scale international development projects for USAID and other government agencies. They are a prominent player in sectors including global health, economic growth, agriculture, and democracy and governance. Specifically, Chemonics has significant experience in food security, nutrition, and humanitarian assistance programs. Their history includes managing complex analytical tasks, providing technical assistance, and operating in challenging environments worldwide. While specific performance metrics for past famine early warning contracts would require deeper investigation, their general reputation and the scale of projects they undertake suggest a strong capability to manage the requirements of this particular award. USAID's continued engagement with Chemonics on significant programs often reflects satisfaction with their past performance.

How does this contract contribute to the overall effectiveness of U.S. foreign assistance in food security?

This contract is a critical component of the U.S. foreign assistance strategy aimed at preventing and responding to food insecurity and famine. By providing timely, accurate, and transparent early warning information, it enables proactive interventions rather than reactive responses, which are often more costly and less effective. The data generated allows USAID and its partners to anticipate potential crises, allocate resources more efficiently, and implement targeted programs to mitigate the impact of food shortages. This proactive approach can save lives, reduce humanitarian suffering, and contribute to long-term stability in vulnerable regions. The contract directly supports the goals of U.S. global food security initiatives by ensuring that decision-makers have the necessary intelligence to act effectively.

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

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1717 H ST NW, WASHINGTON, DC, 20006

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: $138,682,426

Exercised Options: $138,682,426

Current Obligation: $138,682,426

Actual Outlays: $140,281,945

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $73,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 7200AA19D00001

IDV Type: IDC

Timeline