USAID's $65.3M Contract for Management Consulting Services Awarded to DAI GLOBAL LLC

Contract Overview

Contract Amount: $65,347,323 ($65.3M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2020-06-25

End Date: 2025-02-12

Contract Duration: 1,693 days

Daily Burn Rate: $38.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE MSP ACTIVITY WOULD ADDRESS UNMET SERVICE NEEDS AND KNOWLEDGE GAPS IDENTIFIED BY USAID MISSIONS AND OUS NECESSARY TO: 1.) OPERATIONALIZE THE PRIVATE SECTOR ENGAGEMENT (PSE) POLICY IN RESILIENCE, FOOD SECURITY, AND NUTRITION PROGRAMMING; 2.) ADOPT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $65.3 million to DAI GLOBAL LLC for work described as: THE MSP ACTIVITY WOULD ADDRESS UNMET SERVICE NEEDS AND KNOWLEDGE GAPS IDENTIFIED BY USAID MISSIONS AND OUS NECESSARY TO: 1.) OPERATIONALIZE THE PRIVATE SECTOR ENGAGEMENT (PSE) POLICY IN RESILIENCE, FOOD SECURITY, AND NUTRITION PROGRAMMING; 2.) ADOPT Key points: 1. Contract aims to operationalize USAID's Private Sector Engagement (PSE) policy in critical areas like resilience and food security. 2. Focus on addressing unmet service needs and knowledge gaps identified by USAID missions. 3. Competition method was 'Full and Open', suggesting broad market participation. 4. The sector involves administrative management and general management consulting services.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed service descriptions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the 'Cost Plus Fixed Fee' structure requires careful oversight to ensure value for money.

Taxpayer Impact: Taxpayer funds are being used to enhance USAID's policy implementation and address critical global development challenges.

Public Impact

Enhances USAID's ability to implement its Private Sector Engagement policy. Addresses critical needs in resilience, food security, and nutrition programming. Supports knowledge sharing and operational improvements within USAID missions. Aims to improve the effectiveness of development assistance through strategic consulting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Potential for scope creep without clear performance metrics.
Effectiveness depends heavily on the quality of consulting services provided.

Positive Signals

Full and open competition should drive competitive pricing.
Addresses identified knowledge gaps and unmet service needs.
Focus on critical development areas like food security.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector. Spending in this area often supports government agencies in policy implementation, strategic planning, and operational efficiency.

Small Business Impact

The data indicates this contract was awarded to DAI GLOBAL LLC and does not specify any small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The 'Cost Plus Fixed Fee' contract type necessitates robust oversight from USAID to ensure costs are reasonable and services are delivered effectively. Monitoring performance against defined objectives is crucial for accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for contractor to prioritize billing over efficiency.
Effectiveness hinges on quality of consulting and USAID oversight.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $65.3 million to DAI GLOBAL LLC. THE MSP ACTIVITY WOULD ADDRESS UNMET SERVICE NEEDS AND KNOWLEDGE GAPS IDENTIFIED BY USAID MISSIONS AND OUS NECESSARY TO: 1.) OPERATIONALIZE THE PRIVATE SECTOR ENGAGEMENT (PSE) POLICY IN RESILIENCE, FOOD SECURITY, AND NUTRITION PROGRAMMING; 2.) ADOPT

Who is the contractor on this award?

The obligated recipient is DAI 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 $65.3 million.

What is the period of performance?

Start: 2020-06-25. End: 2025-02-12.

How will the effectiveness of the consulting services be measured to ensure the operationalization of the PSE policy?

Effectiveness will likely be measured through key performance indicators (KPIs) tied to the successful integration of the PSE policy into USAID's programming. This could include metrics on the number of private sector partnerships established, the impact of these partnerships on resilience and food security goals, and the documented adoption of new knowledge and practices within USAID missions. Regular reporting and performance reviews will be essential to track progress and ensure accountability.

What are the primary risks associated with a Cost Plus Fixed Fee contract for consulting services in international development?

The primary risks with a Cost Plus Fixed Fee contract include potential cost overruns if the contractor's costs exceed projections, and the fixed fee may not adequately incentivize efficiency if not carefully structured. There's also a risk that the contractor might prioritize billable hours over optimal solutions. For USAID, ensuring robust oversight and clear performance metrics is critical to mitigate these risks and ensure value for taxpayer money.

What is the expected long-term impact of this contract on USAID's ability to achieve its development objectives?

This contract is expected to significantly enhance USAID's capacity to leverage private sector engagement for achieving its development objectives in resilience, food security, and nutrition. By addressing knowledge gaps and operationalizing the PSE policy, it should lead to more effective and sustainable programming. The insights gained and strategies developed could serve as a model for future USAID initiatives, improving overall development impact.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › AGRICULTURE R&D SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 7200AA20R00003

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7600 WISCONSIN AVE STE 200, BETHESDA, MD, 20814

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

Financial Breakdown

Contract Ceiling: $79,985,807

Exercised Options: $79,985,807

Current Obligation: $65,347,323

Actual Outlays: $45,750,655

Subaward Activity

Number of Subawards: 50

Total Subaward Amount: $10,867,889

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline