USAID's $67.4M Green Recovery Platform contract awarded to Chemonics International for climate change initiatives

Contract Overview

Contract Amount: $67,372,443 ($67.4M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2022-09-21

End Date: 2025-02-11

Contract Duration: 874 days

Daily Burn Rate: $77.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: GREEN RECOVERY INVESTMENT PLATFORM: USAID, AND THE USG MORE BROADLY, ARE COMMITTED TO DRAMATICALLY AND RAPIDLY SCALING UP ACTIONS TO ADDRESS CLIMATE CHANGE ADAPTATION AND MITIGATION IN DEVELOPING COUNTRIES. WE ARE ALSO COMMITTED TO SUPPORTING A GLOB

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $67.4 million to CHEMONICS INTERNATIONAL, INC. for work described as: GREEN RECOVERY INVESTMENT PLATFORM: USAID, AND THE USG MORE BROADLY, ARE COMMITTED TO DRAMATICALLY AND RAPIDLY SCALING UP ACTIONS TO ADDRESS CLIMATE CHANGE ADAPTATION AND MITIGATION IN DEVELOPING COUNTRIES. WE ARE ALSO COMMITTED TO SUPPORTING A GLOB Key points: 1. Contract focuses on scaling climate adaptation and mitigation efforts in developing nations. 2. Awarded through full and open competition, suggesting a robust market for these services. 3. The contract duration of 874 days indicates a significant, multi-year commitment. 4. Administrative Management and General Management Consulting Services are the primary focus. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 6. No small business set-aside was utilized, indicating the primary awardee is not an SMB.

Value Assessment

Rating: fair

The contract's value of $67.4 million over approximately 2.4 years for consulting services in climate change adaptation and mitigation is substantial. Benchmarking this against similar large-scale international development consulting contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) structure means that costs are reimbursed, plus a fixed fee, which can lead to higher overall spending if not managed tightly. However, it allows for flexibility in complex, evolving projects like climate initiatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 13 bids suggests a competitive marketplace for these types of services. A high number of bidders generally supports price discovery and can lead to more favorable terms for the government, although the specific pricing outcomes depend on the evaluation criteria and the nature of the services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for funds allocated to critical climate initiatives. Open competition helps ensure that the selected contractor offers a strong combination of expertise and cost-effectiveness.

Public Impact

Developing countries will benefit from enhanced capacity to address climate change adaptation and mitigation. Services delivered will support the U.S. government's broader commitment to scaling climate actions globally. The geographic impact is global, focusing on developing nations requiring climate resilience support. Workforce implications may include the need for specialized climate and development expertise within the contractor's team.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The broad scope of climate change adaptation and mitigation may present challenges in defining clear performance metrics and ensuring accountability.
Reliance on a single large contractor for such a critical and broad initiative could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process and potential for strong vendor selection.
The contract aligns with significant U.S. government commitments to climate action, suggesting strategic importance and potential for sustained focus.
The contractor, Chemonics International, is a well-established firm in international development, implying experience and capacity.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting, with a strong focus on environmental and climate-related development. The market for international development consulting is substantial, with numerous firms competing for U.S. government contracts. USAID is a major procurer in this space, often seeking expertise in areas like climate resilience, economic development, and governance. Comparable spending benchmarks would typically involve other large-scale, multi-year consulting contracts for international development agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, and the primary awardee, Chemonics International, is a large business. There is no explicit indication of subcontracting goals for small businesses within the provided data. This means that opportunities for small businesses to participate in this specific contract may be limited unless Chemonics proactively includes them in its subcontracting plan. The impact on the small business ecosystem for this particular award is likely minimal unless subcontracting is pursued.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, USAID will need to monitor expenditures closely to ensure costs are reasonable and allocable to the contract's objectives. Accountability measures will be tied to performance against defined objectives and deliverables. Transparency will depend on USAID's reporting practices and public availability of contract performance information. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USAID Climate Change Strategy
U.S. Global Climate Change Policy
International Development Assistance
Climate Adaptation Programs
Climate Mitigation Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Broad scope of climate initiatives may present performance measurement challenges.
Potential for cost overruns if not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $67.4 million to CHEMONICS INTERNATIONAL, INC.. GREEN RECOVERY INVESTMENT PLATFORM: USAID, AND THE USG MORE BROADLY, ARE COMMITTED TO DRAMATICALLY AND RAPIDLY SCALING UP ACTIONS TO ADDRESS CLIMATE CHANGE ADAPTATION AND MITIGATION IN DEVELOPING COUNTRIES. WE ARE ALSO COMMITTED TO SUPPORTING A GLOB

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 $67.4 million.

What is the period of performance?

Start: 2022-09-21. End: 2025-02-11.

What is Chemonics International's track record with USAID on similar climate-related contracts?

Chemonics International has a long-standing relationship with USAID and has managed numerous contracts in international development, including those related to environmental programs and climate change. While specific details on their past climate adaptation and mitigation contracts with USAID are not provided here, their extensive experience in sectors like agriculture, governance, and economic growth suggests a capacity to handle complex projects. A deeper dive into their contract history with USAID would reveal the scale, scope, and success rates of their previous environmental and climate-focused work, providing context for their current award.

How does the $67.4 million contract value compare to other large USAID consulting awards?

The $67.4 million value for this contract is substantial, placing it among significant awards for USAID's technical assistance and consulting services. USAID frequently awards large contracts, often in the tens or hundreds of millions of dollars, for complex, multi-year development projects. To benchmark this specific contract's value, one would compare it to other contracts for similar services (e.g., management consulting, technical assistance for environmental programs) awarded by USAID or other development agencies over comparable timeframes. The 'full and open competition' with 13 bidders suggests that this value was deemed competitive within the market for such services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for climate initiatives?

The primary risk with a CPFF contract, especially for complex and evolving areas like climate change, is that the government may end up paying more than necessary if costs are not rigorously controlled and justified. While the fixed fee provides some cost certainty for the contractor's profit, the 'cost plus' portion means the government reimburses all allowable costs. For climate initiatives, which can be unpredictable and require adaptive management, there's a risk that costs could escalate due to unforeseen challenges or scope creep. Effective oversight by USAID is crucial to mitigate these risks by scrutinizing expenditures and ensuring they align with project objectives.

How will the success of the Green Recovery Investment Platform be measured?

The success of the Green Recovery Investment Platform will likely be measured through a combination of performance metrics defined in the contract. These metrics would typically focus on the tangible outcomes related to climate change adaptation and mitigation in developing countries. Examples could include the amount of greenhouse gas emissions reduced or avoided, the number of people benefiting from adaptation measures, the increase in renewable energy capacity, or improvements in climate resilience indicators. USAID will monitor progress against these metrics, often requiring regular reporting from Chemonics International, to assess the platform's effectiveness and impact.

What is the historical spending trend for USAID's climate change adaptation and mitigation programs?

USAID has consistently increased its focus and funding for climate change adaptation and mitigation programs over the past decade, reflecting the U.S. government's global climate commitments. While specific historical spending figures for this exact 'Green Recovery Investment Platform' are not available prior to this award, overall USAID climate-related funding has grown significantly. This trend is driven by international agreements like the Paris Accord and the recognition of climate change as a critical development challenge. This $67.4 million contract represents a substantial investment within that growing portfolio, indicating continued prioritization of climate action.

What is the potential impact of this contract on the broader climate finance landscape in developing countries?

This contract has the potential to significantly influence the climate finance landscape by channeling substantial U.S. government resources towards adaptation and mitigation efforts in developing countries. By supporting Chemonics International, USAID aims to scale up actions, which could involve mobilizing additional public and private finance, building local capacity for climate project implementation, and fostering policy environments conducive to green investments. The platform's success could serve as a model or catalyst for other donors and financial institutions, encouraging greater investment in climate resilience and low-carbon development globally.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management 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: 7200AA22R00046

Offers Received: 13

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1275 NEW JERSEY AVE SE STE 200, WASHINGTON, DC, 20003

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: $249,098,367

Exercised Options: $249,098,367

Current Obligation: $67,372,443

Actual Outlays: $50,058,135

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $300,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline