USAID's $79.8M contract for management consulting services awarded to Chemonics International, Inc

Contract Overview

Contract Amount: $79,804,026 ($79.8M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2022-02-17

End Date: 2023-09-15

Contract Duration: 575 days

Daily Burn Rate: $138.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OVERSEAS CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $79.8 million to CHEMONICS INTERNATIONAL, INC. for work described as: OVERSEAS CONTRACT Key points: 1. Contract awarded for administrative and general management consulting services. 2. Chemonics International, Inc. is the sole awardee. 3. Contract duration spans 575 days. 4. The contract type is Cost Plus Fixed Fee. 5. Awarded under full and open competition. 6. The contract is for services in Washington D.C.

Value Assessment

Rating: fair

The contract value of $79.8 million for administrative and general management consulting services over approximately 1.5 years appears substantial. Benchmarking this against similar large-scale consulting contracts for government agencies is necessary to determine value for money. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to cost overruns if not closely monitored, as the contractor is reimbursed for allowable costs plus a fixed fee. Without specific performance metrics or comparisons to industry standards for similar services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data does not specify the number of bidders, but the designation suggests a competitive process was initiated. Full and open competition is generally preferred as it allows for the widest possible pool of potential contractors, theoretically leading to better pricing and service offerings.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it increases the likelihood of obtaining services at a reasonable cost and encourages contractors to offer their best value propositions.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which receives administrative and management consulting support. Services delivered likely focus on improving the efficiency and effectiveness of USAID's operations and programs. The geographic impact is centered in Washington D.C., where the contractor is located. The contract supports professional services roles within the consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage allowable costs and prevent scope creep.
The substantial dollar amount necessitates robust performance monitoring to ensure value for money.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.

Positive Signals

Awarded through full and open competition, suggesting a competitive marketplace was leveraged.
The contract is for administrative and general management consulting, a common and necessary government function.
The awardee, Chemonics International, Inc., is a known entity in international development contracting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting a wide range of government functions from administrative support to strategic planning. The market for these services is competitive, with numerous firms offering specialized expertise. The value of this contract, approximately $79.8 million, places it as a substantial award within this category, likely supporting a significant operational need for USAID.

Small Business Impact

The provided data indicates that this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, there is no direct analysis of small business set-aside impact. However, large contracts like this can sometimes create subcontracting opportunities for small businesses, depending on the prime contractor's subcontracting plan and the nature of the services required. Without further information on subcontracting goals or performance, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by USAID contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous monitoring of allowable costs and adherence to the fixed fee is crucial. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits. The specific Inspector General jurisdiction would depend on USAID's internal structure and any specific audit mandates related to this type of service contract.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Federal Consulting Contracts
USAID Program Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Large contract value necessitates robust performance monitoring.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $79.8 million to CHEMONICS INTERNATIONAL, INC.. OVERSEAS CONTRACT

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 $79.8 million.

What is the period of performance?

Start: 2022-02-17. End: 2023-09-15.

What is the track record of Chemonics International, Inc. with USAID for similar consulting services?

Chemonics International, Inc. has a significant history of contracting with USAID, particularly in the realm of international development and program management. They are a well-established contractor known for delivering a wide array of services globally. While this specific contract focuses on administrative and general management consulting, Chemonics' broader portfolio includes technical assistance, project implementation, and capacity building across various sectors. Their past performance with USAID would be a key factor in the agency's decision-making process for awarding contracts, and typically, agencies review a contractor's history of meeting performance requirements, managing budgets, and adhering to compliance standards when evaluating proposals and making awards. Specific details on past performance metrics for this exact type of service would likely be found in USAID's internal contract files or performance evaluations.

How does the $79.8 million value compare to typical USAID administrative consulting contracts?

The $79.8 million value for this administrative and general management consulting contract is substantial, placing it among larger awards within this service category. USAID, like other large federal agencies, procures a wide range of consulting services, from short-term technical assistance to long-term strategic support. Contracts of this magnitude often cover comprehensive support for major programs or agency-wide initiatives. To benchmark effectively, one would need to compare it against the average value and duration of similar 'administrative management and general management consulting services' (NAICS code 541611) awarded by USAID and other development-focused agencies over the past several fiscal years. Factors such as the scope of work, duration, and the complexity of the services provided heavily influence contract values, making direct comparisons challenging without detailed scope analysis.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($79.8 million) revolve around cost control and potential for scope creep. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. The main risk for the government is that the contractor may have less incentive to control costs rigorously compared to fixed-price contracts, as cost overruns are generally reimbursable. This necessitates robust government oversight to ensure that all costs claimed are reasonable, allocable, and allowable according to the contract terms. Additionally, the fixed fee, while agreed upon upfront, could represent a significant profit margin if costs are managed exceptionally well by the contractor, or conversely, could be insufficient if unforeseen complexities arise that strain the contractor's resources beyond initial projections. Effective contract administration and clear definition of work are paramount to mitigate these risks.

What performance metrics are typically used to evaluate success for administrative consulting contracts?

For administrative and general management consulting contracts, performance metrics often focus on efficiency, effectiveness, and adherence to project objectives. Key Performance Indicators (KPIs) might include timeliness of deliverables, accuracy of reports, successful implementation of recommended process improvements, cost savings achieved through implemented efficiencies, and client satisfaction. For a contract like this with USAID, metrics could also relate to the improved functioning of specific administrative processes, enhanced organizational capacity, or the successful execution of management strategies. The effectiveness of the contractor's team, their responsiveness to agency needs, and their ability to provide actionable insights and solutions are also critical evaluation points. The specific metrics would be detailed in the contract's Performance Work Statement (PWS) or Statement of Work (SOW).

How does the 'full and open competition' award mechanism impact potential cost savings for taxpayers?

The 'full and open competition' award mechanism is designed to maximize cost savings for taxpayers by fostering a competitive environment. By allowing all responsible sources to submit a bid, the government broadens the pool of potential offerors, increasing the likelihood of receiving competitive pricing. This process encourages vendors to propose their most cost-effective solutions and potentially lower their profit margins to secure the contract. Furthermore, competition can drive innovation and efficiency, as contractors strive to differentiate themselves not only on price but also on the quality and value of their services. While the specific number of bidders isn't provided, the commitment to full and open competition signals an intent to leverage market forces to achieve the best possible value for the government and, by extension, the taxpayer.

What is the significance of the contract being for 'Administrative Management and General Management Consulting Services' (NAICS 541611)?

The classification under NAICS code 541611, 'Administrative Management and General Management Consulting Services,' indicates that the contract's primary purpose is to provide expertise to help organizations improve their performance and efficiency. This can encompass a wide range of activities, including strategic and organizational planning, business process re-engineering, information technology (IT) strategy, human resource management, and change management. For USAID, such services are crucial for optimizing its operational effectiveness, managing complex development programs, and ensuring accountability in resource allocation. This classification suggests the contractor will be advising on how to best manage the agency's internal operations, resources, and overall strategic direction, rather than providing highly specialized technical or scientific consulting.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $180,209,994

Exercised Options: $180,209,994

Current Obligation: $79,804,026

Actual Outlays: $78,553,195

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 7200AA19D00015

IDV Type: IDC

Timeline