USAID's $27.7M GSS Contract Awarded to USMAX Corporation for Technical and Advisory Support

Contract Overview

Contract Amount: $27,734,367 ($27.7M)

Contractor: Usmax Corporation

Awarding Agency: Agency for International Development

Start Date: 2022-06-30

End Date: 2025-02-26

Contract Duration: 972 days

Daily Burn Rate: $28.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE GENERAL SUPPORT SERVICES (GSS) CONTRACT WILL PROVIDE TECHNICAL, ADVISORY, AND ADMINISTRATIVE SUPPORT SERVICES FOR USAID IN DIFFERENT AREAS UNDER THE BUREAU FOR DEVELOPMENT, DEMOCRACY, AND INNOVATION (DDI).

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $27.7 million to USMAX CORPORATION for work described as: THE GENERAL SUPPORT SERVICES (GSS) CONTRACT WILL PROVIDE TECHNICAL, ADVISORY, AND ADMINISTRATIVE SUPPORT SERVICES FOR USAID IN DIFFERENT AREAS UNDER THE BUREAU FOR DEVELOPMENT, DEMOCRACY, AND INNOVATION (DDI). Key points: 1. Contract aims to provide comprehensive support services for USAID's Bureau for Development, Democracy, and Innovation (DDI). 2. USMAX Corporation secured the contract, indicating a competitive selection process. 3. The Time and Materials pricing structure warrants scrutiny for potential cost overruns. 4. Services span technical, advisory, and administrative functions, crucial for DDI's mission.

Value Assessment

Rating: fair

The contract is a Time and Materials (T&M) type, which can be less predictable in final cost compared to fixed-price contracts. Benchmarking T&M contracts for similar support services is challenging due to variable labor rates and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery and potentially lead to higher costs than a truly open competition.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these essential support services.

Public Impact

Enhances USAID's operational capacity within the Bureau for Development, Democracy, and Innovation. Supports critical technical, advisory, and administrative functions essential for development programs. Potential for cost efficiencies if managed effectively, despite T&M structure. Ensures continuity of services for ongoing USAID initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Limited competition method
Potential for scope creep

Positive Signals

Supports critical agency functions
Awarded to a single vendor, potentially streamlining management

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically engineering services (NAICS 541330). Spending in this sector is substantial across government, supporting a wide range of agency operations and project management.

Small Business Impact

The data indicates the contract was not awarded to a small business (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from USAID to ensure performance standards are met and costs remain controlled, especially given the T&M pricing. Accountability for service delivery and adherence to scope is paramount.

Related Government Programs

Engineering Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Potential for cost overruns due to T&M pricing
Limited competition may result in suboptimal pricing
Lack of small business participation noted
Need for strong oversight to manage performance and costs

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $27.7 million to USMAX CORPORATION. THE GENERAL SUPPORT SERVICES (GSS) CONTRACT WILL PROVIDE TECHNICAL, ADVISORY, AND ADMINISTRATIVE SUPPORT SERVICES FOR USAID IN DIFFERENT AREAS UNDER THE BUREAU FOR DEVELOPMENT, DEMOCRACY, AND INNOVATION (DDI).

Who is the contractor on this award?

The obligated recipient is USMAX CORPORATION.

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 $27.7 million.

What is the period of performance?

Start: 2022-06-30. End: 2025-02-26.

What specific metrics will be used to evaluate the effectiveness of the technical, advisory, and administrative support provided under this contract?

Effectiveness will likely be measured through performance work statements (PWS) and key performance indicators (KPIs) defined within the contract. These could include timely delivery of reports, quality of technical advice, responsiveness to requests, and overall contribution to DDI's mission objectives. Regular performance reviews and stakeholder feedback will be crucial for ongoing assessment.

How does the 'limited competition' approach impact the risk of inflated pricing compared to a full and open competition for similar services?

Limited competition inherently reduces the number of bidders, potentially decreasing price pressure. Without multiple competing offers, the agency may not achieve the lowest possible price. This increases the risk of paying more than necessary, as the selected vendor may have less incentive to offer highly competitive rates compared to a scenario with numerous bidders vying for the contract.

What is the anticipated taxpayer impact of using a Time and Materials contract for these support services, considering the potential for cost overruns?

Time and Materials contracts carry a higher risk of cost overruns for taxpayers if not meticulously managed. The final cost is directly tied to the hours worked and materials used, which can escalate beyond initial estimates due to scope creep or inefficiencies. Robust oversight and clear task definitions are essential to mitigate this risk and ensure taxpayer funds are used efficiently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 720OAAR00010

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3060 WILLIAMS DR STE 530, FAIRFAX, VA, 22031

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $79,147,810

Exercised Options: $79,147,810

Current Obligation: $27,734,367

Actual Outlays: $21,986,794

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1002

IDV Type: IDC

Timeline