USAID awards $64.4M contract to Chemonics International for FEWS NET Decision Support Team

Contract Overview

Contract Amount: $64,417,955 ($64.4M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2024-10-01

End Date: 2029-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TO ESTABLISH A NEW CONTRACT FOR FEWS NET'S NEW DECISION SUPPORT TEAM.

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 $64.4 million to CHEMONICS INTERNATIONAL, INC. for work described as: TO ESTABLISH A NEW CONTRACT FOR FEWS NET'S NEW DECISION SUPPORT TEAM. Key points: 1. Contract aims to establish a new decision support team for FEWS NET. 2. Chemonics International, Inc. is the selected contractor. 3. The contract has a duration of five years, from October 2024 to September 2029. 4. This is a delivery order under an existing contract. 5. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 6. The contract was awarded through full and open competition.

Value Assessment

Rating: fair

The contract value of $64.4 million over five years for a decision support team appears to be within a reasonable range for specialized technical assistance. Benchmarking against similar contracts for establishing new teams or providing advanced analytical support would be necessary for a definitive value-for-money assessment. The Cost Plus Fixed Fee structure necessitates careful monitoring of costs to ensure efficiency, as it incentivizes cost incurrence up to the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the full and open nature suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field and encouraging competitive pricing, which can lead to more efficient use of public funds.

Public Impact

The primary beneficiaries are likely USAID and its partners involved in food security monitoring and early warning systems. The contract will deliver enhanced decision-making capabilities for the Famine Early Warning Systems Network (FEWS NET). The geographic impact is global, as FEWS NET operates in multiple regions prone to food insecurity. Workforce implications include the creation of a specialized decision support team, potentially drawing on expertise in data analysis, climate science, and humanitarian response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for costs incurred.
The effectiveness of the 'new decision support team' will depend heavily on its integration with existing FEWS NET operations and the quality of its analytical output.
Potential for scope creep exists in contracts with a long duration and a focus on establishing new functions.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
The five-year duration allows for sustained support and development of the decision support team.
The establishment of a dedicated decision support team indicates a strategic investment in improving FEWS NET's analytical and predictive capabilities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on engineering and management consulting services related to international development and food security. The market for such services is competitive, with numerous firms offering expertise in data analysis, program management, and policy support for international organizations. USAID's spending in this area supports its mission to advance development and humanitarian assistance globally.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small businesses through set-asides is unlikely. However, the prime contractor, Chemonics International, may engage small businesses as subcontractors, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by USAID contracting officers and program officials responsible for the FEWS NET program. Accountability measures are inherent in the Cost Plus Fixed Fee contract structure, requiring detailed reporting on costs and performance. Transparency is generally maintained through contract award databases and public reporting requirements, though specific operational details of the decision support team's work may be internal.

Related Government Programs

Famine Early Warning Systems Network (FEWS NET)
USAID Global Food Security Programs
International Development Assistance Contracts
Disaster Risk Reduction Programs

Risk Flags

Cost Overruns Risk (CPFF Contract Type)
Integration Challenges with Existing Systems
Performance Measurement Difficulty
Dependency on Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $64.4 million to CHEMONICS INTERNATIONAL, INC.. TO ESTABLISH A NEW CONTRACT FOR FEWS NET'S NEW DECISION SUPPORT TEAM.

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 $64.4 million.

What is the period of performance?

Start: 2024-10-01. End: 2029-09-30.

What is the specific expertise Chemonics International brings to FEWS NET's decision support needs?

Chemonics International is a global development company with extensive experience in implementing USAID-funded projects, particularly in areas like food security, agriculture, and economic growth. For FEWS NET's decision support team, this likely translates to expertise in data analysis, modeling, climate science integration, and translating complex information into actionable recommendations for policymakers and humanitarian organizations. Their track record includes managing large-scale programs requiring sophisticated analytical capabilities and stakeholder coordination, which are crucial for enhancing early warning systems and improving response strategies in food-insecure regions.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of actual costs, and cost-reimbursement contracts without a fixed fee. CPFF is often used when the scope of work is not precisely defined or involves research and development, allowing flexibility. However, it places a greater burden on the government to monitor costs to prevent overruns. Compared to firm-fixed-price contracts, CPFF offers less cost certainty for the government but can be more suitable for complex, evolving needs like establishing a new analytical team where precise cost estimation is challenging.

What are the potential risks associated with establishing a new decision support team within FEWS NET?

Key risks include integration challenges, where the new team may struggle to effectively interface with existing FEWS NET operations and data streams. There's also a risk of misalignment in objectives or priorities between the decision support team and the core FEWS NET mission. Performance risks involve the team's ability to deliver timely, accurate, and actionable insights, which are critical for early warning systems. Furthermore, the CPFF structure carries a risk of cost escalation if not rigorously managed. Finally, ensuring the long-term sustainability and adoption of the team's outputs by stakeholders presents an organizational risk.

What historical spending patterns exist for similar decision support or analytical services within USAID or related agencies?

USAID and other development agencies frequently contract for analytical and decision support services, particularly for large-scale programs like FEWS NET. Spending patterns vary widely based on the scope, duration, and complexity of the services. Contracts for establishing new analytical units or enhancing existing ones can range from a few million to tens of millions of dollars annually. These often involve specialized expertise in areas like data science, remote sensing, agricultural economics, and humanitarian logistics. Historical data suggests a trend towards investing in advanced analytics and predictive modeling to improve program effectiveness and response times in critical sectors like food security and disaster management.

How will the success of this decision support team be measured?

The success of the FEWS NET Decision Support Team will likely be measured through a combination of performance metrics tied to the contract's statement of work and broader program objectives. Key performance indicators (KPIs) could include the timeliness and accuracy of analytical reports, the development and application of new decision-support tools or models, the successful integration of diverse data sources, and the demonstrable impact of the team's insights on FEWS NET's early warning and response recommendations. User satisfaction surveys from FEWS NET leadership and partner organizations, as well as evidence of improved decision-making leading to more effective interventions, would also serve as crucial evaluation criteria.

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

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: $200,000,000

Exercised Options: $200,000,000

Current Obligation: $64,417,955

Actual Outlays: $8,524,833

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20DU117

IDV Type: IDC

Timeline