USAID's $22.8M Economic Governance Program in Georgia aims to boost investment and development

Contract Overview

Contract Amount: $22,871,809 ($22.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2019-12-18

End Date: 2025-12-17

Contract Duration: 2,191 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: USAID ECONOMIC GOVERNANCE PROGRAM IS DESIGNED TO IMPROVE ECONOMIC GOVERNANCE AND LEADERSHIP IN GEORGIA IN WAYS THAT WILL ENABLE GEORGIA TO HARNESS INVESTMENTS IT NEEDS TO FINANCE ITS OWN DEVELOPMENT JOURNEY. SPECIFICALLY, THIS PROGRAM WILL INCREASE

Plain-Language Summary

Agency for International Development obligated $22.9 million to DELOITTE CONSULTING LLP for work described as: USAID ECONOMIC GOVERNANCE PROGRAM IS DESIGNED TO IMPROVE ECONOMIC GOVERNANCE AND LEADERSHIP IN GEORGIA IN WAYS THAT WILL ENABLE GEORGIA TO HARNESS INVESTMENTS IT NEEDS TO FINANCE ITS OWN DEVELOPMENT JOURNEY. SPECIFICALLY, THIS PROGRAM WILL INCREASE Key points: 1. Program focuses on improving economic governance and leadership in Georgia. 2. Aims to enable Georgia to finance its own development through investments. 3. Contract awarded to Deloitte Consulting LLP. 4. The contract spans over 5 years, from December 2019 to December 2025.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The total award is $22,871,809. Benchmarking per-unit cost is difficult without specific deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for taxpayer money.

Taxpayer Impact: Taxpayer funds are being invested in improving Georgia's economic governance, with the goal of fostering sustainable development and self-financing capabilities.

Public Impact

Enhances economic stability and investment climate in Georgia. Supports long-term development goals of the Georgian nation. Promotes better leadership in economic policy and management. Aims to increase Georgia's capacity to attract and utilize investments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of specific performance metrics makes value assessment challenging.
Long duration may increase risk of scope creep or changing needs.

Positive Signals

Awarded via full and open competition.
Focuses on sustainable economic development.
Clear objective to improve Georgia's self-financing capacity.

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services'. Spending in this category is broad, but USAID's focus on economic governance suggests a strategic investment in institutional capacity building rather than typical technical services.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. Further analysis would be needed to determine if small businesses were subcontracted by the prime contractor.

Oversight & Accountability

USAID's internal oversight mechanisms are expected to monitor the program's progress and financial expenditures. The contract's duration and cost necessitate regular reviews to ensure accountability and effective use of funds.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Difficulty in quantifying 'economic governance' improvements without clear metrics.
Long contract duration may not align with evolving development needs.
Reliance on external contractor for internal capacity building.
Geopolitical risks in the region could impact program effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $22.9 million to DELOITTE CONSULTING LLP. USAID ECONOMIC GOVERNANCE PROGRAM IS DESIGNED TO IMPROVE ECONOMIC GOVERNANCE AND LEADERSHIP IN GEORGIA IN WAYS THAT WILL ENABLE GEORGIA TO HARNESS INVESTMENTS IT NEEDS TO FINANCE ITS OWN DEVELOPMENT JOURNEY. SPECIFICALLY, THIS PROGRAM WILL INCREASE

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

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 $22.9 million.

What is the period of performance?

Start: 2019-12-18. End: 2025-12-17.

What specific metrics will be used to measure the improvement in economic governance and leadership in Georgia?

The program's success hinges on clearly defined metrics for economic governance and leadership. These could include indicators related to policy reform implementation, transparency in economic decision-making, efficiency of public financial management, and the volume and type of investments attracted. Without these, assessing the program's true impact and value for money becomes difficult.

What are the primary risks associated with a Cost Plus Fixed Fee contract for this type of program?

A Cost Plus Fixed Fee (CPFF) contract carries the risk of the contractor incurring higher costs than anticipated, as the fixed fee is calculated based on estimated costs. If actual costs exceed estimates, the government pays the actual costs plus the predetermined fee. This can lead to less incentive for the contractor to control costs rigorously, potentially resulting in a higher overall expenditure for the taxpayer.

How will the program's effectiveness be evaluated in terms of enabling Georgia to finance its own development?

Effectiveness will be evaluated by tracking Georgia's ability to attract and secure necessary investments post-program implementation. Key indicators could include increased foreign direct investment, improved access to capital markets, successful implementation of fiscal reforms that enhance domestic revenue generation, and a demonstrable increase in the country's capacity to manage and deploy development financing independently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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

Solicitation ID: SOL-72011419R00011

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $22,871,809

Exercised Options: $22,871,809

Current Obligation: $22,871,809

Actual Outlays: $19,494,575

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $10,169,947

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 7200AA18D00009

IDV Type: IDC

Timeline