USAID awards $320M+ for professional services, with contract duration extending to 2026

Contract Overview

Contract Amount: $320,485,843 ($320.5M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Agency for International Development

Start Date: 2018-08-23

End Date: 2026-08-26

Contract Duration: 2,925 days

Daily Burn Rate: $109.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Agency for International Development obligated $320.5 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. Contract value exceeds $320 million, indicating a significant investment in professional services. 2. The contract type is 'Cost Plus Award Fee', which incentivizes contractor performance but can lead to higher costs. 3. With a duration of nearly 8 years, this represents a long-term commitment to the services provided. 4. The broad 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a wide range of potential activities. 5. Full and open competition was utilized, theoretically promoting competitive pricing. 6. The absence of disclosed domestic awardees raises questions about transparency and the specific entities benefiting.

Value Assessment

Rating: fair

The contract value of over $320 million for 'All Other Professional, Scientific, and Technical Services' is substantial. Benchmarking is difficult without specific service details, but the Cost Plus Award Fee (CPAF) structure suggests that pricing is tied to performance, which can be a variable cost. Compared to similar large-scale, long-duration service contracts, the overall value is significant, but the value-for-money depends heavily on the specific deliverables and achieved award fees.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the number of bidders is not specified, this method is generally expected to foster a competitive environment, potentially leading to better pricing and service offerings for the government. The use of this procurement method suggests a deliberate effort to explore the market for the best available solutions.

Taxpayer Impact: Full and open competition is intended to maximize taxpayer value by ensuring a wide range of potential providers can compete, driving down costs and improving service quality through market forces.

Public Impact

The primary beneficiaries are likely the Agency for International Development (USAID) and its global development programs. Services delivered could encompass a broad spectrum of professional, scientific, and technical support crucial for international aid and development initiatives. Geographic impact is potentially global, supporting USAID's mission in various countries. Workforce implications could include the creation of numerous jobs for professionals in scientific, technical, and administrative fields, both domestically and potentially abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of disclosed domestic awardees hinders assessment of specific contractor capabilities and past performance.
The Cost Plus Award Fee (CPAF) contract type, while incentivizing performance, can lead to cost overruns if not managed rigorously.
The broad NAICS code makes it difficult to ascertain the precise nature and scope of services, impacting value assessment.
Long contract duration (nearly 8 years) increases the risk of scope creep and potential misalignment with evolving agency needs over time.

Positive Signals

Awarded under full and open competition, suggesting a robust market search and potential for competitive pricing.
The contract structure includes award fees, which can motivate contractors to exceed performance expectations.
The significant contract value indicates a critical need for these services within USAID's operations.
The contract duration provides stability and allows for long-term planning and execution of complex projects.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, a broad category encompassing a wide array of specialized expertise. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' suggests services that do not fit into more specific categories. Spending in this sector is substantial across the federal government, supporting diverse agency missions from research and development to program management and technical consulting. Comparable spending benchmarks are difficult without more specific service details, but large indefinite-delivery, indefinite-quantity (IDIQ) contracts or broad support services contracts often reach hundreds of millions of dollars.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no specific mention of small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses, and there may be limited direct subcontracting opportunities for them unless the prime awardee(s) voluntarily engage small businesses. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Cost Plus Award Fee contract, performance monitoring and evaluation are critical to ensure that award fees are justified and that the contractor is meeting or exceeding objectives. Transparency regarding the specific services rendered and the performance metrics achieved would be key. While specific Inspector General (IG) jurisdiction isn't detailed, USAID's Office of Inspector General would likely have oversight authority for potential fraud, waste, and abuse.

Related Government Programs

USAID Global Development Programs
International Aid and Assistance Contracts
Professional and Technical Services Contracts
Cost Plus Award Fee Contracts
Definitive Contracts

Risk Flags

Lack of transparency regarding awardees
Potential for cost overruns due to CPAF structure
Broad scope of services hinders specific performance assessment
Long contract duration increases risk of misalignment

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $320.5 million to DOMESTIC AWARDEES (UNDISCLOSED). OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

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 $320.5 million.

What is the period of performance?

Start: 2018-08-23. End: 2026-08-26.

What specific types of professional, scientific, and technical services are being procured under this contract?

The provided data classifies this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can encompass a wide range of activities, including but not limited to research and development support, management consulting, technical assistance, scientific analysis, and other specialized professional services. Without further details or access to the contract's statement of work, the precise nature of the services remains undisclosed. This lack of specificity makes it challenging to assess the contract's direct impact or benchmark its value effectively against more narrowly defined service contracts.

How does the Cost Plus Award Fee (CPAF) structure impact the potential final cost and value for money?

A Cost Plus Award Fee (CPAF) contract reimburses the contractor for allowable costs and provides a fixed fee that is earned based on performance against pre-defined criteria. This structure incentivizes contractors to meet or exceed performance targets to maximize their fee. While it can drive high-quality outcomes, it also introduces uncertainty in the final cost, as the award fee component can vary significantly. For taxpayers, this means the final cost could be higher than a fixed-price contract if performance is exceptional. Assessing value for money requires a thorough evaluation of whether the achieved performance justifies the total cost, including the award fee, compared to alternative contract types or service providers.

What are the risks associated with the long contract duration of nearly 8 years?

A contract duration of nearly 8 years (2925 days) presents several risks. Firstly, the agency's needs and priorities may evolve significantly over this period, potentially leading to scope creep or misalignment between the contract's objectives and current requirements. Secondly, maintaining consistent oversight and ensuring continued contractor performance at a high level over such an extended period can be challenging. Thirdly, there's a risk of contractor complacency or a decline in innovation if strong performance management is not maintained. Finally, market conditions and technological advancements could render the contracted services less efficient or effective by the end of the term, necessitating costly modifications or early termination.

Given the 'full and open competition' award, what does the lack of disclosed domestic awardees imply?

The fact that the contract was awarded under 'full and open competition' suggests a broad solicitation process. However, the 'DOMESTIC AWARDEES (UNDISCLOSED)' designation is unusual and raises concerns about transparency. Typically, the prime awardee(s) would be publicly identified. This lack of disclosure could stem from various reasons, such as the prime awardee being a joint venture or a subsidiary whose ultimate beneficial ownership is complex, or perhaps specific national security or programmatic sensitivities. Regardless, it hinders the public's ability to assess the track record, financial stability, and past performance of the entity receiving over $320 million in taxpayer funds.

How does this contract compare to other federal spending in the 'All Other Professional, Scientific, and Technical Services' category?

The $320+ million value and nearly 8-year duration make this a substantial contract within the broad 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category. Federal agencies frequently procure services under this NAICS code to obtain specialized expertise not readily available in-house. While specific comparisons are difficult without knowing the exact services, contracts of this magnitude often involve large-scale program support, complex analytical tasks, or extensive technical consulting. Agencies like USAID, DoD, and others regularly award multi-million dollar contracts in this space. The value is significant, placing it among the larger awards for this general service category, underscoring its importance to USAID's mission.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 72012118R00005

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $325,000,000

Exercised Options: $325,000,000

Current Obligation: $320,485,843

Actual Outlays: $182,310,812

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $29,066,698

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline