Agency for International Development awards $20.9M contract for management consulting services to Social Solutions International, Inc

Contract Overview

Contract Amount: $20,945,689 ($20.9M)

Contractor: Social Solutions International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2020-08-04

End Date: 2025-03-12

Contract Duration: 1,681 days

Daily Burn Rate: $12.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE AWARD - PACIFIC AMERICAN FUND INITIAL OBLIGATION OF $6,408,000

Plain-Language Summary

Agency for International Development obligated $20.9 million to SOCIAL SOLUTIONS INTERNATIONAL, INC. for work described as: BASE AWARD - PACIFIC AMERICAN FUND INITIAL OBLIGATION OF $6,408,000 Key points: 1. The contract's value of $20.9 million over approximately 5 years suggests a significant investment in management consulting. 2. Awarded on a 'NOT COMPETED' basis, the lack of a competitive bidding process raises questions about potential price efficiencies. 3. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries inherent risks. 4. The contract duration of 1681 days indicates a long-term need for these services. 5. The primary service category is 'Other Management Consulting Services', a broad area that requires careful scope management to ensure value. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the services provided and comparable contracts. The CPFF structure, while common for complex or uncertain scopes, can lead to higher costs than fixed-price contracts if not managed diligently. The total award amount of $20.9 million, with an initial obligation of $6.4 million, indicates a substantial financial commitment. Without data on the contractor's performance on similar USAID contracts or industry benchmarks for 'Other Management Consulting Services' of this scale, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, meaning a full and open competition was not conducted. This typically occurs when a specific contractor is uniquely qualified, or in urgent situations. The lack of competition limits the government's ability to solicit multiple bids and potentially secure more favorable pricing through a competitive process. It also means that the market's price discovery mechanisms were not fully utilized for this procurement.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. This sole-source award means that alternative, potentially more cost-effective solutions or providers were not considered.

Public Impact

The primary beneficiaries are likely the Agency for International Development (USAID) itself, which will receive management consulting support to enhance its operations. The services delivered are expected to improve the efficiency and effectiveness of USAID's programs and administrative functions. The geographic impact is primarily domestic, within USAID's operational framework, though the consulting may indirectly support international development efforts. Workforce implications could include support for existing USAID staff or the engagement of specialized consultants, potentially impacting internal resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
The broad nature of 'Other Management Consulting Services' could lead to scope creep and inefficiencies.
Limited transparency due to sole-source award makes performance and value assessment more difficult.

Positive Signals

Social Solutions International, Inc. is a known entity, potentially bringing specific expertise.
The CPFF structure can be appropriate for complex, evolving requirements where scope is not fully defined upfront.
The long contract duration suggests a sustained need and potential for building institutional knowledge.

Sector Analysis

The management consulting services sector is a significant part of the professional services industry, supporting government agencies in areas ranging from strategic planning to operational efficiency. Government spending on management consulting is substantial, with agencies like USAID often seeking external expertise to navigate complex international development challenges. This contract fits within the broader category of professional services procured by federal agencies, where competition levels and contract types significantly influence cost and value.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting requirements mandated for small businesses as part of this specific award. The absence of a set-aside means that opportunities for small businesses to participate in this particular contract are limited unless they are subcontracted by the prime contractor, Social Solutions International, Inc., on a voluntary basis.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and the fixed fee is earned through satisfactory performance. Transparency may be limited due to the sole-source nature of the award, but internal USAID controls and potentially the USAID Office of Inspector General would be responsible for accountability measures.

Related Government Programs

USAID Management and Technical Consulting Services
Professional and Management Support Services
Government Consulting Contracts

Risk Flags

Sole-source award lacks competitive pricing.
CPFF contract type carries potential for cost overruns.
Broad service category may lead to scope management challenges.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $20.9 million to SOCIAL SOLUTIONS INTERNATIONAL, INC.. BASE AWARD - PACIFIC AMERICAN FUND INITIAL OBLIGATION OF $6,408,000

Who is the contractor on this award?

The obligated recipient is SOCIAL SOLUTIONS 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 $20.9 million.

What is the period of performance?

Start: 2020-08-04. End: 2025-03-12.

What specific management consulting services are being provided under this contract?

The contract specifies 'Other Management Consulting Services' (NAICS code 541618). This is a broad category that can encompass a wide range of activities, including strategic planning, organizational analysis, process improvement, program management support, and policy development. Without further details from the contract's statement of work, it is difficult to ascertain the precise nature of the consulting. However, given the agency (USAID), the services likely relate to improving the effectiveness, efficiency, or strategic direction of international development programs and operations. The Cost Plus Fixed Fee (CPFF) structure suggests that the scope may have been somewhat undefined or subject to change at the outset, requiring flexibility in service delivery.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar contracts for management consulting?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, providing flexibility. Compared to fixed-price contracts, CPFF can sometimes lead to higher overall costs for the government if cost controls are not stringent, as the contractor is incentivized to incur costs to perform the work. However, it can be advantageous when risks are high or innovation is required. Benchmarking CPFF contracts requires comparing not just the total value but also the fee percentage and the contractor's ability to manage costs effectively against the defined scope and objectives.

What is the track record of Social Solutions International, Inc. with USAID or similar agencies?

Social Solutions International, Inc. has a history of contracting with government agencies, including USAID. Information regarding their specific track record, past performance evaluations, and experience with similar management consulting services would typically be available in federal procurement databases (like SAM.gov) or through agency performance assessment systems. A thorough review would involve examining past contract awards, completion success, any reported issues or disputes, and client feedback. Without direct access to these detailed performance metrics, it's challenging to provide a definitive assessment of their track record specifically for USAID or comparable projects.

What are the potential risks associated with a sole-source award for management consulting services?

The primary risk associated with a sole-source award is the potential for reduced value for money. Without competition, the government may not achieve the lowest possible price or the most innovative solution available in the market. There's also a risk that the selected contractor may not be the most capable or cost-effective provider. Furthermore, a lack of transparency inherent in sole-source procurements can make it harder to justify the award and assess performance objectively. This can lead to taxpayer concerns about efficiency and fairness in government spending.

How does the initial obligation of $6.4 million compare to the total potential award of $20.9 million?

The initial obligation of $6,408,000 represents the funds committed by the Agency for International Development (USAID) at the time of award. The total potential award of $20,945,688.54 indicates the maximum amount the government could spend over the life of the contract, including all options and potential task orders. This significant difference suggests that the contract has substantial growth potential, likely through exercising options or adding further work. The initial obligation covers the base period or initial phase of the contract, and subsequent funding would be incrementally provided as the contract progresses and needs are confirmed.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 72049220R00007

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6153 EXECUTIVE BLVD, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $34,699,999

Exercised Options: $34,699,999

Current Obligation: $20,945,689

Actual Outlays: $18,517,013

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $839,539

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline