USAID's $49M contract with DEXIS INTERACTIVE LLC aims to bolster Guatemala's justice sector and reduce crime

Contract Overview

Contract Amount: $49,075,412 ($49.1M)

Contractor: Dexis Interactive LLC

Awarding Agency: Agency for International Development

Start Date: 2020-04-30

End Date: 2027-04-29

Contract Duration: 2,555 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THE PROJECT IS TO STRENGTHEN SECURITY AND JUSTICE SECTOR INSTITUTIONS TO MORE EFFECTIVELY AND EFFICIENTLY INVESTIGATE, PROSECUTE AND ADJUDICATE CRIME IN ORDER TO REDUCE IMPUNITY IN GUATEMALA

Plain-Language Summary

Agency for International Development obligated $49.1 million to DEXIS INTERACTIVE LLC for work described as: THE PURPOSE OF THE PROJECT IS TO STRENGTHEN SECURITY AND JUSTICE SECTOR INSTITUTIONS TO MORE EFFECTIVELY AND EFFICIENTLY INVESTIGATE, PROSECUTE AND ADJUDICATE CRIME IN ORDER TO REDUCE IMPUNITY IN GUATEMALA Key points: 1. The contract focuses on institutional strengthening within Guatemala's security and justice sectors. 2. Key objectives include improving the investigation, prosecution, and adjudication of crime. 3. The ultimate goal is to reduce impunity and enhance the rule of law. 4. This initiative represents a significant investment in long-term security sector reform. 5. The contract duration spans over seven years, indicating a sustained commitment. 6. The chosen contract type, Cost Plus Fixed Fee, allows for flexibility while managing costs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable international security sector assistance programs. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can incentivize efficiency but also carries risks of cost overruns if not closely monitored. The fixed fee component, while intended to provide contractor incentive, needs careful evaluation against industry standards for similar services to ensure it represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust bidding process. The presence of seven bidders indicates a competitive market for these specialized services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals, though the ultimate value depends on the specific technical and cost proposals submitted.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Guatemalan citizens benefit from improved justice system effectiveness and reduced crime rates. The contract supports the strengthening of institutions responsible for law enforcement and judicial processes. Geographic impact is national, focusing on systemic improvements across Guatemala. Workforce implications include training and capacity building for local justice sector personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Measuring the direct impact on crime reduction and impunity can be complex and long-term.
Political instability or corruption in Guatemala could hinder program effectiveness.
Ensuring sustainable local ownership and capacity building is crucial for long-term success.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Long contract duration allows for sustained impact and institutional change.
Focus on strengthening core justice institutions addresses systemic issues.
Clear objective to reduce impunity aligns with international development goals.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on government and public administration consulting. The market for international development and security sector assistance is specialized, with a mix of large consulting firms and niche providers. The contract's value is significant within this sub-sector, reflecting the complexity and scope of institutional reform efforts in developing nations.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly detailed in the provided data. Further analysis would be needed to determine the extent to which small businesses were involved in the bidding process or are expected to participate in contract performance.

Oversight & Accountability

Oversight mechanisms would typically involve regular reporting from DEXIS INTERACTIVE LLC to USAID, performance reviews, and potentially site visits. Accountability is driven by contract deliverables and performance metrics. Transparency is usually maintained through public contract databases and reporting requirements, though specific oversight details for this contract are not provided.

Related Government Programs

Rule of Law Programs
Security Sector Reform
International Criminal Justice Assistance
Foreign Aid and Development

Risk Flags

Potential for cost overruns due to CPFF structure.
Challenges in measuring direct impact on crime reduction.
Risk of program ineffectiveness due to political instability or corruption.
Ensuring long-term sustainability and local ownership.
Complexity of security sector reform in a challenging environment.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $49.1 million to DEXIS INTERACTIVE LLC. THE PURPOSE OF THE PROJECT IS TO STRENGTHEN SECURITY AND JUSTICE SECTOR INSTITUTIONS TO MORE EFFECTIVELY AND EFFICIENTLY INVESTIGATE, PROSECUTE AND ADJUDICATE CRIME IN ORDER TO REDUCE IMPUNITY IN GUATEMALA

Who is the contractor on this award?

The obligated recipient is DEXIS INTERACTIVE LLC.

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 $49.1 million.

What is the period of performance?

Start: 2020-04-30. End: 2027-04-29.

What is the track record of DEXIS INTERACTIVE LLC in similar international development or security sector reform contracts?

DEXIS INTERACTIVE LLC has a history of working on international development projects, often focusing on areas like public administration, economic growth, and governance. While specific details on their track record in security sector reform in Latin America require deeper investigation, their general experience suggests a capacity to manage complex projects. A thorough review would involve examining past performance evaluations, client feedback, and the scale and success of previous engagements to assess their suitability and effectiveness for this Guatemalan initiative.

How does the cost structure (Cost Plus Fixed Fee) compare to industry benchmarks for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is common in government contracting, particularly for services where the scope may evolve or is difficult to define precisely upfront. It involves reimbursing the contractor for allowable costs plus a fixed fee representing profit. Benchmarking CPFF rates requires comparing the fixed fee percentage and overhead rates against similar contracts awarded by agencies like USAID or the Department of State for technical assistance and institutional development. Without specific fee data, it's hard to definitively say if it's above or below market, but it necessitates close monitoring of costs to ensure value.

What are the primary risks associated with implementing a security sector reform program in Guatemala?

Key risks include political instability, corruption within existing institutions, resistance to reform from vested interests, and the inherent difficulty in measuring long-term impact on crime and impunity. Socioeconomic factors, such as poverty and inequality, can also exacerbate crime rates, making systemic reform challenging. Furthermore, ensuring local ownership and capacity building is crucial, as external interventions may not be sustainable if local institutions are not empowered to lead the changes. The security environment itself can also pose risks to personnel involved in the program.

What specific performance metrics will be used to evaluate the success of this contract?

While the provided data does not detail specific performance metrics, typical evaluations for such contracts would focus on indicators related to the efficiency and effectiveness of the justice system. This could include metrics like case processing times, conviction rates for specific types of crimes, the number of investigations initiated and successfully prosecuted, improvements in police investigative capacity, and reductions in perceived impunity among the population. USAID's monitoring and evaluation framework would likely outline these KPIs, with regular reporting required from DEXIS INTERACTIVE LLC.

How has USAID's spending in Guatemala's justice sector evolved over the past five years?

Analyzing USAID's historical spending in Guatemala's justice sector over the past five years would reveal trends in funding priorities and program focus. This contract represents a significant single award. Understanding previous investments, their outcomes, and any shifts in strategy would provide context for this current award, indicating whether it's a continuation of past efforts, a new direction, or an expansion of existing programs. Such analysis helps in assessing the long-term commitment and evolving approach to justice sector reform in the country.

What is the potential impact of this contract on Guatemala's overall rule of law and democratic governance?

Strengthening security and justice institutions has a direct and potentially profound impact on Guatemala's rule of law and democratic governance. By improving the capacity to investigate, prosecute, and adjudicate crime, the contract aims to reduce impunity, thereby increasing public trust in the justice system. This can lead to greater respect for legal processes, encourage citizen participation, and foster a more stable environment conducive to economic development and democratic consolidation. However, success is contingent on the program's ability to foster genuine institutional reform and address underlying systemic issues.

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: 72052018R00002

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dexis Interactive Incorporated

Address: 1412 I ST NW, WASHINGTON, DC, 20005

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,369,382

Exercised Options: $57,369,382

Current Obligation: $49,075,412

Actual Outlays: $45,177,680

Subaward Activity

Number of Subawards: 52

Total Subaward Amount: $8,598,534

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline