USAID's $39.4M E-WASH contract for sanitation services shows fair value with 4 bidders

Contract Overview

Contract Amount: $39,386,378 ($39.4M)

Contractor: Research Triangle Institute

Awarding Agency: Agency for International Development

Start Date: 2018-05-24

End Date: 2023-03-16

Contract Duration: 1,757 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EFFECTIVE WATER SANITATION AND HYGIENE SERVICES (E-WASH)

Plain-Language Summary

Agency for International Development obligated $39.4 million to RESEARCH TRIANGLE INSTITUTE for work described as: EFFECTIVE WATER SANITATION AND HYGIENE SERVICES (E-WASH) Key points: 1. Contract offers fair value for essential water sanitation services. 2. Full and open competition indicates a healthy market for these services. 3. Potential risks include performance variability in complex international settings. 4. Contract duration of nearly 5 years suggests a significant, ongoing need. 5. Positioned within the broader 'Other Professional, Scientific, and Technical Services' sector.

Value Assessment

Rating: fair

The contract's value appears fair given the scope of providing sanitation and hygiene services in potentially challenging international environments. Benchmarking against similar USAID contracts for WASH (Water, Sanitation, and Hygiene) programs suggests that the overall award amount is within a reasonable range for the duration and complexity. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control, though it requires diligent oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bidders participating. This level of competition is positive as it suggests a robust market for these specialized services and likely contributed to achieving a fair price. The presence of multiple bidders indicates that the agency was able to attract a range of qualified vendors, fostering a competitive environment that benefits price discovery.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by leveraging market forces to obtain the best possible value for essential sanitation and hygiene services.

Public Impact

Beneficiaries include communities in developing countries requiring improved water sanitation and hygiene. Services delivered focus on establishing and maintaining effective water sanitation and hygiene infrastructure and practices. Geographic impact is likely concentrated in regions where USAID implements E-WASH programs, potentially across multiple countries. Workforce implications include the creation of jobs for local and international personnel involved in project implementation and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Performance in international development can be unpredictable due to local conditions.
Cost-plus-fixed-fee contracts require careful monitoring to prevent cost overruns.

Positive Signals

Full and open competition suggests a competitive market and potentially better pricing.
The contract duration indicates a sustained commitment to addressing critical WASH needs.
The agency (USAID) has experience managing complex international development contracts.

Sector Analysis

This contract falls under the broad category of professional, scientific, and technical services, specifically related to international development and public health infrastructure. The market for such services is driven by government funding for foreign aid and development initiatives. Comparable spending benchmarks would typically be found within USAID's portfolio of WASH and public health programs, as well as similar initiatives by other international development agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor actively engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through its contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is generally facilitated through contract award databases, though specific project details and performance metrics may vary in public accessibility. Inspector General jurisdiction would apply if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

USAID WASH Programs
Global Health Security Initiatives
International Development Assistance
Environmental Health Services

Risk Flags

Performance Risk in Developing Countries
Cost Overruns in CPFF Contracts
Sustainability of Implemented Solutions

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $39.4 million to RESEARCH TRIANGLE INSTITUTE. EFFECTIVE WATER SANITATION AND HYGIENE SERVICES (E-WASH)

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

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 $39.4 million.

What is the period of performance?

Start: 2018-05-24. End: 2023-03-16.

What is the track record of Research Triangle Institute (RTI) in managing large-scale international development contracts, particularly in the WASH sector?

Research Triangle Institute (RTI) has a substantial track record in managing complex international development projects, including those focused on Water, Sanitation, and Hygiene (WASH). They have been a significant implementer for USAID and other development agencies on numerous projects globally. RTI's experience often involves technical assistance, capacity building, and program implementation in challenging environments. Their portfolio includes a wide range of sectors, with WASH being a prominent area. While specific performance metrics for individual contracts are not always publicly detailed, RTI's consistent engagement with major donors suggests a generally positive standing and capability in delivering on contract objectives. Their ability to secure and execute contracts like E-WASH indicates a demonstrated capacity to meet the rigorous requirements of international development work.

How does the cost-plus-fixed-fee (CPFF) contract type influence cost control and value for money in this E-WASH contract?

The Cost-Plus-Fixed-Fee (CPFF) contract type used for the E-WASH contract presents a mixed bag for cost control and value for money. In a CPFF structure, the contractor is reimbursed for all 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 when there is a high degree of uncertainty, allowing for flexibility. For value for money, the fixed fee incentivizes the contractor to manage costs efficiently to maximize their profit margin, as the fee does not increase with costs. However, it also requires robust oversight from the agency (USAID) to ensure that costs are reasonable, allocable, and allowable. Without diligent monitoring, there's a risk of cost escalation if the contractor's cost management is weak or if unforeseen circumstances significantly drive up expenses. The effectiveness of value for money hinges on the agency's ability to manage the contractor's performance and costs rigorously.

What are the primary risks associated with implementing water sanitation and hygiene services in developing countries under this contract?

Implementing water sanitation and hygiene (WASH) services in developing countries under this contract carries several inherent risks. Political and economic instability in host countries can disrupt project activities, supply chains, and personnel safety. Logistical challenges, such as poor infrastructure and limited access to remote areas, can increase operational costs and timelines. Cultural and social factors may influence community acceptance and adoption of new sanitation practices, requiring extensive behavioral change communication. Technical risks include the sustainability of infrastructure in harsh environments, the availability of local technical expertise for maintenance, and the potential for unforeseen environmental impacts. Furthermore, health risks to implementing staff and beneficiaries, such as waterborne diseases, are a constant concern. Finally, funding fluctuations or changes in donor priorities can impact program continuity and long-term impact.

Can we compare the per-unit cost of sanitation services delivered under this contract to similar initiatives or benchmarks?

Directly comparing the per-unit cost of sanitation services under this contract to specific benchmarks is challenging without granular data on the exact services delivered (e.g., number of latrines built, hygiene training sessions conducted, water points established) and the specific contexts (e.g., country, rural vs. urban). The E-WASH contract is broad, encompassing 'Effective Water Sanitation and Hygiene Services,' and uses a Cost Plus Fixed Fee structure, which doesn't lend itself to simple per-unit cost analysis like a fixed-price contract might. However, general WASH sector reports and studies by organizations like the World Health Organization (WHO) or UNICEF provide indicative cost ranges for interventions like constructing a basic latrine or providing hygiene kits. These benchmarks often highlight significant cost variations based on geography, local material costs, labor rates, and the complexity of implementation. The $39.4 million award over approximately 1757 days suggests a substantial investment, and its 'fair' value assessment implies it aligns with expected costs for comprehensive WASH programming in USAID's target regions.

What is the historical spending trend for USAID's E-WASH program or similar sanitation initiatives over the past five years?

Analyzing the historical spending trend for USAID's E-WASH program specifically requires accessing detailed USAID budget and award data, which is not directly provided in the abbreviated data. However, we can infer trends based on USAID's broader commitment to Water, Sanitation, and Hygiene (WASH). USAID has consistently prioritized WASH as a critical component of its global health and development strategies. Funding for WASH initiatives typically fluctuates based on global health priorities, specific country needs, and congressional appropriations. Over the past five years, there has been a sustained focus on improving access to safe water and sanitation, particularly in Sub-Saharan Africa and Asia. Programs like E-WASH are part of this larger effort. While the $39.4 million award for this specific contract is significant, it represents a portion of USAID's overall WASH portfolio. Trends generally show a steady or increasing investment in WASH, driven by the recognition of its impact on health, economic development, and gender equality.

What are the implications of having only four bidders for this contract, given it was competed fully and openly?

Having four bidders for a fully and openly competed contract, like the E-WASH services, suggests a moderately competitive market for this specific type of service. While more bidders could potentially drive prices lower, four is a reasonable number that indicates sufficient interest and capability among potential contractors. It implies that the barriers to entry (e.g., technical expertise, past performance requirements, understanding of USAID's processes) might be significant enough to limit the pool of highly qualified organizations. This level of competition is generally seen as adequate to ensure fair pricing and prevent monopolies, but it doesn't necessarily represent the most aggressive price discovery possible. The agency likely received a range of proposals, allowing for a thorough evaluation based on technical merit and cost. The key takeaway is that while competition existed, there may be room for further market development or simplification of requirements to attract a broader range of bidders in the future.

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

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 E CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,202,973

Exercised Options: $41,202,973

Current Obligation: $39,386,378

Actual Outlays: $33,229,134

Subaward Activity

Number of Subawards: 54

Total Subaward Amount: $6,876,565

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1500033

IDV Type: IDC

Timeline