Feed the Future West Africa Trade Hub contract awarded at over $108M to Creative Associates International, Inc

Contract Overview

Contract Amount: $108,508,447 ($108.5M)

Contractor: Creative Associates International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2019-09-04

End Date: 2024-09-03

Contract Duration: 1,826 days

Daily Burn Rate: $59.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FEED THE FUTURE WEST AFRICA TRADE HUB CONTRACT

Plain-Language Summary

Agency for International Development obligated $108.5 million to CREATIVE ASSOCIATES INTERNATIONAL, INC. for work described as: FEED THE FUTURE WEST AFRICA TRADE HUB CONTRACT Key points: 1. Contract value exceeds $108 million, indicating a significant investment in regional trade development. 2. Awarded through full and open competition, suggesting a robust market response. 3. The contract duration of five years allows for sustained program implementation. 4. The cost-plus-fixed-fee pricing structure may incentivize contractor efficiency while managing costs. 5. The professional, scientific, and technical services category covers a broad range of potential activities. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract's value of over $108 million for a five-year period suggests a substantial investment in West African trade initiatives. Benchmarking against similar USAID-funded economic development programs indicates that this award falls within a typical range for large-scale, multi-year projects. The cost-plus-fixed-fee (CPFF) structure, while common, requires careful monitoring to ensure that costs remain reasonable and that the fixed fee provides adequate incentive for performance without excessive profit. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the scale of the award implies a significant expected impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of six bids suggests a competitive marketplace for this type of service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government. The agency's decision to pursue full and open competition implies confidence in the availability of multiple capable contractors and a desire to leverage market forces to achieve the best outcome.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market pressure and encourages a wider pool of innovative solutions, ultimately maximizing the impact of federal dollars.

Public Impact

The primary beneficiaries are businesses and economies within West Africa, aiming to enhance trade and economic growth. Services delivered likely include technical assistance, capacity building, policy reform support, and market access facilitation for agricultural and other trade sectors. The geographic impact is focused on the West African region, supporting regional integration and economic development. Workforce implications may include job creation within the region through enhanced trade activities and employment opportunities for local and international experts involved in program implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific small business set-aside may limit direct participation of smaller enterprises.
The broad scope of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not managed tightly.
Reliance on a single large contract for complex regional development may concentrate risk.
CPFF contracts require diligent oversight to prevent cost overruns and ensure fair pricing.

Positive Signals

Awarded through full and open competition, indicating a competitive process and potentially strong vendor capabilities.
The five-year duration allows for sustained impact and long-term development goals.
The significant investment signals a strong commitment to the region's economic development.
Creative Associates International, Inc. has a track record with USAID, suggesting familiarity with agency requirements and operational environments.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically related to international development and economic growth. This sector is characterized by a mix of large, established firms and specialized smaller organizations. The market size for international development services is substantial, with agencies like USAID consistently awarding large contracts to address global challenges. This specific contract, focused on trade in West Africa, aligns with broader U.S. foreign policy and development objectives, aiming to foster stability and prosperity through economic means. Comparable spending benchmarks in this area often involve multi-year, multi-million dollar awards for complex, region-wide initiatives.

Small Business Impact

The contract does not appear to have a specific small business set-aside. While the prime contractor, Creative Associates International, Inc., is a large firm, the contract's success could hinge on its ability to effectively engage and subcontract with small businesses in the region. The absence of a direct set-aside means that opportunities for small businesses will likely be through subcontracting channels, which depend on the prime contractor's procurement strategy. It is crucial to assess the prime's subcontracting plan to understand the potential impact on the small business ecosystem and ensure fair access to opportunities.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the Agency for International Development (USAID). Mechanisms likely include regular performance reviews, financial audits, and site visits to ensure compliance with contract terms and achievement of program objectives. USAID's Office of Inspector General (OIG) may also conduct audits and investigations to ensure accountability and prevent fraud, waste, and abuse. Transparency is typically managed through reporting requirements and public contract databases, though detailed programmatic data may be limited.

Related Government Programs

USAID Economic Growth Programs
West Africa Regional Development Initiatives
Trade Facilitation Programs
Agricultural Development Projects
USAID Capacity Building Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Geopolitical instability in West Africa
Infrastructure limitations impacting trade
Security concerns in program areas
Reliance on prime contractor for small business engagement

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $108.5 million to CREATIVE ASSOCIATES INTERNATIONAL, INC.. FEED THE FUTURE WEST AFRICA TRADE HUB CONTRACT

Who is the contractor on this award?

The obligated recipient is CREATIVE ASSOCIATES 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 $108.5 million.

What is the period of performance?

Start: 2019-09-04. End: 2024-09-03.

What is the track record of Creative Associates International, Inc. with USAID, particularly on similar large-scale development contracts?

Creative Associates International, Inc. has a significant history of working with USAID on various international development projects. They have been awarded numerous contracts across different sectors, including education, democracy and governance, economic growth, and humanitarian assistance. Their experience often involves implementing complex programs in challenging environments, requiring strong project management and local stakeholder engagement. For large-scale economic development contracts similar to the Feed the Future West Africa Trade Hub, their track record would likely show experience in managing multi-million dollar budgets, coordinating diverse teams, and achieving measurable development outcomes. A review of their past performance evaluations and contract history with USAID would provide specific insights into their success rates, challenges encountered, and overall effectiveness in delivering on development objectives.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for international development programs of this scale?

The Cost-Plus-Fixed-Fee (CPFF) contract type is common for research and development, as well as complex service contracts where the scope of work may evolve or is not precisely defined at the outset. For international development programs like the Feed the Future West Africa Trade Hub, CPFF offers flexibility. The government pays the contractor's actual allowable costs plus a fixed fee, which is negotiated upfront and does not change. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it requires robust government oversight to ensure costs are reasonable and allocable. Compared to Firm-Fixed-Price (FFP) contracts, CPFF provides more flexibility but carries a higher risk of cost overruns if not managed diligently. Cost-Reimbursement contracts, like Cost-Plus-Incentive-Fee (CPIF), might offer stronger cost control incentives but can be more complex to administer.

What are the primary risks associated with implementing a large, multi-year trade hub contract in West Africa?

Implementing a large, multi-year trade hub contract in West Africa presents several significant risks. Political and economic instability within the region can disrupt program activities, affect trade flows, and alter policy environments. Infrastructure limitations, such as poor transportation networks and unreliable energy supply, can hinder trade facilitation efforts and increase operational costs. Corruption and governance challenges in some countries may impede progress and create ethical dilemmas. Furthermore, security concerns in certain areas could impact personnel safety and program reach. Finally, the complexity of coordinating efforts across multiple countries, diverse stakeholders, and varying regulatory frameworks poses substantial management and logistical risks. Effective risk mitigation strategies, including thorough due diligence, adaptive management, and strong local partnerships, are crucial for success.

How is the effectiveness of the Feed the Future West Africa Trade Hub measured, and what are the key performance indicators (KPIs)?

The effectiveness of the Feed the Future West Africa Trade Hub is typically measured through a set of Key Performance Indicators (KPIs) aligned with the program's objectives, which focus on increasing trade, improving competitiveness, and fostering inclusive economic growth in the region. While specific KPIs are detailed in the contract's Statement of Work (SOW) and Performance Work Statement (PWS), common indicators for such programs include: increases in the volume and value of exports (particularly agricultural products), reduction in trade transaction costs and time, improvements in regional trade policies and regulatory environments, growth in employment within targeted sectors, increased investment in agribusiness, and enhanced capacity of local businesses and trade support institutions. USAID's monitoring and evaluation (M&E) framework would track these KPIs through data collection, surveys, case studies, and regular reporting from the implementing partner.

What is the historical spending trend for USAID's Feed the Future initiative and similar trade-focused programs in Africa?

USAID's Feed the Future initiative represents a significant U.S. government commitment to global food security and agricultural development, with substantial funding allocated annually. Historically, spending under Feed the Future has been robust, often exceeding billions of dollars cumulatively since its inception. Programs focused on trade facilitation and agricultural competitiveness within Africa are a key component of this initiative. Spending trends for these specific programs within Africa have generally shown a consistent allocation, reflecting the strategic importance of the region for both food security and economic development. While exact figures fluctuate year-to-year based on program cycles, budget appropriations, and emerging needs, the overall trend indicates sustained investment in strengthening agricultural value chains, improving market access, and promoting trade-related policy reforms across the continent. This particular contract aligns with that established pattern of significant investment.

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

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5301 WISCONSIN AVE NW STE 700, WASHINGTON, DC, 20015

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $108,508,448

Exercised Options: $108,508,448

Current Obligation: $108,508,447

Actual Outlays: $107,163,707

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $14,273,382

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline