USAID awards $42M contract for professional services to DT Global Inc

Contract Overview

Contract Amount: $42,079,000 ($42.1M)

Contractor: DT Global Inc

Awarding Agency: Agency for International Development

Start Date: 2022-03-01

End Date: 2025-03-12

Contract Duration: 1,107 days

Daily Burn Rate: $38.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LOCALLY LEGITIMATE STABILIZATION-LLS

Plain-Language Summary

Agency for International Development obligated $42.1 million to DT GLOBAL INC for work described as: LOCALLY LEGITIMATE STABILIZATION-LLS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is over 1100 days, indicating a long-term need for these services. 4. The awardee, DT Global Inc., is a significant player in the international development sector. 5. The professional services category is broad, requiring further analysis to understand specific deliverables. 6. The contract value is substantial, warranting close monitoring of performance and cost efficiency.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the award amount of $42,079,000 over approximately three years suggests a significant investment. Comparing this to similar contracts for 'All Other Professional, Scientific, and Technical Services' within USAID or other agencies would provide better context on whether the pricing is competitive for the scope of work. The fixed fee component offers some cost control, but the cost-reimbursement nature requires diligent oversight to ensure funds are used efficiently and effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. The presence of 5 bids suggests a reasonable level of competition for this requirement. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: Taxpayers benefit from a competitive process as it is more likely to result in a fair price for the services rendered, reducing the risk of overpayment compared to sole-source awards.

Public Impact

The primary beneficiaries are likely USAID and the populations served by its international development programs. The contract supports 'All Other Professional, Scientific, and Technical Services,' which could encompass a wide range of activities critical to program implementation. Geographic impact is likely global, aligning with USAID's mission to advance American interests and promote democratic values abroad. Workforce implications may include the employment of technical experts, project managers, and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously managed.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not clearly defined and monitored.
Long contract duration necessitates sustained oversight to ensure continued relevance and effectiveness.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor, DT Global Inc., has experience in the international development sector.
The contract has a defined period of performance, allowing for structured project management.

Sector Analysis

The professional, scientific, and technical services sector is a significant component of federal contracting, encompassing a wide array of expertise. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a broad category. Federal spending in this area supports diverse government functions, from research and development to program management and technical assistance. Benchmarking this contract's value against the overall federal spending in this category would require a detailed analysis of similar awards, but $42 million represents a substantial investment for a single contract.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it mention subcontracting goals. Given the award was made under full and open competition, it's possible that small businesses could participate as subcontractors to the prime contractor, DT Global Inc. Further investigation into the contract's subcontracting plan, if one exists, would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). Mechanisms likely include regular performance reviews, financial audits, and adherence to the terms and conditions of the Cost Plus Fixed Fee agreement. Transparency would depend on USAID's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

USAID Global Development Programs
International Technical Assistance Contracts
Professional and Technical Services
Cost-Reimbursement Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad service category may lead to scope definition challenges.
Long contract duration necessitates sustained monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $42.1 million to DT GLOBAL INC. LOCALLY LEGITIMATE STABILIZATION-LLS

Who is the contractor on this award?

The obligated recipient is DT GLOBAL 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 $42.1 million.

What is the period of performance?

Start: 2022-03-01. End: 2025-03-12.

What is the specific nature of the 'All Other Professional, Scientific, and Technical Services' to be provided under this contract?

The contract description 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) is intentionally broad and encompasses a wide range of activities not classified under more specific categories. For this specific contract with DT Global Inc. awarded by USAID, the precise services would be detailed in the contract's Statement of Work (SOW). These services could potentially include areas such as program evaluation, policy analysis, technical advisory support, research, data collection and analysis, capacity building, or specialized consulting related to international development objectives. Without access to the SOW, it is impossible to determine the exact nature of the deliverables. However, given the agency (USAID) and the awardee's focus, it is highly probable that these services directly support USAID's mission in areas like global health, economic development, democracy and governance, or humanitarian assistance.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset or involves a high degree of uncertainty, making it difficult to establish a firm fixed price. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the actual costs incurred, offering greater cost certainty to the government but potentially higher risk for the contractor. Cost-Reimbursement contracts, like CPFF, shift some cost risk to the government. Compared to other cost-reimbursement types like Cost Plus Incentive Fee (CPIF), CPFF offers less flexibility for incentivizing performance beyond the fixed fee. For services where performance outcomes are critical and measurable, FFP or CPIF might be preferred if the scope allows. However, for complex, evolving international development projects, CPFF can provide necessary flexibility while still including a defined profit margin.

What is DT Global Inc.'s track record with USAID and similar federal contracts?

DT Global Inc. is a known entity in the international development contracting space and has a history of working with USAID and other U.S. government agencies. A thorough review of their past performance would involve examining contract databases (like FPDS or SAM.gov) for previous awards, their values, durations, and any reported performance issues or successes. Information on past performance is crucial for assessing a contractor's reliability and capability. USAID typically conducts pre-award responsibility determinations that include reviewing a contractor's past performance record. While specific details of past performance are often proprietary or found in internal agency evaluations, DT Global's continued success in securing significant contracts suggests a generally positive track record. However, any specific concerns or commendations related to their previous work would be detailed in agency performance assessments.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract?

While the provided data does not explicitly list Key Performance Indicators (KPIs) or specific performance metrics for this contract, they are almost certainly defined within the contract's Statement of Work (SOW) and associated performance work statements. For a Cost Plus Fixed Fee contract, especially one awarded by USAID for professional services, performance metrics are essential for monitoring progress and ensuring value for money. These KPIs would likely be tailored to the specific objectives of the services being procured. Examples could include timely delivery of reports, achievement of project milestones, successful implementation of technical assistance activities, client satisfaction, or adherence to budget targets. The contracting officer's representative (COR) at USAID would be responsible for monitoring the contractor's performance against these metrics throughout the contract's duration.

How does the $42 million award compare to historical spending on similar professional services by USAID?

To compare this $42 million award to historical spending, one would need to analyze USAID's procurement data for contracts categorized under NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') or similar service categories over previous fiscal years. USAID is a major purchaser of professional services to support its global development mission. Annual spending in this category can fluctuate based on program priorities and funding levels. A $42 million award is a significant sum for a single contract, suggesting a substantial project or a consolidation of multiple service needs. Benchmarking requires looking at the average award size, the total annual spending on such services, and the number of contracts awarded. Without access to comprehensive historical spending data specific to USAID's professional services procurement, a precise comparison is difficult, but this award represents a notable investment within that service domain.

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: 72062321R00003

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: DT Global LLC

Address: 1625 I STREET, NW SUITE 200, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $61,499,998

Exercised Options: $61,499,998

Current Obligation: $42,079,000

Actual Outlays: $34,357,768

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $3,314,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline