USAID awards $49.9M contract to RTI for Ethiopia's food and agriculture system transformation

Contract Overview

Contract Amount: $49,951,691 ($50.0M)

Contractor: Research Triangle Institute

Awarding Agency: Agency for International Development

Start Date: 2022-11-14

End Date: 2027-11-13

Contract Duration: 1,825 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TO AWARD NEW CONTRACT FOR USAID/ETHIOPIA FEED THE FUTURE ETHIOPIA FOOD & AGRICULTURE SYSTEM TRANSFORMATION (FAST) ACTIVITY.

Plain-Language Summary

Agency for International Development obligated $50.0 million to RESEARCH TRIANGLE INSTITUTE for work described as: TO AWARD NEW CONTRACT FOR USAID/ETHIOPIA FEED THE FUTURE ETHIOPIA FOOD & AGRICULTURE SYSTEM TRANSFORMATION (FAST) ACTIVITY. Key points: 1. Contract aims to enhance food and agricultural systems in Ethiopia. 2. Research Triangle Institute (RTI) selected for this significant initiative. 3. The contract duration is five years, indicating a long-term commitment. 4. Focus on transforming food and agriculture systems suggests a broad scope of work. 5. The award method indicates a competitive procurement process. 6. This contract represents a substantial investment in development assistance.

Value Assessment

Rating: good

The contract value of $49.9 million for a five-year period for a complex development activity appears reasonable. Benchmarking against similar large-scale USAID activities in agriculture and food security suggests this is within expected ranges. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while providing incentives for cost control, though it requires careful monitoring to ensure value for money. Further analysis would involve comparing specific task orders and deliverables against industry standards and past performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. With six bidders participating, this suggests a healthy level of interest and competition for this significant USAID activity. A competitive process generally leads to better pricing and innovative solutions as contractors vie for the award.

Taxpayer Impact: A full and open competition ensures that taxpayer funds are used efficiently by driving down costs and encouraging the best possible solutions for achieving program objectives.

Public Impact

The primary beneficiaries are the people of Ethiopia, who will experience improvements in their food and agricultural systems. Services delivered will likely include technical assistance, capacity building, and program implementation related to agriculture and food security. The geographic impact is focused on Ethiopia, with potential ripple effects across the region. Workforce implications include job creation within Ethiopia and potential employment for experts in agriculture and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring effective implementation and measurable impact of the food and agriculture transformation activities.
Monitoring the Cost Plus Fixed Fee structure to prevent cost overruns and ensure efficiency.
Assessing the long-term sustainability of the program's outcomes beyond the contract period.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long contract duration (5 years) allows for sustained impact and development.
Focus on a critical sector (food and agriculture) for development.

Sector Analysis

This contract falls within the international development and humanitarian aid sector, specifically focusing on agriculture and food security. The global market for such development assistance is substantial, with agencies like USAID playing a key role. Comparable spending benchmarks would involve looking at other large-scale agricultural development projects funded by international donors in similar regions. The contract's objective to transform food and agriculture systems is ambitious and aligns with Sustainable Development Goal 2 (Zero Hunger).

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. While there is no explicit mention of small business subcontracting goals, large prime contractors like RTI are often encouraged or required to engage small businesses. The impact on the small business ecosystem would depend on whether RTI actively seeks out and partners with local Ethiopian small businesses for specific services or supplies.

Oversight & Accountability

Oversight for this contract will primarily be conducted by the Agency for International Development (USAID), likely through its mission in Ethiopia and relevant technical offices. Accountability measures will be embedded in the contract's reporting requirements, performance metrics, and the CPFF structure. Transparency will be facilitated through public contract databases and potentially through USAID's own reporting on program progress. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USAID Feed the Future Initiative
USAID Ethiopia Programs
Global Food Security Programs
Agricultural Development Assistance

Risk Flags

Potential for political or economic instability in Ethiopia impacting program delivery.
Climate change vulnerability affecting agricultural outcomes.
Challenges in market access and infrastructure development.
Ensuring long-term sustainability of program interventions.
Effective coordination among diverse stakeholders.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $50.0 million to RESEARCH TRIANGLE INSTITUTE. TO AWARD NEW CONTRACT FOR USAID/ETHIOPIA FEED THE FUTURE ETHIOPIA FOOD & AGRICULTURE SYSTEM TRANSFORMATION (FAST) ACTIVITY.

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 $50.0 million.

What is the period of performance?

Start: 2022-11-14. End: 2027-11-13.

What is Research Triangle Institute's (RTI) track record with USAID, particularly in large-scale agricultural development contracts?

Research Triangle Institute (RTI) has a significant and long-standing history of working with USAID on international development projects, including those focused on agriculture and food security. RTI has managed numerous complex activities across various countries, often involving multi-year funding and substantial budgets. Their experience typically encompasses areas such as agricultural research and extension, market systems development, nutrition, and policy reform. While specific details on all past contracts would require deeper database searches, RTI is generally recognized as a capable implementer of USAID's development agenda. Their ability to secure a large, full-and-openly competed contract like the Ethiopia FAST Activity suggests a strong past performance record and competitive positioning within the USAID implementing partner landscape.

How does the $49.9 million contract value compare to similar USAID agricultural development activities?

The $49.9 million contract value for a five-year agricultural transformation activity in Ethiopia is substantial and aligns with the scale of major USAID development initiatives. Large-scale agricultural programs funded by USAID often range from tens to hundreds of millions of dollars, depending on the country's needs, program scope, and duration. For instance, other Feed the Future activities or similar food security programs in comparable regions have seen awards in similar value ranges. The Cost Plus Fixed Fee (CPFF) structure is common for complex, service-oriented development contracts where the exact costs are difficult to predict upfront. This value suggests a significant investment aimed at achieving transformative change in Ethiopia's agricultural sector, consistent with USAID's strategic objectives.

What are the primary risks associated with implementing a large-scale agricultural transformation program in Ethiopia?

Implementing a large-scale agricultural transformation program in Ethiopia presents several risks. Political and economic instability can disrupt program activities and impact long-term sustainability. Climate change and environmental factors, such as drought or unpredictable rainfall, pose significant threats to agricultural productivity and program outcomes. Furthermore, challenges in infrastructure, market access, and the capacity of local institutions can hinder effective implementation. Social and cultural factors, including land tenure issues and community acceptance of new practices, also require careful navigation. Finally, ensuring effective coordination among various stakeholders, including government agencies, local communities, and other development partners, is crucial but can be complex.

What are the expected program effectiveness indicators for the USAID/Ethiopia Food & Agriculture System Transformation (FAST) Activity?

While specific indicators are detailed in the contract's Statement of Work, the program's effectiveness is likely to be measured against objectives related to improving agricultural productivity, increasing farmer incomes, enhancing food security and nutrition, strengthening agricultural value chains, and promoting climate-resilient practices. Key performance indicators (KPIs) might include metrics such as yield increases for specific crops, percentage growth in household income derived from agriculture, reduction in malnutrition rates, improved market access for smallholder farmers, and adoption rates of sustainable farming techniques. USAID will closely monitor these indicators to assess the program's impact and ensure accountability for the $49.9 million investment.

How has USAID's spending in the agricultural sector in Ethiopia evolved over the past five years?

USAID's spending in Ethiopia's agricultural sector has historically been significant, reflecting the country's reliance on agriculture and its potential for growth. Over the past five years, USAID has consistently invested in programs aimed at improving food security, increasing agricultural productivity, and building resilience to climate shocks, often through initiatives like Feed the Future. While precise year-over-year spending figures fluctuate based on program cycles and priorities, the overall commitment to the sector has remained strong. The award of this $49.9 million FAST Activity underscores a continued strategic focus on transforming Ethiopia's food and agriculture systems, suggesting sustained or potentially increased investment in this critical area.

What is the significance of the 'All Other Miscellaneous Crop Farming' NAICS code (111998) in relation to this contract?

The North American Industry Classification System (NAICS) code 111998, 'All Other Miscellaneous Crop Farming,' is a broad category that encompasses crop production activities not classified under more specific codes. In the context of this USAID contract for the Food & Agriculture System Transformation (FAST) Activity in Ethiopia, this code likely signifies that the contract's scope involves a wide range of agricultural activities beyond a single crop. This could include support for diverse farming systems, crop diversification efforts, research into various crops, or interventions across multiple agricultural sub-sectors. It suggests the program aims for a comprehensive approach to agricultural development rather than focusing narrowly on one specific commodity or farming type.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Other Crop Farming › All Other Miscellaneous Crop Farming

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

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $77,742,114

Exercised Options: $77,742,114

Current Obligation: $49,951,691

Actual Outlays: $28,276,248

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $7,427,933

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline