DEVTECH SYSTEMS INC Awarded $2.89M for Administrative Management Consulting Services by USAID

Contract Overview

Contract Amount: $97,810,387 ($97.8M)

Contractor: Devtech Systems Inc

Awarding Agency: Agency for International Development

Start Date: 2018-04-02

End Date: 2024-03-27

Contract Duration: 2,186 days

Daily Burn Rate: $44.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF THIS MODIFICATION IS TO INITIATE THE ADVISE CONTRACT FOR AWARD IN THE AMOUNT OF $2,894,208.82.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $97.8 million to DEVTECH SYSTEMS INC for work described as: THE PURPOSE OF THIS MODIFICATION IS TO INITIATE THE ADVISE CONTRACT FOR AWARD IN THE AMOUNT OF $2,894,208.82. Key points: 1. Contract value of $2.89M for consulting services indicates a significant investment in administrative management. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. A duration of 2186 days (nearly 6 years) points to a long-term need for these services. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed carefully. 5. The agency's spending on this specific contract is a notable allocation within its administrative budget. 6. The North American Industry Classification System (NAICS) code 541611 categorizes this as management consulting. 7. The contract's completion date is set for March 2024, indicating ongoing service delivery. 8. The base award amount is $97.8M, with this modification adding $2.89M.

Value Assessment

Rating: fair

The modification adds $2.89M to an existing contract, bringing the total value to over $97.8M. Without specific benchmarks for similar administrative management consulting services over a nearly six-year period, it is difficult to definitively assess value for money. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost overruns if not closely monitored. Comparing this per-day cost to industry averages for similar consulting engagements would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and service quality. The presence of 3 bidders suggests a reasonable level of interest in the opportunity, though a higher number could potentially lead to even more competitive pricing.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at a fair market price through competitive bidding.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which receives administrative management and general management consulting services. These services likely support the agency's operational efficiency, strategic planning, and program management. The contract's impact is primarily within the District of Columbia, where USAID's headquarters are located. The workforce implications are related to the consultants employed by DEVTECH SYSTEMS INC to deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to unpredictable costs if not managed diligently.
The long contract duration (2186 days) increases the risk of scope creep or evolving requirements not being adequately addressed.
Lack of specific performance metrics in the provided data makes it hard to gauge the effectiveness of the consulting services.
The substantial total contract value ($97.8M+) warrants close scrutiny of expenditures and outcomes.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract has a long duration, indicating a sustained need and potential for deep integration of services.
DEVTECH SYSTEMS INC has secured a significant contract, implying a level of trust and capability recognized by the agency.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) represent a significant segment of the professional services market. This contract falls within the broader professional services sector, which supports government operations across various agencies. Comparable spending benchmarks would involve analyzing other large-scale consulting contracts awarded by federal agencies for similar management support functions, considering factors like duration, scope, and contractor experience.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary focus is on the prime contractor, DEVTECH SYSTEMS INC.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Agency for International Development. Accountability measures would be tied to the contract's performance clauses and deliverables. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Management and Consulting Services
Professional Services Contracts
Agency Administrative Support
Federal Consulting Engagements

Risk Flags

Cost Overrun Risk (Time and Materials)
Scope Creep Potential (Long Duration)
Performance Measurement Difficulty (Lack of Specific KPIs)
Contract Management Intensity Required

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $97.8 million to DEVTECH SYSTEMS INC. THE PURPOSE OF THIS MODIFICATION IS TO INITIATE THE ADVISE CONTRACT FOR AWARD IN THE AMOUNT OF $2,894,208.82.

Who is the contractor on this award?

The obligated recipient is DEVTECH SYSTEMS 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 $97.8 million.

What is the period of performance?

Start: 2018-04-02. End: 2024-03-27.

What is the historical spending pattern for DEVTECH SYSTEMS INC with the Agency for International Development?

Analyzing the historical spending patterns for DEVTECH SYSTEMS INC with USAID requires access to comprehensive contract data beyond this single modification. However, the base award amount of $97,810,386.84 suggests a significant and ongoing relationship between the contractor and the agency. This substantial figure indicates that DEVTECH SYSTEMS INC has likely been awarded multiple contracts or a very large single contract over time. To understand the pattern, one would need to examine the award dates, values, and types of services provided across all their contracts with USAID. This would reveal trends in agency reliance on DEVTECH, the evolution of service needs, and the overall financial commitment over different fiscal years. Without this broader dataset, we can only infer a substantial, long-term engagement based on the current contract's magnitude.

How does the per-diem cost of this contract compare to industry benchmarks for similar consulting services?

Determining the precise per-diem cost requires calculating the total contract value divided by the number of contract days. The total value is approximately $97.8M + $2.89M = $100.7M over 2186 days. This yields a rough daily rate of about $46,066. This rate appears exceptionally high for standard consulting services. However, without knowing the specific nature of the 'Administrative Management and General Management Consulting Services,' the seniority of the consultants, the geographic location of service delivery, and the specific deliverables, a direct comparison is challenging. Industry benchmarks for management consulting can vary widely, from a few hundred dollars per day for junior consultants to several thousand for senior experts or specialized firms. Given the T&M structure and the substantial total value, a detailed breakdown of labor categories and hours billed would be necessary to assess if this rate is competitive or indicative of potential overspending.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the key performance indicators (KPIs) used to measure the success of this contract. For a Time and Materials contract, performance is often evaluated based on the timely completion of tasks, adherence to project milestones, quality of deliverables, and overall client satisfaction. Agencies typically establish specific metrics within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include metrics related to efficiency improvements, cost savings achieved, successful implementation of new administrative processes, or the effectiveness of strategic advice provided. Without access to the full contract document, it is impossible to detail the exact KPIs. However, the long duration and significant value suggest that USAID expects substantial and measurable improvements in its administrative functions.

What is the risk profile associated with a Time and Materials contract of this magnitude and duration?

A Time and Materials (T&M) contract of this magnitude ($100.7M total) and duration (2186 days) carries a significant risk profile, primarily related to cost control. T&M contracts offer flexibility but lack a ceiling on the total cost, meaning the government pays for the actual labor hours and materials used. This can lead to cost overruns if the contractor's hours are not efficiently managed or if the scope of work expands without proper oversight. For USAID, the risk involves potentially paying more than anticipated for the services rendered. Mitigating these risks requires robust government oversight, including detailed tracking of labor hours, validation of material costs, and regular reviews of progress against objectives. Without stringent monitoring, the government could face unexpected cost increases and potentially less value for money compared to a fixed-price contract.

How does this contract fit into USAID's overall spending on administrative and management consulting services?

This contract represents a substantial portion of USAID's spending on administrative and management consulting services, given its total value exceeding $100 million. To understand its place within the agency's overall budget, one would need to compare this amount to USAID's total annual expenditures on consulting and administrative support. Agencies often contract out such services to leverage specialized expertise, manage workload fluctuations, or improve efficiency in areas like strategic planning, organizational development, and operational management. The long duration suggests that these services are considered critical and ongoing needs for USAID. Analyzing this contract in the context of other similar procurements by USAID and other federal agencies would provide further insight into its relative significance and the agency's strategic approach to acquiring management consulting support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SOL-CIO-17-000026

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1700 N MOORE ST STE 1720, ARLINGTON, VA, 22209

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $97,810,387

Exercised Options: $97,810,387

Current Obligation: $97,810,387

Actual Outlays: $85,212,662

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0048L

IDV Type: FSS

Timeline