USAID's $150M technical assistance contract for Egypt's financial sector awarded to Chemonics International

Contract Overview

Contract Amount: $149,981,487 ($150.0M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2004-11-01

End Date: 2010-07-31

Contract Duration: 2,098 days

Daily Burn Rate: $71.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TECHNICAL ASSISTANCE FOR FINANCIAL SERVICE PROJECT IN EGYPT

Plain-Language Summary

Agency for International Development obligated $150.0 million to CHEMONICS INTERNATIONAL, INC. for work described as: TECHNICAL ASSISTANCE FOR FINANCIAL SERVICE PROJECT IN EGYPT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of nearly 6 years indicates a significant, long-term engagement. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope of work. 4. The Cost Plus Fixed Fee (CPFF) contract type can present cost control challenges if not managed diligently. 5. The contract was awarded by the Agency for International Development (USAID), a key player in foreign assistance. 6. The absence of small business set-aside flags indicates it was not specifically targeted for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The CPFF structure requires careful oversight to ensure cost efficiency. Comparing it to similar technical assistance projects in developing economies would be necessary for a comprehensive value assessment. The total award amount of $149,981,487 over almost six years suggests a substantial investment in financial sector development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a moderate level of competition for this significant contract. This competitive process is generally expected to yield a fair price and encourage innovative solutions.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it helps ensure that the government receives competitive pricing and avoids overpaying for services.

Public Impact

The primary beneficiaries are likely the financial institutions and the broader economy within Egypt, through improved financial services and infrastructure. The services delivered encompass technical assistance aimed at strengthening Egypt's financial sector. The geographic impact is focused on Egypt. Workforce implications could include the employment of local Egyptian professionals and international experts, as well as capacity building within local institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
The broad NAICS code 'All Other Professional, Scientific, and Technical Services' may indicate a wide range of activities, potentially making scope management complex.
Long contract durations can sometimes lead to scope creep or a decrease in urgency if not actively managed.

Positive Signals

Awarded through full and open competition, which typically leads to better value and pricing.
The contract has a defined end date, providing a clear timeframe for project completion.
The award was made by USAID, an agency with significant experience in managing complex international development projects.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on financial services development in an international context. The market for such services is driven by government foreign aid budgets and the need for specialized expertise in economic development. Comparable spending benchmarks would involve looking at other USAID-funded technical assistance projects in the financial sector across different countries.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This suggests that the primary contractor, Chemonics International, likely handled the majority of the work, and the direct impact on the small business ecosystem may be limited unless Chemonics actively engaged small businesses as subcontractors.

Oversight & Accountability

Oversight would primarily be the responsibility of USAID's contracting officers and program managers. Accountability measures would be tied to the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases, though detailed project performance data may be less publicly accessible. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.

Related Government Programs

USAID Foreign Assistance Programs
Economic Development Assistance
Financial Sector Reform Initiatives
Technical Assistance Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Complexity of managing broad technical assistance scope
Geopolitical risks in the region
Effectiveness measurement challenges for development projects

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $150.0 million to CHEMONICS INTERNATIONAL, INC.. TECHNICAL ASSISTANCE FOR FINANCIAL SERVICE PROJECT IN EGYPT

Who is the contractor on this award?

The obligated recipient is CHEMONICS 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 $150.0 million.

What is the period of performance?

Start: 2004-11-01. End: 2010-07-31.

What was Chemonics International's track record with USAID prior to this contract?

Chemonics International is a well-established government contractor with a long history of working with USAID on international development projects. They have received numerous contracts across various sectors and geographic regions. Their performance history with USAID would typically be available through federal procurement databases, allowing for an assessment of their past performance, including any awards, penalties, or significant issues. A review of their past performance ratings and any documented disputes or contract modifications would provide context for their suitability for this large financial services project in Egypt.

How does the $150 million award compare to similar USAID financial sector development contracts?

The $150 million award over nearly six years is a substantial sum, indicative of a large-scale, long-term engagement. To benchmark this, one would need to compare it against other USAID contracts focused on financial sector development in countries with similar economic profiles or development needs. Factors like the specific objectives (e.g., banking reform, microfinance expansion, capital markets development), the duration, and the geographic scope of comparable contracts are crucial. Without access to a detailed database of similar contracts, it's difficult to definitively state if this represents high, low, or average spending, but its size suggests a significant programmatic investment.

What were the key risks identified for this contract, and how were they mitigated?

Key risks for a contract of this nature and scope could include political instability in Egypt, challenges in implementing financial reforms, potential for corruption, currency fluctuations, and contractor performance issues. Mitigation strategies would likely involve robust risk management plans developed by both USAID and Chemonics, including contingency planning, regular security assessments, strong internal controls, clear performance metrics, and frequent communication channels. USAID's oversight mechanisms, including site visits and regular progress reports, would be critical in identifying and addressing risks as they emerge.

What evidence exists regarding the effectiveness of this technical assistance project in Egypt?

Assessing the effectiveness of this project would require access to USAID's program evaluations, final reports, and performance data collected throughout the contract's lifecycle (2004-2010). Indicators of success might include measurable improvements in the Egyptian financial sector, such as increased access to credit, enhanced regulatory frameworks, greater financial inclusion, or improved efficiency of financial institutions. Without specific evaluation reports, it is challenging to provide concrete evidence of its effectiveness. Typically, USAID conducts independent evaluations of its major projects to determine impact and lessons learned.

How has USAID's spending on technical assistance for financial sector development evolved over time?

USAID's spending on technical assistance for financial sector development has likely fluctuated based on global economic conditions, geopolitical priorities, and the specific needs of partner countries. Historically, USAID has invested in strengthening financial systems in developing nations as a means to foster economic growth and stability. Trends might show shifts in focus, such as from traditional banking sector support to areas like financial technology (FinTech), digital finance, or climate finance. Analyzing historical spending patterns would require examining USAID's budget allocations and contract awards over extended periods, potentially revealing an increasing or decreasing emphasis on this area.

What was the rationale for choosing a Cost Plus Fixed Fee (CPFF) contract type?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are uncertain, or when the contractor is expected to undertake significant innovation or research. For technical assistance projects, CPFF can allow flexibility in adapting to evolving needs while providing the contractor with a fixed fee for their efforts. However, it places a greater burden on the government to monitor costs closely to ensure they remain reasonable and that the fixed fee represents fair compensation for the services rendered. The rationale likely stemmed from the anticipated complexity and potential for unforeseen challenges in developing Egypt's financial sector.

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: 26304023

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1133 20TH ST NW STE 600, WASHINGTON, DC, 98

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $306,070,400

Exercised Options: $287,550,270

Current Obligation: $149,981,487

Timeline