USAID's $570M Iraq Governance Program Awarded to RTI Amidst Full and Open Competition
Contract Overview
Contract Amount: $569,943,843 ($569.9M)
Contractor: Research Triangle Institute
Awarding Agency: Agency for International Development
Start Date: 2005-05-09
End Date: 2009-12-31
Contract Duration: 1,697 days
Daily Burn Rate: $335.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IRAQ STRENGTHENING LOCAL & PROVINCIAL GOVERNANCE PROGRAM
Plain-Language Summary
Agency for International Development obligated $569.9 million to RESEARCH TRIANGLE INSTITUTE for work described as: IRAQ STRENGTHENING LOCAL & PROVINCIAL GOVERNANCE PROGRAM Key points: 1. Significant investment in Iraq's governance capacity. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include program effectiveness and long-term sustainability. 4. Focus on professional, scientific, and technical services.
Value Assessment
Rating: fair
The contract value of $569,943,843 is substantial. Without specific comparable contracts for similar governance programs in post-conflict zones, a precise pricing assessment is difficult. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries risk if initial cost estimates are inaccurate.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes competitive pricing and allows the government to select the best value. The impact on price discovery is positive, as competition drives down costs and improves service offerings.
Taxpayer Impact: Taxpayer funds are being utilized for a significant international development program aimed at strengthening governance in Iraq, with the expectation of long-term stability and improved public services.
Public Impact
Aims to improve local and provincial government effectiveness in Iraq. Supports democratic development and public service delivery. Potential for long-term impact on Iraqi stability and citizen engagement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Program effectiveness in a complex environment.
- Long-term sustainability of governance reforms.
- Potential for cost overruns with CPFF contract type.
Positive Signals
- Commitment to strengthening democratic institutions.
- Use of full and open competition.
- Significant investment in a critical region.
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically related to international development and governance. Spending in this sector often involves complex, long-term projects requiring specialized expertise. Benchmarks are difficult to establish due to the unique nature of post-conflict reconstruction and governance building.
Small Business Impact
The data indicates that small businesses were not a primary focus for this specific contract, as indicated by 'sb': false. Larger prime contractors often handle major international development programs, potentially subcontracting to smaller firms, but direct small business participation is not evident here.
Oversight & Accountability
The Agency for International Development (USAID) is responsible for overseeing this contract. Oversight mechanisms would typically include regular reporting, site visits, and performance evaluations to ensure program objectives are met and funds are used appropriately. Accountability rests with both the contractor and the agency.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Program effectiveness in a challenging environment.
- Long-term sustainability of governance reforms.
- Potential for cost overruns with CPFF contract.
- Security and political stability risks in Iraq.
- Corruption risks impacting program implementation.
Tags
all-other-professional-scientific-and-te, agency-for-international-development, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $569.9 million to RESEARCH TRIANGLE INSTITUTE. IRAQ STRENGTHENING LOCAL & PROVINCIAL GOVERNANCE PROGRAM
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 $569.9 million.
What is the period of performance?
Start: 2005-05-09. End: 2009-12-31.
What specific metrics are used to measure the success of strengthening local and provincial governance in Iraq under this program?
Measuring the success of governance programs is complex and relies on a combination of quantitative and qualitative indicators. These often include metrics related to the capacity of local institutions (e.g., budget management, service delivery efficiency), citizen satisfaction with government services, participation in local decision-making processes, and the reduction of corruption. USAID's program likely employs a framework of performance indicators tied to these areas, with regular data collection and analysis to track progress and make necessary adjustments.
What are the primary risks associated with implementing a large-scale governance program in a post-conflict environment like Iraq?
Key risks include political instability, security challenges, corruption, lack of local capacity, and potential for donor fatigue. In Iraq, ongoing security concerns can disrupt program activities and endanger personnel. Furthermore, deeply entrenched corruption can undermine reform efforts, and the capacity of local institutions may be insufficient to absorb and sustain improvements. Shifting political priorities or a lack of sustained international commitment can also jeopardize long-term success.
How does the Cost Plus Fixed Fee (CPFF) contract structure impact the overall value for taxpayer money in this program?
The CPFF structure reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. While it allows flexibility for evolving project needs, it can lead to higher costs if initial estimates are inaccurate or if the contractor has less incentive to control expenses compared to fixed-price contracts. For taxpayer value, rigorous oversight is crucial to ensure costs are reasonable and the fixed fee is appropriate for the scope and risk involved. The success of the program's outcomes is paramount in justifying the 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: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: RFP26705001
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3040 CORNWALLIS ROAD, RESEARCH TRIANGLE PARK, NC, 04
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,492,865,742
Exercised Options: $8,326,091,540
Current Obligation: $569,943,843
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2005-05-09
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2009-11-17
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