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

Positive Signals

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

Risk Flags

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 ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&DSPECIAL 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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