USAID's $44.9M Iraq Financial Sector Development Activity aimed to boost job creation and economic integration

Contract Overview

Contract Amount: $44,947,410 ($44.9M)

Contractor: DT Global Inc

Awarding Agency: Agency for International Development

Start Date: 2010-07-19

End Date: 2014-01-31

Contract Duration: 1,292 days

Daily Burn Rate: $34.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE IRAQ FINANCIAL SECTOR DEVELOPMENT ACTIVITY WILL DIRECTLY CONTRIBUTE TO THE FOLLOWING USAID/IRAQ PRIVATE SECTOR DEVELOPMENT ASSISTANCE OBJECTIVES TO INTEGRATE IRAQ INTO THE GLOBAL ECONOMY: ? CREATE JOBS BY STRENGTHENING THE PRIVATE FINANCIAL SECTOR?S ABILITY TO PROVIDE INCREASED FINANCIAL INTERMEDIATION SERVICES. ? IMPROVE THE ENABLING ENVIRONMENT FOR PRIVATE FINANCIAL SECTOR EXPANSION THROUGH CAPACITY BUILDING, LEGAL AND REGULATORY REFORM. TAS::11 1096::TAS

Plain-Language Summary

Agency for International Development obligated $44.9 million to DT GLOBAL INC for work described as: THE IRAQ FINANCIAL SECTOR DEVELOPMENT ACTIVITY WILL DIRECTLY CONTRIBUTE TO THE FOLLOWING USAID/IRAQ PRIVATE SECTOR DEVELOPMENT ASSISTANCE OBJECTIVES TO INTEGRATE IRAQ INTO THE GLOBAL ECONOMY: ? CREATE JOBS BY STRENGTHENING THE PRIVATE FINANCIAL SECTOR?S ABILITY TO PROVIDE INCR… Key points: 1. The contract focused on strengthening financial intermediation and improving the regulatory environment for private sector growth. 2. It sought to integrate Iraq into the global economy by enhancing its financial sector capabilities. 3. The activity was awarded under full and open competition, suggesting a robust bidding process. 4. The contract type was Cost Plus Fixed Fee, which can incentivize cost control while allowing for flexibility. 5. Performance spanned over 1200 days, indicating a long-term development initiative. 6. The primary goal was to create jobs through improved financial services access.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable international development projects. The Cost Plus Fixed Fee structure means the government pays actual costs plus a negotiated fee, which can sometimes lead to higher overall spending if costs are not tightly managed. However, it also allows for flexibility in complex, long-term development efforts where exact costs are difficult to predict upfront. The total award amount of $44.9 million over approximately 3.5 years suggests a significant investment in Iraq's financial sector development.

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 vendors had the opportunity to bid. This process is generally expected to foster competitive pricing and identify the most capable contractor. The presence of multiple bidders, though not explicitly detailed, suggests a healthy level of interest and competition for this type of international development work.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value for its investment.

Public Impact

Iraqi citizens and businesses benefit from increased access to financial services, potentially leading to job creation and economic growth. The services delivered aimed to improve the overall financial infrastructure and regulatory framework within Iraq. The geographic impact is focused on Iraq, with the objective of integrating its economy globally. Workforce implications include potential job creation within Iraq's financial sector and related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on international development and financial sector reform. Comparable spending in this area often involves large-scale, multi-year engagements by agencies like USAID, the World Bank, or other international development bodies. The market for such services is specialized, requiring deep expertise in economic development, financial systems, and navigating complex geopolitical environments.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly detailed in the provided data. Typically, large international development contracts may have provisions for small business involvement, but the extent of this contract's impact on the small business ecosystem is unclear without further details on subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under USAID's purview, including contract management, financial oversight, and performance monitoring. Given the nature of international development work, there may also be oversight from relevant Inspector General offices to ensure accountability and prevent fraud or mismanagement. Transparency would be facilitated through regular reporting requirements from the contractor.

Related Government Programs

Risk Flags

Tags

usaid, iraq, financial-sector-development, international-development, professional-scientific-technical-services, cost-plus-fixed-fee, full-and-open-competition, job-creation, economic-integration, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $44.9 million to DT GLOBAL INC. THE IRAQ FINANCIAL SECTOR DEVELOPMENT ACTIVITY WILL DIRECTLY CONTRIBUTE TO THE FOLLOWING USAID/IRAQ PRIVATE SECTOR DEVELOPMENT ASSISTANCE OBJECTIVES TO INTEGRATE IRAQ INTO THE GLOBAL ECONOMY: ? CREATE JOBS BY STRENGTHENING THE PRIVATE FINANCIAL SECTOR?S ABILITY TO PROVIDE INCREASED FINANCIAL INTERMEDIATION SERVICES. ? IMPROVE THE ENABLING ENVIRONMENT FOR PRIVATE FINANCIAL SECTOR EXPANSION THROUGH CAPACITY BUILDING, LEGAL AND REGULATORY REFORM. TAS::11 1096::TAS

Who is the contractor on this award?

The obligated recipient is DT GLOBAL 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 $44.9 million.

What is the period of performance?

Start: 2010-07-19. End: 2014-01-31.

What was the specific performance of DT GLOBAL INC on this contract?

The provided data does not include specific performance metrics or evaluations for DT GLOBAL INC's execution of the Iraq Financial Sector Development Activity. Performance would typically be assessed through regular reporting, milestone achievements, and potentially end-of-contract reviews by USAID. Key indicators would likely relate to the stated objectives: the extent of financial intermediation services provided, the number of jobs created or supported, and the progress made in legal and regulatory reforms within Iraq's financial sector. Without access to USAID's internal performance assessments or contractor reports, a detailed analysis of their performance is not possible.

How does the $44.9 million award compare to similar international financial development contracts?

Comparing the $44.9 million award requires context on the scope, duration, and specific objectives of similar international financial development contracts. USAID and other development agencies fund a wide range of projects, from technical assistance to large-scale infrastructure. Contracts focused on financial sector reform in post-conflict or developing economies can vary significantly in cost. Factors influencing cost include the complexity of the target economy, the political stability, the specific reforms targeted (e.g., banking regulation, capital markets development, SME financing), and the duration of the engagement. This award appears substantial, suggesting a comprehensive, multi-year effort to address significant challenges in Iraq's financial sector.

What are the primary risks associated with a contract of this nature and duration?

Primary risks associated with a contract like the Iraq Financial Sector Development Activity include geopolitical instability in Iraq, which can disrupt program implementation and affect security. Economic volatility within Iraq or globally could impact the effectiveness of financial sector reforms. There's also the risk of insufficient local capacity or political will to adopt and sustain reforms, potentially limiting long-term impact. Furthermore, challenges in measuring direct attribution of job creation and economic growth to the program activities are common in development work. Finally, contractor performance risks, such as delays or cost overruns, are always present, especially in complex, long-term projects.

How effective was this program in achieving its stated objectives of job creation and economic integration?

The provided data does not contain information on the program's effectiveness in achieving its stated objectives. Evaluating effectiveness would require analyzing specific performance reports, impact assessments, and data on job creation and economic integration metrics collected during and after the contract period. Such an assessment would need to consider the baseline conditions in Iraq's financial sector, the specific interventions implemented, and external economic and political factors that may have influenced outcomes. Without these detailed performance and impact evaluations, it is impossible to definitively state the program's effectiveness.

What has been the historical spending trend for USAID in Iraq's financial sector development?

The provided data focuses solely on this specific contract and does not offer insight into USAID's historical spending trends in Iraq's financial sector development. To analyze historical spending, one would need to examine USAID's budget allocations, contract awards, and program portfolios over multiple fiscal years for Iraq. This would involve looking at trends in funding levels, the types of projects funded (e.g., banking reform, microfinance, capital markets), and the overall strategic focus of USAID's assistance in the region over time.

What is the significance of the 'All Other Professional, Scientific, and Technical Services' NAICS code for this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category used when a business activity does not fit into any other more specific service category. For this contract, it signifies that the services provided by DT GLOBAL INC were diverse and encompassed a range of professional, scientific, and technical expertise related to financial sector development in Iraq, but did not fall neatly into more defined categories like management consulting, engineering services, or research and development. This broad classification suggests the contract involved a multifaceted approach to development assistance, likely including policy advice, capacity building, and technical support across various aspects of the financial sector.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll 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

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 2101 WILSON BLVD STE 700, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,947,410

Exercised Options: $44,947,410

Current Obligation: $44,947,410

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2010-07-19

Current End Date: 2014-01-31

Potential End Date: 2017-09-21 00:00:00

Last Modified: 2023-07-11

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