Chemonics International awarded $105M for Governance Strengthening Program, a definitive contract

Contract Overview

Contract Amount: $105,155,492 ($105.2M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2011-09-30

End Date: 2017-09-29

Contract Duration: 2,191 days

Daily Burn Rate: $48.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: GOVERNANCE STRENGTHENING PROGRAM

Plain-Language Summary

Agency for International Development obligated $105.2 million to CHEMONICS INTERNATIONAL, INC. for work described as: GOVERNANCE STRENGTHENING PROGRAM Key points: 1. Contract value of $105.2 million over its duration. 2. Awarded through full and open competition, indicating a broad market solicitation. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. Performance period spanned approximately six years, from late 2011 to late 2017. 5. The North American Industry Classification System (NAICS) code 541990 suggests a broad range of professional, scientific, and technical services. 6. The contract was not set aside for small businesses.

Value Assessment

Rating: fair

The total award of $105.2 million over nearly six years averages to approximately $17.5 million annually. Benchmarking this against similar large-scale international development contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's actual costs plus a negotiated fixed fee. While this can provide flexibility, it requires robust oversight to ensure costs are reasonable and necessary. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is difficult, but the scale suggests significant program investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a moderate level of competition for this significant contract. While three bidders is better than a sole-source award, a higher number of competitors could potentially drive prices lower and foster greater innovation. The agency's decision to use full and open competition is a positive step towards ensuring a competitive marketplace.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential contractors to bid, which can lead to more competitive pricing and better service offerings.

Public Impact

The primary beneficiaries are likely recipient countries and populations targeted by the Governance Strengthening Program, receiving support for improved governance structures and practices. Services delivered would encompass a broad spectrum of technical assistance, capacity building, and program management related to governance. The geographic impact would depend on the specific countries and regions where the program was implemented by USAID. Workforce implications could include employment for international development professionals, consultants, and local staff in implementing countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure the fixed fee remains appropriate.
The broad NAICS code (541990) makes it difficult to pinpoint specific performance metrics or industry benchmarks without further detail.
The absence of small business set-aside or subcontracting information raises questions about opportunities for smaller firms in this large contract.

Positive Signals

Awarded through full and open competition, indicating a commitment to a competitive bidding process.
The contract duration of nearly six years suggests a sustained effort and potential for significant program impact.
The existence of 3 bidders demonstrates some level of market interest and capability for this type of work.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to international development and governance. The market for such services is substantial, driven by government foreign aid and development initiatives. Comparable spending benchmarks would typically be found within USAID's broader portfolio of technical assistance contracts, often awarded through competitive processes to large, established international development firms. The $105 million award is significant, placing it among major contracts in this specialized field.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there explicit information regarding subcontracting plans for small businesses. The $105 million value suggests it was likely awarded to a large prime contractor. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through contracting officers and program officials. Accountability measures would be embedded in the contract's terms, including performance reporting requirements and the fixed fee structure. Transparency is facilitated by the contract's award under full and open competition, making basic award details publicly accessible. The Inspector General's office for USAID would have jurisdiction for audits and investigations into potential fraud, waste, or abuse.

Related Government Programs

USAID Governance Programs
International Development Assistance
Technical Assistance Contracts
Cost Plus Fixed Fee Contracts
Professional, Scientific, and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight.
Broad NAICS code limits specific performance analysis.
Lack of small business subcontracting details.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $105.2 million to CHEMONICS INTERNATIONAL, INC.. GOVERNANCE STRENGTHENING PROGRAM

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 $105.2 million.

What is the period of performance?

Start: 2011-09-30. End: 2017-09-29.

What specific governance areas did Chemonics International focus on under this contract?

The provided data does not specify the exact governance areas addressed by the 'GOVERNANCE STRENGTHENING PROGRAM.' However, typical programs under this umbrella often include strengthening democratic institutions, improving public administration and service delivery, promoting rule of law, enhancing transparency and accountability, supporting civil society engagement, and fostering anti-corruption efforts. Chemonics International, as a large development contractor, has a broad portfolio that could encompass any or all of these areas depending on USAID's strategic objectives for the program's implementation countries.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar international development programs?

The Cost Plus Fixed Fee (CPFF) contract type is common in complex, long-term projects like international development where the scope may evolve or precise cost estimation is difficult upfront. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from Cost Plus Incentive Fee (CPIF), which adjusts the fee based on performance against targets, or Firm-Fixed-Price (FFP), where the price is set regardless of actual costs (suitable for well-defined scopes). CPFF offers flexibility but requires strong government oversight to manage costs, as the contractor has less direct financial incentive to minimize expenses compared to FFP. For large, multi-year development programs, CPFF can be advantageous for adapting to changing conditions on the ground.

What was the historical spending pattern for governance strengthening programs by USAID prior to or during this contract period?

Analyzing USAID's historical spending on governance strengthening programs requires access to detailed budget and expenditure data, which is not directly provided in the contract details. However, USAID has consistently allocated significant portions of its budget to democracy, human rights, and governance (DRG) initiatives. Spending in this area fluctuates based on global priorities, geopolitical events, and specific country needs. Generally, DRG funding represents a substantial component of U.S. foreign assistance. To understand the pattern relative to this $105 million contract, one would need to examine USAID's annual reports and budget justifications for the fiscal years spanning 2011-2017 and compare the total allocated for governance programs against this single award's magnitude.

What is Chemonics International's track record with USAID for large-scale governance contracts?

Chemonics International has a long-standing and extensive track record of working with USAID on numerous large-scale international development contracts, including those focused on governance. They are one of the largest implementing partners for USAID globally. Their portfolio includes projects related to economic growth, health, education, democracy and governance, and humanitarian assistance. While specific performance details for every contract are not always public, Chemonics is generally recognized for its capacity to manage complex, multi-million dollar projects across diverse sectors and geographies. Their history with USAID suggests a strong working relationship and demonstrated ability to deliver on program objectives, though like any large contractor, they may have faced challenges or received varying performance feedback on specific awards.

Were there any significant performance issues or contract disputes associated with this $105 million award?

Information regarding specific performance issues or contract disputes for this particular 'GOVERNANCE STRENGTHENING PROGRAM' contract awarded to Chemonics International is not readily available in the provided summary data. Contract disputes and performance issues are often detailed in contract close-out reports, litigation records, or Inspector General reports, which are not included here. Without access to these more granular records, it's impossible to definitively state whether significant problems arose. However, the contract was completed within its scheduled timeframe (September 2017), suggesting that any major issues, if they occurred, were likely resolved or did not lead to termination or significant legal action.

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: 267-11-000003

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1717 H ST NW STE 1, WASHINGTON, DC, 20006

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $105,155,492

Exercised Options: $105,155,492

Current Obligation: $105,155,492

Actual Outlays: $9,041

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $30,902,816

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline