USAID's $62.7M contract with DAI GLOBAL LLC for technical services awarded under full and open competition

Contract Overview

Contract Amount: $62,740,537 ($62.7M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2011-12-30

End Date: 2024-09-30

Contract Duration: 4,658 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PEO: 1) REQUEST TO NEGOTIATE AND AWARD THE NEW COMPETITIVENESS PROJECT, 2) PROVIDE INITIAL INCREMENTAL FUNDING IN THE AMOUNT OF $5.263 MILLION

Plain-Language Summary

Agency for International Development obligated $62.7 million to DAI GLOBAL LLC for work described as: PEO: 1) REQUEST TO NEGOTIATE AND AWARD THE NEW COMPETITIVENESS PROJECT, 2) PROVIDE INITIAL INCREMENTAL FUNDING IN THE AMOUNT OF $5.263 MILLION Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. Significant contract value of $62.7 million over its lifecycle. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. The contract has a long duration of 4,658 days (over 12 years). 5. The initial incremental funding is $5.263 million. 6. The North American Industry Classification System (NAICS) code 541990 indicates 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

The contract's value of $62.7 million over more than 12 years averages to approximately $5.2 million annually. Without specific performance metrics or comparable contracts for 'All Other Professional, Scientific, and Technical Services' of this nature, it is difficult to definitively benchmark value. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can lead to cost overruns if not managed tightly. The initial incremental funding of $5.263 million represents a small portion of the total potential value, indicating phased funding.

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 5 bids suggests a reasonable level of competition for this service. This competitive process is generally expected to yield a fair price and encourage the selection of the most capable contractor.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it aims to secure the best value by allowing multiple qualified vendors to compete, driving down costs and improving service quality.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which receives professional, scientific, and technical services. Services delivered likely support USAID's mission in international development and humanitarian assistance. The geographic impact is likely global, given USAID's mandate, though specific project locations are not detailed here. Workforce implications could include employment for technical experts and support staff engaged by DAI GLOBAL LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 12 years) increases the risk of scope creep and potential for cost escalation.
Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to ensure cost efficiency and prevent contractor complacency.
Lack of specific details on the services provided makes it challenging to assess performance and value for money.
The initial incremental funding is a small fraction of the total, suggesting potential for future significant funding increases.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Multiple bids (5) were received, suggesting market interest and a degree of competition.
DAI GLOBAL LLC is a known entity in international development contracting, potentially bringing established expertise.

Sector Analysis

This contract falls under the broad category of professional, scientific, and technical services, specifically NAICS code 541990. This sector is diverse, encompassing a wide range of consulting, research, and technical support activities. USAID's spending in this area is crucial for its operational effectiveness in implementing global development programs. Benchmarking is difficult without knowing the specific technical services rendered, but overall government spending on professional services is substantial.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no mention of small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses, and subcontracting opportunities for small businesses are not explicitly detailed in this summary. Further investigation would be needed to determine if any subcontracting plans were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, rigorous financial oversight is essential to monitor costs, ensure the fixed fee is justified, and prevent unnecessary expenditures. Transparency would depend on USAID's reporting practices regarding contract performance and financial execution. The Inspector General for USAID would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

USAID Global Development Programs
International Technical Assistance Contracts
Professional and Technical Services Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Long contract duration
Cost Plus Fixed Fee contract type
Broad NAICS code classification lacks specificity
Limited public information on specific services and performance

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $62.7 million to DAI GLOBAL LLC. PEO: 1) REQUEST TO NEGOTIATE AND AWARD THE NEW COMPETITIVENESS PROJECT, 2) PROVIDE INITIAL INCREMENTAL FUNDING IN THE AMOUNT OF $5.263 MILLION

Who is the contractor on this award?

The obligated recipient is DAI GLOBAL LLC.

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 $62.7 million.

What is the period of performance?

Start: 2011-12-30. End: 2024-09-30.

What specific technical services are being provided under this contract, and how do they align with USAID's strategic objectives?

The provided data categorizes this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad classification. To understand the specific services, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents detail the exact tasks, deliverables, and objectives. These services are expected to align with USAID's mission to end extreme poverty and promote resilient, democratic societies. Without the SOW, it's impossible to detail the alignment, but typical services could include policy analysis, program evaluation, technical assistance in areas like health, education, or economic growth, and capacity building for partner governments or organizations.

How does the average annual cost of this contract compare to similar services procured by other federal agencies?

The total contract value is $62.7 million over approximately 4,658 days (about 12.7 years), averaging roughly $4.94 million per year. Benchmarking this requires identifying comparable contracts for 'All Other Professional, Scientific, and Technical Services' procured by agencies with similar international development missions. Factors like geographic scope, complexity of services, and required expertise significantly influence pricing. Without access to a database of comparable contracts with detailed service descriptions and pricing, a precise comparison is difficult. However, for large-scale, long-term international technical assistance, this annual average may fall within a reasonable range, contingent on the specific nature and criticality of the services provided.

What are the key performance indicators (KPIs) for this contract, and how has DAI GLOBAL LLC performed against them?

Key Performance Indicators (KPIs) are typically defined in the contract's Performance Work Statement (PWS) and outline the measurable standards for success. For a contract like this, KPIs could relate to the timely delivery of reports, achievement of development program milestones, effectiveness of technical assistance provided, client satisfaction, and adherence to budget. The provided data does not include information on KPIs or contractor performance. Accessing USAID's contract performance reports, Contractor Performance Assessment Reporting System (CPARS) records, or specific program evaluation reports would be necessary to assess DAI GLOBAL LLC's performance against established metrics.

What is the historical spending trend for this specific contract or similar services procured by USAID?

The data shows an 'award amount' of $62,740,537.34 and an 'initial incremental funding' of $5.263 million. The contract start date is 2011-12-30 and the end date is 2024-09-30. This indicates a long-term engagement with significant funding. To understand historical spending trends, one would need to examine the contract's funding history, including all modifications and task orders issued over its lifespan. This would reveal how the funding has been incrementally released and utilized. Comparing this to USAID's overall budget for professional services or similar international development contracts would provide context on whether this represents a significant or typical investment for the agency.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

Cost Plus Fixed Fee (CPFF) contracts carry inherent risks, particularly for large, long-duration engagements like this one. The primary risk is that the contractor may have less incentive to control costs rigorously, as all allowable costs are reimbursed. The 'fixed fee' component provides some incentive, but if the cost ceiling is high or poorly defined, significant overruns can still occur. For USAID, risks include potential cost escalation beyond initial projections, difficulty in verifying the necessity and reasonableness of all incurred costs, and the need for robust oversight mechanisms to manage the contractor's financial reporting and performance. The long duration increases the likelihood of unforeseen challenges, scope changes, and the need for contract modifications, which can further complicate cost management and oversight.

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

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7600 WISCONSIN AVE STE 200, BETHESDA, MD, 20814

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

Financial Breakdown

Contract Ceiling: $62,868,718

Exercised Options: $62,868,718

Current Obligation: $62,740,537

Actual Outlays: $-4,735

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $6,885,714

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline