USAID's $20.8M ASEAN Connectivity contract awarded to NATHAN ASSOCIATES LLC for technical services

Contract Overview

Contract Amount: $20,769,517 ($20.8M)

Contractor: Nathan Associates LLC

Awarding Agency: Agency for International Development

Start Date: 2013-06-04

End Date: 2018-12-03

Contract Duration: 2,008 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF - FIVE-YEAR PROJECT:ASEAN CONNECTIVITY THROUGH TRADE AND INVESTMENT

Plain-Language Summary

Agency for International Development obligated $20.8 million to NATHAN ASSOCIATES LLC for work described as: IGF::OT::IGF - FIVE-YEAR PROJECT:ASEAN CONNECTIVITY THROUGH TRADE AND INVESTMENT Key points: 1. Contract value appears reasonable for a five-year project focused on regional economic integration. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. Project duration of 2008 days (approx. 5.5 years) aligns with the five-year project scope. 5. The North American Industry Classification System (NAICS) code 541990 indicates a broad range of professional services. 6. The contract was awarded to a single entity, NATHAN ASSOCIATES LLC, indicating their specialized expertise or competitive advantage.

Value Assessment

Rating: fair

The contract's total value of approximately $20.8 million over five years for a regional economic initiative is difficult to benchmark without more specific details on deliverables. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost escalation, as contractor profit is guaranteed regardless of efficiency. While the fixed fee component provides some cost control, the overall value for money depends heavily on the effective management of direct costs by the agency and the contractor's performance in achieving project objectives.

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 two bids suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially better value for the government.

Taxpayer Impact: A competitive process, even with two bidders, generally benefits taxpayers by encouraging more favorable pricing and service offerings compared to sole-source awards.

Public Impact

The primary beneficiaries are likely businesses and governments within the ASEAN region seeking to improve trade and investment. The contract aims to enhance economic connectivity, potentially leading to increased trade volumes and foreign direct investment. Geographic impact is regional, focusing on Southeast Asian nations. Workforce implications could include local employment opportunities in project management, research, and technical assistance within the ASEAN region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
Limited competition (two bidders) may have resulted in a less competitive price.
The broad NAICS code (541990) might indicate a less defined scope, potentially leading to scope creep.

Positive Signals

Awarded under full and open competition, ensuring a fair process.
The five-year duration suggests a significant and potentially impactful project.
The contract is for a specific, defined project (ASEAN Connectivity) rather than ongoing services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to international development and economic policy. The market for such services is global, with numerous firms specializing in trade, investment, and regional economic integration. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the technical assistance and policy advisory services provided. However, multi-year, multi-million dollar contracts for international economic development are common among agencies like USAID.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. Given the nature of the services and the prime contractor, it is possible that larger, specialized firms were the primary focus of this procurement. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

Oversight would typically be managed by USAID's contracting officers and program officials responsible for international development. Accountability measures would be tied to the performance work statement and milestones outlined in the contract. Transparency is generally facilitated through contract award databases, but detailed project reporting may not be publicly available. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.

Related Government Programs

USAID Economic Growth Programs
Trade Facilitation Programs
Foreign Direct Investment Initiatives
Regional Economic Integration Projects
Asia-Pacific Development Initiatives

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited competition (two bidders) may impact price competitiveness.
Broad NAICS code could indicate potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $20.8 million to NATHAN ASSOCIATES LLC. IGF::OT::IGF - FIVE-YEAR PROJECT:ASEAN CONNECTIVITY THROUGH TRADE AND INVESTMENT

Who is the contractor on this award?

The obligated recipient is NATHAN ASSOCIATES 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 $20.8 million.

What is the period of performance?

Start: 2013-06-04. End: 2018-12-03.

What specific technical assistance and advisory services were provided under this contract to enhance ASEAN connectivity?

The contract, "ASEAN Connectivity Through Trade and Investment," awarded to NATHAN ASSOCIATES LLC, likely involved a range of technical assistance and advisory services aimed at improving the economic integration of ASEAN member states. This could include policy analysis related to trade barriers, investment climate assessments, recommendations for infrastructure development impacting trade flows, and capacity building for government officials. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope, potentially encompassing research, consulting, and program management. Without access to detailed project reports or the contract's statement of work, the precise nature of services remains general. However, the objective was clearly to foster greater economic linkages within the region through improved trade and investment environments.

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

The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development or complex service contracts where the scope of work is not precisely defined at the outset, or where innovation is a key component. For international development projects like this one, CPFF allows flexibility to adapt to changing conditions on the ground. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is reimbursed for all allowable costs plus a predetermined fixed fee (profit). Agencies often use CPFF when the level of effort is difficult to estimate accurately. Other contract types like Firm-Fixed-Price (FFP) offer better cost certainty but may stifle innovation or require a very rigid scope. Cost-Reimbursement contracts with incentive fees can also be used to align contractor performance with cost and schedule goals.

What was the track record of NATHAN ASSOCIATES LLC in delivering similar international economic development projects prior to this award?

Assessing NATHAN ASSOCIATES LLC's track record requires examining their past performance on contracts with USAID and other government agencies, particularly those focused on international trade, investment, and economic development in regions similar to ASEAN. Publicly available data, such as contract databases (e.g., FPDS), can provide insights into their award history, contract values, and performance ratings, if available. A review of their past projects would reveal their experience in managing complex, multi-year initiatives, their ability to meet performance objectives, and their history of cost and schedule adherence. Without specific performance reviews or detailed project histories for NATHAN ASSOCIATES LLC related to this type of work, it is difficult to definitively assess their suitability and past success for this particular contract.

How did the two bids received in this 'full and open competition' compare in terms of price and proposed technical approach?

The provided data indicates that the contract was awarded under 'full and open competition' with two bids received. However, the specific details regarding the comparison of these two bids—their pricing structures, proposed technical solutions, and evaluation criteria—are not publicly available in the summarized data. Typically, in such a competitive process, the government agency evaluates bids based on a combination of technical merit and price. The agency would have assessed which proposal offered the best value, considering factors like the contractor's understanding of the requirements, their proposed methodology, the qualifications of their personnel, and the overall cost. The fact that NATHAN ASSOCIATES LLC was awarded the contract suggests their proposal was deemed superior or more advantageous to the government compared to the other bidder.

What were the key performance indicators (KPIs) used to measure the success of the ASEAN Connectivity Through Trade and Investment project?

Key Performance Indicators (KPIs) for a project like 'ASEAN Connectivity Through Trade and Investment' would typically be defined in the contract's Performance Work Statement (PWS). These KPIs would likely focus on measurable outcomes related to trade facilitation, investment promotion, and regional economic integration. Examples could include metrics such as the reduction in time or cost to trade goods across borders, an increase in intra-ASEAN trade volume, a rise in foreign direct investment within the region, the number of policy reforms adopted by member states, or the number of businesses reporting improved access to regional markets. The success of the project would be evaluated against these pre-defined targets over the contract's five-year duration.

What is the historical spending trend for similar international economic development and trade facilitation contracts managed by USAID?

USAID historically spends billions of dollars annually on international development programs, including those focused on economic growth, trade, and investment. Spending trends for specific categories like 'trade facilitation' or 'regional economic integration' can fluctuate based on geopolitical priorities, global economic conditions, and specific regional needs. Analyzing USAID's budget allocations and contract awards over several fiscal years would reveal patterns. For instance, periods of increased focus on specific regions (like Southeast Asia) or global initiatives (like promoting free trade) would likely correlate with higher spending in related contract categories. The $20.8 million for this ASEAN project represents a significant, but not extraordinary, investment within USAID's broader portfolio of economic development initiatives.

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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1777 NORTH KENT STREET, SUITE 1400, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $20,769,517

Exercised Options: $20,769,517

Current Obligation: $20,769,517

Actual Outlays: $24,281

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline