USAID's $54.8M contract with DAI Global LLC for management consulting services shows a $700K increase, bringing total obligated funds to over $30.2M

Contract Overview

Contract Amount: $54,774,789 ($54.8M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2005-01-20

End Date: 2010-03-31

Contract Duration: 1,896 days

Daily Burn Rate: $28.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TAS::72 1000::TAS THE PURPOSE OF THIS MODIFICATION IS TO PROVIDE INCREMENTALLY FUND TASK ORDER BY PROVIDING ADDITIONAL AMOUNT OF $700,000 TO THE AMOUNT OBLIGATED, WHICH BRINGS A NEW TOTAL AMOUNT OBLIGATED FROM $29,557,002.43 TO $30,257,002.43.

Plain-Language Summary

Agency for International Development obligated $54.8 million to DAI GLOBAL LLC for work described as: TAS::72 1000::TAS THE PURPOSE OF THIS MODIFICATION IS TO PROVIDE INCREMENTALLY FUND TASK ORDER BY PROVIDING ADDITIONAL AMOUNT OF $700,000 TO THE AMOUNT OBLIGATED, WHICH BRINGS A NEW TOTAL AMOUNT OBLIGATED FROM $29,557,002.43 TO $30,257,002.43. Key points: 1. The contract's value has grown significantly since its initial award, indicating potential scope expansion or evolving needs. 2. Administrative Management and General Management Consulting Services are critical for agency operations, but require careful cost management. 3. The contract's long duration (over 5 years) suggests a sustained need for these services. 4. The delivery order was competed, which is a positive sign for price discovery. 5. The contract's total value exceeds benchmarks for similar consulting services, warranting scrutiny of value for money. 6. The use of Time and Materials pricing can introduce cost uncertainty if not closely managed.

Value Assessment

Rating: fair

The total obligated amount of $30.2M over its lifespan suggests a substantial investment in management consulting. Benchmarking against similar contracts for administrative and general management consulting services reveals that while the initial award might have been within a reasonable range, the cumulative increases and the Time and Materials pricing structure warrant closer examination. Without specific details on the services rendered for the incremental funding, it's difficult to definitively assess value for money, but the sustained funding over several years implies consistent demand. The contract's duration and multiple modifications suggest a long-term relationship that needs ongoing performance and cost oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors had the opportunity to bid. The fact that it was competed suggests a degree of market engagement and potential for competitive pricing. However, the specific number of bidders and the details of the competitive process are not provided, which limits a full assessment of the competition's intensity. A competitive award is generally favorable for price discovery, but the subsequent modifications and potential for sole-source task orders within the larger contract could alter the competitive landscape over time.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price competition and potentially leading to more cost-effective solutions. It signals that the agency sought the best value from the market, rather than relying on a single provider without exploring alternatives.

Public Impact

The primary beneficiaries are the Agency for International Development (USAID) itself, receiving support for its administrative and management functions. The services delivered likely include strategic planning, organizational efficiency improvements, and operational support for USAID's global mission. The geographic impact is likely global, given USAID's mandate to provide international development assistance. Workforce implications could include support for USAID's internal staff and potentially the engagement of specialized consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Scope creep is a risk given the contract's modifications and long duration.
Ensuring continued alignment with USAID's strategic objectives requires diligent oversight.
The cumulative value of the contract may exceed initial projections, necessitating a review of cost-effectiveness.

Positive Signals

The contract was initially competed, indicating a commitment to market-based solutions.
The sustained engagement suggests the contractor is meeting agency needs effectively.
The agency has incrementally funded the contract, allowing for flexibility and adaptation to evolving requirements.
The contract supports critical administrative and management functions essential for agency operations.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on administrative management and general management consulting. This is a broad category encompassing a wide range of advisory and support services crucial for government agencies. The market for these services is highly competitive, with numerous firms offering expertise in areas like organizational development, strategic planning, and operational efficiency. Comparable spending benchmarks for management consulting services at federal agencies vary widely based on scope, duration, and complexity, but contracts in the tens of millions of dollars are not uncommon for long-term, high-impact engagements.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not available in the provided data. As a large contract potentially awarded to a prime contractor like DAI Global LLC, there may be opportunities for small businesses to participate as subcontractors. However, without specific details on subcontracting goals or achievements, the impact on the small business ecosystem remains unclear. Federal policy generally encourages the use of small businesses, and agencies are expected to track and report on their utilization.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers, and potentially an Inspector General's office within USAID. Accountability measures would be tied to performance metrics, delivery schedules, and adherence to the contract's terms and conditions. Transparency is often facilitated through contract databases and reporting requirements. The Inspector General's office has jurisdiction to investigate potential fraud, waste, and abuse related to federal contracts, ensuring a level of scrutiny over spending and performance.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Professional Services Contracts
Federal Agency Operational Support
International Development Assistance Support

Risk Flags

Potential for cost overruns due to T&M pricing
Scope creep risk
Need for robust oversight of hours and materials
Long contract duration requires sustained performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $54.8 million to DAI GLOBAL LLC. TAS::72 1000::TAS THE PURPOSE OF THIS MODIFICATION IS TO PROVIDE INCREMENTALLY FUND TASK ORDER BY PROVIDING ADDITIONAL AMOUNT OF $700,000 TO THE AMOUNT OBLIGATED, WHICH BRINGS A NEW TOTAL AMOUNT OBLIGATED FROM $29,557,002.43 TO $30,257,002.43.

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 $54.8 million.

What is the period of performance?

Start: 2005-01-20. End: 2010-03-31.

What specific management and administrative consulting services has DAI Global LLC provided under this contract?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services.' While the specific tasks are not detailed, such services typically encompass a broad range of support aimed at improving an agency's efficiency, effectiveness, and strategic direction. This could include areas like organizational assessment and restructuring, policy development, process improvement, strategic planning, program management support, and human capital consulting. Given USAID's mission, these services likely support the planning, execution, and oversight of international development programs. The incremental funding suggests that the scope of work may have evolved or expanded over the contract's life, requiring ongoing adaptation of the consulting services provided.

How does the total obligated amount of over $30.2 million compare to similar contracts for management consulting services at USAID or other federal agencies?

A total obligated amount exceeding $30.2 million for administrative and general management consulting services over a period of approximately five years is substantial. Benchmarking requires comparing it to contracts with similar scope, duration, and complexity. For large federal agencies like USAID, which operate globally and manage complex programs, such figures can be within the expected range for comprehensive consulting support. However, it is on the higher end for typical management consulting engagements. Factors influencing this value include the specialized expertise required, the global reach of the services, and the long-term nature of the support. A detailed comparison would necessitate analyzing contracts for similar agencies or specific program areas to ascertain if the pricing reflects market rates and provides adequate value for money.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours expended and the cost of materials used. This can lead to unpredictability in the total cost of the contract, as the final amount is directly tied to the effort required. For the government, this necessitates robust oversight to ensure that hours billed are reasonable and necessary, and that material costs are fair. Without stringent monitoring and management, T&M contracts can become more expensive than initially anticipated, potentially leading to a lower value for money if the scope is not tightly managed or if inefficiencies arise.

What is the track record of DAI Global LLC in performing federal contracts, particularly in management consulting?

DAI Global LLC is a well-established international development company with a significant history of performing federal contracts, particularly with agencies like USAID. They have a broad portfolio of work in areas such as economic growth, governance, and social development. Their track record generally includes managing large, complex, and long-term projects in challenging environments worldwide. While specific performance ratings for individual contracts are not provided here, DAI is recognized as a major player in the international development contracting space. Their experience suggests a capacity to handle substantial contracts like this one, though ongoing performance monitoring by the agency is crucial to ensure continued success and adherence to contract requirements.

How has the spending on this contract evolved since its inception in 2005?

The contract was awarded in 2005 and is set to end in 2010, with a total obligated amount that has grown to over $30.2 million. The initial data indicates an increase of $700,000 through a modification, bringing the total obligated amount from $29,557,002.43 to $30,257,002.43. This suggests that while the contract has been active for several years, the recent modification represents a relatively small percentage increase in the overall obligated funds. The contract's duration of approximately five years and its competitive delivery order nature indicate a sustained need for the services. The evolution of spending is marked by incremental funding and modifications, which is common for long-term service contracts that require flexibility to adapt to changing requirements or unforeseen circumstances.

What are the potential implications of this contract for USAID's ability to achieve its strategic objectives?

This contract, providing administrative management and general management consulting services, is likely designed to enhance USAID's operational effectiveness and strategic execution. By engaging DAI Global LLC, USAID aims to leverage external expertise to improve its internal processes, program management, and overall efficiency. The services rendered could directly support the planning and implementation of development initiatives, helping USAID to better allocate resources, manage risks, and achieve measurable outcomes in its mission areas. The sustained funding and long duration suggest that these consulting services are considered integral to supporting USAID's ongoing strategic goals and operational needs, contributing to the agency's ability to deliver on its mandate effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $54,774,789

Exercised Options: $54,774,789

Current Obligation: $54,774,789

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0359M

IDV Type: FSS

Timeline