USAID's $79.6M contract for regional program support awarded to Chemonics International, Inc

Contract Overview

Contract Amount: $79,587,342 ($79.6M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2011-10-12

End Date: 2024-05-31

Contract Duration: 4,615 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CELI-NORTHERN&SOUTHERN REGIONS PROGRAM

Plain-Language Summary

Agency for International Development obligated $79.6 million to CHEMONICS INTERNATIONAL, INC. for work described as: CELI-NORTHERN&SOUTHERN REGIONS PROGRAM Key points: 1. Contract value represents a significant investment in professional, scientific, and technical services. 2. The contract's long duration suggests a sustained need for these services. 3. Awarded through full and open competition, indicating a broad market solicitation. 4. The cost-plus-fixed-fee structure allows for flexibility but requires careful cost monitoring. 5. Performance context is crucial given the extensive period of performance. 6. Sector positioning within 'All Other Professional, Scientific, and Technical Services' is broad.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details. However, the total contract value of $79.6 million over its extended period suggests a substantial investment. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, can lead to higher costs if not managed diligently. Comparing this to similar large-scale, long-term international development support contracts would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit an offer. The presence of 7 bidders indicates a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for this type of service.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of proposals, potentially leading to better value and lower prices through market forces.

Public Impact

The primary beneficiaries are likely the regions and populations served by the CELI-NORTHERN&SOUTHERN REGIONS PROGRAM, receiving support through the services rendered. Services delivered encompass a broad range of professional, scientific, and technical support critical for program implementation. Geographic impact is focused on the northern and southern regions relevant to the program. Workforce implications may include employment opportunities for individuals involved in delivering these services, both within the contractor's organization and potentially through local engagement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended period of performance (over 13 years) raises concerns about potential cost overruns and the need for continuous oversight to ensure continued relevance and efficiency.
Cost-plus-fixed-fee contracts can incentivize cost increases if not rigorously managed, potentially impacting the overall value for money.
The broad nature of 'All Other Professional, Scientific, and Technical Services' makes it difficult to assess specific performance metrics without further detail.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract has a defined period of performance, allowing for structured planning and execution.
The agency's commitment to a long-term contract indicates a strategic focus on the program's objectives.

Sector Analysis

The contract falls under the broad category of professional, scientific, and technical services, a significant sector within federal procurement. This sector encompasses a wide array of specialized expertise. Comparable spending benchmarks would depend heavily on the specific nature of the 'regional program support' and the geographic focus. The market for such services is competitive, with numerous firms capable of providing these capabilities, especially for large international development agencies like USAID.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb': false. While the prime contractor is Chemonics International, Inc., a large entity, there is potential for subcontracting opportunities for small businesses within the scope of the services provided. The extent of small business participation would depend on the prime contractor's subcontracting plan and the specific needs of the program.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). Mechanisms likely include regular performance reviews, financial audits, and adherence to contractual reporting requirements. Transparency is facilitated through contract awards databases, but detailed programmatic oversight information may be less publicly accessible. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

International Development Assistance
Professional and Technical Services
Regional Program Support
Agency for International Development Contracts

Risk Flags

Extended Period of Performance
Cost-Plus-Fixed-Fee Structure
Broad Service Category

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $79.6 million to CHEMONICS INTERNATIONAL, INC.. CELI-NORTHERN&SOUTHERN REGIONS 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 $79.6 million.

What is the period of performance?

Start: 2011-10-12. End: 2024-05-31.

What is the historical spending trend for this specific contract or similar contracts managed by USAID?

Historical spending data for this specific contract, identified as CELI-NORTHERN&SOUTHERN REGIONS PROGRAM, shows a total award value of $79,587,342.01. The contract duration is exceptionally long, spanning from October 12, 2011, to May 31, 2024, a period of over 12 years. This extended timeline suggests consistent funding and program execution over more than a decade. Without access to detailed annual expenditure reports, it's difficult to pinpoint precise spending trends year-over-year. However, the total obligated amount indicates a significant and sustained financial commitment by USAID to this program. For comparative analysis, one would need to examine other USAID contracts for large-scale regional program support, particularly those with similar durations and service scopes, to understand if this level of investment is typical for such initiatives.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contracts for similar services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for contracts involving research, development, complex services, or situations where the scope of work is not precisely defined at the outset, as is often the case with long-term international development programs. Under CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it can also lead to higher overall costs compared to fixed-price contracts if cost overruns occur. Compared to other contracts for similar services, CPFF is generally considered less cost-certain for the government than Firm-Fixed-Price (FFP) contracts but offers more flexibility. Its suitability depends on the predictability of the work and the ability to establish a reasonable fixed fee.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific Key Performance Indicators (KPIs) for the CELI-NORTHERN&SOUTHERN REGIONS PROGRAM contract are not publicly detailed in the provided data. However, for a contract of this nature, typical KPIs would likely focus on the effective delivery of program objectives within the specified regions, adherence to timelines, budget management, stakeholder satisfaction (including local partners and beneficiaries), and the achievement of measurable development outcomes. USAID would establish these KPIs in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Performance would be monitored through regular reporting by Chemonics International, Inc., site visits, and potentially independent evaluations to ensure the program is meeting its intended goals and providing value for the investment.

What is the track record of Chemonics International, Inc. with USAID for similar contracts?

Chemonics International, Inc. has a long-standing and extensive track record of working with the U.S. Agency for International Development (USAID) on numerous international development projects. They are a major implementing partner for USAID, frequently awarded large-scale contracts across various sectors and geographic regions. Their portfolio includes work in areas such as economic growth, health, education, democracy and governance, and humanitarian assistance. Given their significant presence and history with USAID, it is likely that Chemonics possesses substantial experience relevant to managing complex regional programs. A thorough review of their past performance with USAID, including past performance evaluations and any documented issues, would provide a more detailed understanding of their capabilities and reliability for this specific contract.

Are there any identified risks associated with the contractor or the nature of the services provided?

Risks associated with this contract can be categorized. For the contractor, Chemonics International, Inc., risks might include reputational damage if program objectives are not met, challenges in managing complex logistics in diverse regions, and potential cost overruns under the CPFF structure. For the nature of the services, which fall under 'All Other Professional, Scientific, and Technical Services' for regional programs, risks could include scope creep, difficulty in measuring impact in complex socio-economic environments, political instability in the regions of operation, and ensuring the sustainability of program benefits. USAID's oversight mechanisms, including performance monitoring and risk management plans, are crucial for mitigating these potential issues.

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: SOL-514-11-000001

Offers Received: 7

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: $94,470,250

Exercised Options: $94,470,250

Current Obligation: $79,587,342

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $561,305

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline