USAID's $51.7M contract to Palladium International LLC aims to boost Salvadoran businesses' global competitiveness

Contract Overview

Contract Amount: $51,689,608 ($51.7M)

Contractor: Palladium International LLC

Awarding Agency: Agency for International Development

Start Date: 2017-03-31

End Date: 2025-02-26

Contract Duration: 2,889 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF THIS ACTIVITY BUILDS UPON LESSONS LEARNED FROM PRIOR DEVELOPMENT INVESTMENTS AND COMPLEMENTS CURRENT USAID/EL SALVADOR ACTIVITIES TO ENABLE SALVADORAN BUSINESSES TO BECOME MORE COMPETITIVE IN GLOBAL MARKETS

Plain-Language Summary

Agency for International Development obligated $51.7 million to PALLADIUM INTERNATIONAL LLC for work described as: IGF::CL::IGF THIS ACTIVITY BUILDS UPON LESSONS LEARNED FROM PRIOR DEVELOPMENT INVESTMENTS AND COMPLEMENTS CURRENT USAID/EL SALVADOR ACTIVITIES TO ENABLE SALVADORAN BUSINESSES TO BECOME MORE COMPETITIVE IN GLOBAL MARKETS Key points: 1. Contract focuses on enhancing competitiveness of Salvadoran businesses in global markets. 2. Leverages lessons from previous development investments to complement current USAID activities. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Long duration of 2889 days suggests a complex, multi-year program. 5. Performance period spans from March 2017 to February 2025. 6. All Other Professional, Scientific, and Technical Services NAICS code suggests broad service scope.

Value Assessment

Rating: fair

The contract's value of $51.7 million over nearly 8 years represents a significant investment in economic development. Benchmarking this against similar USAID programs focused on private sector competitiveness in Latin America would be necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly. Without detailed performance metrics and cost breakdowns, it's challenging to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 3 bidders participating, this suggests a reasonable level of competition for this type of development contract. A higher number of bidders might typically lead to more competitive pricing, but in specialized areas like international development, the pool of qualified firms can be limited.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple firms to vie for the contract, potentially driving down costs and improving the quality of services offered.

Public Impact

Salvadoran businesses are the primary beneficiaries, gaining tools and strategies to compete internationally. Services delivered include technical assistance, capacity building, and market access support. Geographic impact is focused on El Salvador, aiming to stimulate its economy. Workforce implications include potential job creation within Salvadoran businesses and the local economy due to increased competitiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure may incentivize higher spending if not rigorously monitored.
Long contract duration could lead to scope creep or evolving needs not fully captured in initial pricing.
The broad NAICS code (541990) might indicate a wide range of services, making performance tracking complex.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Complements existing USAID activities, indicating a coordinated and strategic approach to development aid.
Focuses on tangible economic outcomes: enhancing business competitiveness in global markets.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on international development and economic growth. The market for such services is driven by government funding for foreign aid and development initiatives. Comparable spending benchmarks would involve looking at other USAID contracts or those from similar development agencies (e.g., World Bank, regional development banks) aimed at private sector development in middle-income countries. The total contract value of $51.7 million is substantial for a single award in this niche.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is likely minimal unless Palladium International LLC actively engages small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID), likely through its contracting officers and program managers. The Inspector General (IG) of USAID would have jurisdiction for audits and investigations into fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, but detailed programmatic oversight and performance reporting are typically internal or shared with oversight bodies.

Related Government Programs

USAID Economic Growth Programs
USAID El Salvador Portfolio
Global Development Alliances
Trade Capacity Building Initiatives

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases potential for scope changes and evolving requirements.
Broad service category (NAICS 541990) may complicate performance measurement.
Effectiveness depends heavily on El Salvador's internal economic and political climate.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $51.7 million to PALLADIUM INTERNATIONAL LLC. IGF::CL::IGF THIS ACTIVITY BUILDS UPON LESSONS LEARNED FROM PRIOR DEVELOPMENT INVESTMENTS AND COMPLEMENTS CURRENT USAID/EL SALVADOR ACTIVITIES TO ENABLE SALVADORAN BUSINESSES TO BECOME MORE COMPETITIVE IN GLOBAL MARKETS

Who is the contractor on this award?

The obligated recipient is PALLADIUM INTERNATIONAL 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 $51.7 million.

What is the period of performance?

Start: 2017-03-31. End: 2025-02-26.

What is the track record of Palladium International LLC in executing similar international development contracts?

Palladium International LLC has a significant history of executing complex international development projects funded by USAID and other government agencies. They often focus on areas such as economic growth, governance, health, and education in various regions globally. Analyzing their past performance on contracts with similar objectives, geographic focus (e.g., Latin America), and contract types (like CPFF) would provide insight into their capacity to deliver results. Reviewing USAID's contract data and performance evaluations for Palladium's previous awards can reveal their strengths and weaknesses in project management, cost control, and achieving development outcomes. Specific metrics on project completion rates, budget adherence, and client satisfaction from prior engagements are crucial for a comprehensive assessment.

How does the cost structure (Cost Plus Fixed Fee) compare to other contracts of similar scope and objective?

Cost Plus Fixed Fee (CPFF) contracts are common in development work where the scope may evolve or require flexibility. This structure involves reimbursing the contractor for allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer less price certainty for the government, as costs are reimbursed. However, it provides flexibility for adapting to changing circumstances inherent in development projects. For contracts with high uncertainty or evolving technical requirements, CPFF can be appropriate. Benchmarking against similar USAID economic growth programs would reveal if the fixed fee percentage is within industry norms and if the overall cost is competitive, considering the project's complexity and duration.

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

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. Typically, for a contract aimed at boosting business competitiveness, KPIs might include metrics such as the number of businesses supported, increase in export sales, job creation within supported businesses, improvements in business management practices, or access to finance. Performance against these KPIs would be tracked through regular reporting by Palladium International LLC to USAID. A thorough assessment would require access to these performance reports and USAID's evaluation of Palladium's progress in achieving the contract's objectives. Without this data, assessing the contractor's performance is speculative.

What is the historical spending trend for USAID's programs focused on private sector development in El Salvador?

Historical spending data for USAID's programs in El Salvador, particularly those focused on private sector development, would provide context for the $51.7 million awarded to Palladium International LLC. Analyzing past USAID budgets and obligations for similar initiatives in El Salvador can reveal whether this contract represents a significant increase, decrease, or continuation of previous investment levels. Trends might indicate shifts in USAID's strategic priorities or the effectiveness of prior programs. Understanding this historical context helps in evaluating the scale and potential impact of the current investment and whether it aligns with long-term development goals for the country.

Are there any known risks or challenges associated with Palladium International LLC's operations in El Salvador or similar environments?

Assessing risks associated with Palladium International LLC's operations in El Salvador requires examining factors such as the country's political and economic stability, security environment, and regulatory framework. Additionally, Palladium's past performance, including any documented challenges in managing projects, cost overruns, or stakeholder relations in similar contexts, would be relevant. Potential risks could include corruption, bureaucratic hurdles, or difficulties in achieving sustainable business growth in a challenging economic climate. A review of USAID's past risk assessments for programs in El Salvador and Palladium's specific risk mitigation strategies would be necessary for a comprehensive evaluation.

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-519-16-000004

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1331 PENNSYLVANIA AVE NW STE 600, WASHINGTON, DC, 20004

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,689,608

Exercised Options: $51,689,608

Current Obligation: $51,689,608

Actual Outlays: $37,488,935

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $852,223,349

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline