USAID's $70M contract aims to boost East African trade and investment, fostering inclusive economic growth

Contract Overview

Contract Amount: $63,113,623 ($63.1M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2014-08-22

End Date: 2023-08-17

Contract Duration: 3,282 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF:THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT`S (USAID) POWER AFRICA AND TRADE AFRICA (PATA) TEAM AND REGIONAL MISSION FOR EAST AFRICA CONTEMPLATE THE AWARD OF A CONTRACT FOR A PERIOD OF THREE YEARS WITH TWO ONE-YEAR OPTION YEARS TOTALING APPROXIMATELY USD $70 MILLION TOTAL OVER FIVE YEARS TO SPUR INCLUSIVE ECONOMIC GROWTH BY PROMOTING AN ENABLING ENVIRONMENT FOR TRADE AND INVESTMENT AND INCREASING EAST AFRICAN TRADE AND INVESTMENT, PARTICULARLY TO AND FROM THE UNITED STATES (U.S.). USAID/EAST AFRICA`S U.S. TRADE AND INVESTMENT HUB (THE TIH) CONTRACT WILL BUILD UPON PRIOR INVESTMENTS TO INCREASE REGIONAL TRADE COMPETITIVENESS AND REDUCE POVERTY.

Plain-Language Summary

Agency for International Development obligated $63.1 million to DAI GLOBAL LLC for work described as: IGF::OT::IGF:THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT`S (USAID) POWER AFRICA AND TRADE AFRICA (PATA) TEAM AND REGIONAL MISSION FOR EAST AFRICA CONTEMPLATE THE AWARD OF A CONTRACT FOR A PERIOD OF THREE YEARS WITH TWO ONE-YEAR OPTION YEARS TOTALING APPROXIMATELY USD $… Key points: 1. Contract focuses on creating an enabling environment for trade and investment in East Africa. 2. Aims to increase regional trade competitiveness and reduce poverty through prior investments. 3. Primarily targets trade and investment flows between East Africa and the United States. 4. Contract duration is three years with two one-year option periods. 5. The contract is a Cost Plus Fixed Fee type, indicating cost reimbursement with a fixed fee. 6. Awardee is DAI GLOBAL LLC, a known entity in international development. 7. The contract falls under 'All Other Support Services' NAICS code 561990.

Value Assessment

Rating: good

The total contract value of approximately $70 million over five years for a program focused on economic growth and trade in East Africa appears reasonable given the scope. While specific cost breakdowns are not provided, Cost Plus Fixed Fee contracts allow for flexibility in managing project expenses. Benchmarking against similar USAID-funded economic development initiatives would provide a more precise value-for-money assessment, but the scale aligns with large-scale development assistance programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to yield a fair price and ensure the selection of a qualified contractor. The presence of 9 bidders suggests a healthy level of interest and competition for this significant development contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the most capable contractor is selected, leading to more effective program delivery.

Public Impact

East African nations and businesses benefit from improved trade and investment environments. The contract supports initiatives to increase regional trade competitiveness. Aims to reduce poverty by fostering economic growth and development. Facilitates increased trade and investment flows, particularly with the United States. Potential positive impact on local workforces through increased economic activity and development projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not closely monitored.
The broad scope of 'spurring inclusive economic growth' may present challenges in measuring direct impact.
Reliance on prior investments requires careful evaluation of their effectiveness and continued relevance.

Positive Signals

Awarded through full and open competition with 9 bidders, suggesting strong market interest and potential for value.
The contractor, DAI GLOBAL LLC, has extensive experience in international development projects.
The contract's objectives align with USAID's strategic goals for economic development and trade promotion.
The five-year duration allows for sustained impact and program continuity.

Sector Analysis

This contract operates within the international development and economic assistance sector, specifically focusing on trade and investment promotion in East Africa. The market for such services involves a mix of large international consulting firms and specialized development organizations. USAID's Power Africa and Trade Africa initiatives represent significant government investment in fostering economic growth in developing regions. Comparable spending benchmarks would involve other large-scale USAID or similar international donor agency programs aimed at trade facilitation and economic development.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, for a contract of this magnitude and scope, it is common for prime contractors to engage small businesses for specialized services or local implementation. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the USAID/East Africa mission and the U.S. Trade and Investment Hub. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits by USAID's Office of Inspector General, although specific IG jurisdiction for this contract is not detailed.

Related Government Programs

USAID Power Africa
USAID Trade Africa
U.S. Trade and Investment Hub
East African Community initiatives
International economic development programs

Risk Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts.
Challenges in measuring 'inclusive' economic growth.
Geopolitical and economic instability in the region.
Reliance on effectiveness of prior investments.
Coordination complexities across multiple countries and stakeholders.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $63.1 million to DAI GLOBAL LLC. IGF::OT::IGF:THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT`S (USAID) POWER AFRICA AND TRADE AFRICA (PATA) TEAM AND REGIONAL MISSION FOR EAST AFRICA CONTEMPLATE THE AWARD OF A CONTRACT FOR A PERIOD OF THREE YEARS WITH TWO ONE-YEAR OPTION YEARS TOTALING APPROXIMATELY USD $70 MILLION TOTAL OVER FIVE YEARS TO SPUR INCLUSIVE ECONOMIC GROWTH BY PROMOTING AN ENABLING ENVIRONMENT FOR TRADE AND INVESTMENT AND INCREASING EAST AFRICAN TRADE AND INVESTMENT, PARTICULARLY TO AND FROM THE UNITED STATE

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 $63.1 million.

What is the period of performance?

Start: 2014-08-22. End: 2023-08-17.

What is the track record of DAI GLOBAL LLC in managing similar large-scale economic development contracts for USAID or other international donors?

DAI GLOBAL LLC is a well-established international development company with a significant track record of implementing complex projects worldwide. They have extensive experience working with USAID and other major development agencies on programs related to economic growth, trade, governance, and public health. Their portfolio includes numerous contracts focused on improving business environments, fostering private sector investment, and enhancing trade capacity in various developing regions, including Africa. While specific details of past performance on contracts of precisely this scale and focus would require deeper investigation, DAI's general reputation and breadth of experience suggest a strong capability to manage this USAID contract effectively. Their history often involves managing multi-year, multi-million dollar projects, indicating familiarity with the administrative, financial, and programmatic demands.

How does the approximate $70 million total contract value compare to similar USAID economic development and trade promotion initiatives in East Africa?

The approximate $70 million total contract value over five years for USAID's U.S. Trade and Investment Hub initiative in East Africa is substantial and aligns with the scale of major USAID programs aimed at fostering economic growth and trade. USAID often awards large contracts in the range of tens to hundreds of millions of dollars for multi-year development initiatives. For instance, other regional economic growth programs or large-scale infrastructure-related technical assistance contracts managed by USAID in Africa have similar or even higher total values. The specific amount reflects the complexity of the objectives, the duration of the program, and the geographic scope. A direct comparison would require analyzing the specific objectives, deliverables, and duration of other comparable contracts, but $70 million is within the expected range for a significant, multi-faceted economic development program of this nature.

What are the primary risks associated with achieving the contract's objective of spurring inclusive economic growth and promoting trade in East Africa?

Several risks are inherent in achieving the contract's objectives. Political and economic instability within East African countries can disrupt trade flows and deter investment, directly impacting program success. Regulatory hurdles, corruption, and weak institutional capacity in partner countries can impede the creation of an enabling business environment. Furthermore, external economic shocks, such as global recessions or commodity price fluctuations, can affect regional trade dynamics. On the implementation side, challenges may arise from coordinating efforts across multiple countries and stakeholders, ensuring effective utilization of funds, and accurately measuring the 'inclusive' aspect of economic growth. The reliance on building upon prior investments also carries a risk if those investments were not sufficiently effective or are no longer relevant.

How will the success of this contract be measured, and what are the key performance indicators (KPIs) likely to be used?

The success of this contract will likely be measured through a combination of quantitative and qualitative indicators focused on trade, investment, and economic growth. Key Performance Indicators (KPIs) could include metrics such as the increase in the volume and value of trade between East African countries and the U.S., the amount of new foreign and domestic investment attracted to the region, the number of jobs created, and improvements in relevant ease-of-doing-business rankings. For 'inclusive growth,' indicators might track the participation of women and marginalized groups in economic activities, poverty reduction rates in targeted areas, and the growth of small and medium-sized enterprises (SMEs). USAID's standard monitoring and evaluation frameworks would be applied, requiring the contractor to report regularly on progress against established targets and objectives.

What is the historical spending pattern for USAID's Power Africa and Trade Africa initiatives, and how does this contract fit within that context?

USAID's Power Africa and Trade Africa initiatives represent significant, long-term commitments to development in Africa. Historical spending patterns for these initiatives have been substantial, often involving multiple large contracts across various sectors, including energy, trade facilitation, policy reform, and investment promotion. This $70 million contract for the U.S. Trade and Investment Hub appears to be a core component of the Trade Africa initiative, directly supporting its mandate to increase trade and investment between the U.S. and Africa. It likely complements other Power Africa efforts by addressing the broader economic environment necessary for energy sector investments to thrive. The spending reflects a strategic allocation of resources to address key barriers to economic growth and U.S.-Africa commercial ties.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support 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: 9

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: $63,967,096

Exercised Options: $63,967,096

Current Obligation: $63,113,623

Actual Outlays: $118,248

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $8,790,312

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline