USAID Spends $157M on Mozambique Tourism Project with Nathan Associates LLC

Contract Overview

Contract Amount: $15,744,715 ($15.7M)

Contractor: Nathan Associates LLC

Awarding Agency: Agency for International Development

Start Date: 2006-01-17

End Date: 2010-09-30

Contract Duration: 1,717 days

Daily Burn Rate: $9.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TOURISM ACTIVITY IN NORTHERN MOZAMBIQUE

Plain-Language Summary

Agency for International Development obligated $15.7 million to NATHAN ASSOCIATES LLC for work described as: TOURISM ACTIVITY IN NORTHERN MOZAMBIQUE Key points: 1. Significant investment in a specific region's tourism. 2. Nathan Associates LLC is the sole contractor. 3. Potential risks include project effectiveness and contractor performance. 4. Focus on economic development within the tourism sector.

Value Assessment

Rating: questionable

The contract value of $157M is substantial for a tourism activity. Without comparable contracts for similar regional tourism development initiatives, it's difficult to assess if this represents fair value. The Time and Materials pricing structure can also lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was awarded as a sole-source contract, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-sourcing is critical for understanding the procurement decision.

Taxpayer Impact: The significant expenditure of $157M represents a substantial taxpayer investment. The effectiveness of this spending in achieving its stated goals of boosting tourism activity in Northern Mozambique will determine the ultimate return on this investment.

Public Impact

Potential for job creation and economic growth in Northern Mozambique. Impact on local communities and cultural heritage. Sustainability of tourism development beyond the contract period. Geopolitical stability and security in the region could affect project success.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price scrutiny.
Time and Materials contract type can inflate costs.
Geographic focus on Northern Mozambique may present security risks.
Lack of clear performance metrics makes effectiveness assessment difficult.

Positive Signals

Aims to stimulate economic activity in a developing region.
Potential for positive social impact through tourism.
Long contract duration suggests a significant, ongoing effort.

Sector Analysis

This contract falls under economic development and potentially international aid, focusing on the tourism sector. Benchmarking is difficult without specific data on similar USAID-funded tourism initiatives in challenging regions.

Small Business Impact

There is no indication of small business involvement in this contract. The sole-source nature and the prime contractor being Nathan Associates LLC suggest a focus on a large, established entity.

Oversight & Accountability

Oversight is crucial for a sole-source, Time and Materials contract of this magnitude. USAID's Agency for International Development would need robust monitoring mechanisms to ensure funds are used effectively and for their intended purpose.

Related Government Programs

Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Sole-source award
Time and Materials contract type
Geographic focus on potentially unstable region
Lack of transparency on competition justification
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $15.7 million to NATHAN ASSOCIATES LLC. TOURISM ACTIVITY IN NORTHERN MOZAMBIQUE

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 $15.7 million.

What is the period of performance?

Start: 2006-01-17. End: 2010-09-30.

What was the specific justification for awarding this contract as sole-source, and what steps were taken to ensure fair pricing despite the lack of competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, understanding the specific rationale is key. Without competitive bidding, price discovery is limited, making robust cost analysis and negotiation by the agency paramount to ensure taxpayer value and prevent overpayment.

What are the key performance indicators (KPIs) for this tourism activity, and how is success being measured to ensure effective use of $157M?

Effective measurement requires clearly defined KPIs tied to the project's objectives, such as increased tourist arrivals, revenue generated, jobs created, and infrastructure improvements. Regular reporting and independent evaluations are necessary to track progress against these KPIs and assess the overall impact and value for money of the $157M investment.

What risk mitigation strategies are in place to address potential challenges in Northern Mozambique, such as security concerns or political instability, that could impact the tourism activity?

Mitigation strategies might include security assessments, contingency planning, phased implementation, and strong local partnerships. The agency and contractor must proactively identify and address risks related to the operating environment to safeguard personnel, assets, and the project's objectives, ensuring the substantial investment is not jeopardized by external factors.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2101 WILSON BLVD STE 1200, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,291,466

Exercised Options: $30,333,841

Current Obligation: $15,744,715

Parent Contract

Parent Award PIID: GS10F0619N

IDV Type: FSS

Timeline