USAID's $68M contract for Sudan support awarded to DT GLOBAL INC

Contract Overview

Contract Amount: $67,968,451 ($68.0M)

Contractor: DT Global Inc

Awarding Agency: Agency for International Development

Start Date: 2014-09-15

End Date: 2025-02-26

Contract Duration: 3,817 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF-THE GOAL OF THIS PROGRAM IS TO PROVIDE A QUICK RESPONSE MECHANISM TO SUPPORT THE ADMINISTRATION'S EFFORT TO SEEK CREATIVE AND FLEXIBLE PROGRAMS TO ADDRESS NEEDS IN SUDAN.

Plain-Language Summary

Agency for International Development obligated $68.0 million to DT GLOBAL INC for work described as: IGF::CL::IGF-THE GOAL OF THIS PROGRAM IS TO PROVIDE A QUICK RESPONSE MECHANISM TO SUPPORT THE ADMINISTRATION'S EFFORT TO SEEK CREATIVE AND FLEXIBLE PROGRAMS TO ADDRESS NEEDS IN SUDAN. Key points: 1. Contract aims to provide flexible programs for needs in Sudan. 2. DT GLOBAL INC. is the sole contractor for this effort. 3. The contract has a long duration, spanning over 10 years. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The NAICS code 541990 suggests a broad range of professional, scientific, and technical services. 6. This contract represents a significant investment in addressing complex needs in a challenging region.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While the total award is substantial at over $67 million, without specific performance metrics or cost breakdowns, a precise value-for-money assessment is difficult. Benchmarking against similar rapid response mechanisms for humanitarian or development aid in complex environments would be necessary for a more robust evaluation. The long duration of the contract (over 10 years) also necessitates careful monitoring of cost efficiency over time.

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. However, the data does not specify the number of bidders that participated in the competition. A high level of competition generally leads to better pricing and innovative solutions for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a competitive environment, potentially driving down costs and improving the quality of services provided.

Public Impact

The primary beneficiaries are the populations in Sudan requiring support through flexible and creative programs. The services delivered are intended to address critical needs within Sudan, though the specific nature of these needs is broadly defined. The geographic impact is focused on Sudan, a region facing significant humanitarian and development challenges. Workforce implications could include the deployment of personnel with expertise in international development, humanitarian aid, and program management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs if not rigorously managed.
Broad service description may lead to scope creep or unclear deliverables.
Long contract duration requires sustained oversight to ensure continued value and relevance.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Aims to provide a quick response mechanism, indicating agility in addressing urgent needs.
Contractor has a significant award amount, suggesting capacity to handle complex operations.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide range of services. The contract's focus on supporting administrative efforts for creative and flexible programs in Sudan places it within the realm of international development and humanitarian aid services. Comparable spending in this sector often involves consulting, research, and specialized technical support for government agencies operating in complex global environments.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) mentioned. This suggests that the contract was not specifically targeted towards small businesses, and large businesses likely dominated the bidding process. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary. The impact on the small business ecosystem would depend on whether DT GLOBAL INC. actively seeks small business partners for specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and that the program objectives are being met effectively. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits by USAID's Office of Inspector General. The long duration necessitates ongoing accountability measures.

Related Government Programs

USAID Development Assistance Programs
International Humanitarian Aid
Conflict Zone Support Programs
Global Development and Reconstruction Efforts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad service classification may lead to ambiguity in deliverables.
Long contract duration increases risk of evolving needs and sustained oversight challenges.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $68.0 million to DT GLOBAL INC. IGF::CL::IGF-THE GOAL OF THIS PROGRAM IS TO PROVIDE A QUICK RESPONSE MECHANISM TO SUPPORT THE ADMINISTRATION'S EFFORT TO SEEK CREATIVE AND FLEXIBLE PROGRAMS TO ADDRESS NEEDS IN SUDAN.

Who is the contractor on this award?

The obligated recipient is DT GLOBAL 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 $68.0 million.

What is the period of performance?

Start: 2014-09-15. End: 2025-02-26.

What is the specific nature of the 'needs in Sudan' that this contract aims to address?

The provided data offers a high-level objective: 'to provide a quick response mechanism to support the Administration's effort to seek creative and flexible programs to address needs in Sudan.' However, it does not detail the specific types of needs. These could range from humanitarian assistance (food, shelter, medical care), to economic development initiatives, governance support, or security-related programs, depending on the evolving political and social landscape of Sudan. A more granular understanding would require reviewing the contract's statement of work or associated documentation, which would outline the precise services and objectives.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and value for money in this contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure is often used for research and development or when the scope is uncertain, it can incentivize contractors to incur higher costs, as their profit (the fixed fee) remains constant regardless of the total cost. For value for money, rigorous oversight is essential. USAID must meticulously track and audit all costs to ensure they are reasonable, allocable, and necessary for contract performance. Without strong cost controls and performance monitoring, CPFF contracts can be susceptible to cost overruns, potentially diminishing the overall value delivered to taxpayers.

What are the potential risks associated with the long duration (over 10 years) of this contract?

A contract spanning over 10 years, like this one (September 2014 to February 2025, totaling over 10 years), carries several risks. Firstly, the needs and operating environment in Sudan could change significantly over such a long period, potentially rendering the original program objectives obsolete or less relevant. Secondly, maintaining effective oversight and ensuring contractor performance remains high over an extended duration can be challenging. Thirdly, there's a risk of 'contractor lock-in,' where the government becomes overly reliant on a single contractor, potentially stifling innovation or the ability to adapt to new approaches. Finally, long-term cost projections become more uncertain, increasing the risk of budget overruns if not managed proactively.

How does the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) classification influence the scope and oversight of this contract?

The NAICS code 541990 is a broad classification, encompassing a wide array of services not specified elsewhere. This broadness can be both an advantage and a challenge. It allows for flexibility in adapting to unforeseen needs in a dynamic environment like Sudan. However, it also necessitates a very clearly defined Statement of Work (SOW) and robust performance metrics within the contract to prevent scope creep and ensure accountability. Oversight requires a deep understanding of the diverse services that could fall under this code, demanding specialized expertise from contracting officers and technical monitors to ensure the contractor is delivering appropriate and effective services aligned with USAID's objectives.

What does the fact that DT GLOBAL INC. is the sole awardee imply about the competition and potential outcomes?

While the contract was awarded under 'full and open competition,' the data indicates DT GLOBAL INC. is the sole awardee. This could imply that DT GLOBAL INC. was the only bidder that met all the stringent requirements of the solicitation, or it might suggest that the initial competition resulted in a single awardee. If it was the only bidder, it raises questions about the attractiveness of the opportunity or the clarity of the solicitation. If multiple bidders participated but only one was selected, it suggests DT GLOBAL INC. presented the most compelling proposal. However, having only one contractor for a long-term, high-value contract can reduce competitive pressure throughout its life cycle, potentially impacting innovation and cost efficiency over time.

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

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: DT Global LLC

Address: 1625 I ST NW, WASHINGTON, DC, 20006

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $71,380,355

Exercised Options: $71,380,355

Current Obligation: $67,968,451

Actual Outlays: $41,157,343

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $72,357

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline