USAID's $105.6M South Sudan program aimed to mitigate conflict and provide relief, utilizing a flexible response mechanism

Contract Overview

Contract Amount: $105,616,588 ($105.6M)

Contractor: DT Global Inc

Awarding Agency: Agency for International Development

Start Date: 2013-07-09

End Date: 2019-05-08

Contract Duration: 2,129 days

Daily Burn Rate: $49.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF SOUTH SUDAN TRANSITION AND CONFLICT MITIGATION PROGRAM II (SSTCM II) THE PURPOSE OF THIS PROJECT IS TO PROVIDE USAID/SOUTH SUDAN WITH A QUICK RESPONSE MECHANISM TO SUPPORT THE ADMINISTRATION S EFFORT TO USE CREATIVE AND FLEXIBLE PROGRAMS TO ADDRESS NEEDS IN SOUTH SUDAN, WHICH IS AMONG THE HIGHEST FOREIGN POLICY PRIORITIES ON THE CONTINENT. SSTCM II WILL COMPLEMENT AND ENHANCE THE REST OF THE USAID/SOUTH SUDAN PORTFOLIO BY SUPPORTING THE GOVERNMENT AND PEOPLE OF SOUTH SUDAN BY PROMOTING STABILIZING INFLUENCES.

Plain-Language Summary

Agency for International Development obligated $105.6 million to DT GLOBAL INC for work described as: IGF::OT::IGF SOUTH SUDAN TRANSITION AND CONFLICT MITIGATION PROGRAM II (SSTCM II) THE PURPOSE OF THIS PROJECT IS TO PROVIDE USAID/SOUTH SUDAN WITH A QUICK RESPONSE MECHANISM TO SUPPORT THE ADMINISTRATION S EFFORT TO USE CREATIVE AND FLEXIBLE PROGRAMS TO ADDRESS NEEDS IN SOUTH SUD… Key points: 1. The contract provided a rapid response mechanism for USAID/South Sudan, addressing critical needs and foreign policy priorities. 2. It aimed to complement and enhance existing USAID programs by promoting stabilizing influences in the region. 3. The contract was awarded through full and open competition, suggesting a broad search for qualified contractors. 4. DT Global Inc. was the sole contractor, indicating a significant role in executing the program's objectives. 5. The contract duration was 2,129 days, spanning over five years, allowing for sustained program implementation. 6. The contract type was Cost Plus Fixed Fee, which can incentivize cost control while ensuring contractor profit. 7. The program's focus on conflict mitigation and relief highlights its importance in a challenging geopolitical context.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging due to its unique nature as a rapid response mechanism for a complex geopolitical region. The Cost Plus Fixed Fee (CPFF) contract type, while common for services where costs are difficult to predict, can sometimes lead to higher overall spending compared to fixed-price contracts if not managed diligently. The total award amount of over $105 million over nearly six years suggests a substantial investment in addressing critical needs in South Sudan. Without specific performance metrics or comparable rapid response contracts in similar environments, a definitive value-for-money assessment is difficult, but the scale indicates significant resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that the agency sought proposals from all responsible sources. The presence of 8 bidders suggests a competitive process, which is generally favorable for price discovery and ensuring the government receives competitive offers. The fact that multiple entities were willing and able to bid on such a complex and long-term program implies a healthy market for these types of services. The competition level is a positive indicator for achieving reasonable pricing and selecting a capable contractor.

Taxpayer Impact: A full and open competition process for a contract of this magnitude is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the most qualified contractor is selected, thereby maximizing the impact of taxpayer funds.

Public Impact

The primary beneficiaries are the government and people of South Sudan, who received support through stabilizing influences and addressed critical needs. Services delivered included quick response mechanisms to support U.S. foreign policy objectives in South Sudan. The geographic impact is focused on South Sudan, a region identified as a high foreign policy priority. The program aimed to promote stabilizing influences, potentially impacting local communities and reducing conflict. Workforce implications would include local employment opportunities for program implementation and support staff within South Sudan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require careful oversight to ensure costs remain reasonable and the fixed fee is justified.
The long duration of the contract (over 5 years) necessitates sustained monitoring to ensure objectives remain relevant and are being met.
Assessing the 'quick response' effectiveness retrospectively can be challenging without clear baseline data and performance indicators.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bidders (8) suggest significant interest and a competitive environment for this type of service.
The contract's focus on conflict mitigation and stabilization aligns with critical foreign policy goals.
The program aimed to complement and enhance existing USAID efforts, suggesting a strategic approach.

Sector Analysis

This contract falls within the 'Emergency and Other Relief Services' sector, often associated with international development and humanitarian aid. The market for such services is characterized by government agencies (like USAID) contracting with non-governmental organizations (NGOs) and private companies to implement programs in complex environments. Spending in this sector can fluctuate based on global events and geopolitical priorities. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of rapid response mechanisms in conflict-affected regions, but the scale of this contract indicates a significant commitment to addressing needs in South Sudan.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale international development contract, it is likely that any subcontracting opportunities would be managed by the prime contractor, DT Global Inc. The extent to which small businesses, particularly those operating in or focused on South Sudan, could participate would depend on DT Global's subcontracting plan and the specific needs of the program. Without explicit small business subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often engage smaller, specialized service providers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID), likely through its Office of Acquisition and Assistance and the relevant program office in USAID/South Sudan. The contract type (CPFF) necessitates close monitoring of costs and performance. Inspector General (IG) jurisdiction would typically extend to audits and investigations of waste, fraud, and abuse related to federal funds. Transparency would be facilitated through contract awards databases and potentially through public reporting by USAID on program achievements and challenges, though specific details of day-to-day oversight are not provided.

Related Government Programs

USAID Foreign Assistance
Conflict Mitigation Programs
Humanitarian Aid
Stabilization Programs
International Development Assistance

Risk Flags

Contract duration exceeds 5 years, requiring sustained monitoring.
Cost Plus Fixed Fee contract type necessitates careful cost control oversight.
Program operates in a complex and potentially volatile geopolitical environment.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $105.6 million to DT GLOBAL INC. IGF::OT::IGF SOUTH SUDAN TRANSITION AND CONFLICT MITIGATION PROGRAM II (SSTCM II) THE PURPOSE OF THIS PROJECT IS TO PROVIDE USAID/SOUTH SUDAN WITH A QUICK RESPONSE MECHANISM TO SUPPORT THE ADMINISTRATION S EFFORT TO USE CREATIVE AND FLEXIBLE PROGRAMS TO ADDRESS NEEDS IN SOUTH SUDAN, WHICH IS AMONG THE HIGHEST FOREIGN POLICY PRIORITIES ON THE CONTINENT. SSTCM II WILL COMPLEMENT AND ENHANCE THE REST OF THE USAID/SOUTH SUDAN PORTFOLIO BY SUPPORTING THE GOVERNMENT AND PEOPLE OF SOUTH SUDAN BY PROMOT

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 $105.6 million.

What is the period of performance?

Start: 2013-07-09. End: 2019-05-08.

What was DT Global Inc.'s track record with USAID prior to this contract?

DT Global Inc. has a history of working with USAID on various international development and humanitarian assistance projects. While specific details of their prior contracts with USAID are not provided in this data snippet, their selection as the prime contractor for a significant program like SSTCM II suggests a demonstrated capability and established relationship. Companies in this sector often have portfolios that include work in challenging environments, focusing on areas such as governance, economic development, health, and conflict resolution. A deeper analysis would involve reviewing USAID's contract award data and DT Global's public disclosures to understand the scope, value, and performance history of their previous engagements.

How does the cost structure of this CPFF contract compare to similar rapid response contracts?

Cost Plus Fixed Fee (CPFF) contracts are common for services where the scope of work or costs are uncertain at the outset, such as rapid response mechanisms in volatile regions. This structure involves reimbursing the contractor for allowable costs plus a fixed fee representing profit. While CPFF can offer flexibility, it carries a risk of cost overruns if not managed tightly. Comparing this contract's cost structure requires access to data on similar USAID rapid response contracts. Generally, CPFF contracts are expected to be more expensive than fixed-price contracts due to the risk transfer to the government. However, for highly unpredictable situations, the flexibility and ability to adapt quickly might outweigh the potential cost increase, making it a necessary choice for achieving program objectives.

What were the key performance indicators (KPIs) for the SSTCM II program?

The provided data does not specify the key performance indicators (KPIs) for the SSTCM II program. However, given its purpose to provide a 'quick response mechanism' and 'support the administration's effort to use creative and flexible programs to address needs in South Sudan,' KPIs would likely have focused on the timeliness and effectiveness of the response, the successful implementation of stabilization activities, and the extent to which the program complemented other USAID efforts. Metrics might have included the speed of deployment of resources, the number of beneficiaries reached, the reduction in specific conflict indicators, or the successful delivery of essential services. Detailed KPIs would typically be outlined in the contract's statement of work and performance work statement.

What is the historical spending trend for similar conflict mitigation programs in South Sudan by USAID?

Historical spending by USAID on conflict mitigation and stabilization programs in South Sudan has been substantial, reflecting the country's prolonged instability and humanitarian crisis. While specific figures for 'similar' programs to SSTCM II are not detailed here, USAID's overall assistance to South Sudan has consistently involved significant funding for peacebuilding, humanitarian relief, and development initiatives aimed at fostering stability. Spending patterns are often influenced by the political climate, security situation, and evolving U.S. foreign policy priorities. The $105.6 million allocated to SSTCM II over its lifespan represents a considerable investment, indicative of the strategic importance placed on addressing conflict drivers in the region.

How effective was the 'creative and flexible' approach mandated by the contract in addressing needs?

The effectiveness of the 'creative and flexible' approach mandated by the SSTCM II contract is difficult to assess solely from the provided data. This approach suggests a departure from traditional, rigid programming, allowing for adaptation to the rapidly changing conditions in South Sudan. Success would depend on the specific mechanisms employed, the degree of autonomy granted to the implementing partner (DT Global Inc.), and the clarity of objectives. A positive outcome would mean the program was able to respond swiftly and appropriately to emerging needs or unforeseen challenges, thereby maximizing its impact on stabilization and conflict mitigation. A thorough evaluation would require analyzing program reports, field assessments, and stakeholder feedback.

Industry Classification

NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Emergency and Other Relief 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: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: DT Global LLC (UEI: 117134071)

Address: 2101 WILSON BLVD STE 700, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $110,478,956

Exercised Options: $110,478,956

Current Obligation: $105,616,588

Actual Outlays: $206,724

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline