USAID's $64.9M technical assistance contract for Liberia's food and enterprise development program awarded to DAI Global LLC

Contract Overview

Contract Amount: $64,875,595 ($64.9M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2011-09-12

End Date: 2016-12-11

Contract Duration: 1,917 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE TECHNICAL ASSISTANCE AND SERVICES FOR THE IMPLEMENTATION OF FOOD AND ENTERPRISE DEVELOPMENT PROGRAM IN LIBERIA (FED)TAS::72 1021::TAS

Plain-Language Summary

Agency for International Development obligated $64.9 million to DAI GLOBAL LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE TECHNICAL ASSISTANCE AND SERVICES FOR THE IMPLEMENTATION OF FOOD AND ENTERPRISE DEVELOPMENT PROGRAM IN LIBERIA (FED)TAS::72 1021::TAS Key points: 1. Contract focused on implementing a food and enterprise development program in Liberia. 2. Awarded through full and open competition, indicating a broad search for qualified contractors. 3. The contract type was Cost Plus Fixed Fee, which can incentivize cost control but also carries potential for cost overruns. 4. The contract duration was substantial, spanning over 1900 days, suggesting a long-term commitment to program goals. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract was not set aside for small businesses, suggesting the scope and complexity likely favored larger firms.

Value Assessment

Rating: fair

The contract's value of $64.9 million over approximately five years for technical assistance in development programs is substantial. Benchmarking this requires understanding the specific services rendered and the prevailing costs for similar international development consulting. Without detailed performance metrics or comparisons to other USAID-funded programs of similar scope and complexity, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee structure means the government pays actual costs plus a negotiated fixed fee, which can lead to higher total costs if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that USAID solicited proposals from all responsible sources and that multiple bidders likely participated. This competitive process is intended to ensure that the government receives the best possible value by encouraging a range of technical approaches and pricing strategies. The presence of five bidders (no) indicates a reasonable level of interest in the opportunity.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices and encouraging innovation, leading to more efficient use of public funds for development initiatives.

Public Impact

Beneficiaries include individuals and communities in Liberia targeted by the Food and Enterprise Development (FED) program. Services delivered encompass technical assistance and support for the implementation of development initiatives. The geographic impact is focused on Liberia, aiming to foster economic growth and food security. Workforce implications may include local employment opportunities within Liberia and the deployment of international expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if not meticulously managed and monitored for efficiency.
Long contract durations (1917 days) require sustained oversight to ensure continued relevance and effectiveness of program activities.
The broad nature of 'technical assistance' can sometimes lead to scope creep if not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract aims to support critical development goals in food security and enterprise development in Liberia.
The involvement of a known contractor like DAI Global LLC may indicate a level of established expertise in the field.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting, applied to international development. The market for such services is global, with numerous firms specializing in development assistance, economic growth, and program implementation. USAID is a major procurer in this space, often awarding large, long-term contracts. Benchmarks for similar technical assistance contracts would typically consider the geographic region, the specific development sector (e.g., agriculture, entrepreneurship), and the contract's duration and complexity.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' (small business) indicator is false. This suggests that the scale, complexity, or specialized nature of the services required were deemed more suitable for larger contracting entities. There is no explicit information on subcontracting plans for small businesses within the provided data, which could be a missed opportunity for engaging the small business ecosystem in Liberia or the US.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through its contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, requiring regular reporting and adherence to milestones. Transparency is facilitated through contract awards databases, but detailed programmatic oversight reports are often internal or specific to Inspector General reviews.

Related Government Programs

USAID Development Assistance Programs
International Food Security Initiatives
Enterprise Development Programs
Technical Assistance Contracts
Economic Growth and Trade Facilitation

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Long contract duration requires sustained oversight.
Geopolitical and economic instability in Liberia could impact program delivery.
Measuring development impact can be complex and subject to external factors.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $64.9 million to DAI GLOBAL LLC. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE TECHNICAL ASSISTANCE AND SERVICES FOR THE IMPLEMENTATION OF FOOD AND ENTERPRISE DEVELOPMENT PROGRAM IN LIBERIA (FED)TAS::72 1021::TAS

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 $64.9 million.

What is the period of performance?

Start: 2011-09-12. End: 2016-12-11.

What was the specific performance of DAI Global LLC on this contract?

The provided data does not include specific performance metrics or evaluations for DAI Global LLC's execution of this contract. To assess performance, one would need to review USAID's contract performance reports, Contractor Performance Assessment Reporting System (CPARS) records, or any publicly available program evaluation reports. These documents would detail the contractor's adherence to the scope of work, timeliness, quality of deliverables, and overall effectiveness in achieving the Food and Enterprise Development (FED) program's objectives in Liberia. Without such data, performance remains an unknown factor based solely on this contract award information.

How does the $64.9 million cost compare to similar USAID development programs in Liberia or other Sub-Saharan African countries?

Comparing the $64.9 million cost requires context regarding the specific objectives and duration of similar USAID programs. For a five-year technical assistance contract focused on food and enterprise development, this figure is substantial but not necessarily outside the norm for large-scale development initiatives in regions like Sub-Saharan Africa. USAID often funds multi-million dollar programs in areas such as health, education, agriculture, and governance. To make a precise comparison, one would need to identify contracts with similar NAICS codes (541611), geographic focus (Liberia/West Africa), and programmatically similar goals (food security, economic growth). Factors like the number of beneficiaries, specific interventions, and local operating costs significantly influence total contract value.

What were the primary risks identified for this contract, and how were they mitigated?

The provided data does not explicitly list the risks identified for this contract or their mitigation strategies. However, common risks associated with large, long-term international development contracts include political instability in the host country (Liberia), potential for corruption, logistical challenges, currency fluctuations, changes in government priorities, and difficulties in achieving measurable development outcomes. Mitigation strategies typically involve robust monitoring and evaluation frameworks, strong local partnerships, security protocols, transparent financial management, and adaptive program design to respond to changing conditions. USAID's internal risk assessments and the contractor's risk management plan would detail these aspects.

How effective was the Food and Enterprise Development (FED) program in Liberia under this contract?

The effectiveness of the FED program is not detailed in the provided contract award data. Effectiveness would be measured by the program's success in achieving its stated goals, such as improving food security, increasing agricultural productivity, fostering entrepreneurship, and creating jobs in Liberia. USAID typically conducts mid-term and final evaluations of such programs, which would provide insights into their impact and lessons learned. These evaluations assess whether the program met its targets, the sustainability of its interventions, and its overall contribution to Liberia's development. Accessing these evaluation reports would be necessary to determine program effectiveness.

What is the historical spending pattern for USAID's technical assistance in Liberia within the administrative management and general management consulting services sector?

The provided data only details one specific contract ($64.9M to DAI Global LLC). To understand historical spending patterns, a broader analysis of USAID's procurement data for Liberia and for NAICS code 541611 (Administrative Management and General Management Consulting Services) over multiple fiscal years would be required. This would involve querying databases like USAspending.gov or USAID's own procurement records. Such an analysis could reveal trends in contract values, types of services procured, dominant contractors, and overall investment in this sector for Liberia, helping to contextualize the significance of this particular award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

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: $71,554,647

Exercised Options: $71,554,647

Current Obligation: $64,875,595

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $12,061,993

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline