USAID's $56.2M Southern Africa Trade Program aims to boost regional competitiveness and food security

Contract Overview

Contract Amount: $56,242,082 ($56.2M)

Contractor: DT Global Inc

Awarding Agency: Agency for International Development

Start Date: 2010-09-20

End Date: 2016-04-30

Contract Duration: 2,049 days

Daily Burn Rate: $27.4K/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 THE CONTRACT IS TO IMPLEMENT THE SOUTHERN AFRICA TRADE AND COMPETITIVENESS PROGRAM,WHOSE OVERARCHING GOAL IS: INCREASED INTERNATIONAL COMPETITIVENESS, INTRA-REGIONAL TRADE, AND FOOD SECURITY IN THE SOUTHERN AFRICA DEVELOPMENT COUNCIL REGION. THIS WILL BE ACCOMPLISHED THROUGH THE ADVANCEMENT OF THE REGIONAL INTEGRATION AGENDA AND INCREASED TRADE CAPACITY OF REGIONAL VALUE CHAINS IN SELECTED SECTORS. THE DELIVERY OF TARGETED TECHNICAL ASSISTANCE IS EXPECTED TO HELP THE SADC REGION, INCLUDING GOVERNMENT, THE PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATIONS, TO REALIZE THE ADVANTAGES OF GREATER REGIONAL AND GLOBAL TRADE LINKAGES AND EXPORT-ORIENTED BUSINESS DEVELOPMET THROUGH ASSISTANCE IN EIGHT AREAS.TAS::72 1021::TAS

Plain-Language Summary

Agency for International Development obligated $56.2 million to DT GLOBAL INC for work described as: THE PURPOSE OF THE CONTRACT IS TO IMPLEMENT THE SOUTHERN AFRICA TRADE AND COMPETITIVENESS PROGRAM,WHOSE OVERARCHING GOAL IS: INCREASED INTERNATIONAL COMPETITIVENESS, INTRA-REGIONAL TRADE, AND FOOD SECURITY IN THE SOUTHERN AFRICA DEVELOPMENT COUNCIL REGION. THIS WILL BE ACCOMPLI… Key points: 1. The contract focuses on enhancing international competitiveness, intra-regional trade, and food security within the Southern Africa Development Council (SADC) region. 2. Technical assistance is provided across eight key areas to help governments, private sector, and civil society realize trade advantages. 3. The program seeks to advance the regional integration agenda and increase trade capacity in selected value chains. 4. Contract performance spans from September 2010 to April 2016, indicating a medium-term engagement. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 6. The primary contractor, DT GLOBAL INC, is tasked with delivering these complex development objectives.

Value Assessment

Rating: good

The contract value of $56.2 million over approximately six years for a regional development program in Southern Africa appears reasonable given the scope. Benchmarking against similar USAID-funded technical assistance programs in developing regions suggests this is within a typical range for large-scale, multi-faceted initiatives. The Cost Plus Fixed Fee structure necessitates close monitoring of costs to ensure value for money, but it allows for flexibility in addressing evolving development challenges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust bidding process. While the number of bidders is not specified, this approach generally leads to a wider pool of potential contractors and can foster competitive pricing. The agency likely sought a contractor with demonstrated expertise in international development, trade, and regional integration.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best value by allowing all qualified vendors to participate, driving down costs through market forces.

Public Impact

Governments, private sector entities, and civil society organizations in the SADC region are direct beneficiaries. The program aims to deliver increased international competitiveness, enhanced intra-regional trade, and improved food security. Geographic impact is focused on the Southern Africa Development Council member states. Workforce implications include potential capacity building for local organizations and professionals involved in trade and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure efficient resource utilization.
The long duration of the contract (over 6 years) necessitates sustained monitoring to ensure objectives remain relevant and are being met effectively.
Measuring the direct impact of technical assistance on complex economic indicators like competitiveness and food security can be challenging.

Positive Signals

The contract is awarded through full and open competition, indicating a competitive bidding process that likely secured a qualified contractor at a fair price.
The program addresses critical development goals for the SADC region, aligning with U.S. foreign policy objectives.
The focus on regional integration and trade has the potential for significant, sustainable economic benefits for multiple countries.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on international development and trade facilitation. The market for such services is global, with numerous firms specializing in technical assistance for developing economies. USAID is a major procurer in this space, often awarding large, complex contracts to address multifaceted development challenges. Comparable spending benchmarks would involve looking at other large-scale USAID programs focused on economic growth, trade, and regional integration in Africa or similar regions.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly detailed in the provided data. However, large development contracts often include provisions for small business engagement, either directly or through subcontracting opportunities with the prime contractor. The agency's approach to small business inclusion would be a key factor in assessing the broader economic impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Agency for International Development (USAID), likely through its contracting officers and program monitors. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable to the contract. Transparency would be facilitated through regular reporting requirements from the contractor and potentially through USAID's public contract data portals. Inspector General jurisdiction would apply for any investigations into fraud, waste, or abuse.

Related Government Programs

Southern Africa Development Community (SADC) Programs
USAID Economic Growth Initiatives
Trade Capacity Building Programs
African Regional Development Projects

Risk Flags

Contract duration exceeds 6 years, requiring sustained monitoring.
Cost Plus Fixed Fee structure necessitates diligent cost oversight.
Measuring direct impact on complex economic indicators can be challenging.
Potential for political or economic instability in the region.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $56.2 million to DT GLOBAL INC. THE PURPOSE OF THE CONTRACT IS TO IMPLEMENT THE SOUTHERN AFRICA TRADE AND COMPETITIVENESS PROGRAM,WHOSE OVERARCHING GOAL IS: INCREASED INTERNATIONAL COMPETITIVENESS, INTRA-REGIONAL TRADE, AND FOOD SECURITY IN THE SOUTHERN AFRICA DEVELOPMENT COUNCIL REGION. THIS WILL BE ACCOMPLISHED THROUGH THE ADVANCEMENT OF THE REGIONAL INTEGRATION AGENDA AND INCREASED TRADE CAPACITY OF REGIONAL VALUE CHAINS IN SELECTED SECTORS. THE DELIVERY OF TARGETED TECHNICAL ASSISTANCE IS EXPECTED TO HELP THE SADC REGIO

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 $56.2 million.

What is the period of performance?

Start: 2010-09-20. End: 2016-04-30.

What specific technical assistance areas are covered under the Southern Africa Trade and Competitiveness Program?

The program provides targeted technical assistance in eight key areas designed to enhance the SADC region's international competitiveness, intra-regional trade, and food security. While the specific eight areas are not detailed in the provided data, typical components of such programs include policy reform advocacy, trade facilitation improvements, support for regional value chain development, capacity building for government institutions and private sector actors, market access initiatives, investment promotion, and efforts to improve the business and regulatory environment. The overarching goal is to help the region leverage greater regional and global trade linkages for export-oriented business development.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact value for money in this development context?

A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. This structure provides flexibility for complex, evolving projects like international development where the exact scope or challenges may not be fully known at the outset. For value for money, it necessitates robust oversight from the agency to ensure costs are reasonable, allocable, and allowable. While it can incentivize efficiency to protect the fixed fee, it also carries a risk of cost escalation if not managed tightly. Compared to fixed-price contracts, CPFF offers more flexibility but requires greater agency involvement in cost monitoring to ensure taxpayer funds are used effectively.

What are the potential risks associated with implementing a large-scale trade and competitiveness program in Southern Africa?

Implementing such a program in Southern Africa presents several potential risks. Political instability or changes in government policy within SADC member states could disrupt program implementation or undermine its objectives. Economic volatility, including currency fluctuations and inflation, can impact project sustainability and cost-effectiveness. Infrastructure limitations, such as poor transportation networks, can hinder trade facilitation efforts. Furthermore, resistance to reforms from vested interests, capacity constraints within local institutions, and challenges in coordinating efforts across multiple countries and stakeholders are significant risks. Ensuring genuine buy-in and sustainable local ownership is crucial to mitigate these challenges.

How does this contract align with broader U.S. foreign policy and development goals in Africa?

This contract directly aligns with U.S. foreign policy objectives aimed at promoting economic growth, stability, and self-reliance in developing regions. By focusing on increasing international competitiveness, intra-regional trade, and food security in Southern Africa, the program contributes to poverty reduction and strengthens democratic institutions through economic empowerment. It supports U.S. goals of fostering stable trading partners, enhancing regional integration, and creating markets for U.S. goods and services. Such initiatives are often part of larger U.S. strategies for engagement in Africa, emphasizing sustainable development and private sector-led growth.

What is the historical spending pattern for similar USAID trade and competitiveness programs?

USAID historically allocates significant funding to programs focused on economic growth, trade, and competitiveness, particularly in regions like Southern Africa where development needs are substantial. Spending patterns for large-scale, multi-year technical assistance programs often range from tens to hundreds of millions of dollars, depending on the geographic scope, duration, and complexity of interventions. Contracts like this one, valued at over $56 million, are typical for comprehensive regional initiatives. Historical data suggests a consistent commitment from USAID to these types of programs as a key tool for achieving development outcomes and advancing U.S. interests abroad.

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: SEALED BID

Offers Received: 5

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: $56,242,082

Exercised Options: $56,242,082

Current Obligation: $56,242,082

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline