DEVTECH SYSTEMS INC awarded $21.6M for Economic Analysis & Data Services, a follow-on contract

Contract Overview

Contract Amount: $21,588,650 ($21.6M)

Contractor: Devtech Systems Inc

Awarding Agency: Agency for International Development

Start Date: 2012-08-18

End Date: 2018-04-17

Contract Duration: 2,068 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EADS II (ECONOMIC ANALYSIS&DATA SERVICES) FOLLOW ON CONTRACT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $21.6 million to DEVTECH SYSTEMS INC for work described as: EADS II (ECONOMIC ANALYSIS&DATA SERVICES) FOLLOW ON CONTRACT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. This is a follow-on contract, indicating a continuation of services previously provided. 4. The contract duration is substantial at 2068 days, spanning over 5 years. 5. The agency is the Agency for International Development (USAID), focusing on global development initiatives. 6. The North American Industry Classification System (NAICS) code 541611 points to management consulting services.

Value Assessment

Rating: fair

The total award amount of $21.6 million over approximately 5.7 years averages to about $3.79 million per year. Without specific benchmarks for similar Economic Analysis & Data Services contracts from USAID or other agencies, a precise value-for-money assessment is challenging. However, the Time and Materials pricing structure necessitates careful monitoring to ensure costs remain reasonable and do not escalate beyond initial expectations. The follow-on nature suggests the agency found the previous service valuable, but it also limits the opportunity for new market entrants to offer potentially more competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of two bids indicates that while competition was solicited, the number of actual bidders was limited. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The limited number of bidders in this instance might suggest a specialized service area or a market with fewer qualified providers.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, theoretically driving down costs. However, with only two bids received, the competitive pressure may have been less intense than in a scenario with numerous bidders, potentially impacting the final price achieved.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which receives critical data and analytical support for its global development programs. Services delivered include economic analysis and data services, crucial for informing policy decisions and program effectiveness evaluations. The geographic impact is likely global, supporting USAID's international development missions and projects. Workforce implications may involve specialized consultants and analysts contributing to U.S. foreign policy objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Limited number of bidders (2) may indicate less competitive pressure on pricing.
Follow-on nature of the contract might limit opportunities for new, potentially more innovative or cost-effective solutions.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Follow-on contract suggests satisfaction with previous performance.
The contract supports critical economic analysis for international development.

Sector Analysis

The Economic Analysis & Data Services (EADS II) follow-on contract falls within the Management and Business Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of advisory and assistance services to businesses and other organizations. The market for government consulting services is substantial, with agencies like USAID frequently procuring expertise for complex international development, policy analysis, and program evaluation. Comparable spending benchmarks would depend on the specific nature of the analysis and data services required, but this contract represents a significant investment in specialized analytical capabilities.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs is essential to ensure accountability and prevent cost overruns. Transparency would be facilitated through contract reporting requirements. The Inspector General for USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

USAID Economic Analysis and Data Services (EADS)
Management and General Management Consulting Services
International Development Support Contracts
Federal Consulting Services

Risk Flags

Cost Overrun Risk (Time and Materials)
Limited Competition (2 Bidders)
Potential for Stagnation (Follow-on Contract)

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $21.6 million to DEVTECH SYSTEMS INC. EADS II (ECONOMIC ANALYSIS&DATA SERVICES) FOLLOW ON CONTRACT

Who is the contractor on this award?

The obligated recipient is DEVTECH SYSTEMS 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 $21.6 million.

What is the period of performance?

Start: 2012-08-18. End: 2018-04-17.

What is the track record of DEVTECH SYSTEMS INC with the Agency for International Development?

DEVTECH SYSTEMS INC has a history of working with the Agency for International Development (USAID). This specific contract, EADS II Follow-On, indicates a continuation of services. While the provided data doesn't detail the performance quality of previous contracts, the fact that this is a follow-on award suggests a level of satisfaction with DEVTECH's past performance in delivering economic analysis and data services to USAID. Further investigation into past performance reviews, past contract values, and any documented issues or commendations would provide a more comprehensive understanding of their track record with the agency.

How does the pricing of this contract compare to similar services procured by USAID or other federal agencies?

Benchmarking the pricing of this $21.6 million Time and Materials contract against similar services is challenging without access to detailed pricing data for comparable contracts. Time and Materials contracts are inherently variable, making direct comparisons difficult. Key factors influencing price include the specific expertise required, the duration of the contract, and the geographic locations where services are performed. To assess value, one would need to compare the average hourly rates for different labor categories against market rates for similar consulting services and analyze the total cost relative to the scope and deliverables. The limited number of bidders (2) also suggests that competitive pressure might not have driven prices to the lowest possible point.

What are the primary risks associated with a Time and Materials contract of this magnitude and duration?

The primary risks associated with a Time and Materials (T&M) contract of this $21.6 million magnitude and 2068-day duration revolve around cost control and scope creep. T&M contracts pay the contractor for the actual time and materials used, which can lead to cost overruns if not meticulously managed. Without a fixed ceiling or well-defined deliverables tied to specific cost points, there's a risk that the contractor may not be incentivized to work efficiently, or that the scope of work could expand without corresponding adjustments to the contract ceiling. Robust oversight, detailed tracking of hours and expenses, and clear communication channels are crucial to mitigate these risks and ensure the government receives good value.

What is the historical spending pattern for Economic Analysis & Data Services by the Agency for International Development?

The provided data focuses on a single contract award. To understand historical spending patterns for Economic Analysis & Data Services by USAID, one would need to analyze procurement data over several fiscal years. This would involve identifying all contracts awarded under relevant NAICS codes (like 541611) or contract descriptions related to economic analysis and data services. Examining trends in contract values, the number of awards, the types of contracts used (e.g., T&M vs. Firm-Fixed-Price), and the primary contractors receiving these awards would reveal patterns. This specific contract, EADS II Follow-On, suggests a sustained need for these services by USAID, potentially indicating a consistent budget allocation for such support.

How does the 'follow-on' nature of this contract impact potential innovation or cost savings?

The 'follow-on' nature of this contract, EADS II, implies that DEVTECH SYSTEMS INC is continuing services previously provided. While this can ensure continuity and leverage existing knowledge, it may also limit opportunities for innovation and cost savings. New contractors might bring fresh perspectives, more efficient methodologies, or advanced technologies that could lead to better outcomes or lower costs. By awarding a follow-on contract to an incumbent, the agency might forgo the potential benefits of a new competitive bidding process that could introduce disruptive innovations or more aggressive pricing from market entrants. However, if the incumbent has been actively innovating and providing excellent value, a follow-on award can be efficient.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1700 N MOORE ST STE 1720, ARLINGTON, VA, 22209

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,339,841

Exercised Options: $22,339,841

Current Obligation: $21,588,650

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,276,642

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0048L

IDV Type: FSS

Timeline