USAID's $40M contract for Latin America disaster assistance awarded to International Resources Group Ltd

Contract Overview

Contract Amount: $39,990,659 ($40.0M)

Contractor: International Resources Group Ltd.

Awarding Agency: Agency for International Development

Start Date: 2009-06-20

End Date: 2023-06-12

Contract Duration: 5,105 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONTRACTOR SHALL PROVIDE SERVICES TO IMPLEMENT OFDA/LAC'S REGIONAL DISASTER ASSISTANCE PROGRAM (RDAP), WHICH PROVIDES PROGRAM MANAGEMENT, TECHNICAL ASSISTANCE, TRAINING AND DISASTER RESPONSE SUPPORT THROUGHOUT LATIN AMERICA AND THE CARIBBEAN.TAS::72 1035::TAS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $40.0 million to INTERNATIONAL RESOURCES GROUP LTD. for work described as: CONTRACTOR SHALL PROVIDE SERVICES TO IMPLEMENT OFDA/LAC'S REGIONAL DISASTER ASSISTANCE PROGRAM (RDAP), WHICH PROVIDES PROGRAM MANAGEMENT, TECHNICAL ASSISTANCE, TRAINING AND DISASTER RESPONSE SUPPORT THROUGHOUT LATIN AMERICA AND THE CARIBBEAN.TAS::72 1035::TAS Key points: 1. Contract provides critical disaster response and program management support across Latin America and the Caribbean. 2. The contract's duration spans over 14 years, indicating long-term program needs. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The contractor, International Resources Group Ltd., has a significant tenure with this program. 6. The North American Industry Classification System (NAICS) code 561990 covers 'All Other Support Services', a broad category. 7. The contract's value is substantial, reflecting the scale and complexity of regional disaster assistance.

Value Assessment

Rating: good

The contract value of approximately $40 million over 14 years suggests a significant investment in regional disaster preparedness and response. Benchmarking this against similar long-term international development contracts is challenging due to the specialized nature of disaster assistance. However, the Cost Plus Fixed Fee (CPFF) structure implies that the contractor is reimbursed for allowable costs plus a fixed fee, which can be efficient if costs are well-managed. The fixed fee component aims to provide an incentive for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders (no) suggests a reasonable level of competition for this specialized service. A competitive bidding process is generally expected to lead to more favorable pricing and better service offerings for the government.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs and improving the quality of services through market forces.

Public Impact

Beneficiaries include populations across Latin America and the Caribbean vulnerable to natural disasters. Services delivered encompass program management, technical assistance, training, and direct disaster response support. Geographic impact is broad, covering the entire Latin America and Caribbean region. Workforce implications include potential employment for technical experts, program managers, and disaster response personnel, both domestically and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The long contract duration (over 14 years) necessitates continuous performance monitoring to ensure sustained effectiveness.
The broad scope of 'All Other Support Services' could lead to scope creep if not clearly defined and managed.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely yielded value.
The contractor has a long tenure, suggesting a track record of performance and institutional knowledge in disaster assistance.
The contract addresses a critical need for disaster preparedness and response in a vulnerable region.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on support services for international development and disaster relief. The market for such services involves specialized firms with expertise in program management, logistics, and technical assistance in complex geopolitical environments. USAID's spending in this area is crucial for its foreign policy objectives related to stability and humanitarian aid. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of disaster response contracts, but the scale of this award reflects significant program requirements.

Small Business Impact

There is no indication that this contract included small business set-asides. The nature of the specialized services required for regional disaster assistance may limit the direct participation of small businesses as prime contractors. However, the prime contractor, International Resources Group Ltd., may engage small businesses as subcontractors for specific components of the work, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates robust financial oversight to verify allowable costs and ensure the fixed fee remains appropriate. Transparency is generally maintained through contract reporting requirements, though specific details of program execution may be sensitive. The Inspector General of USAID would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

USAID Disaster Assistance Programs
International Development Assistance
Latin America and Caribbean Regional Programs
Emergency Response Services

Risk Flags

Long contract duration may increase risk of scope creep and require sustained oversight.
Cost Plus Fixed Fee structure necessitates rigorous cost monitoring to prevent overruns.
Geopolitical and environmental volatility in the region presents inherent risks to program delivery.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $40.0 million to INTERNATIONAL RESOURCES GROUP LTD.. CONTRACTOR SHALL PROVIDE SERVICES TO IMPLEMENT OFDA/LAC'S REGIONAL DISASTER ASSISTANCE PROGRAM (RDAP), WHICH PROVIDES PROGRAM MANAGEMENT, TECHNICAL ASSISTANCE, TRAINING AND DISASTER RESPONSE SUPPORT THROUGHOUT LATIN AMERICA AND THE CARIBBEAN.TAS::72 1035::TAS

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL RESOURCES GROUP LTD..

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 $40.0 million.

What is the period of performance?

Start: 2009-06-20. End: 2023-06-12.

What is the historical spending trend for this specific contract or similar disaster assistance programs managed by USAID?

Historical spending data for this specific contract, identified by its unique award details, would reveal the annual expenditure patterns over its 14-year lifespan. While the total award is $40 million, actual spending may have fluctuated based on program needs, disaster events, and funding allocations. Analyzing past spending can indicate the consistency of program execution and identify periods of heightened activity. For similar disaster assistance programs managed by USAID, trends often show increased spending during periods of significant natural disasters or geopolitical instability in the covered regions. However, without access to detailed historical financial reports for this specific contract, a precise trend analysis is not possible. General USAID budget allocations for disaster relief and humanitarian assistance provide a broader context, often reflecting global needs and U.S. foreign policy priorities.

How does the performance of International Resources Group Ltd. on this contract compare to industry benchmarks for disaster response services?

Assessing the performance of International Resources Group Ltd. (IRG) on this contract requires access to performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) data, which are not publicly available in this context. Industry benchmarks for disaster response services typically focus on response times, effectiveness of aid delivery, cost-efficiency, and stakeholder satisfaction. IRG's long tenure (over 14 years) on this contract suggests a level of consistent performance that has met USAID's requirements. However, without specific performance metrics or comparative data from other contractors performing similar services for USAID or other agencies, a direct comparison is speculative. Factors such as the complexity of the region, the scale of disasters encountered, and the specific objectives set by USAID would heavily influence performance outcomes.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude ($40 million) and duration (over 14 years) revolve around cost control and contractor incentive alignment. While the fixed fee provides a ceiling for contractor profit, the 'cost' portion means the government reimburses allowable expenses. This structure can incentivize contractors to incur higher costs if the oversight is not rigorous, as their fee remains constant regardless of the total cost. For a long-duration contract, there's also a risk of scope creep, where the project's objectives expand beyond the original agreement, potentially increasing costs without a corresponding adjustment to the fixed fee or requiring contract modifications. Ensuring that 'allowable costs' are strictly defined and audited is crucial. Furthermore, the long timeframe increases the risk of unforeseen geopolitical, economic, or environmental changes impacting program delivery and costs.

What is the potential impact of this contract on the stability and resilience of communities in Latin America and the Caribbean?

This contract has a direct and significant potential impact on the stability and resilience of communities in Latin America and the Caribbean by providing essential disaster assistance and program management. By supporting USAID's Regional Disaster Assistance Program (RDAP), the contractor helps to strengthen local capacities for disaster preparedness, response, and recovery. This includes providing technical assistance for risk reduction strategies, training local emergency responders, and offering support during and after natural disasters like hurricanes, earthquakes, and floods. Improved disaster management can mitigate loss of life, reduce economic damage, and prevent displacement, thereby contributing to greater community stability and long-term resilience against future shocks. The program's success is crucial for fostering self-sufficiency and reducing reliance on external aid over time.

How does the geographic scope (Latin America and the Caribbean) influence the complexity and cost of delivering these disaster assistance services?

The broad geographic scope encompassing Latin America and the Caribbean significantly increases the complexity and potential cost of delivering disaster assistance services. This region is characterized by diverse environmental conditions, varying levels of infrastructure development, different political landscapes, and multiple cultural and linguistic contexts. Responding to disasters across such a wide area requires sophisticated logistical planning, adaptable operational strategies, and the ability to navigate complex local regulations and relationships. Costs are impacted by the need for regional presence, travel expenses, coordination across multiple countries, and potentially higher security costs in certain areas. Furthermore, the frequency and intensity of natural disasters vary across the region, requiring a flexible and responsive support structure that can be deployed rapidly to different locations, adding to the overall operational burden and expense.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support 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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Research Triangle Institute

Address: 1211 CONNECTICUT AVE NW STE 700, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $39,990,659

Exercised Options: $39,990,659

Current Obligation: $39,990,659

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline