USAID's $338M contract for foreign assistance consulting services awarded non-competitively

Contract Overview

Contract Amount: $338,527,464 ($338.5M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Agency for International Development

Start Date: 2006-07-31

End Date: 2011-07-31

Contract Duration: 1,826 days

Daily Burn Rate: $185.4K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TAS::72 1000::TAS FOREIGN ASSISTANCE PROGRAM

Plain-Language Summary

Agency for International Development obligated $338.5 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: TAS::72 1000::TAS FOREIGN ASSISTANCE PROGRAM Key points: 1. Contract awarded non-competitively, raising questions about price discovery and potential value. 2. Significant duration of over 5 years suggests a long-term need for these services. 3. The 'Other Management Consulting Services' NAICS code is broad, potentially encompassing a wide range of activities. 4. Lack of disclosed domestic awardees makes direct comparison and accountability challenging. 5. The contract's value is substantial, representing a significant investment in foreign assistance support. 6. Time and Materials pricing structure can lead to cost overruns if not closely managed.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is difficult due to the non-competitive award and undisclosed domestic awardees. The Time and Materials pricing model, while flexible, carries inherent risks of cost escalation without strong oversight. Without comparable contract data or a competitive bidding process, it's challenging to definitively assess if the government received optimal value for the $338 million spent over its five-year duration. The broad scope of 'Other Management Consulting Services' further complicates a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, indicating a sole-source or limited competition scenario. The specific reasons for this approach are not detailed, but it bypasses the standard full and open competition process. This lack of competition means that multiple potential vendors were not evaluated, and the government did not benefit from the price reductions and service innovations that typically arise from a competitive environment.

Taxpayer Impact: The absence of competition for a contract of this magnitude means taxpayers may have paid a premium. Without bids from other firms, there's less pressure on the awarded contractor to offer the most cost-effective solution.

Public Impact

Beneficiaries include the Agency for International Development (USAID) in its mission to advance U.S. foreign policy interests. Services delivered likely support the planning, implementation, and oversight of various foreign assistance programs. Geographic impact is global, as USAID operates in numerous countries to provide development and humanitarian assistance. Workforce implications include the potential engagement of specialized consultants to support USAID's complex international operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits opportunities for other qualified firms and potentially higher costs.
Time and Materials contract type can lead to uncontrolled cost growth without stringent oversight.
Broad service category ('Other Management Consulting Services') may lack specific performance metrics for precise evaluation.
Undisclosed domestic awardees obscure accountability and prevent public scrutiny of contractor performance.
Long contract duration (5 years) increases the risk of vendor lock-in and reduced adaptability to changing needs.

Positive Signals

Contract supports critical foreign assistance programs, aligning with U.S. foreign policy objectives.
The substantial value suggests a significant and ongoing need for specialized consulting expertise.
Awarded to a domestic entity, implying adherence to U.S. contracting regulations.
The contract duration indicates a stable, long-term partnership for sustained support.

Sector Analysis

The 'Other Management Consulting Services' sector is vast and encompasses a wide array of advisory and support functions for government agencies. This contract likely falls within the broader professional services market, which is a significant component of federal spending. Comparable spending benchmarks are difficult to establish without knowing the specific services rendered, but consulting services represent billions in annual federal outlays across various agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided for this contract. As a non-competitively awarded contract, it is less likely to have specific provisions designed to benefit small businesses unless explicitly mandated. The absence of this information suggests that small business participation may not have been a primary consideration in the award process.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Agency for International Development (USAID). Given the non-competitive nature and the Time and Materials pricing, robust oversight is crucial to ensure cost control and performance. Transparency is limited due to the undisclosed awardees and the lack of competitive justification. The Inspector General's office for USAID would likely have jurisdiction for audits and investigations if concerns arise regarding waste, fraud, or abuse.

Related Government Programs

Foreign Assistance Programs
Management and Consulting Services
USAID Contracts
Federal Professional Services
Delivery Orders

Risk Flags

Non-competitive award
Time and Materials pricing
Undisclosed awardee
Broad service category

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $338.5 million to DOMESTIC AWARDEES (UNDISCLOSED). TAS::72 1000::TAS FOREIGN ASSISTANCE PROGRAM

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

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 $338.5 million.

What is the period of performance?

Start: 2006-07-31. End: 2011-07-31.

What specific types of 'Other Management Consulting Services' were procured under this contract?

The provided data does not specify the exact nature of the 'Other Management Consulting Services.' This broad category (NAICS 541618) can include a wide range of activities such as organizational analysis, strategic planning, process improvement, program management support, and policy development. For USAID, these services likely relate to the planning, execution, monitoring, and evaluation of its global development and humanitarian assistance programs. Without further details or access to the contract's statement of work, the precise services remain undefined, making it difficult to assess their necessity and effectiveness.

Why was this contract awarded non-competitively?

The data indicates a 'NON-COMPETITIVE DELIVERY ORDER' award. Federal procurement regulations allow for non-competitive awards under specific circumstances, such as when only one responsible source exists, or in cases of urgent need where competition is not feasible. However, without additional documentation or justification from the Agency for International Development (USAID), the precise rationale for bypassing full and open competition remains unclear. This lack of competition raises concerns about potential limitations in price negotiation and the exploration of alternative solutions that a competitive process might have yielded.

How does the Time and Materials (T&M) pricing structure impact cost control for this contract?

The Time and Materials (T&M) pricing structure means the contractor is reimbursed for direct labor hours at specified hourly rates and for the actual cost of materials. While T&M contracts offer flexibility, they carry a significant risk of cost overruns if not managed diligently. For a contract valued at $338 million over five years, effective oversight by USAID is critical. This includes closely monitoring labor hours, ensuring rates are reasonable, scrutinizing material costs, and establishing clear ceilings or task order limitations to prevent uncontrolled spending. Without robust oversight, T&M contracts can become significantly more expensive than fixed-price alternatives.

What is the significance of the contract's long duration (1826 days)?

A duration of 1826 days, approximately five years, indicates a long-term, strategic need for the consulting services provided to USAID. This extended period suggests that the services are integral to the ongoing operations and objectives of the agency's foreign assistance programs. While a long duration can provide stability and allow for the development of deep expertise, it also necessitates careful contract management to ensure continued relevance and value. It also raises the possibility of vendor lock-in, where the agency becomes heavily reliant on a single provider, potentially limiting future flexibility or the adoption of new approaches.

What are the implications of 'DOMESTIC AWARDEES (UNDISCLOSED)' for accountability?

The designation 'DOMESTIC AWARDEES (UNDISCLOSED)' significantly hinders accountability and transparency. While it confirms the contractor is a U.S. entity, the lack of specific identification prevents the public, watchdog groups, and even other government entities from easily verifying the contractor's identity, track record, and performance history. This obscurity makes it challenging to assess potential conflicts of interest, compare the contractor's performance to industry peers, or hold them directly accountable for any shortcomings. Robust public disclosure of awardees is a cornerstone of effective government oversight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $338,593,161

Exercised Options: $338,593,161

Current Obligation: $338,527,464

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDDFDI000500221

IDV Type: IDC

Timeline