Over $347M awarded for professional, administrative, and support services to DAI Global LLC for OTI/Iraq SWIFT II

Contract Overview

Contract Amount: $347,858,499 ($347.9M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2004-02-05

End Date: 2024-03-07

Contract Duration: 7,336 days

Daily Burn Rate: $47.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: PROFESSIONAL, ADMINISTRATIVE AND SUPPORT SERVICES. TASK ORDER FOR OTI/IRAQ SWIFT II

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $347.9 million to DAI GLOBAL LLC for work described as: PROFESSIONAL, ADMINISTRATIVE AND SUPPORT SERVICES. TASK ORDER FOR OTI/IRAQ SWIFT II Key points: 1. Contract awarded to a single, established firm with extensive experience in international development. 2. Significant duration of the contract suggests a long-term need for these services. 3. The contract type, Fixed Price Award Fee, aims to incentivize performance while managing costs. 4. Administrative Management and General Management Consulting Services are critical for program execution. 5. The large award amount indicates a substantial scope of work and impact.

Value Assessment

Rating: good

This contract represents a significant investment in professional and administrative support services. While the total award is substantial, the fixed-price award fee structure suggests an attempt to balance cost control with performance incentives. Benchmarking against similar large-scale international development contracts would provide further insight into value for money, but the duration and scope point to a complex and critical program requiring extensive support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of multiple bidders in a competitive process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the 'competitive' designation is a positive sign for cost-effectiveness.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a market-driven price for the services rendered.

Public Impact

Beneficiaries include the U.S. Agency for International Development (USAID) and potentially populations in Iraq receiving support through the OTI/Iraq SWIFT II program. Services delivered encompass administrative management and general management consulting, crucial for the effective implementation of foreign assistance programs. Geographic impact is primarily focused on Iraq, supporting U.S. foreign policy objectives. Workforce implications include employment for consultants, project managers, and administrative staff supporting the program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long contract duration (over 20 years) raises questions about the adaptability to changing needs and potential for cost overruns if not managed effectively.
The substantial award amount necessitates robust oversight to ensure funds are used for intended purposes and achieve program goals.
Reliance on a single contractor for such a critical and long-term program could pose risks if the contractor's performance falters.

Positive Signals

The competitive award process suggests a degree of market validation for the chosen contractor and service approach.
The fixed-price award fee contract type is designed to align contractor incentives with government objectives, promoting performance.
The contractor, DAI Global LLC, is a well-established entity in international development, suggesting a track record of relevant experience.

Sector Analysis

This contract falls within the Professional, Administrative, and Support Services sector, specifically focusing on management consulting. This is a broad category encompassing a wide range of services essential for government operations and program management. The market for such services is large and competitive, with many firms offering specialized expertise. This particular contract's scale and focus on international development place it within a significant niche of the broader consulting market.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities. DAI Global LLC, as a large prime contractor, may engage small businesses for specialized services, contributing to the small business ecosystem. However, without specific subcontracting plans, the extent of this impact remains to be determined.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Agency for International Development (USAID). As a delivery order under a larger program (OTI/Iraq SWIFT II), there are likely established reporting requirements, performance metrics, and review processes. The fixed-price award fee structure itself implies a level of performance monitoring. Transparency would be enhanced through public contract databases and USAID's own reporting mechanisms for foreign assistance programs.

Related Government Programs

USAID Foreign Assistance Programs
International Development Contracts
Management and Consulting Services
Iraq Reconstruction and Stabilization Efforts

Risk Flags

Long contract duration
High award value
Potential for scope creep
Reliance on a single contractor

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $347.9 million to DAI GLOBAL LLC. PROFESSIONAL, ADMINISTRATIVE AND SUPPORT SERVICES. TASK ORDER FOR OTI/IRAQ SWIFT II

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 $347.9 million.

What is the period of performance?

Start: 2004-02-05. End: 2024-03-07.

What is DAI Global LLC's track record with USAID and similar large-scale international development contracts?

DAI Global LLC is a prominent international development company with a long history of working with USAID and other government agencies on complex projects worldwide. They have managed numerous large-scale contracts focused on economic growth, governance, and stabilization in challenging environments. Their experience typically involves providing technical assistance, capacity building, and program management services. While specific details on past performance metrics for this exact contract are not publicly available, DAI's general reputation and extensive portfolio suggest a substantial capacity to execute such programs. Reviewing USAID's contract award data and Inspector General reports related to DAI's past contracts could offer more granular insights into their performance history and any past issues or commendations.

How does the value of this contract compare to other administrative and support service contracts awarded by USAID?

This contract, with an award value of over $347 million, is substantial and likely represents one of the larger awards within the administrative and support services category for USAID, particularly for a single delivery order. USAID frequently awards large contracts for its global development initiatives, and contracts in the hundreds of millions are not uncommon for multi-year, comprehensive programs. However, the specific nature of 'OTI/Iraq SWIFT II' suggests a focus on a critical, high-priority region, which often commands significant funding. To provide a precise comparison, one would need to benchmark against other OTI (Office of Transition Initiatives) or similar stabilization/reconstruction program contracts, as well as general management consulting services contracts awarded by USAID over comparable timeframes.

What are the primary risks associated with a contract of this duration and value for administrative support services?

The primary risks associated with a contract of this duration (over 20 years) and value ($347M+) include scope creep, cost overruns, contractor performance degradation over time, and the potential for the contracted services to become misaligned with evolving program needs or geopolitical realities. For administrative and support services, risks also include data security breaches, personnel reliability issues, and the challenge of maintaining consistent quality across a long period. Furthermore, a long-term reliance on a single contractor can reduce flexibility and potentially stifle innovation if not actively managed. Robust oversight, clear performance metrics, and mechanisms for contract modification or termination are crucial to mitigate these risks.

How effective are Fixed Price Award Fee (FPAF) contracts in ensuring value for money for complex international development programs?

Fixed Price Award Fee (FPAF) contracts aim to balance cost certainty with performance incentives. The 'fixed price' component provides a ceiling, while the 'award fee' allows the government to reward the contractor for exceeding performance expectations. This structure can be effective in driving high performance on complex projects where outcomes are not entirely predictable, encouraging the contractor to go beyond minimum requirements. However, the effectiveness hinges on the clarity and measurability of the award criteria. If criteria are subjective or poorly defined, it can lead to disputes or the contractor focusing on easily achievable metrics rather than true program impact. For complex international development, FPAF can be a useful tool, but requires diligent government oversight to ensure the award fee truly reflects valuable contributions to program success and taxpayer value.

What is the historical spending trend for administrative and management consulting services by USAID?

USAID historically spends significant amounts on administrative and management consulting services to support its vast portfolio of international development and humanitarian assistance programs. Spending in this category is driven by the need for expertise in program design, implementation, monitoring, evaluation, and logistical support across diverse geographic regions and thematic areas. Trends often reflect shifts in U.S. foreign policy priorities, global events, and the scale of USAID's operations. For instance, periods of increased focus on specific regions or complex challenges like stabilization or pandemic response would likely correlate with higher spending on related consulting and support services. Analyzing USAID's annual reports and budget documents would provide detailed historical spending patterns.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 7600 WISCONSIN AVE STE 200, BETHESDA, MD, 20814

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $4,313,429,066

Exercised Options: $4,313,429,066

Current Obligation: $347,858,499

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDDOTI000300004

IDV Type: IDC

Timeline