Foreign Assistance Program contract awarded to Research Triangle Institute for over $323 million

Contract Overview

Contract Amount: $32,348,252 ($32.3M)

Contractor: Research Triangle Institute

Awarding Agency: Agency for International Development

Start Date: 2005-02-15

End Date: 2008-09-30

Contract Duration: 1,323 days

Daily Burn Rate: $24.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOREIGN ASSISTANCE PROGRAM

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Agency for International Development obligated $32.3 million to RESEARCH TRIANGLE INSTITUTE for work described as: FOREIGN ASSISTANCE PROGRAM Key points: 1. Contract value suggests a significant investment in foreign aid and development. 2. The competitive nature of the award indicates potential for price discovery and value. 3. Long duration of the contract (over 3 years) may imply complex, ongoing requirements. 4. The 'Other Management Consulting Services' PSC code points to a broad scope of work. 5. Fixed-price contract type can offer cost certainty but may limit flexibility. 6. The award was made by the Agency for International Development, a key player in global development.

Value Assessment

Rating: fair

The contract value of over $323 million for 'Other Management Consulting Services' is substantial. Benchmarking this against similar foreign assistance programs is challenging without more specific service details. However, the fixed-price nature suggests an attempt to control costs. The number of bids (3) is on the lower side for a contract of this magnitude, which could indicate less competitive pricing than ideal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order process, indicating that multiple vendors had the opportunity to bid. With three bidders, there was some level of competition, which is generally positive for price discovery. However, a higher number of bidders would typically lead to more robust competition and potentially better pricing for the government.

Taxpayer Impact: The competitive award process, even with three bidders, suggests that taxpayer funds were likely used more efficiently than in a sole-source scenario. This competition helps ensure that the selected contractor provides services at a reasonable cost.

Public Impact

Beneficiaries include developing nations receiving foreign assistance. Services delivered likely encompass program management, technical assistance, and policy support for foreign aid initiatives. Geographic impact is global, aligning with the Agency for International Development's mission. Workforce implications may include employment for consultants and subject matter experts in international development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) for a contract of this size could suggest potential market concentration or barriers to entry.
The broad 'Other Management Consulting Services' category makes it difficult to assess if the most specialized expertise was secured.
Long contract duration could lead to scope creep or reduced agility if requirements change significantly.

Positive Signals

Awarded competitively, indicating a fair process and potential for value.
Fixed-price contract type provides cost predictability for the agency.
The contractor, Research Triangle Institute, is a known entity in research and development, suggesting a degree of established capability.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically management consulting. The federal government is a significant consumer of these services, particularly for complex program management and policy implementation. The Agency for International Development's spending in this area is crucial for executing its global mission. Comparable spending benchmarks would depend on the specific nature of the foreign assistance programs managed.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Given the large contract value and the nature of management consulting services, it's possible that larger firms or established research institutions like RTI were the primary focus. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight would typically be managed by the Agency for International Development's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is generally facilitated through contract award databases, though specific program details might be sensitive.

Related Government Programs

USAID Foreign Assistance Programs
International Development Services
Management and Consulting Services
Global Health Initiatives
Economic Development Programs

Risk Flags

Potential for limited competition due to contract size/scope.
Risk of scope creep on long-duration contracts.
Difficulty in benchmarking 'Other Management Consulting Services' without specific details.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $32.3 million to RESEARCH TRIANGLE INSTITUTE. FOREIGN ASSISTANCE PROGRAM

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

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 $32.3 million.

What is the period of performance?

Start: 2005-02-15. End: 2008-09-30.

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

The 'Other Management Consulting Services' (NAICS 541618) category is very broad and can encompass a wide range of activities. For this specific contract with Research Triangle Institute (RTI) for the Agency for International Development (USAID), the services likely related to the planning, implementation, monitoring, and evaluation of foreign assistance programs. This could include technical expertise in areas such as public health, economic development, education, democracy and governance, or humanitarian assistance. RTI's background suggests a strong focus on research, data analysis, and evidence-based program design and management to support USAID's development objectives in various countries.

How does the $323 million contract value compare to other similar foreign assistance contracts managed by USAID?

A contract value exceeding $323 million for a single award is substantial, even within the context of federal foreign assistance. USAID manages numerous large-scale programs, and contracts of this magnitude are typically reserved for significant, multi-year initiatives with broad geographic or thematic scope. To provide a precise comparison, one would need to analyze the average contract size for similar 'management consulting' or 'program support' services within USAID's portfolio over comparable timeframes. However, this award clearly represents a major investment in supporting USAID's mission and suggests a critical need for the services rendered.

What are the potential risks associated with a long-duration contract (1323 days) for management consulting services?

Long-duration contracts, such as this 1323-day (approximately 3.6 years) award, present several potential risks. Firstly, the risk of scope creep is elevated, as requirements may evolve significantly over the contract period, potentially leading to cost overruns if not managed carefully. Secondly, maintaining contractor performance and engagement over an extended period can be challenging; initial enthusiasm may wane, or the contractor's key personnel might change. Thirdly, technological advancements or shifts in policy priorities could render the initial scope or approach less relevant by the contract's end. Finally, the government's ability to adapt to new needs or opportunities might be constrained by the existing contractual obligations.

What is Research Triangle Institute's track record with large federal contracts, particularly with USAID?

Research Triangle Institute (RTI) has a well-established track record of securing and performing on large federal contracts, including significant work with USAID. As a prominent non-profit research institute, RTI frequently engages in complex, long-term projects related to international development, global health, and public policy. Their history with USAID likely includes managing various aspects of foreign assistance programs, providing technical expertise, conducting research, and implementing projects in numerous countries. The award of a $323 million contract underscores their capacity and perceived ability to handle large-scale, critical initiatives for the agency.

Given the fixed-price contract type, what is the implication for cost control and contractor incentive?

A Firm Fixed Price (FFP) contract type, like the one used here, places the primary risk of cost overruns on the contractor (Research Triangle Institute). This structure incentivizes the contractor to manage costs efficiently and effectively to maximize profit. For the government (USAID), it provides a high degree of cost certainty, as the total price is established upfront. However, if the scope of work changes significantly, contract modifications may be necessary, potentially impacting the initial price. The FFP structure is generally favored for well-defined requirements where cost risks can be reasonably estimated.

What does the 'NC' (North Carolina) designation signify in the contract details?

The 'NC' designation likely refers to the state where the contractor, Research Triangle Institute (RTI), is located or where the contract's primary place of performance is situated. RTI is headquartered in Research Triangle Park, North Carolina. This information is often included for administrative purposes, such as tracking geographic distribution of federal spending or for state-level economic impact analysis. It does not typically affect the nature of the services provided or the contract's overall objectives.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 04

Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $92,473,199

Exercised Options: $92,473,199

Current Obligation: $32,348,252

Parent Contract

Parent Award PIID: AIDEPPI000400037

IDV Type: IDC

Timeline