DEVTECH SYSTEMS INC awarded $11.2M contract for administrative management consulting services by USAID

Contract Overview

Contract Amount: $11,223,453 ($11.2M)

Contractor: Devtech Systems Inc

Awarding Agency: Agency for International Development

Start Date: 2002-09-29

End Date: 2018-07-18

Contract Duration: 5,771 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INCREMENTAL FUNDING

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $11.2 million to DEVTECH SYSTEMS INC for work described as: INCREMENTAL FUNDING Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial at 5771 days, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on management consulting. 5. The contract was awarded by the Agency for International Development (USAID), implying a focus on international development projects. 6. The base contract value is $1.945M, with significant incremental funding of $11.2M, a substantial increase. 7. The contract was awarded in 2002 and completed in 2018, spanning over 16 years.

Value Assessment

Rating: fair

The incremental funding of $11.2M represents a significant increase over the initial base award of $1.945M. While the contract ran for over 16 years, the substantial increase in funding suggests either scope expansion or potential cost growth beyond initial projections. Benchmarking this specific contract's value is challenging without more detailed service delivery information and comparable contracts for administrative management consulting within USAID or similar agencies. The Cost Plus Fixed Fee structure warrants scrutiny regarding cost control and efficiency over its long duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, which can lead to better pricing and service quality. However, the details on the number of bidders and the specific evaluation criteria are not provided, making it difficult to fully assess the intensity of the competition and its impact on the final price.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive bids, potentially driving down costs and improving the value received for the funds expended.

Public Impact

Beneficiaries likely include USAID program managers and staff who received administrative and management support. Services delivered focused on administrative management and general management consulting, supporting the agency's operational efficiency. The geographic impact is likely global, given USAID's mission, though specific project locations are not detailed. Workforce implications could include support for USAID's internal operations and potentially the contractors' own workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize profit.
Significant incremental funding ($11.2M) over base award ($1.945M) raises questions about initial cost estimation and potential scope creep.
Long contract duration (over 16 years) increases the risk of cost escalation and potential for reduced agility in adapting to changing needs.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract supported administrative management and general management consulting, essential functions for agency operations.
The contract was successfully completed, indicating delivery of services over its extended period.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise to improve efficiency and effectiveness. The market for such services is large and competitive, with numerous firms offering specialized consulting. Comparable spending benchmarks would typically involve analyzing other large, long-term consulting contracts awarded by federal agencies for similar management support functions.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it offer information on subcontracting plans. Therefore, the direct impact on the small business ecosystem cannot be determined from this data alone. It is possible that larger prime contractors may have utilized small business subcontractors, but this information is not available.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve USAID's contracting officers and program managers responsible for monitoring performance, costs, and compliance. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring contractors to justify costs. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Federal IT Consulting
Professional Services Contracts
Agency Operational Support

Risk Flags

Significant funding increase over base award.
Long contract duration potentially leading to misalignment with current needs.
Cost Plus Fixed Fee structure requires diligent oversight to ensure cost control.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $11.2 million to DEVTECH SYSTEMS INC. INCREMENTAL FUNDING

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 $11.2 million.

What is the period of performance?

Start: 2002-09-29. End: 2018-07-18.

What was the primary objective and scope of the administrative management and general management consulting services provided by DEVTECH SYSTEMS INC to USAID?

The primary objective of this contract was to provide administrative management and general management consulting services to the Agency for International Development (USAID). While the specific scope is not detailed in the provided data, such services typically encompass a wide range of support functions aimed at improving the efficiency, effectiveness, and strategic direction of an agency. This could include areas like organizational analysis, process improvement, strategic planning, human capital management, financial management consulting, and program management support. Given USAID's mission, the consulting likely supported the planning, execution, or oversight of international development programs and projects, ensuring operational continuity and adherence to agency policies and goals.

How did the Cost Plus Fixed Fee (CPFF) contract structure influence the final cost and contractor performance for DEVTECH SYSTEMS INC?

The Cost Plus Fixed Fee (CPFF) structure means that DEVTECH SYSTEMS INC was reimbursed for all allowable costs incurred during the contract performance, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the actual costs incurred. However, it also places a significant burden on the government to meticulously audit and approve all claimed costs to prevent overruns. For DEVTECH, it provided a degree of financial certainty for their profit margin. For USAID, effective oversight and robust cost accounting standards were crucial to ensure value for money and prevent excessive spending, especially given the substantial incremental funding that occurred over the contract's long lifespan.

What does the significant increase from the base award ($1.945M) to the total awarded amount ($11.2M) suggest about the contract's evolution?

The substantial increase from the base award of $1.945M to a total awarded amount of $11.2M, representing an increase of over $9.2M or approximately 475%, strongly suggests significant evolution of the contract's scope, duration, or requirements over its 16-year lifespan. This could be due to several factors: initial underestimation of the full requirement, subsequent needs for expanded services, unforeseen challenges requiring additional consulting, or the addition of new task orders or project phases. Such a large increase warrants scrutiny into the contract modification process, the justification for the expanded scope, and whether subsequent competitions were considered for the additional work.

Given the contract's completion date in 2018, what are the potential implications for assessing its overall success and value for money retrospectively?

Assessing the overall success and value for money retrospectively requires examining the contract's performance against its original objectives and any subsequent modifications. Key factors include whether the delivered consulting services met USAID's needs, contributed to program effectiveness, and were procured at a reasonable cost relative to the benefits achieved. The long duration and significant funding increase necessitate a detailed review of performance metrics, final deliverables, and any post-project evaluations. Without access to USAID's internal assessments or detailed performance reports, a definitive retrospective judgment on value for money is challenging, but the substantial funding growth suggests a need for careful analysis of cost-efficiency and outcome achievement.

How does the long duration (5771 days, approx. 16 years) of this contract impact risk management and adaptability for USAID?

A contract duration of approximately 16 years presents unique risk management and adaptability challenges for an agency like USAID. Risks include potential contractor complacency, institutional knowledge loss within the contractor team, and the increasing likelihood of the contracted services becoming misaligned with evolving agency needs or technological advancements. Adaptability is also a concern; long-term contracts can sometimes stifle innovation or make it difficult to pivot to new strategies or solutions. USAID would have needed robust contract management processes, including regular performance reviews and potential contract modifications, to mitigate these risks and ensure the services remained relevant and effective throughout the contract's extensive period.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,336,199

Exercised Options: $11,336,199

Current Obligation: $11,223,453

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDGEWI000200019

IDV Type: IDC

Timeline