USAID's $29.5M Global Health Support Initiative contract awarded to IAP World Services, Inc. for administrative management

Contract Overview

Contract Amount: $29,529,668 ($29.5M)

Contractor: IAP World Services, Inc.

Awarding Agency: Agency for International Development

Start Date: 2007-09-28

End Date: 2012-08-08

Contract Duration: 1,776 days

Daily Burn Rate: $16.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: GLOBAL HEALTH SUPPORT INITIATIVE - 1 (GHSI-1)

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Agency for International Development obligated $29.5 million to IAP WORLD SERVICES, INC. for work described as: GLOBAL HEALTH SUPPORT INITIATIVE - 1 (GHSI-1) Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract duration was 1776 days, spanning from September 2007 to August 2012. 3. Awarded as a definitive contract with a Cost Plus Fixed Fee pricing structure. 4. The contract was not available for competition, indicating a sole-source award. 5. The primary place of performance was Florida. 6. The contract value was approximately $29.5 million over its lifecycle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable contract data for similar global health support initiatives with administrative management focus. The Cost Plus Fixed Fee structure can sometimes lead to higher costs if not managed tightly, but it allows for flexibility in evolving project needs. Without detailed performance metrics or a competitive bidding process, assessing the true value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances necessitate a direct award. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that a competitive process might have yielded.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to leverage market competition to secure the most cost-effective solution. This can potentially lead to higher overall spending compared to a competitively bid contract.

Public Impact

The contract supported global health initiatives managed by the Agency for International Development (USAID). Services provided were administrative management and general management consulting. The geographic impact was global, aligning with USAID's international development mission. The contract likely supported a workforce involved in managing and executing global health programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for cost efficiency.
Cost Plus Fixed Fee contracts require robust oversight to prevent cost overruns.
Sole-source awards can limit the government's access to innovative solutions from a broader market.

Positive Signals

The contract was awarded to a known entity, IAP World Services, Inc., suggesting a potentially established relationship or specific expertise.
The duration of the contract (nearly 5 years) indicates a sustained need for the services provided.
The focus on global health support aligns with critical U.S. foreign policy and humanitarian objectives.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is crucial for government operations, providing expertise that agencies may not possess internally. The market for such services is large and diverse, with many firms capable of providing these functions. However, the sole-source nature of this award limits insights into how it compares to broader market spending for similar administrative support in global health.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not readily available. As a sole-source award, it is less likely to have been specifically targeted for small business participation unless the sole-source contractor itself is a small business or has specific subcontracting requirements mandated. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would have been the responsibility of the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring would be essential to ensure that costs were reasonable and that the contractor met its obligations. Transparency would depend on USAID's internal reporting and any public disclosures made regarding the contract's performance and expenditures.

Related Government Programs

USAID Global Health Programs
Administrative Management Consulting Services
International Development Contracts

Risk Flags

Sole-source award limits competitive pricing.
Cost Plus Fixed Fee requires diligent oversight to manage costs.
Lack of detailed performance data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $29.5 million to IAP WORLD SERVICES, INC.. GLOBAL HEALTH SUPPORT INITIATIVE - 1 (GHSI-1)

Who is the contractor on this award?

The obligated recipient is IAP WORLD SERVICES, 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 $29.5 million.

What is the period of performance?

Start: 2007-09-28. End: 2012-08-08.

What specific global health initiatives did this contract support?

The provided data indicates the contract supported 'Global Health Support Initiative - 1 (GHSI-1)' managed by the Agency for International Development (USAID). While the contract's primary function was administrative management and general management consulting, the specific global health programs it underpinned are not detailed in the available information. These could range from disease prevention and treatment programs to health system strengthening efforts in various countries. The administrative support likely facilitated the operational aspects of these programs, such as logistics, financial management, and personnel coordination, enabling USAID to effectively implement its global health agenda.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) pricing structure is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs plus a fixed amount of profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility. Compared to Firm-Fixed-Price (FFP) contracts, CPFF can lead to higher costs for the government if not managed diligently, as the contractor has less incentive to control costs beyond what is necessary to complete the work. However, it provides greater flexibility and can be advantageous for complex, research-oriented, or evolving projects where defining a fixed price upfront is impractical. For administrative management services, FFP might be more common if the scope is very well-defined, but CPFF allows for adaptation to changing global health needs.

What are the potential risks associated with a sole-source award for administrative support services?

Sole-source awards, like the one for GHSI-1, carry inherent risks. The primary risk is the lack of price competition, which can lead to the government paying a higher price than if the contract had been competed. This reduces the government's leverage to negotiate favorable terms and potentially miss out on innovative solutions or efficiencies offered by other qualified contractors. Furthermore, without the vetting process of a competitive bid, there's a risk that the selected contractor may not be the most capable or cost-effective option available in the market. This can also create a perception of favoritism or a lack of transparency, potentially undermining public trust in government procurement processes.

What was the historical spending pattern for global health support under USAID prior to or during this contract period?

Analyzing historical spending patterns for USAID's global health support requires access to detailed budget and expenditure data over multiple fiscal years. The GHSI-1 contract, valued at approximately $29.5 million over nearly five years, represents a portion of USAID's overall investment in global health. USAID is a major contributor to global health initiatives, funding programs related to HIV/AIDS, malaria, tuberculosis, maternal and child health, and pandemic preparedness. Spending in these areas can fluctuate based on global health priorities, emerging crises, and congressional appropriations. Without specific historical data for the period 2007-2012, it's difficult to place this $29.5 million in precise context relative to total USAID global health spending, but it signifies a substantial commitment to administrative and management support for these critical functions.

How did the administrative management services provided by IAP World Services, Inc. contribute to the effectiveness of USAID's global health programs?

The effectiveness of administrative management services provided by IAP World Services, Inc. under the GHSI-1 contract would be measured by their ability to streamline operations, ensure compliance, and facilitate the efficient execution of USAID's global health programs. This includes managing contracts, coordinating logistics, processing financial transactions, and providing general administrative support. Effective administrative support allows program managers and technical experts to focus on core program delivery rather than operational overhead. While the direct impact on health outcomes is indirect, robust administrative functions are crucial for the successful implementation of complex, large-scale global health initiatives, ensuring resources are used effectively and programs meet their objectives on time and within budget.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M/OAA/GH/POP-07-1652

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: IAP Global Services, LLC (UEI: 079492183)

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $239,564,706

Exercised Options: $204,091,876

Current Obligation: $29,529,668

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline