USAID's $374M DELIVER II Task Order to John Snow, Inc. for Technical Services, Awarded Non-Competitively

Contract Overview

Contract Amount: $374,383,496 ($374.4M)

Contractor: John Snow, Incorporated

Awarding Agency: Agency for International Development

Start Date: 2006-09-29

End Date: 2013-04-30

Contract Duration: 2,405 days

Daily Burn Rate: $155.7K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DELIVER II TASK ORDER AGREEMENTTAS::72 1037::TAS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $374.4 million to JOHN SNOW, INCORPORATED for work described as: DELIVER II TASK ORDER AGREEMENTTAS::72 1037::TAS Key points: 1. Significant contract value of $374M highlights substantial investment in technical services. 2. Non-competitive award raises questions about price discovery and potential for better value. 3. Long duration (2006-2013) suggests a sustained need but also potential for scope creep. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct sector benchmarks difficult.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure can incentivize cost escalation. Without competitive bidding, it's difficult to assess if the $374M price reflects fair market value compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

Awarded as a non-competitive delivery order, this limits price discovery. The absence of competition means potential savings were likely forgone, as there was no market pressure to offer the lowest possible price.

Taxpayer Impact: Taxpayers may have overpaid due to the lack of competitive bidding, as the agency did not leverage market forces to secure the best value.

Public Impact

Public funds totaling $374M were allocated without open competition, potentially impacting transparency. The long contract period suggests a critical, ongoing need for these services by USAID. The broad nature of the services provided makes it challenging for the public to assess specific outcomes or value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award
Broad service category
Cost-plus contract type

Positive Signals

Long-term engagement indicates agency reliance and potential for stable service delivery

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Benchmarking is challenging without more specific service details, but large contracts in professional services often range from 5-15% of total agency operating budgets.

Small Business Impact

The contract data indicates the awardee is John Snow, Incorporated, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific task order.

Oversight & Accountability

The non-competitive nature of this award warrants scrutiny. USAID should have robust internal controls and justification processes for sole-source awards to ensure they are necessary and provide fair value.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Lack of competition
Potential for cost overruns (CPFF)
Broad and undefined service category
Long contract duration without clear milestones
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $374.4 million to JOHN SNOW, INCORPORATED. DELIVER II TASK ORDER AGREEMENTTAS::72 1037::TAS

Who is the contractor on this award?

The obligated recipient is JOHN SNOW, INCORPORATED.

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 $374.4 million.

What is the period of performance?

Start: 2006-09-29. End: 2013-04-30.

What specific technical services were provided under DELIVER II, and how did they align with USAID's mission objectives?

The DELIVER II Task Order Agreement was for 'All Other Professional, Scientific, and Technical Services.' While the specific deliverables are not detailed here, such services typically support agency operations, program implementation, or research. Understanding the precise nature of these services is crucial to evaluating their alignment with USAID's mission and assessing whether the $374M expenditure was justified and effective in achieving intended outcomes.

What was the justification for awarding this significant contract non-competitively, and were alternative solutions considered?

The justification for a non-competitive award is critical for accountability. Agencies typically require detailed documentation outlining why full and open competition was not feasible, such as a unique capability held by the contractor or an urgent need. Without this justification, it's impossible to assess if USAID adequately explored alternatives or if this award represented the best use of taxpayer funds, potentially indicating a missed opportunity for cost savings.

How was the 'fixed fee' component of the Cost Plus Fixed Fee (CPFF) contract determined, and did it adequately incentivize cost control?

In a CPFF contract, the fixed fee is negotiated upfront and represents the contractor's profit. Determining this fee requires careful analysis of the anticipated effort and risk. If the fee was set too high or if the 'cost plus' element allowed for excessive overhead, taxpayers may have borne unnecessary costs. Effective oversight would ensure the fee was reasonable and that the contractor was motivated to manage costs efficiently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M/OAA/GH/POP-06-944

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 44 FARNSWORTH ST FL 7, BOSTON, MA, 02210

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,373,714,430

Exercised Options: $2,373,714,430

Current Obligation: $374,383,496

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDGPOI000600007

IDV Type: IDC

Timeline