USAID's $65M contract for Venezuelan support extended, with significant funding increases

Contract Overview

Contract Amount: $65,085,627 ($65.1M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2005-03-23

End Date: 2011-10-29

Contract Duration: 2,411 days

Daily Burn Rate: $27.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MOD DAI/VENEZUELA; EXT COMPLETION DATE; INCR FUNDING

Plain-Language Summary

Agency for International Development obligated $65.1 million to DAI GLOBAL LLC for work described as: MOD DAI/VENEZUELA; EXT COMPLETION DATE; INCR FUNDING Key points: 1. Contract value increased substantially over its lifecycle, indicating potential scope expansion or cost overruns. 2. The contract's long duration (2411 days) suggests a complex, ongoing need for services. 3. Administrative Management and General Management Consulting Services are broad, requiring scrutiny of specific deliverables. 4. The use of a Cost Plus Fixed Fee (CPFF) contract type can incentivize cost increases. 5. While competed, the long-term nature and potential for modifications warrant ongoing performance monitoring.

Value Assessment

Rating: fair

The contract's initial award value is not provided, making a direct comparison difficult. However, the significant increase in funding over its extended period suggests a substantial rise in costs. Benchmarking against similar long-term, broad administrative support contracts would be necessary to fully assess value for money. The CPFF structure, while allowing flexibility, carries inherent risks of cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The specific number of bidders is not detailed, but the competitive process is a positive sign for price discovery. However, the contract's long duration and potential for modifications mean that the initial competition may not fully reflect the final cost and scope.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, the extended duration and funding increases on this contract warrant close monitoring to ensure continued value.

Public Impact

Beneficiaries include populations in Venezuela requiring administrative and management support services. Services delivered likely encompass program management, logistical support, and potentially technical assistance. Geographic impact is focused on Venezuela and potentially surrounding regions supporting operations. Workforce implications may include local employment opportunities and the engagement of international consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the extended duration and funding increases.
Cost Plus Fixed Fee structure may not provide sufficient incentive for cost control.
Lack of specific performance metrics makes it difficult to assess effectiveness without further detail.

Positive Signals

Awarded through full and open competition, suggesting a robust initial selection process.
Contract has been actively managed and extended, indicating a continued need and perceived value by the agency.
The contractor, DAI GLOBAL LLC, has a history of performing federal contracts.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This is a broad category encompassing a wide range of support functions for government agencies. The market for such services is competitive, with numerous firms capable of providing these capabilities. The contract's value and duration place it as a significant award within this sub-sector.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available in the provided data. Given the nature of the services and the contractor, it is possible that subcontracting opportunities may exist, but this would require further investigation into the contract's specific terms and the contractor's practices.

Oversight & Accountability

Oversight would typically be managed by the Agency for International Development (USAID) contracting officers and program managers. Transparency is dependent on the agency's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would apply to potential fraud, waste, or abuse related to the contract.

Related Government Programs

USAID Development Assistance Programs
International Aid and Humanitarian Assistance
Management and Consulting Services Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Extended contract duration may indicate scope creep or evolving requirements.
Lack of specific performance metrics in summary data hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $65.1 million to DAI GLOBAL LLC. MOD DAI/VENEZUELA; EXT COMPLETION DATE; INCR FUNDING

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 $65.1 million.

What is the period of performance?

Start: 2005-03-23. End: 2011-10-29.

What specific services were delivered under this contract, and how did they evolve over its extended period?

The contract, awarded for Administrative Management and General Management Consulting Services, likely encompassed a range of support activities for USAID's operations in or related to Venezuela. Given the extended duration and funding increases, the scope may have evolved from initial program setup to ongoing management, logistical coordination, and potentially technical advisory roles. Without detailed task orders or performance reports, it is difficult to pinpoint the exact evolution of services. However, such contracts often support the implementation of development projects, humanitarian aid distribution, or capacity-building initiatives. The increase in funding suggests either an expansion of the original program's reach, the addition of new objectives, or adjustments to account for changing operational costs and complexities in the target region.

How does the final cost of this contract compare to initial projections or similar contracts awarded for similar objectives?

The provided data indicates a final obligated amount of $65,008,562.55, significantly higher than any implied initial award value, as the contract was extended and funding increased. A direct comparison to initial projections is not possible without knowing the original award amount and its associated scope. To benchmark this against similar contracts, one would need to identify other USAID or State Department contracts providing extensive administrative and management support in complex or challenging environments, particularly in Latin America. Factors such as the duration, the specific services rendered, and the geopolitical context of Venezuela would be crucial for a meaningful comparison. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can lead to costs exceeding initial estimates if not managed stringently.

What are the key performance indicators (KPIs) used to measure the success of this contract, and has the contractor met them?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. Typically, for contracts involving administrative and management consulting services, KPIs would relate to the efficient execution of program activities, adherence to timelines, effective resource management, stakeholder satisfaction, and the achievement of specific project milestones or development objectives. Given the contract's long duration and significant funding, USAID would have established performance metrics to track progress. Assessing whether the contractor, DAI GLOBAL LLC, has met these KPIs would require access to performance reports, contract modifications, and potentially end-of-period reports. The agency's continued funding and extensions suggest a level of satisfaction, but without explicit KPI data, a definitive assessment of success is not possible.

What is DAI GLOBAL LLC's track record with USAID and other federal agencies, particularly on long-term, high-value contracts?

DAI GLOBAL LLC is a well-established international development company with a significant history of working with USAID and other U.S. federal agencies. They frequently undertake large-scale, long-term projects focused on economic growth, governance, and social development in various countries. Their track record generally includes managing complex programs in challenging environments. For USAID, DAI has been a consistent recipient of contracts, often in the hundreds of millions of dollars, spanning diverse sectors like agriculture, health, education, and democracy and governance. Their experience with long-duration, high-value contracts like this one is extensive, suggesting they possess the organizational capacity and expertise to manage such engagements. However, like any large contractor, performance can vary by specific project, and detailed reviews of individual contract performance would be necessary for a comprehensive assessment.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to DAI GLOBAL LLC, carry inherent risks, especially for large, long-duration engagements. The primary risk is that the contractor has less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if not rigorously managed. For a contract of this magnitude ($65M+) and duration (over 2400 days), the potential for costs to escalate significantly is heightened. Other risks include scope creep, where the project's objectives expand beyond the original intent, leading to increased costs and potentially delayed timelines. Effective oversight, clear definition of allowable costs, and robust performance monitoring are crucial to mitigate these risks and ensure the government receives good value for its investment.

Industry Classification

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

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M/OAA/DCHA/OTI-05-1456

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $390,675,519

Exercised Options: $225,091,294

Current Obligation: $65,085,627

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline