USAID's $22.2M contract with International Resources Group Ltd. for support services shows a long performance period

Contract Overview

Contract Amount: $22,198,759 ($22.2M)

Contractor: International Resources Group Ltd.

Awarding Agency: Agency for International Development

Start Date: 2005-01-12

End Date: 2023-05-17

Contract Duration: 6,699 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: D20054424-OFDA LAC/RISK RED-INCREMENTAL FUNDS TO IRG

Plain-Language Summary

Agency for International Development obligated $22.2 million to INTERNATIONAL RESOURCES GROUP LTD. for work described as: D20054424-OFDA LAC/RISK RED-INCREMENTAL FUNDS TO IRG Key points: 1. The contract's extended duration suggests a need for sustained support services. 2. Analysis of value for money requires benchmarking against similar long-term service contracts. 3. Competition dynamics for long-duration support services can vary, impacting price discovery. 4. Risk indicators may include contractor performance over the extended period and evolving program needs. 5. Performance context is crucial, given the contract's span from 2005 to 2023. 6. Sector positioning is within 'All Other Support Services', a broad category.

Value Assessment

Rating: fair

Benchmarking the value for money on this contract is challenging due to its long duration and the broad 'All Other Support Services' category. The cost-plus-fixed-fee (CPFF) structure means costs are reimbursed, plus a fixed fee, which can incentivize cost control but also requires careful oversight. Without specific performance metrics or comparable contract data, assessing whether the $22.2 million spent represents a good value is difficult. The incremental funding suggests the contract evolved over time, potentially impacting the initial value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to compete. This level of competition is generally favorable for price discovery and achieving competitive pricing. However, the specific number of bidders and the details of the solicitation are not provided, which limits a deeper analysis of the competitive landscape. For long-term service contracts, the initial competition sets the stage, but ongoing performance and potential modifications can influence the overall value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more reasonable pricing and better service quality.

Public Impact

The primary beneficiaries are likely USAID's international development programs, which received essential support services. Services delivered would have supported various aspects of program implementation, administration, and potentially technical assistance. The geographic impact is likely international, aligning with USAID's mission to provide foreign aid and development assistance. Workforce implications could include direct hires by the contractor and indirect support to program staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2005-2023) increases the risk of scope creep and potential for cost overruns if not managed diligently.
The 'All Other Support Services' category is broad, making it difficult to assess the specific value and necessity of all services rendered.
Cost-plus-fixed-fee contracts require robust oversight to ensure costs are reasonable and the fixed fee remains appropriate over the contract's life.
Incremental funding over such a long period can obscure the total value and original intent of the contract.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price at the outset.
The sustained engagement with International Resources Group Ltd. may indicate satisfactory performance and a strong working relationship.
The contract's long duration implies a consistent need for the services provided, suggesting their ongoing relevance to USAID's mission.

Sector Analysis

The 'All Other Support Services' category is vast and encompasses a wide range of professional, scientific, and technical services. Contracts within this sector often support government agencies in areas like program management, administrative support, and specialized consulting. Benchmarking spending in this category is challenging due to its heterogeneity. However, government spending on support services is substantial, reflecting the need for external expertise and capacity to execute complex missions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As a large definitive contract, it is possible that subcontracting opportunities were pursued, but without specific data, the impact on the small business ecosystem cannot be determined. The absence of explicit small business considerations in the provided data suggests this contract may not have been specifically structured to maximize small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, rigorous financial oversight is essential to ensure that costs incurred are reasonable and allocable to the contract, and that the fixed fee is earned. Transparency would be enhanced by public reporting of performance reviews and audits. The Inspector General of USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USAID Program Support Contracts
International Development Assistance Services
Government Support Services
Cost-Plus-Fixed-Fee Contracts
Long-Term Service Agreements

Risk Flags

Long contract duration
Broad service category
Cost-reimbursement contract type requires robust oversight
Incremental funding over extended period

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $22.2 million to INTERNATIONAL RESOURCES GROUP LTD.. D20054424-OFDA LAC/RISK RED-INCREMENTAL FUNDS TO IRG

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL RESOURCES GROUP LTD..

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 $22.2 million.

What is the period of performance?

Start: 2005-01-12. End: 2023-05-17.

What specific types of support services were provided under this contract?

The contract falls under the NAICS code 561990, 'All Other Support Services,' which is a broad category. While specific details are not provided in the summary data, such services typically encompass a wide range of activities supporting program operations. This could include administrative support, logistical assistance, technical expertise, project management, financial management, and potentially specialized consulting related to international development projects. The long duration and incremental funding suggest the scope may have evolved over time to meet changing programmatic needs of the Agency for International Development (USAID).

How does the total contract value of $22.2 million compare to similar long-term support service contracts awarded by USAID?

Comparing the $22.2 million total value to similar long-term support service contracts is difficult without more specific data on the services rendered and the contract duration. However, for contracts spanning over 18 years (from 2005 to 2023), this value represents an average annual expenditure of approximately $1.23 million. This figure needs to be contextualized by the complexity and criticality of the services provided. USAID often awards large, multi-year contracts for international development support, and this value could be within a typical range for significant, long-duration engagements, especially those involving complex international operations.

What are the primary risks associated with a contract of this duration and type (Cost Plus Fixed Fee)?

A primary risk with a contract spanning nearly two decades is the potential for scope creep, where the services required expand beyond the original intent without commensurate adjustments to cost or fee. For Cost Plus Fixed Fee (CPFF) contracts, there's a risk that the contractor may not be sufficiently incentivized to control costs, as the government reimburses allowable expenses. The fixed fee, while intended to provide profit, needs careful management to ensure it remains fair and doesn't become excessive over time due to inflation or unforeseen circumstances. Additionally, the government bears the risk of cost overruns if not adequately managed. Contractor performance degradation over such a long period is also a concern.

What does the 'DEFINITIVE CONTRACT' award type signify in terms of flexibility and commitment?

A 'Definitive Contract' is a fixed-price or cost-reimbursement contract that is fully funded and has a specified contract line item number (CLIN) for each item. It signifies a firm commitment by the government to purchase specified goods or services. For a contract like this, which also received incremental funding, it means that while the overall agreement was established, funding was released in stages. This type of contract provides more certainty for the contractor regarding the government's intent and commitment compared to, for example, a basic ordering agreement or letter contract, and it typically involves a more detailed statement of work and terms.

How has spending in the 'All Other Support Services' (NAICS 561990) sector evolved for USAID over the contract's lifespan?

Analyzing the evolution of USAID's spending in NAICS 561990 requires access to historical procurement data beyond this single contract. Generally, spending in broad support service categories can fluctuate based on agency priorities, budget allocations, and the perceived need for external expertise. For USAID, which operates globally, there's a consistent need for support services to manage and implement complex development and humanitarian programs. Spending in this sector might have increased over the contract's lifespan due to growing global challenges requiring development assistance, or it could have shifted as USAID adapted its operational models and relied more or less on contracted support.

What is the significance of the contract being a 'COST PLUS FIXED FEE' type?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred in performing the contract, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined, or when there is uncertainty about the costs involved, making fixed-price contracts less suitable. For the government, the CPFF structure provides flexibility but requires diligent oversight to ensure costs are reasonable and allocable. The fixed fee provides the contractor with a defined profit margin, theoretically incentivizing efficient performance, but it doesn't directly tie profit to cost savings as a fixed-price incentive contract would.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M/OAA/DCHA/DOFDA-05-1518

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Research Triangle Institute

Address: 1211 CONN AVE NW STE 700, WASHINGTON, DC, 20036

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $221,732,374

Exercised Options: $118,126,023

Current Obligation: $22,198,759

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline