USAID's $15.7M Foreign Assistance Program Awarded to IBM for Consulting Services
Contract Overview
Contract Amount: $15,679,499 ($15.7M)
Contractor: International Business Machines Corporation
Awarding Agency: Agency for International Development
Start Date: 2004-12-03
End Date: 2012-01-19
Contract Duration: 2,603 days
Daily Burn Rate: $6.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FOREIGN ASSISTANCE PROGRAM
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523
Plain-Language Summary
Agency for International Development obligated $15.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: FOREIGN ASSISTANCE PROGRAM Key points: 1. IBM secured a significant contract for administrative management and general management consulting services. 2. The contract was awarded competitively, suggesting a degree of price discovery. 3. The duration of the contract (2603 days) indicates a long-term engagement. 4. The total award value of $15.7M warrants scrutiny for efficiency and value for money.
Value Assessment
Rating: fair
The contract value of $15.7M for consulting services over approximately 7 years needs to be benchmarked against similar government contracts for management consulting. Without specific per-unit cost data, a direct comparison is difficult, but the overall value suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. This competitive process is expected to have facilitated price discovery and potentially secured a more favorable price for the government.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair value, though ongoing monitoring is crucial to ensure continued cost-effectiveness throughout the contract's life.
Public Impact
Foreign aid programs directly impact international relations and development goals. Consulting services can influence the effectiveness and efficiency of aid delivery. The use of a large corporation like IBM may raise questions about opportunities for smaller, specialized firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to scope creep or outdated services.
- Lack of specific performance metrics makes value assessment challenging.
- High total award value requires careful oversight.
Positive Signals
- Competitive award process suggests potential for good value.
- Awarded by a key agency (USAID) for critical foreign assistance.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically management consulting. Government spending in this sector is substantial, and benchmarks for consulting services vary widely based on scope and duration.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Large contracts awarded to major corporations like IBM can sometimes limit opportunities for small and medium-sized businesses in the consulting space.
Oversight & Accountability
Oversight by the Agency for International Development is critical to ensure the effective and efficient use of funds. Regular performance reviews and audits would be necessary to hold IBM accountable for deliverables and value.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Long contract duration.
- High total award value.
- Lack of detailed service description.
- No indication of small business participation.
Tags
administrative-management-and-general-ma, agency-for-international-development, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $15.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. FOREIGN ASSISTANCE PROGRAM
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
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 $15.7 million.
What is the period of performance?
Start: 2004-12-03. End: 2012-01-19.
What specific consulting services were provided under this contract, and how did they contribute to the Agency for International Development's mission objectives?
The contract was for 'Administrative Management and General Management Consulting Services' (NAICS 541611). These services likely supported USAID's operational efficiency, strategic planning, program management, or policy development. The precise contribution would depend on the specific tasks performed, which are not detailed in the provided data, but they were intended to enhance the effectiveness of foreign assistance programs.
Given the $15.7M award value and the 2603-day duration, what are the key risks associated with this contract's long-term engagement and potential for cost overruns?
Key risks include potential scope creep, where the project expands beyond its original objectives, leading to increased costs. There's also a risk that the consulting services may become outdated over the long duration, failing to address evolving needs. Furthermore, without robust performance metrics and oversight, there's a risk of inefficient service delivery or a lack of demonstrable return on investment for the taxpayer.
How effectively did the competitive delivery order process ensure value for money for these consulting services, and what is the estimated taxpayer impact?
The competitive delivery order process likely ensured some level of value for money by allowing multiple vendors to bid, fostering price competition. However, the true effectiveness depends on the thoroughness of the evaluation criteria and the specific market conditions. The total taxpayer impact is the $15.7M award, which is considered fair if the services delivered demonstrably improved the efficiency and effectiveness of USAID's foreign assistance programs.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: MOPREGALPS04414
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12902 FEDERAL SYSTEMS PAR, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,914,661
Exercised Options: $15,914,661
Current Obligation: $15,679,499
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F9758H
IDV Type: FSS
Timeline
Start Date: 2004-12-03
Current End Date: 2012-01-19
Potential End Date: 2012-01-19 00:00:00
Last Modified: 2018-10-10
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