USAID's $50M contract for institutional support services awarded to Research Triangle Institute

Contract Overview

Contract Amount: $50,068,028 ($50.1M)

Contractor: Research Triangle Institute

Awarding Agency: Agency for International Development

Start Date: 2015-12-19

End Date: 2022-12-18

Contract Duration: 2,556 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF NEW CONTRACT FOR INSTITUTIONAL SUPPORT SERVICES FOR THE LATIN AMERICA AND THE CARIBBEAN REGIONAL OFFICE.

Plain-Language Summary

Agency for International Development obligated $50.1 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::CL::IGF NEW CONTRACT FOR INSTITUTIONAL SUPPORT SERVICES FOR THE LATIN AMERICA AND THE CARIBBEAN REGIONAL OFFICE. Key points: 1. Contract value represents a significant investment in administrative and management consulting services. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. The duration of the contract (2556 days) indicates a long-term need for these services. 4. The firm-fixed-price structure aims to control costs and provide predictability. 5. The contract falls under administrative management and general management consulting services, a broad category. 6. The awardee, Research Triangle Institute, has a substantial contract value to manage.

Value Assessment

Rating: good

The contract value of $50,068,028 over approximately 7 years suggests a substantial but not necessarily excessive annual spend for institutional support services for a regional office. Benchmarking against similar contracts for USAID's regional support would provide a clearer picture of value for money. The firm-fixed-price contract type helps in cost control. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a reasonable level of competition for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government. The fact that it was competed openly is a positive sign for achieving fair market value.

Taxpayer Impact: Taxpayers benefit from the transparency and potential cost savings inherent in a fully competed contract. The open competition process aims to ensure that the selected contractor offers the best value at a competitive price, preventing inflated costs.

Public Impact

The primary beneficiaries are the Latin America and the Caribbean Regional Office of USAID, receiving essential institutional support. Services delivered likely include program management, administrative support, technical assistance, and operational support to facilitate USAID's mission in the region. The geographic impact is focused on the Latin America and the Caribbean region, supporting development initiatives. Workforce implications may include the creation of jobs by the contractor, Research Triangle Institute, both directly and indirectly, to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential complacency or reduced agility if not managed effectively.
Firm-fixed-price contracts can sometimes incentivize contractors to cut corners on quality if not closely monitored.
Reliance on a single contractor for extensive institutional support could create vendor lock-in.

Positive Signals

Award through full and open competition suggests a thorough vetting process and competitive pricing.
The firm-fixed-price contract type provides cost certainty for the agency.
The substantial contract value indicates a significant need and likely a well-defined scope of work.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise and support that agencies may not possess internally. The market for such services is competitive, with numerous firms offering a wide range of capabilities. USAID's spending in this area supports its global development and humanitarian missions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, Research Triangle Institute, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Inspector General's office for USAID would have jurisdiction for audits and investigations into potential fraud, waste, or abuse related to this contract, ensuring accountability and transparency.

Related Government Programs

USAID Program Management Support Contracts
International Development Assistance Services
Management and Consulting Services for Federal Agencies
Regional Support Contracts

Risk Flags

Long-term contract duration
Potential for vendor lock-in
Reliance on a single provider for critical functions

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $50.1 million to RESEARCH TRIANGLE INSTITUTE. IGF::CL::IGF NEW CONTRACT FOR INSTITUTIONAL SUPPORT SERVICES FOR THE LATIN AMERICA AND THE CARIBBEAN REGIONAL OFFICE.

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

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 $50.1 million.

What is the period of performance?

Start: 2015-12-19. End: 2022-12-18.

What is the historical spending pattern for institutional support services by USAID in the Latin America and the Caribbean region?

Analyzing USAID's historical spending in the Latin America and the Caribbean (LAC) region for institutional support services reveals a consistent need for such services to facilitate program delivery and operational efficiency. Prior to this $50 million contract, USAID likely awarded multiple, potentially smaller, contracts for similar functions, possibly with different contractors or through different contracting vehicles. Trends might show an increase or decrease in spending based on geopolitical priorities, funding levels, and the evolving nature of development challenges in the region. Understanding these patterns helps contextualize the current award's scale and duration, indicating whether it represents a consolidation of services, an expansion of scope, or a continuation of established support mechanisms. Without specific historical data points for this exact service category and region, it's difficult to provide precise figures, but the sustained need suggests a strategic allocation of resources.

How does the awarded amount compare to similar institutional support contracts awarded by other federal agencies?

Comparing the $50 million contract value for institutional support services awarded to Research Triangle Institute by USAID to similar contracts across federal agencies requires identifying comparable scope and duration. Contracts for program management, administrative support, and general management consulting services can vary widely. For instance, large-scale support for major overseas operations or complex federal agency-wide initiatives might exceed this amount significantly, while smaller, localized support contracts would be less. Agencies like the Department of State, Department of Defense (for non-combat support), or other development-focused agencies (e.g., Millennium Challenge Corporation) might have comparable contracts. The $50 million figure over seven years suggests an average annual value of approximately $7.1 million, which is substantial but not extraordinary for a regional office's comprehensive support needs, especially considering the complexities of international operations.

What is Research Triangle Institute's track record with federal contracts, particularly with USAID?

Research Triangle Institute (RTI) has a significant track record of performing federal contracts, including numerous awards from USAID. RTI is a well-established non-profit research institute known for its work in international development, health, education, and environmental science. Their history with USAID likely encompasses a wide range of projects, from technical assistance and program evaluation to research and capacity building in various regions globally. Examining RTI's past performance on similar contracts would reveal their ability to manage large budgets, deliver on complex scopes of work, and meet performance metrics. Positive past performance is often a key factor in contract awards, suggesting that RTI's selection for this substantial institutional support contract is likely based on demonstrated capability and experience with USAID's mission and operational requirements.

What are the key performance indicators (KPIs) typically associated with institutional support contracts of this nature?

Key Performance Indicators (KPIs) for institutional support contracts like this one typically focus on efficiency, effectiveness, and compliance. For USAID's Latin America and Caribbean Regional Office, these might include metrics related to the timeliness and accuracy of administrative processes (e.g., procurement, financial reporting, HR support), the quality and responsiveness of technical assistance provided to program staff, and the successful implementation of operational support functions. KPIs could also measure adherence to USAID policies and procedures, cost-effectiveness of services rendered, and stakeholder satisfaction (both internal staff and potentially external partners). The firm-fixed-price nature of the contract implies that the contractor is incentivized to meet these KPIs efficiently to maximize profit, while USAID monitors these metrics to ensure mission objectives are met without cost overruns.

What is the potential risk associated with a single contractor providing comprehensive institutional support for a large regional office?

The primary risk associated with a single contractor providing comprehensive institutional support for a large regional office is over-reliance or 'vendor lock-in.' This can reduce flexibility and bargaining power for the agency if the contractor's performance declines or if market conditions change, making it difficult or costly to switch providers. There's also a risk of institutional knowledge becoming concentrated within the contractor's staff, potentially leading to gaps if key personnel depart. Furthermore, a lack of direct competition over the contract's lifespan could potentially lead to complacency or less incentive for innovation. However, these risks are often mitigated through robust contract management, clear performance standards, regular reviews, and the possibility of contract modifications or re-competition at the end of the term.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-OAA-14-000197

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3040 E CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,068,028

Exercised Options: $50,068,028

Current Obligation: $50,068,028

Actual Outlays: $24,289,403

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $624,984

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: YES

Timeline