USAID's $315M GHSI-III contract to Social Solutions International, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $314,859,203 ($314.9M)

Contractor: Social Solutions International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2016-04-18

End Date: 2024-09-23

Contract Duration: 3,080 days

Daily Burn Rate: $102.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF - GHSI-III

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $314.9 million to SOCIAL SOLUTIONS INTERNATIONAL, INC. for work described as: IGF::CL::IGF - GHSI-III Key points: 1. Contract value exceeds $315 million over its lifecycle, indicating a significant investment in professional services. 2. Awarded via full and open competition, suggesting a broad market search and potential for competitive pricing. 3. The contract duration of approximately 8.5 years points to a long-term need for the services provided. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope of work. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 6. The contract was awarded to a single entity, Social Solutions International, Inc., for the entire duration. 7. The base award amount is substantial, reflecting the scale of the services required by USAID.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed service breakdowns. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, carries inherent risks of cost overruns if not managed diligently. The substantial base award of over $102 million suggests a significant initial commitment, but the total potential value of $315 million over nearly nine years requires ongoing scrutiny to ensure it aligns with evolving needs and delivers demonstrable value for money. Comparisons to similar large-scale professional services contracts within USAID or other agencies would be necessary for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that USAID sought proposals from all responsible sources. The presence of 8 bidders suggests a healthy level of interest and competition for this significant contract. A competitive process like this is generally expected to lead to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards. The number of bidders provides some assurance that the government explored a range of options.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value by encouraging multiple firms to offer their services and pricing. This approach helps prevent inflated costs that might arise from less competitive scenarios.

Public Impact

The primary beneficiary is the U.S. Agency for International Development (USAID), which receives professional, scientific, and technical services to support its global development missions. Services delivered likely encompass a wide range of technical assistance, program support, and analytical work crucial for international development projects. The geographic impact is global, as USAID operates in numerous countries worldwide, and the services procured are intended to support these international efforts. Workforce implications could include the direct employment of personnel by Social Solutions International, Inc. and potentially its subcontractors, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires robust oversight to manage costs effectively and prevent potential overruns.
The long contract duration necessitates continuous monitoring to ensure services remain relevant and effective.
The broad NAICS code (541990) could lead to scope creep if not clearly defined and managed.
Reliance on a single contractor for such a long period may reduce flexibility if needs change significantly.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield better value.
The significant number of bidders (8) suggests a robust market response and potential for innovation.
The contract's long-term nature provides stability for service delivery and contractor planning.
The base award amount provides a clear initial financial commitment for essential services.

Sector Analysis

The professional, scientific, and technical services sector is a critical component of government contracting, supporting a vast array of agency missions. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a broad category encompassing services not elsewhere classified. The market for such services is large and diverse, with numerous firms capable of providing specialized expertise. This contract represents a significant portion of spending within this specific sub-sector for USAID, reflecting the agency's reliance on external expertise for its complex international development objectives.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is likely that Social Solutions International, Inc. may engage small businesses as subcontractors to fulfill specific aspects of the contract. However, without explicit subcontracting plans or goals detailed in the award data, the direct impact on the small business ecosystem remains unclear. Further analysis of subcontracting reports would be needed to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Agency for International Development (USAID). As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial and performance monitoring is crucial. This includes regular audits, progress reviews, and adherence to established performance metrics. Transparency would be enhanced through public reporting of contract performance and expenditures, where applicable. The Inspector General's office for USAID would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

USAID Global Health Supply Chain Program
USAID Technical Assistance Contracts
Federal Professional Services Contracts
International Development Assistance Programs

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Risk (Broad NAICS)
Long-Term Contract Relevance Risk
Contractor Performance Consistency Risk

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $314.9 million to SOCIAL SOLUTIONS INTERNATIONAL, INC.. IGF::CL::IGF - GHSI-III

Who is the contractor on this award?

The obligated recipient is SOCIAL SOLUTIONS INTERNATIONAL, INC..

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 $314.9 million.

What is the period of performance?

Start: 2016-04-18. End: 2024-09-23.

What is the specific nature of the 'All Other Professional, Scientific, and Technical Services' provided under this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad classification. Without specific details within the contract award documentation, it's difficult to pinpoint the exact services. However, given USAID's mission, these services likely encompass a wide range of support functions critical to international development. This could include technical expertise in areas like public health, economic development, democracy and governance, education, or environmental sustainability. It may also involve program management, monitoring and evaluation, research, data analysis, policy development, and strategic planning support. The 'GHSI-III' designation might offer clues, potentially relating to Global Health Security or similar initiatives, suggesting a focus on health-related technical assistance and program implementation support.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and contractor incentives for this contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined at the outset or involves significant uncertainty. For cost control, the government relies on robust oversight to ensure costs are reasonable, allocable, and allowable. The fixed fee provides a clear profit margin, incentivizing the contractor to complete the work efficiently to maximize their return on investment. However, it can also create less incentive for the contractor to minimize costs compared to fixed-price contracts, as their profit is fixed regardless of the final cost. Effective management and negotiation are key to mitigating potential cost overruns.

What is the historical spending pattern for similar professional services contracts at USAID?

Analyzing historical spending patterns for similar professional services contracts at USAID is crucial for context. While specific data for this contract's predecessors isn't provided, USAID consistently relies heavily on contracted services to implement its global development programs. Spending in this category typically fluctuates based on geopolitical priorities, funding appropriations, and the lifecycle of major programs. Contracts for technical assistance, program management, and specialized expertise are common. Benchmarking this $315 million contract against previous large-scale, long-duration professional services awards would reveal whether it represents a typical investment, an increase, or a decrease in this area of spending for the agency. Trends in contract types (e.g., shift towards CPFF or fixed-price) and competition levels would also offer valuable insights.

What are the potential risks associated with the long duration (approx. 8.5 years) of this contract?

The long duration of this contract, spanning nearly nine years, presents several potential risks. Firstly, the needs and priorities of USAID, as well as the geopolitical landscape, can change significantly over such a period. This could lead to the contract becoming misaligned with current objectives, potentially resulting in scope creep or the need for costly modifications. Secondly, maintaining consistent performance and contractor engagement over an extended period can be challenging. Contractor personnel may change, institutional knowledge could be lost, and the initial competitive advantage might diminish. Thirdly, long-term contracts can tie up significant resources, potentially limiting USAID's flexibility to adapt to new opportunities or engage with emerging contractors. Robust contract management, including regular reviews and potential re-competition or modifications, is essential to mitigate these risks.

How does the 'full and open competition' award mechanism influence the overall value and innovation delivered?

Awarding a contract through 'full and open competition' is generally considered the gold standard for maximizing value and fostering innovation. This mechanism ensures that all responsible sources are permitted to compete, broadening the pool of potential offerors and increasing the likelihood of receiving innovative solutions and competitive pricing. By encouraging multiple bidders, the government can compare diverse approaches and select the one that offers the best combination of technical merit, management capability, and cost-effectiveness. The presence of 8 bidders in this case suggests a robust market response, which typically drives down prices and encourages contractors to differentiate themselves through unique capabilities or more efficient service delivery models. This competitive pressure can also spur innovation as contractors seek to offer novel solutions to meet USAID's objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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-14-000024

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5840 HUBBARD DR, ROCKVILLE, MD, 20852

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $315,368,582

Exercised Options: $315,368,582

Current Obligation: $314,859,203

Actual Outlays: $200,097,157

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline