USAID's Blended Finance BAA Exceeds $168M, Awarded to DAI Global LLC

Contract Overview

Contract Amount: $168,677,909 ($168.7M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2017-09-28

End Date: 2024-09-27

Contract Duration: 2,556 days

Daily Burn Rate: $66.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 58

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF EXPANDING USE OF BLENDED FINANCE SOLUTIONS TO SUPPORT USAID PRIORITIES (BAA)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Agency for International Development obligated $168.7 million to DAI GLOBAL LLC for work described as: IGF::CL::IGF EXPANDING USE OF BLENDED FINANCE SOLUTIONS TO SUPPORT USAID PRIORITIES (BAA) Key points: 1. Significant contract value of over $168 million highlights extensive use of blended finance. 2. DAI Global LLC is the sole awardee, raising questions about competition. 3. The contract's long duration (2017-2024) suggests ongoing, complex program support. 4. Focus on blended finance indicates a strategic approach to development aid effectiveness.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar professional services is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being a BAA, the award to a single contractor suggests potential limitations in the competitive process or a highly specialized requirement. The impact on price discovery is unclear without knowing the number of proposals received.

Taxpayer Impact: Taxpayer funds are being utilized to support USAID's development priorities through innovative financing mechanisms, aiming for greater impact per dollar spent.

Public Impact

Supports international development goals by leveraging private capital for public good. Blended finance aims to de-risk investments, attracting more private sector involvement. Potential for increased efficiency and sustainability in development program delivery. Contract duration and value indicate a substantial commitment to this approach.

Waste & Efficiency Indicators

Waste Risk Score: 65 / 10

Warning Flags

Lack of transparency on competition details for a BAA.
Potential for cost creep in CPFF contracts.
Sole awardee raises questions about market reach.

Positive Signals

Innovative use of finance to achieve development goals.
Long-term commitment to a strategic approach.
Focus on leveraging private sector resources.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically focusing on financial mechanisms for development. Benchmarks for similar large-scale, long-duration contracts in international development are scarce, making direct comparison difficult.

Small Business Impact

The contract data indicates no specific set-aside for small businesses, and the awardee is a large business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Agency for International Development is responsible for oversight. The long duration and complexity of blended finance may require robust monitoring to ensure funds are used effectively and ethically.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Sole awardee for a large contract.
Cost Plus Fixed Fee contract type.
Long contract duration.
Lack of specific small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $168.7 million to DAI GLOBAL LLC. IGF::CL::IGF EXPANDING USE OF BLENDED FINANCE SOLUTIONS TO SUPPORT USAID PRIORITIES (BAA)

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 $168.7 million.

What is the period of performance?

Start: 2017-09-28. End: 2024-09-27.

How effectively does blended finance, as implemented through this contract, achieve USAID's development objectives compared to traditional aid?

Assessing the effectiveness requires detailed program-level data on outcomes and impact. Blended finance aims to achieve greater scale and sustainability by attracting private capital, potentially multiplying the impact of public funds. However, its success is contingent on careful structuring, risk mitigation, and alignment with development goals, which needs ongoing evaluation.

What are the primary risks associated with using a Cost Plus Fixed Fee contract for complex blended finance initiatives?

The primary risks include potential cost overruns if the scope is not well-defined or if unforeseen challenges arise, leading to increased expenses for the government. There's also a risk that the fixed fee might not adequately incentivize efficiency if the contractor's costs are significantly lower than anticipated. Robust oversight is crucial to manage these risks.

To what extent does the sole awardee structure for this BAA limit the government's ability to explore diverse solutions and competitive pricing?

A sole awardee, even under a BAA, can limit the government's exposure to a wider range of innovative approaches and potentially competitive pricing. While BAAs are designed for flexibility, if only one entity is selected for a significant portion of work, it may suggest either a highly specialized niche or a less competitive initial solicitation process, impacting overall value.

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: BAA-OAA-PCM-2017

Offers Received: 58

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $194,076,930

Exercised Options: $192,014,469

Current Obligation: $168,677,909

Actual Outlays: $154,827,214

Subaward Activity

Number of Subawards: 262

Total Subaward Amount: $100,257,057

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline