USAID awards $26.8M contract for DRG-LER activity to National Opinion Research Center

Contract Overview

Contract Amount: $26,852,999 ($26.9M)

Contractor: National Opinion Research Center

Awarding Agency: Agency for International Development

Start Date: 2013-10-01

End Date: 2022-09-30

Contract Duration: 3,286 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF NEW AWARD FOR DRG-LER ACTIVITY

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60603

State: Illinois Government Spending

Plain-Language Summary

Agency for International Development obligated $26.9 million to NATIONAL OPINION RESEARCH CENTER for work described as: IGF::OT::IGF NEW AWARD FOR DRG-LER ACTIVITY Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of the contract is over 8 years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to administrative management and general management consulting services. 5. The award was a delivery order, implying it's part of a larger contract vehicle. 6. The contractor, National Opinion Research Center, has a track record with government contracts. 7. The contract was issued to a single entity, the National Opinion Research Center. 8. The contract is not a small business set-aside, meaning large businesses were eligible to bid.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Time and Materials pricing structure necessitates close monitoring to ensure cost-effectiveness over its long duration. While the award amount is substantial, its value is contingent on the successful delivery of the DRG-LER activity and its impact on USAID's mission.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it resulted in a single award suggests that the National Opinion Research Center was selected as the most advantageous offer. The level of competition, while broad in its initial invitation, ultimately led to one chosen provider.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, the specific outcome here, a single award, means the full potential cost savings from multiple competing offers may not have been realized throughout the contract's life.

Public Impact

The primary beneficiary of this contract is the Agency for International Development (USAID), which will receive support for its DRG-LER (Democracy, Rights, and Governance - Labor, Economic Rights) activities. The services delivered are expected to support USAID's mission in promoting democracy, human rights, and economic rights globally. The geographic impact is likely global, aligning with USAID's international development mandate. Workforce implications could include employment opportunities for researchers, analysts, and consultants involved in the DRG-LER activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not strictly managed.
Long contract duration (over 8 years) increases the risk of scope creep and potential inefficiencies.
Lack of specific performance metrics makes it difficult to assess value for money upfront.
Single award from a competitive process might indicate limited market capacity or a highly specialized requirement.

Positive Signals

Awarded through full and open competition, suggesting a robust initial vetting of potential contractors.
Contractor (National Opinion Research Center) is an established entity with experience in research and analysis.
The contract supports critical USAID activities in Democracy, Rights, and Governance.
The award is a delivery order, which can indicate efficient use of existing contract vehicles.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is characterized by a wide range of firms, from large, established consultancies to specialized boutique firms. USAID's spending in this area supports its programmatic goals by leveraging external expertise for analysis, research, and program implementation. Comparable spending benchmarks would depend on the specific nature of the DRG-LER activities, but consulting services for government agencies represent a significant market.

Small Business Impact

This contract was not awarded as a small business set-aside, meaning large businesses were eligible and likely competed. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is therefore neutral to potentially negative if large businesses dominate the service delivery without significant subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a delivery order under a larger contract vehicle, oversight mechanisms would be defined by that vehicle's terms. Accountability measures would be tied to performance against the contract's statement of work and deliverables. Transparency is facilitated by public contract award data, but detailed programmatic oversight information may be internal to USAID.

Related Government Programs

USAID Democracy, Rights, and Governance Programs
USAID Economic Development Programs
Government Consulting Services
Research and Analysis Contracts
International Development Assistance

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of reduced flexibility and outdated scope over the long contract duration.
Difficulty in assessing value for money without detailed performance metrics.
Limited transparency on specific deliverables and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $26.9 million to NATIONAL OPINION RESEARCH CENTER. IGF::OT::IGF NEW AWARD FOR DRG-LER ACTIVITY

Who is the contractor on this award?

The obligated recipient is NATIONAL OPINION RESEARCH CENTER.

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 $26.9 million.

What is the period of performance?

Start: 2013-10-01. End: 2022-09-30.

What is the National Opinion Research Center's track record with government contracts, particularly with USAID?

The National Opinion Research Center (NORC) at the University of Chicago is a well-established research institution with extensive experience conducting studies and providing analytical services for government agencies, including USAID. NORC has a history of managing large-scale data collection, survey research, and program evaluations. While specific details of past USAID contracts would require deeper database searches, NORC's general profile suggests a capacity to handle complex projects. Their work often involves sensitive data and requires adherence to strict government regulations and reporting standards. The current award indicates continued trust and a demonstrated ability to meet USAID's requirements in the past.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve. Unlike fixed-price contracts, T&M reimburses the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure offers flexibility but carries inherent risks for the government, primarily cost overruns, as the total cost is not capped upfront. For consulting services like those likely provided under this contract, T&M can be efficient if the contractor's rates are competitive and if the government exercises strong oversight to manage labor hours and material expenditures. However, it places a greater burden on the contracting officer to monitor performance and control costs compared to fixed-price arrangements.

What are the potential risks associated with the long duration (3286 days) of this contract?

A contract duration exceeding eight years presents several potential risks. Firstly, the cost of services may not remain competitive over such an extended period, especially if market rates for consulting services change significantly. Secondly, the risk of scope creep increases, where the project's objectives may expand beyond the original intent without corresponding adjustments in cost or oversight. Thirdly, maintaining consistent quality and performance from the contractor over many years can be challenging, and the initial justification for the contract's scope might become outdated. Finally, long-term contracts can reduce flexibility for the agency to adapt to new requirements or to bring in different expertise if needed.

Can the value of this $26.8 million contract be benchmarked against similar DRG-LER activities or consulting services?

Benchmarking the value of this $26.8 million contract is difficult without specific details on the DRG-LER activities and the deliverables expected. The contract is for administrative management and general management consulting services (NAICS 541611). To perform a robust benchmark, one would need to compare the contractor's proposed labor rates, overhead, and profit margins against industry standards and other government contracts for similar services. Additionally, assessing the 'value' requires evaluating the impact and effectiveness of the services rendered against USAID's programmatic goals. Without access to the detailed proposal, cost breakdown, and performance metrics, a precise value-for-money assessment is not feasible based solely on the award amount and duration.

What does the fact that this was awarded as a delivery order imply about the overall contract structure?

The designation of this award as a 'Delivery Order' indicates that it is a task or order issued under a pre-existing, larger contract vehicle, often referred to as an 'Indefinite Delivery/Indefinite Quantity' (IDIQ) contract or a similar master agreement. This approach allows agencies to establish broad terms and conditions with one or more contractors and then issue specific orders for services as needed. For taxpayers, this can streamline procurement by having pre-vetted contractors and established pricing, potentially reducing administrative burden and lead times for individual task orders. However, the overall value and competition dynamics are tied to the parent contract under which this delivery order was issued.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 55 E MONROE ST 30TH FL, CHICAGO, IL, 60603

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: $49,607,428

Exercised Options: $49,607,428

Current Obligation: $26,852,999

Actual Outlays: $6,068,256

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $872,482

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0033M

IDV Type: FSS

Timeline