USAID's $51.5M contract for professional services awarded to Creative Associates International, Inc. saw limited competition

Contract Overview

Contract Amount: $51,504,754 ($51.5M)

Contractor: Creative Associates International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2010-09-30

End Date: 2015-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THIS IS A COST-PLUS FIXED-FEE TASK ORDER. THE GOVERNMENT WILL ISSUE A TASK ORDER. THE CONTRACTOR MUST PERFORM THE SERVICES SET FORTH IN TASK ORDERS AT PRICES CONSISTENT WITH SECTION B OF THIS CONTRACT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20015

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $51.5 million to CREATIVE ASSOCIATES INTERNATIONAL, INC. for work described as: THIS IS A COST-PLUS FIXED-FEE TASK ORDER. THE GOVERNMENT WILL ISSUE A TASK ORDER. THE CONTRACTOR MUST PERFORM THE SERVICES SET FORTH IN TASK ORDERS AT PRICES CONSISTENT WITH SECTION B OF THIS CONTRACT. Key points: 1. The contract utilized a cost-plus fixed-fee structure, which can incentivize cost overruns if not closely monitored. 2. Competition was limited, potentially impacting price discovery and value for taxpayer dollars. 3. The duration of the contract (5 years) suggests a need for sustained services, but also a long-term commitment of funds. 4. The professional, scientific, and technical services sector is broad, making direct comparisons challenging without more specific task order details. 5. Performance was likely tied to specific task orders, making overall performance assessment dependent on the execution of those orders. 6. The contract was awarded under full and open competition, but the number of bidders was low.

Value Assessment

Rating: fair

The contract's cost-plus fixed-fee (CPFF) structure requires careful oversight to ensure value. Without specific task order details and performance metrics, a precise value-for-money assessment is difficult. However, the limited competition suggests potential for higher costs than a more robustly competed contract. Benchmarking is challenging due to the broad nature of 'All Other Professional, Scientific, and Technical Services' and the lack of specific deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, but only three bids were received. This limited number of bidders suggests that while the process was open, the market for this specific type of service may be concentrated, or the requirements were highly specialized. Lower competition can lead to less aggressive pricing and potentially higher costs for the government.

Taxpayer Impact: A limited number of bidders means taxpayers may not have benefited from the most competitive pricing achievable through broader market engagement.

Public Impact

The primary beneficiaries are likely USAID's programs and initiatives requiring specialized professional, scientific, and technical support. Services delivered would have supported various international development objectives, though specific projects are not detailed here. The geographic impact is likely international, aligning with USAID's mission, with potential implications for workforce development in host countries. The contract supported a range of professional services, contributing to the expertise available to the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed-fee contracts can lead to cost escalation if not managed rigorously.
Limited competition (3 bidders) raises concerns about optimal price discovery and potential for inflated costs.
The broad 'All Other Professional, Scientific, and Technical Services' category makes it difficult to assess the specific value and efficiency of services rendered without task order details.

Positive Signals

Awarded under full and open competition, indicating an effort to solicit a wide range of potential contractors.
The contract duration of 5 years suggests a stable, long-term need for these services, providing continuity for USAID programs.
Creative Associates International, Inc. is a known entity in the international development space, potentially bringing established expertise.

Sector Analysis

This contract falls under the broad category of professional, scientific, and technical services, a significant sector for government contracting. This sector encompasses a wide array of specialized expertise, from research and development to management consulting and technical support. Government spending in this area is often driven by the need for specialized knowledge and skills that cannot be met by in-house government personnel. Benchmarking is difficult without knowing the specific tasks performed, but overall federal spending on professional services is in the hundreds of billions annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. However, as a large contract, it may have offered subcontracting opportunities to small businesses if Creative Associates International, Inc. chose to engage them.

Oversight & Accountability

Oversight would primarily be conducted by USAID contracting officers and program managers responsible for monitoring performance against task orders and ensuring compliance with contract terms. Accountability measures would be embedded in the task order structure and performance reviews. Transparency is facilitated by contract databases like FPDS, but detailed task order specifics and performance reports are often not publicly available.

Related Government Programs

USAID Global Health Supply Chain Program
USAID Technical Assistance Contracts
Department of State Professional Services Contracts
General Services Administration (GSA) Professional Services Schedule

Risk Flags

Limited competition may lead to higher costs.
Cost-plus contract structure requires robust government oversight to prevent cost overruns.
Broad service category makes specific performance and value assessment difficult without task order details.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $51.5 million to CREATIVE ASSOCIATES INTERNATIONAL, INC.. THIS IS A COST-PLUS FIXED-FEE TASK ORDER. THE GOVERNMENT WILL ISSUE A TASK ORDER. THE CONTRACTOR MUST PERFORM THE SERVICES SET FORTH IN TASK ORDERS AT PRICES CONSISTENT WITH SECTION B OF THIS CONTRACT.

Who is the contractor on this award?

The obligated recipient is CREATIVE ASSOCIATES 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 $51.5 million.

What is the period of performance?

Start: 2010-09-30. End: 2015-09-29.

What specific types of professional, scientific, and technical services were performed under this contract?

The provided data categorizes this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category that can encompass a wide range of activities, including but not limited to research services, laboratory testing, translation services, and specialized consulting. Without access to the specific task orders issued against this contract, it is impossible to determine the precise nature of the services rendered. These services likely supported USAID's international development mission, potentially in areas such as program evaluation, technical assistance, or capacity building in foreign countries.

How does the $51.5 million total award value compare to similar contracts for professional services at USAID?

The $51.5 million total award value over five years is a substantial amount, indicating a significant program or set of programs supported by this contract. To benchmark this effectively, one would need to compare it against other large, multi-year contracts for professional, scientific, and technical services awarded by USAID or similar agencies like the Department of State or the Millennium Challenge Corporation. Given the broad nature of the NAICS code, direct comparisons are difficult. However, contracts of this magnitude typically support major agency initiatives or long-term technical assistance efforts. The value suggests a high level of complexity and scope in the services required.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for these services?

The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility in evolving requirements, carries inherent risks. The primary risk is that the 'cost' component can escalate if the contractor's expenses are not rigorously monitored and controlled by the government. Since the contractor is reimbursed for allowable costs plus a fixed fee, there is less incentive for the contractor to control costs compared to fixed-price contracts. This can lead to cost overruns if the government's oversight is insufficient. For professional services, defining 'allowable costs' and ensuring efficiency can be particularly challenging, requiring detailed auditing and performance management.

Given only three bidders, what does this imply about the contractor's track record and the market for these services?

The fact that only three bids were received for this 'full and open' competition suggests a potentially concentrated market for the specific services required. This could mean that only a few companies possess the necessary expertise, clearances, or capacity to perform the work. It might also indicate that the contract requirements were highly specialized or that the bidding process itself presented barriers. For Creative Associates International, Inc., winning with limited competition could suggest they were a strong contender with relevant experience, but it also raises questions about whether a more competitive environment could have yielded better pricing for the government. It underscores the importance of market research prior to issuing solicitations.

What is the historical spending pattern for NAICS code 541990 at USAID?

Historical spending data for NAICS code 541990 at USAID would reveal trends in the agency's reliance on 'All Other Professional, Scientific, and Technical Services.' Analyzing this data over several fiscal years would show whether spending in this category has been increasing, decreasing, or remaining stable. It would also highlight the number of contracts awarded annually, the average contract value, and the primary contractors receiving awards. Such analysis could indicate shifts in USAID's programmatic needs or its strategy for acquiring specialized external support. Without access to that specific historical data, it's difficult to provide precise figures, but this category generally represents a significant portion of federal spending on specialized expertise.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5301 WISCONSIN AVE NW STE 700, WASHINGTON, DC, 20015

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $51,504,754

Exercised Options: $51,504,754

Current Obligation: $51,504,754

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDEDHI000500029

IDV Type: IDC

Timeline