USAID's $65.7M Haiti Recovery Contract with Chemonics Faces Scrutiny for Limited Competition

Contract Overview

Contract Amount: $65,681,018 ($65.7M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Agency for International Development

Start Date: 2011-03-14

End Date: 2013-11-11

Contract Duration: 973 days

Daily Burn Rate: $67.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: M/OAA IS REQUESTED TO NEGOTIATE A NEW SWIFT III RFTOP WITH CHEMONICS TO SUPPORT THE HAITI RECOVERY INITIATIVE II. COTR:ANITA SACHARIAH ; CO:CRIS SYLVIA

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 $65.7 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: M/OAA IS REQUESTED TO NEGOTIATE A NEW SWIFT III RFTOP WITH CHEMONICS TO SUPPORT THE HAITI RECOVERY INITIATIVE II. COTR:ANITA SACHARIAH ; CO:CRIS SYLVIA Key points: 1. The contract, valued at $65.7 million, supports Haiti's recovery initiative. 2. Competition details are undisclosed, raising questions about fairness. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 4. Administrative Management and General Management Consulting Services are the primary focus.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, while common for complex projects, offers less incentive for cost control compared to fixed-price contracts. Benchmarking against similar USAID consulting contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded via Full and Open Competition, but the specific awardee is undisclosed, suggesting potential limitations or a non-competitive follow-on. This lack of transparency hinders price discovery and comparison.

Taxpayer Impact: The significant value of this contract means that any inefficiencies or lack of competitive pricing directly impacts taxpayer funds allocated for critical recovery efforts.

Public Impact

Taxpayers may be overpaying due to limited transparency in awardee selection and pricing. The effectiveness of Haiti's recovery efforts could be impacted if resources are not optimally utilized. Lack of clear competition metrics makes it difficult to assess if the best value was achieved.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed awardee raises transparency concerns.
Cost Plus Fixed Fee contract type can lead to higher costs.
Limited public data on competition effectiveness.

Positive Signals

Supports critical Haiti recovery efforts.
Awarded by a reputable agency (USAID).

Sector Analysis

This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector can vary widely, but large, complex international development contracts like this represent a significant portion of agency budgets.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

USAID's Contracting Officer's Representative (COR) and Contracting Officer (CO) are listed, indicating internal oversight. However, the lack of public detail on the awardee and specific performance metrics limits external accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Lack of transparency regarding the specific awardee.
Potential for cost overruns due to CPFF contract type.
Limited public information on competition details and justification.
Difficulty in assessing value for money without performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $65.7 million to DOMESTIC AWARDEES (UNDISCLOSED). M/OAA IS REQUESTED TO NEGOTIATE A NEW SWIFT III RFTOP WITH CHEMONICS TO SUPPORT THE HAITI RECOVERY INITIATIVE II. COTR:ANITA SACHARIAH ; CO:CRIS SYLVIA

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

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 $65.7 million.

What is the period of performance?

Start: 2011-03-14. End: 2013-11-11.

What specific factors justified the selection of Chemonics for this follow-on contract, and how was fair and open competition ensured?

The provided data states 'FULL AND OPEN COMPETITION' but also mentions a 'NEW SWIFT III RFTOP WITH CHEMONICS'. This suggests Chemonics may have been selected through a prior competitive process under SWIFT III, and this is a follow-on task order. However, the lack of disclosed awardee details prevents a thorough assessment of the competition's fairness and the justification for selecting Chemonics over other potential bidders for this specific task.

How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of the Haiti Recovery Initiative II, given the potential for cost overruns?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for allowable costs plus a fixed fee representing profit. While suitable for R&D or uncertain scope projects, CPFF inherently lacks strong cost-control incentives for the contractor. This means USAID must implement robust monitoring and control mechanisms to prevent cost overruns and ensure the fixed fee remains a fair profit, not an inflated one, for the services rendered in Haiti.

What are the key performance indicators (KPIs) for this contract, and how is their achievement being measured to ensure effective use of taxpayer funds?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how contract performance is measured. Effective oversight would require clearly defined, measurable KPIs tied to the goals of the Haiti Recovery Initiative II. USAID's COR and CO would be responsible for tracking progress against these KPIs and ensuring that the contractor's performance justifies the expenditure of $65.7 million in taxpayer funds.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $69,977,724

Exercised Options: $69,977,724

Current Obligation: $65,681,018

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDDOTI000800033

IDV Type: IDC

Timeline