USAID's $30.7M climate adaptation contract awarded to International Resources Group Ltd. for water sector support

Contract Overview

Contract Amount: $30,697,355 ($30.7M)

Contractor: International Resources Group Ltd.

Awarding Agency: Agency for International Development

Start Date: 2011-08-06

End Date: 2023-09-19

Contract Duration: 4,427 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NEW TASK ORDER ON CLIMATE CHANGE ADAPTATION AND WATER FOR WATER IDIQ

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $30.7 million to INTERNATIONAL RESOURCES GROUP LTD. for work described as: NEW TASK ORDER ON CLIMATE CHANGE ADAPTATION AND WATER FOR WATER IDIQ Key points: 1. Contract value represents a significant investment in climate change adaptation strategies. 2. The full and open competition suggests a competitive bidding process. 3. Long duration of the contract (over 12 years) may indicate complex, ongoing needs. 4. The cost-plus-fixed-fee structure requires careful monitoring to control costs. 5. Focus on water sector highlights a critical area for climate resilience. 6. Performance context is crucial given the extended period and evolving climate challenges.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific comparable task orders under the same IDIQ. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, can lead to cost overruns if not managed diligently. The total award amount of over $30 million spread across more than 12 years suggests a substantial, long-term commitment to climate adaptation and water resource management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders (4) is moderate, suggesting a reasonable level of interest and competition for this specific task order.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, maximizing the value of federal dollars.

Public Impact

International Resources Group Ltd. is the primary beneficiary, tasked with delivering climate adaptation and water sector services. The services delivered are expected to enhance water resource management and climate resilience in regions supported by USAID. Geographic impact is likely global, focusing on areas where USAID implements water and climate adaptation programs. Workforce implications include the potential for employment of consultants, technical experts, and support staff in the fields of environmental science, engineering, and international development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, requiring robust oversight to ensure efficiency.
The extended duration of the contract (over 12 years) presents a risk of scope creep or misalignment with evolving program needs.
Performance monitoring over such a long period is critical to ensure continued effectiveness and value for money.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Focus on a critical development area: climate change adaptation and water security.
The contract's long-term nature indicates a strategic commitment by USAID to address complex, persistent challenges.

Sector Analysis

This contract falls within the Management and Consulting Services sector, specifically focusing on environmental and water resource consulting. The market for climate adaptation services is growing rapidly as global awareness of climate change impacts increases. USAID's spending in this area aligns with broader federal and international efforts to address climate resilience and sustainable development. Comparable spending benchmarks would typically be found within other large, multi-year IDIQ task orders focused on environmental consulting and international development assistance.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is possible that International Resources Group Ltd. may engage small businesses as subcontractors to fulfill specific aspects of the work. However, without subcontracting plan details, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, USAID's contracting officers and technical monitors would be responsible for reviewing incurred costs, ensuring compliance with the contract terms, and assessing contractor performance. Transparency would be facilitated through contract reporting requirements and potentially through public contract databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

USAID Water and Development Strategy
Global Climate Change Adaptation Programs
International Development Assistance
Environmental Consulting Services
Water Resource Management Projects

Risk Flags

Long contract duration may increase risk of scope creep and cost overruns.
Cost-plus-fixed-fee structure requires diligent oversight to ensure cost efficiency.
Performance monitoring over an extended period is critical for sustained effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $30.7 million to INTERNATIONAL RESOURCES GROUP LTD.. NEW TASK ORDER ON CLIMATE CHANGE ADAPTATION AND WATER FOR WATER IDIQ

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL RESOURCES GROUP LTD..

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 $30.7 million.

What is the period of performance?

Start: 2011-08-06. End: 2023-09-19.

What is the historical spending pattern for International Resources Group Ltd. with USAID on similar climate or water-related contracts?

Analyzing the historical spending patterns of International Resources Group Ltd. with USAID on similar climate or water-related contracts is crucial for assessing their track record and performance consistency. A review of past awards would reveal the volume and value of previous engagements, the types of services rendered, and the duration of those contracts. Consistent performance on similar projects, timely delivery, and adherence to budget can indicate a reliable contractor. Conversely, a history of cost overruns, missed deadlines, or performance issues on comparable contracts would raise concerns about their capacity to successfully execute this current task order. Without access to detailed historical contract data for IRG with USAID, a definitive assessment of their track record is not possible, but it remains a key area for due diligence.

How does the estimated cost per year for this contract compare to similar climate adaptation projects managed by other federal agencies?

To benchmark the value for money, the estimated annual cost of this contract (approximately $2.4 million per year, derived from $30.7M / 12.7 years) should be compared to similar climate adaptation projects managed by other federal agencies like the EPA, NOAA, or Department of State. Such comparisons should consider the scope of work, geographic focus, and complexity of services. If this contract's annual cost is significantly higher than comparable projects, it could indicate potential issues with pricing or scope definition. Conversely, if it aligns with or is lower than benchmarks, it suggests a potentially good value. However, direct comparisons are often difficult due to unique project requirements, differing overhead structures, and varying market rates across different regions and time periods. A detailed analysis would require access to specific project details and cost breakdowns for comparable contracts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration and scope?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration (over 12 years) and scope (climate change adaptation and water) are multifaceted. For the government, the main risk is cost escalation; while the fee is fixed, the contractor is reimbursed for all allowable costs, which can increase if not managed tightly. This necessitates robust oversight to ensure costs are reasonable and allocable. For the contractor, the risk lies in underestimating costs, which could erode their fixed fee profit margin. The extended duration introduces risks of scope creep, where the project's objectives may expand beyond the original intent, leading to increased costs and potential disputes. Furthermore, the long timeframe increases the likelihood of personnel turnover, requiring knowledge transfer and continuity planning. Market conditions and technological advancements in climate adaptation could also evolve, potentially making the contracted services less relevant or efficient over time, requiring careful contract management and potential modifications.

How effectively has USAID historically managed long-term, complex IDIQ task orders in international development?

Assessing USAID's historical effectiveness in managing long-term, complex IDIQ task orders in international development is critical for understanding the potential success of this contract. USAID has extensive experience managing large-scale development projects globally, often through IDIQ vehicles. Their success typically hinges on strong program design, rigorous monitoring and evaluation frameworks, effective stakeholder engagement, and robust contract oversight. Challenges can arise from political instability in host countries, unforeseen environmental or social impacts, and the inherent complexities of coordinating multiple partners and activities over extended periods. Examining specific examples of USAID's past performance on similar long-term task orders, including their ability to adapt to changing circumstances, achieve intended development outcomes, and manage budgets effectively, would provide a clearer picture of their management capabilities in this context.

What mechanisms are in place to ensure accountability and transparency for this specific task order, given its long duration?

Accountability and transparency for this specific task order are typically ensured through a combination of contractual requirements and USAID's internal oversight processes. Contractually, International Resources Group Ltd. would be obligated to provide regular progress reports, financial statements, and performance metrics. USAID's Contracting Officer's Representative (COR) or Technical Monitor would be responsible for overseeing the contractor's performance against the established objectives and deliverables. Transparency is further supported by USAID's adherence to federal procurement regulations and public reporting requirements for contract awards. For a long-duration contract, periodic reviews and potential contract modifications would also be subject to oversight. The presence of an Inspector General's office provides an additional layer of accountability, investigating any potential fraud, waste, or abuse.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other 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

Parent Company: Research Triangle Institute

Address: 1211 CT AVE NW STE 700, WASHINGTON, DC, 20036

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,909,824

Exercised Options: $30,909,824

Current Obligation: $30,697,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDEPPI000400024

IDV Type: IDC

Timeline