USAID's $23.8M contract with DT Global Inc. for administrative management services extended through September 2023

Contract Overview

Contract Amount: $23,782,279 ($23.8M)

Contractor: DT Global Inc

Awarding Agency: Agency for International Development

Start Date: 2011-09-01

End Date: 2023-09-21

Contract Duration: 4,403 days

Daily Burn Rate: $5.4K/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 RFTOP WITH SWIFT PARTNER AECOM IN ORDER TO FACILITATE PROGRAMMING IN COUNTRY. COTR: MEGAN MAMULA ; CO:CRIS SYLVIA

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $23.8 million to DT GLOBAL INC for work described as: M/OAA IS REQUESTED TO NEGOTIATE A NEW RFTOP WITH SWIFT PARTNER AECOM IN ORDER TO FACILITATE PROGRAMMING IN COUNTRY. COTR: MEGAN MAMULA ; CO:CRIS SYLVIA Key points: 1. Contract value of $23.8M over its life suggests a significant investment in administrative support. 2. The contract was awarded under full and open competition, indicating a broad search for qualified vendors. 3. A Cost Plus Fixed Fee (CPFF) pricing structure was used, which can incentivize cost control but requires careful oversight. 4. The contract duration of over 12 years (4403 days) is exceptionally long, raising questions about adaptability and long-term necessity. 5. The primary service category is Administrative Management and General Management Consulting Services, a broad area. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The total value of $23.8 million over more than 12 years averages to approximately $1.98 million per year. This figure needs to be benchmarked against similar administrative support contracts for USAID or other agencies to determine value for money. The CPFF structure, while common, can lead to cost overruns if not managed tightly. Without specific performance metrics or comparisons to industry benchmarks for consulting services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 4 bidders indicates a reasonable level of competition for this requirement. This approach is generally expected to yield competitive pricing and identify the most capable contractor.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price by leveraging a wider pool of potential providers.

Public Impact

The primary beneficiaries are likely USAID's operational programs, which receive administrative and management support to function effectively. Services delivered include general management consulting and administrative support, crucial for program implementation and oversight. The geographic impact is primarily in Virginia, where the contractor is located, but the services likely support global USAID operations. Workforce implications include employment for individuals working for DT Global Inc. and potentially indirectly supporting USAID staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration of over 12 years may indicate a lack of flexibility to adapt to changing needs or explore more efficient solutions.
The CPFF contract type requires diligent oversight to ensure costs remain reasonable and that the fixed fee is justified.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined and monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's effectiveness and efficiency.
The contract being a Delivery Order suggests it's part of a larger IDIQ, and the overall value and performance of the parent IDIQ should also be considered.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
Multiple bidders (4) indicate a healthy level of interest and capability in the market for these services.
The contract has been in place for a significant period, suggesting a level of stability and established working relationship.
DT Global Inc. is a known entity in the government contracting space, potentially bringing experience and established processes.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This is a large and competitive market, with significant government spending allocated annually to these types of services across various agencies. Benchmarking this contract's value against similar consulting services procured by agencies like the Department of State or Department of Defense would provide further context on its relative cost-effectiveness.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large contract, DT Global Inc. may engage small businesses as subcontractors, but this is not explicitly detailed in the given information.

Oversight & Accountability

Oversight for this contract would typically be managed by USAID's Contracting Officer's Representative (COR) and Contracting Officer (CO), as indicated by 'COTR: MEGAN MAMULA ; CO:CRIS SYLVIA'. The CPFF structure necessitates close monitoring of costs and performance to ensure accountability. Transparency would be enhanced through regular reporting requirements and potentially through public contract databases, though specific oversight mechanisms beyond standard contract administration are not detailed here.

Related Government Programs

USAID Program Management Support Contracts
Government Administrative Consulting Services
International Development Support Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Long Contract Duration
Cost Plus Fixed Fee Structure
Lack of Specific Performance Metrics
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $23.8 million to DT GLOBAL INC. M/OAA IS REQUESTED TO NEGOTIATE A NEW RFTOP WITH SWIFT PARTNER AECOM IN ORDER TO FACILITATE PROGRAMMING IN COUNTRY. COTR: MEGAN MAMULA ; CO:CRIS SYLVIA

Who is the contractor on this award?

The obligated recipient is DT GLOBAL 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 $23.8 million.

What is the period of performance?

Start: 2011-09-01. End: 2023-09-21.

What is the historical spending trend for this specific contract or similar contracts awarded to DT Global Inc. by USAID?

The provided data indicates a total value of $23,782,279.11 for this contract, which began on September 1, 2011, and ended on September 21, 2023, spanning over 12 years. This suggests a consistent, long-term engagement with the contractor for administrative management services. To assess historical trends, one would need to examine annual spending patterns within this contract's lifecycle and compare it to other contracts awarded to DT Global Inc. by USAID or other agencies. Without granular annual spending data, it's difficult to pinpoint fluctuations or specific periods of increased/decreased expenditure. However, the substantial total value implies significant and sustained funding over the contract's duration.

How does the average annual cost of this contract compare to industry benchmarks for similar administrative management consulting services?

The contract's total value of approximately $23.8 million over roughly 12 years equates to an average annual cost of about $1.98 million. To benchmark this against industry standards, we would need to compare this figure to the average annual cost of similar administrative management and general management consulting services procured by government agencies or large private sector organizations. Factors such as the scope of services, geographic reach, complexity of tasks, and specific expertise required significantly influence pricing. Without access to a comprehensive database of comparable contract costs and detailed service descriptions, a precise industry benchmark comparison is challenging. However, this annual figure provides a starting point for further detailed analysis against specific market data.

What specific performance metrics were used to evaluate DT Global Inc.'s success under this contract?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) that were used to evaluate DT Global Inc.'s success. Typically, contracts of this nature would include clauses outlining deliverables, quality standards, timeliness requirements, and potentially client satisfaction surveys. The Contracting Officer's Representative (COR) and Contracting Officer (CO) would be responsible for monitoring adherence to these metrics. The absence of this information in the summary data suggests that a deeper dive into the contract's statement of work (SOW) and performance reports would be necessary to understand how the contractor's performance was assessed and whether objectives were met.

What are the potential risks associated with the long duration (over 12 years) of this contract?

The exceptionally long duration of this contract, spanning over 12 years, presents several potential risks. Firstly, it may indicate a lack of agility in adapting to evolving program needs or technological advancements, potentially leading to outdated service delivery. Secondly, long-term contracts can sometimes foster complacency in contractors, reducing the incentive for continuous improvement or cost optimization. Thirdly, the prolonged engagement might limit opportunities for other capable vendors to compete for similar services, potentially stifling market innovation. Finally, there's a risk that the original requirements may no longer be as relevant or efficiently met as they were at the contract's inception, necessitating a costly transition or modification.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives?

The Cost Plus Fixed Fee (CPFF) contract type aims to balance cost control with contractor incentive. The government agrees to pay the contractor's actual allowable costs plus a predetermined fixed fee, representing profit. This structure incentivizes the contractor to control costs because any savings below the estimated cost do not reduce the fixed fee. However, it also requires robust government oversight to ensure that costs incurred are reasonable, allocable, and allowable. Unlike fixed-price contracts, there is less direct financial incentive for the contractor to minimize costs beyond what is necessary to achieve the required performance, as the fee is fixed regardless of the final cost. The government bears the risk of cost overruns if actual costs exceed estimates.

What is the significance of this contract being a Delivery Order under a larger IDIQ contract?

This contract being a Delivery Order (DO) signifies that it is a task order issued against a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQs are typically awarded after a broad competition and establish terms and conditions for services that may be needed over a period. Delivery Orders then specify the exact quantity, delivery schedule, and price for a particular requirement within the scope of the parent IDIQ. The significance is that the initial competition for the IDIQ vehicle likely screened multiple vendors, and this DO represents a specific call on that established framework. It implies that the foundational requirements and contractor qualifications were vetted during the IDIQ award process, streamlining the procurement for this specific task.

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

Parent Company: DT Global LLC

Address: 2101 WILSON BLVD STE 700, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $38,467,063

Exercised Options: $38,467,063

Current Obligation: $23,782,279

Actual Outlays: $3,668

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDDOTI000800050

IDV Type: IDC

Timeline