USAID's $27.3M environmental consulting contract awarded to International Resources Group Ltd. shows fair value

Contract Overview

Contract Amount: $27,343,441 ($27.3M)

Contractor: International Resources Group Ltd.

Awarding Agency: Agency for International Development

Start Date: 2011-09-01

End Date: 2016-03-31

Contract Duration: 1,673 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ICAA REGIONAL ENV PROGRAM - T.O. CONTRACT

Plain-Language Summary

Agency for International Development obligated $27.3 million to INTERNATIONAL RESOURCES GROUP LTD. for work described as: ICAA REGIONAL ENV PROGRAM - T.O. CONTRACT Key points: 1. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 2. The duration of the contract (1673 days) indicates a long-term need for these services. 3. The cost-plus-fixed-fee contract type allows for flexibility but requires careful oversight to manage costs. 4. The services provided fall under 'Other Management Consulting Services,' a broad category. 5. The contract was awarded as a delivery order, implying it's part of a larger framework agreement. 6. No small business set-aside was utilized, indicating the primary awardee is not a small business.

Value Assessment

Rating: fair

The total award amount of $27.3 million over approximately 4.6 years suggests a moderate annual spend for environmental consulting services. Benchmarking against similar contracts is challenging without more specific service details, but the cost-plus-fixed-fee structure implies that direct costs are reimbursed, plus a negotiated fixed fee for profit. This structure can lead to cost overruns if not managed tightly. The value proposition hinges on the effective delivery of environmental consulting services that meet USAID's objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. With 3 bidders, the competition level appears moderate. This suggests that while multiple firms were interested, the market may not be saturated with providers for this specific type of environmental consulting. The competitive process likely contributed to price discovery, but the final price is also influenced by the cost-plus-fixed-fee structure.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, potentially leading to better value for the government's investment.

Public Impact

The primary beneficiaries are likely USAID's international development programs that require environmental expertise. Services delivered include management consulting related to environmental programs, potentially involving assessments, planning, and implementation support. The geographic impact is likely global, supporting USAID's overseas missions and projects. Workforce implications could include employment for environmental consultants, project managers, and support staff within the contractor organization and potentially local hires in program countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur more costs to increase their fee if not properly monitored.
The broad 'Other Management Consulting Services' category makes it difficult to assess the specificity and necessity of the services without further detail.
The long contract duration could lead to scope creep or misalignment with evolving environmental needs if not actively managed.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract supports critical environmental program needs for a major federal agency (USAID).
The fixed fee component of the contract provides some predictability in contractor profit.

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 specialized firms, from large global consultancies to niche providers. Federal spending in this area supports a variety of government functions, including policy analysis, program management, and technical expertise. Comparable spending benchmarks would depend heavily on the specific environmental services rendered, but consulting services represent a significant portion of federal contracting.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating no specific preference for small businesses in the primary award. This suggests that the primary contract was likely awarded to a larger entity. There is no information provided on subcontracting plans or performance related to small businesses. Without this data, the direct impact on the small business ecosystem is unclear, though larger prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned. Transparency would be facilitated through contract reporting mechanisms and potentially through public contract databases. Inspector General jurisdiction would apply to investigate fraud, waste, and abuse related to the contract.

Related Government Programs

USAID Environmental Compliance Programs
International Development Assistance
Global Environmental Management Consulting
Federal Management and Consulting Services

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to prevent cost escalation.
Broad service category ('Other Management Consulting Services') may obscure specific performance metrics.
Long contract duration necessitates active management to ensure continued relevance and efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $27.3 million to INTERNATIONAL RESOURCES GROUP LTD.. ICAA REGIONAL ENV PROGRAM - T.O. CONTRACT

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 $27.3 million.

What is the period of performance?

Start: 2011-09-01. End: 2016-03-31.

What specific environmental challenges or projects did International Resources Group Ltd. address under this contract?

The provided data indicates the contract falls under 'Other Management Consulting Services' (NAICS 541618) for the 'ICAA REGIONAL ENV PROGRAM - T.O. CONTRACT'. While the specific environmental challenges are not detailed, this suggests the services likely supported USAID's regional environmental programs, potentially involving areas such as environmental impact assessments, natural resource management, climate change adaptation, pollution control, or biodiversity conservation in various international regions. The 'T.O. CONTRACT' designation implies this was a task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, further suggesting a framework for addressing diverse environmental needs as they arose.

How does the $27.3 million total award compare to typical spending on similar environmental consulting contracts by USAID or other agencies?

A direct comparison of the $27.3 million total award for this specific contract to 'typical' spending is difficult without more granular data on the scope and duration of comparable contracts. However, $27.3 million over approximately 4.6 years represents an average annual spend of roughly $5.9 million. This figure is substantial and indicates a significant engagement for environmental consulting services. USAID and other agencies involved in international development or domestic environmental regulation often award large, multi-year contracts in the millions of dollars for complex projects. The value is relative to the criticality and scale of the environmental issues being addressed.

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

The primary risks associated with a CPFF contract of this magnitude ($27.3M) and duration (1673 days) include potential cost overruns and contractor inefficiency. While the fixed fee provides a ceiling on profit, the contractor is reimbursed for all allowable costs. If cost controls are weak or if the scope of work expands without adequate adjustments, costs can escalate beyond initial projections. There's also a risk that the contractor may not be sufficiently incentivized to control costs aggressively, as their profit is fixed. Effective government oversight, detailed cost monitoring, and clear performance metrics are essential to mitigate these risks and ensure value for taxpayer money.

What does the number of bidders (3) suggest about the competitiveness of the market for these specific environmental consulting services?

Having 3 bidders for this contract, awarded under full and open competition, suggests a moderately competitive market for these specific environmental consulting services. While it indicates that more than one firm was interested and capable, it doesn't necessarily imply a highly saturated market where numerous companies are vying for every opportunity. The level of competition can influence pricing; fewer bidders might allow for higher price points, whereas a larger pool of bidders typically drives prices down. The specific nature of the 'ICAA REGIONAL ENV PROGRAM' likely dictates the pool of qualified firms, potentially limiting the number of highly specialized competitors.

What is the track record of International Resources Group Ltd. in performing similar federal contracts?

The provided data does not include specific details on the track record of International Resources Group Ltd. (IRG) in performing similar federal contracts. However, the fact that they were awarded this significant $27.3 million contract by the Agency for International Development (USAID) suggests they have demonstrated capabilities and potentially past performance that met USAID's requirements. To fully assess their track record, one would need to examine past performance evaluations, contract history databases (like the Federal Procurement Data System - FPDS), and any publicly available information on their project successes and challenges in the federal contracting space.

How has federal spending on 'Other Management Consulting Services' (NAICS 541618) trended in recent years, and where does this contract fit?

Federal spending on 'Other Management Consulting Services' (NAICS 541618) has generally been substantial and has seen fluctuations based on agency needs and budget priorities. This category encompasses a wide array of services, including policy analysis, organizational development, and program management support. The $27.3 million awarded to International Resources Group Ltd. represents a significant single contract within this category. While it's a notable amount, it needs to be viewed in the context of the overall federal budget for consulting services, which can run into billions of dollars annually across various agencies. This contract likely supports a specific, critical program within USAID, contributing to the broader federal expenditure on expert advisory services.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Research Triangle Institute (UEI: 004868105)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,565,000

Exercised Options: $27,565,000

Current Obligation: $27,343,441

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDEPPI000400024

IDV Type: IDC

Timeline