USAID's $50M contract for administrative management services awarded to Creative Associates International, Inc

Contract Overview

Contract Amount: $50,037,999 ($50.0M)

Contractor: Creative Associates International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2014-09-22

End Date: 2022-11-15

Contract Duration: 2,976 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF NEW SWIFT TASK ORDER FOR OTI/NIGERIA

Plain-Language Summary

Agency for International Development obligated $50.0 million to CREATIVE ASSOCIATES INTERNATIONAL, INC. for work described as: IGF::CL::IGF NEW SWIFT TASK ORDER FOR OTI/NIGERIA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of nearly 3000 days indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on general management consulting. 5. The award was a delivery order under a larger contract vehicle, implying it's part of a broader procurement strategy. 6. The absence of small business set-aside flags suggests the primary awardee is not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this $50 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. While the fixed fee provides some cost certainty for the contractor's profit, the overall cost to the government can fluctuate. Without details on the specific services rendered and their effectiveness, it's difficult to definitively assess value for money against market rates for administrative management consulting.

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. This typically involves a robust solicitation process designed to attract a wide range of qualified contractors. The presence of 7 bids (as indicated by 'no': 7) suggests a healthy level of competition for this requirement, which can contribute to more competitive pricing and better selection of the most capable offeror.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and encouraging contractors to offer their best value propositions, potentially leading to more cost-effective service delivery.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which receives administrative management and general management consulting services. These services likely support USAID's mission in Nigeria, contributing to the effective implementation of its programs and operations. The contract's geographic focus is Nigeria, impacting local operations and potentially local staff or contractors engaged by the prime. Workforce implications could include the employment of consultants and administrative staff, both by the prime contractor and potentially by USAID itself to manage the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost uncertainty if not managed diligently.
Long contract duration requires sustained oversight to ensure continued relevance and performance.
Reliance on a single prime contractor for a significant duration may limit flexibility.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified bidders.
Multiple bids received (7) suggest a competitive environment.
The contract is a delivery order, implying it fits within a pre-established, potentially vetted, contract vehicle.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and general management consulting. This is a broad category encompassing services that help organizations improve their efficiency and effectiveness. The market for such services is large and diverse, with numerous firms competing for government contracts. USAID's spending in this area supports its operational needs, enabling it to manage complex international development programs.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses ('sb': false). Therefore, the primary awardee, Creative Associates International, Inc., is likely a large business. While there's no direct indication of subcontracting plans for small businesses within the provided data, large prime contractors are often required to meet small business subcontracting goals as part of their contract terms. The impact on the small business ecosystem would depend on whether Creative Associates International, Inc. actively seeks out and utilizes small business subcontractors for portions of this work.

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 monitor expenditures and ensure the fixed fee remains appropriate. Accountability measures would likely involve performance reviews, milestone tracking, and adherence to the contract's statement of work. Transparency would be facilitated through contract reporting requirements. The Inspector General for USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USAID Program Management Support Contracts
International Development Consulting Services
Administrative Support Services for Federal Agencies
Management and Consulting Services (NAICS 541611)
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $50.0 million to CREATIVE ASSOCIATES INTERNATIONAL, INC.. IGF::CL::IGF NEW SWIFT TASK ORDER FOR OTI/NIGERIA

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 $50.0 million.

What is the period of performance?

Start: 2014-09-22. End: 2022-11-15.

What specific administrative and management consulting services were delivered under this contract in Nigeria?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services' under NAICS code 541611. While the specific tasks are not detailed, such services typically encompass areas like organizational efficiency improvements, strategic planning support, operational process optimization, human capital management, financial administration, and program management support. For USAID in Nigeria, these services likely aimed to enhance the effectiveness and efficiency of their development programs, manage operational complexities, and ensure compliance with regulations. The Cost Plus Fixed Fee structure suggests that the contractor was reimbursed for allowable costs incurred in performing these services, plus a predetermined fixed fee representing profit. Detailed deliverables and performance reports would normally outline the precise services rendered and their outcomes.

How does the $50 million value compare to similar administrative management contracts awarded by USAID or other agencies?

The $50 million value for a contract spanning nearly eight years (September 2014 to November 2022) is substantial but not unusual for large-scale, long-term support services required by agencies like USAID, especially for overseas operations. Comparable contracts for management and administrative support can range from a few million to hundreds of millions of dollars, depending on the scope, duration, geographic complexity, and specific services required. For instance, other federal agencies often award similar-sized contracts for program management, technical assistance, and administrative support in complex environments. Without access to a detailed benchmark database of specific service lines and performance metrics, a precise comparison is difficult. However, the full and open competition with multiple bidders suggests the pricing was considered competitive within the market for such extensive services.

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 ($50 million) and duration (nearly 8 years) revolve around cost control and potential for scope creep. For the government, the risk is that the 'cost' portion could escalate beyond initial expectations if the contractor's cost accounting or efficiency is poor, even though the fee is fixed. Inadequate oversight can exacerbate this. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee provides adequate profit without incurring losses, especially if unforeseen challenges arise. Scope creep is another significant risk; without diligent management, the scope of work can expand, leading to increased costs and potentially exceeding the contract's value without formal modification. Effective government oversight, clear performance metrics, and robust change control processes are essential to mitigate these risks.

What was the track record of Creative Associates International, Inc. with USAID or similar contracts prior to this award?

Creative Associates International, Inc. has a well-established history of working with USAID and other government agencies on international development and assistance programs. Prior to this specific $50 million contract, the company had secured numerous contracts, often in the tens or hundreds of millions of dollars, focusing on areas such as education, democracy and governance, economic growth, and peacebuilding in various countries. Their track record generally includes experience in program management, technical assistance, and capacity building. While specific performance ratings for past contracts are not publicly detailed in this data, their continued success in winning significant contracts from USAID suggests a generally positive performance history and a strong understanding of USAID's requirements and operational environment.

How has USAID's spending on administrative and management consulting services evolved over the period this contract was active (2014-2022)?

During the period this contract was active (FY2014-FY2022), USAID's overall spending on administrative and management consulting services likely saw fluctuations influenced by global events, shifting foreign policy priorities, and budget allocations. While this specific $50 million contract represents a significant investment, it's part of a broader portfolio. Trends in federal spending often show increases during periods of heightened international engagement or crisis response, and potential decreases during fiscal austerity. USAID, in particular, relies on such services to manage complex development projects worldwide. Analyzing aggregate spending data for NAICS code 541611 across USAID during these years would reveal overall trends, but this single contract's value provides a consistent, long-term commitment to specific support functions in Nigeria.

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: 7

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, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $80,207,026

Exercised Options: $80,207,026

Current Obligation: $50,037,999

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400011

IDV Type: IDC

Timeline