USAID Awards $128.7M Contract for Management Consulting Services to Chemonics International
Contract Overview
Contract Amount: $128,715,258 ($128.7M)
Contractor: Chemonics International, Inc.
Awarding Agency: Agency for International Development
Start Date: 2015-08-28
End Date: 2023-03-15
Contract Duration: 2,756 days
Daily Burn Rate: $46.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::CL::IGF - THE CONTRACTOR SHALL PROVIDE SERVICES SET FORTHIN SECTION "C".
Plain-Language Summary
Agency for International Development obligated $128.7 million to CHEMONICS INTERNATIONAL, INC. for work described as: IGF::CL::IGF - THE CONTRACTOR SHALL PROVIDE SERVICES SET FORTHIN SECTION "C". Key points: 1. Contract value of $128.7M over nearly 8 years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the long duration and cost-plus contract type. 4. Sector is Administrative Management and General Management Consulting Services.
Value Assessment
Rating: fair
The contract value is substantial, but without specific deliverables or performance metrics, it's difficult to assess value for money. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for a wider range of potential bidders and can lead to better price discovery. However, the specific pricing mechanisms within the CPFF structure need careful monitoring.
Taxpayer Impact: The significant contract value means taxpayer funds are being utilized. Effective oversight is crucial to ensure these funds are spent efficiently and achieve intended program outcomes.
Public Impact
Supports USAID's mission delivery through management consulting. Potential impact on international development programs. Long-term engagement suggests ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs if not managed.
- Long contract duration (nearly 8 years) increases risk of scope creep or changing needs.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded under full and open competition.
- Contract supports a critical government agency (USAID).
Sector Analysis
This contract falls within the Administrative Management and General Management Consulting Services sector. Spending in this area is common across government agencies for program support and operational efficiency. Benchmarks are difficult without specific service details.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not specify any subcontracting goals for small businesses. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.
Oversight & Accountability
The Agency for International Development (USAID) is responsible for oversight. The long duration and CPFF structure necessitate robust monitoring and accountability mechanisms to ensure efficient use of funds and achievement of objectives.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific performance metrics.
- Potential for cost overruns.
- Limited visibility into specific services provided.
Tags
administrative-management-and-general-ma, agency-for-international-development, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $128.7 million to CHEMONICS INTERNATIONAL, INC.. IGF::CL::IGF - THE CONTRACTOR SHALL PROVIDE SERVICES SET FORTHIN SECTION "C".
Who is the contractor on this award?
The obligated recipient is CHEMONICS 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 $128.7 million.
What is the period of performance?
Start: 2015-08-28. End: 2023-03-15.
What specific management consulting services are being provided under this contract, and how do they align with USAID's strategic goals?
The contract specifies 'Administrative Management and General Management Consulting Services.' To assess value, a detailed breakdown of the services rendered is required. These services should directly support USAID's mission objectives, such as improving program implementation, enhancing operational efficiency, or providing strategic advice for international development initiatives. Without this specificity, it's challenging to confirm alignment and measure true value.
How effectively is USAID managing the Cost Plus Fixed Fee structure to control costs and mitigate risks associated with this nearly 8-year contract?
Managing a CPFF contract over an extended period requires rigorous oversight. USAID must actively monitor contractor expenditures, ensure adherence to the fixed fee, and prevent unnecessary cost growth. Regular performance reviews, audits, and clear communication channels are essential to mitigate risks like scope creep and ensure the contractor remains incentivized to deliver services efficiently within the agreed-upon fee structure.
What are the key performance indicators (KPIs) used to measure the effectiveness of the services provided by Chemonics International under this contract?
Effective measurement of service effectiveness relies on clearly defined Key Performance Indicators (KPIs). For this contract, KPIs should be tailored to the specific consulting services provided and linked to USAID's program outcomes. Examples could include improvements in program efficiency, successful implementation of strategic recommendations, or measurable advancements in operational processes. The absence of stated KPIs makes objective assessment of effectiveness difficult.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1717 H ST NW STE 1, WASHINGTON, DC, 20006
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $207,922,419
Exercised Options: $168,337,236
Current Obligation: $128,715,258
Actual Outlays: $26,717,887
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $446,377
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: AIDOAAI1400006
IDV Type: IDC
Timeline
Start Date: 2015-08-28
Current End Date: 2023-03-15
Potential End Date: 2023-03-15 00:00:00
Last Modified: 2023-03-15
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