USAID's $56.6M contract for administrative management consulting services awarded to Chemonics International, Inc

Contract Overview

Contract Amount: $56,597,713 ($56.6M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-04-11

End Date: 2022-04-29

Contract Duration: 1,844 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF OVERSEAS CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $56.6 million to CHEMONICS INTERNATIONAL, INC. for work described as: IGF::CL::IGF OVERSEAS CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of 1844 days indicates a significant, long-term need for administrative management support. 3. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not closely monitored. 4. The specific NAICS code (541611) points to a focus on general management consulting, a common government need. 5. The awardee, Chemonics International, Inc., is a well-established government contractor, implying a degree of reliability. 6. The contract was awarded as a delivery order, suggesting it's part of a larger contracting vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while common, carries inherent risks of cost escalation compared to fixed-price contracts. Without comparative data on similar administrative management consulting contracts from USAID or other agencies, it's difficult to definitively assess if the pricing represents excellent value. The fixed fee component provides some cost control, but the overall cost is subject to the actual expenses incurred by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The fact that it was a delivery order suggests it was likely placed against an existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award vehicle. The level of competition for the underlying IDIQ would be a key factor in determining the overall price discovery effectiveness. For this specific delivery order, the number of bids received is not provided, which limits a detailed assessment of competitive pressure.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. However, the effectiveness of this benefit depends on the number of actual bids received for this specific delivery order and the terms of the parent contract.

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 to advance U.S. foreign policy interests and promote democratic and economic growth abroad. The geographic impact is primarily within the District of Columbia, where the contractor is located, but the services may support global USAID operations. The contract supports a workforce of consultants and administrative professionals employed by Chemonics International, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not managed diligently.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the services rendered.
The long duration of the contract could lead to vendor lock-in or a decrease in responsiveness over time.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contractor, Chemonics International, Inc., has a significant track record with government contracts.
The contract addresses a clear need for administrative management support within a major federal agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The U.S. government is a major consumer of these services, with significant annual spending across various agencies. The market for administrative and management consulting is highly competitive, with numerous firms ranging from large corporations to specialized small businesses. This contract's value of approximately $56.6 million over its term places it as a substantial award within this category, likely supporting critical operational functions for USAID.

Small Business Impact

The 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 small business set-aside. However, as a large contract awarded to a major contractor, Chemonics International, Inc. may have its own small business subcontracting goals as part of its broader corporate responsibility, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within USAID. As a delivery order, oversight may also be influenced by the terms and oversight mechanisms of the parent contract vehicle. Transparency is facilitated by public contract databases, but detailed performance reports and Inspector General (IG) audits would provide deeper insights into accountability. The specific IG jurisdiction would depend on the agency and the nature of any potential investigations.

Related Government Programs

USAID Operating Expenses
Management and Consulting Services
Federal Administrative Support Contracts
International Development Assistance

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may reduce flexibility and competitive pressure.
Lack of specific performance metrics in provided data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $56.6 million to CHEMONICS INTERNATIONAL, INC.. IGF::CL::IGF OVERSEAS CONTRACT

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 $56.6 million.

What is the period of performance?

Start: 2017-04-11. End: 2022-04-29.

What is the track record of Chemonics International, Inc. with USAID and other federal agencies?

Chemonics International, Inc. has a substantial and long-standing track record of working with USAID and other U.S. federal agencies. They are a prominent government contractor specializing in international development, global health, economic growth, and democracy and governance programs. Their portfolio includes numerous contracts, often of significant value, across various agencies such as USAID, the Department of State, and the Millennium Challenge Corporation. While their extensive experience suggests a capacity to manage large and complex contracts, a detailed review of past performance, including any past performance issues or successful contract completions, would be necessary for a comprehensive assessment. Publicly available contract databases often list their awards and performance history, providing a basis for evaluating their reliability and effectiveness in delivering on government requirements.

How does the value of this contract compare to similar administrative management consulting contracts?

Comparing the $56.6 million value of this contract requires context regarding the scope and duration of 'similar' contracts. Administrative management consulting services can vary widely in their specific deliverables and complexity. This contract, spanning over 1800 days (approximately 5 years), represents a significant, long-term engagement. Larger federal agencies often award multi-year contracts in the tens or hundreds of millions for comprehensive support. To benchmark effectively, one would need to identify contracts with comparable objectives (e.g., general management consulting, administrative support) awarded by agencies of similar size and mission to USAID, and analyze their total value, duration, and specific service components. Without such direct comparisons, the $56.6 million figure indicates a substantial investment in external expertise for operational support.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($56.6 million) revolve around cost control and potential for overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The risk for the government is that the 'cost' component can escalate beyond initial projections if the contractor's expenses increase, potentially leading to a final contract value significantly higher than anticipated. While the fixed fee provides some predictability regarding profit, it does not cap the total contract cost. Effective oversight, rigorous cost monitoring, and clear definition of allowable costs are crucial to mitigate these risks. The contractor also faces risks if costs exceed expectations and the fixed fee does not adequately compensate for the effort.

How effective is full and open competition in ensuring value for money for administrative consulting services?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified vendors to compete, theoretically driving down prices through market forces. For administrative consulting services, this means that agencies can solicit proposals from numerous firms, compare their technical approaches, qualifications, and pricing, and select the offer that provides the best overall value. However, the effectiveness is contingent on several factors: the clarity and realism of the solicitation requirements, the number of responsive bids received, and the agency's ability to accurately evaluate proposals. If the solicitation is poorly defined or if only a few vendors submit bids, the competitive advantage may be diminished. For this specific $56.6 million contract, the fact that it was competed fully is a positive indicator, but the ultimate value realized depends on the execution and oversight throughout the contract's life.

What are the potential implications of awarding a large contract like this to a single vendor for an extended period?

Awarding a large contract like this ($56.6 million) to a single vendor, Chemonics International, Inc., for an extended period (over 1800 days) can have several implications. On the positive side, it can foster a strong working relationship, allow the contractor to develop deep institutional knowledge, and ensure continuity of services. This can lead to increased efficiency and effectiveness over time. However, potential downsides include reduced flexibility if the agency's needs change significantly, a potential decrease in contractor responsiveness or innovation due to a lack of competitive pressure during the contract term, and 'vendor lock-in,' making it difficult or costly to switch providers later. Robust contract management, including regular performance reviews and clear mechanisms for addressing issues, is essential to mitigate these risks and ensure the agency continues to receive optimal value.

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: 1

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: $57,692,208

Exercised Options: $57,692,208

Current Obligation: $56,597,713

Actual Outlays: $35,956,561

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $85,651

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400006

IDV Type: IDC

Timeline