USAID's $99.6M task order for OTI/Libya services awarded to Chemonics International, Inc

Contract Overview

Contract Amount: $99,563,232 ($99.6M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-04-25

End Date: 2022-02-05

Contract Duration: 1,747 days

Daily Burn Rate: $57.0K/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 - NEW SWIFT TASK ORDER FOR OTI/LIBYA

Plain-Language Summary

Agency for International Development obligated $99.6 million to CHEMONICS INTERNATIONAL, INC. for work described as: IGF::CL::IGF - NEW SWIFT TASK ORDER FOR OTI/LIBYA Key points: 1. Contract awarded via full and open competition, suggesting a broad market search. 2. Task order represents a significant investment in administrative management and general management consulting. 3. The contract duration of 1747 days indicates a long-term need for these services. 4. The cost-plus-fixed-fee contract type may allow for flexibility but requires careful oversight. 5. The awardee, Chemonics International, Inc., is a known entity in international development contracting. 6. The North American Industry Classification System (NAICS) code 541611 points to management consulting services.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without comparable data for similar OTI/Libya initiatives. The cost-plus-fixed-fee structure necessitates close monitoring to ensure costs remain reasonable and that the fixed fee is justified by the services rendered. Without detailed performance metrics and cost breakdowns, a definitive value-for-money assessment is difficult. However, the scale of the award suggests a substantial need and potentially complex operational requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it was a delivery order under a larger contract suggests that the initial contract vehicle itself was competed. The number of bidders and the specific evaluation criteria would provide further insight into the competitive landscape, but the 'full and open' designation generally implies a robust process aimed at achieving competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider range of innovative solutions from the market.

Public Impact

The primary beneficiaries are likely the populations and governmental entities within Libya receiving support through USAID's Office of Transition Initiatives (OTI). Services delivered are expected to include administrative and general management consulting to support stabilization, governance, or development efforts. The geographic impact is focused on Libya, with potential ripple effects on regional stability. Workforce implications could include the employment of consultants, project managers, and local staff in Libya.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
The long duration of the contract (1747 days) increases the risk of scope creep or changing requirements.
Dependence on a single contractor for a significant period may limit flexibility in adapting to evolving needs.
Performance metrics and quality assurance for consulting services can be subjective and difficult to quantify.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contractor, Chemonics International, Inc., has extensive experience in international development, implying a higher likelihood of successful execution.
The task order structure allows for focused execution of specific objectives within a broader program.
The fixed fee component provides some level of cost certainty for the government, provided the scope is well-defined.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The U.S. federal government spends billions annually on management and professional services, with a significant portion directed towards international development and support. This contract represents a component of USAID's broader efforts in fragile states and transition environments, where specialized consulting is often required to navigate complex political and social landscapes.

Small Business Impact

The data indicates that small business participation (sb) was false and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and opportunities for small business subcontracting may be limited unless proactively pursued by the prime contractor. Further investigation into subcontracting plans would be necessary to understand the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under USAID's contracting officers and program managers. The Office of Inspector General (OIG) for USAID would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency would be enhanced by public reporting of performance reviews and financial expenditures, though detailed operational reporting may be sensitive.

Related Government Programs

USAID Office of Transition Initiatives (OTI) Programs
International Development Assistance
Management and Consulting Services
Stabilization and Reconstruction Efforts

Risk Flags

Long contract duration increases risk of scope creep.
Cost-plus-fixed-fee structure requires diligent cost oversight.
Limited information on specific performance metrics and value benchmarks.
No explicit small business set-aside noted.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $99.6 million to CHEMONICS INTERNATIONAL, INC.. IGF::CL::IGF - NEW SWIFT TASK ORDER FOR OTI/LIBYA

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 $99.6 million.

What is the period of performance?

Start: 2017-04-25. End: 2022-02-05.

What is Chemonics International, Inc.'s track record with USAID, particularly on similar task orders?

Chemonics International, Inc. is a well-established government contractor with a long history of working with USAID on various international development projects. They frequently receive awards for technical assistance, program management, and capacity building in diverse sectors and geographies. Analyzing their past performance on USAID task orders, especially those related to stabilization, governance, or administrative support in complex environments, would reveal their ability to manage large budgets, meet performance targets, and adhere to compliance requirements. A review of past performance evaluations and any documented issues or successes on similar contracts would provide critical context for assessing their suitability and reliability for this specific task order.

How does the $99.6 million value compare to other USAID OTI task orders or similar international stabilization contracts?

The $99.6 million value positions this task order as a significant investment within USAID's portfolio, particularly for the Office of Transition Initiatives (OTI). To benchmark its value, one would compare it to the average size and scope of OTI task orders or contracts supporting stabilization and governance in comparable countries. For instance, if similar OTI initiatives in other post-conflict or transition countries typically range from $20 million to $70 million, then this $99.6 million award might be considered on the higher end, potentially indicating a more extensive or longer-duration program. Conversely, if other large-scale stabilization efforts by different agencies or international bodies in similar contexts exceed this amount, it could suggest this award is within a typical range for substantial interventions.

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

A Cost Plus Fixed Fee (CPFF) contract, especially one valued at $99.6 million and spanning nearly five years (1747 days), carries inherent risks. The primary risk for the government is that costs could escalate beyond initial projections, even though the contractor's profit is fixed. While the CPFF structure incentivizes the contractor to control costs to maximize their fixed fee percentage, it can also lead to less scrutiny on indirect costs or overhead if not rigorously audited. Furthermore, the long duration increases the risk of scope creep, where project objectives may evolve, potentially leading to contract modifications and increased costs. Ensuring robust oversight, clear performance metrics, and stringent auditing of all costs are crucial to mitigate these risks and ensure value for taxpayer money.

What specific administrative management and general management consulting services are anticipated under this task order?

Given the NAICS code 541611 (Administrative Management and General Management Consulting Services) and the context of USAID's Office of Transition Initiatives (OTI) in Libya, the services likely encompass a broad range of support. This could include strategic planning, organizational development, policy advice, program management support, financial management consulting, and potentially technical assistance related to governance, rule of law, or economic stabilization. The 'administrative' aspect suggests support for the operational functioning of local entities or USAID programs, while 'general management' implies broader advisory services aimed at improving effectiveness and efficiency. The specific nature of these services would be detailed in the task order's Statement of Work (SOW), outlining deliverables, objectives, and expected outcomes.

How does the 'full and open competition' award mechanism impact potential cost savings or service quality for this contract?

The 'full and open competition' award mechanism is designed to maximize both cost savings and service quality by allowing any interested and capable vendor to submit a proposal. This broad competition increases the pool of potential offerors, fostering a more robust marketplace where companies vie for the contract based on technical merit, past performance, and price. Theoretically, this competitive pressure should drive down prices as vendors seek to offer the most attractive bid. It also encourages innovation, as companies propose diverse approaches to meet the government's needs. For taxpayers, this mechanism generally leads to better value by ensuring that the government selects the best-qualified contractor at a competitive price, rather than being limited to a pre-selected group of vendors.

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: $109,040,421

Exercised Options: $109,040,421

Current Obligation: $99,563,232

Actual Outlays: $59,723,943

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