USAID's top contractors for 2014
As Rajiv Shah prepares to step down as administrator of the U.S. Agency for International Development next month, the latest data suggests modest movement in his yearslong push to broaden its base of contractors. Devex ranks USAID's top 20 contractors for 2014.
By Lorenzo Piccio // 09 January 2015As Rajiv Shah prepares to step down as administrator of the U.S. Agency for International Development next month, the latest data suggests modest movement in his yearslong push to broaden its base of contractors. In fiscal 2014, USAID’s obligated funding for its top 20 contractors accounted for 67 percent of its contract spending, down from 73 percent in fiscal 2012. USAID awarded $3.8 billion in contracts in fiscal 2014, a 23 percent drop from fiscal 2012. Against the backdrop of budget pressures in Washington, the agency’s contract spending has now fallen two years in a row. As might be expected, USAID continues to award the bulk of its contract spending to for-profit groups. Firms based out of the United States claimed only 6 percent of USAID’s contract spending in fiscal 2014 — just one year away from USAID’s deadline for meeting its 30 percent local spending target. That figure is up from 4 percent in fiscal 2012. USAID contracts, however, are only a subset of the agency’s total spending, which also includes grants and government-to-government funding. We’ll dig into the data on USAID’s grants later this month so stay tuned. Below, Devex ranks the top 20 USAID contractors, based on obligation data from USASpending.gov, for fiscal 2014. Fourteen of the 20 firms also made our last ranking two years ago, which seems telling of USAID’s difficulties in diversifying its contractor base. An Afghan engineering firm rounds out this list, the only non-U.S. firm to make it to the top 20. 1. Chemonics Founded: 1975 Headquarters: Washington, D.C., United States President and CEO: Susanna Mudge Obligated USAID contract funding: $485.6 million Comprising more than 3,000 staff worldwide, Chemonics designs and implements projects in areas that include agriculture and food security, democracy and governance, economic growth and trade, health, and water and sanitation. The international development company has experience working in more than 150 countries. After 36 years in the business, Chemonics transitioned to full employee ownership in 2011. 2. Partnership for Supply Chain Management Founded: 2005 Headquarters: Arlington, Virginia, United States Obligated USAID contract funding: $389.2 million Counting 13 member organizations, the Partnership for Supply Chain Management has procured more than two-thirds of antiretroviral drugs for the President’s Emergency Plan for AIDS Relief through its supply chain management system project. PFSCM was established by Management Sciences for Health and JSI Research and Training Institute, the nonprofit affiliate of John Snow, Inc. 3. John Snow Inc. Founded: 1978 Headquarters: Boston, Massachusetts, United States President: Joel Lamstein Obligated USAID contract funding: $278.3 million A public health research and consulting firm, John Snow Inc. has more than 500 U.S.-based professionals and 1,600 host country staff. JSI has more than a dozen areas of technical expertise in international health, including child and newborn health, health service delivery, HIV, infectious diseases, noncommunicable diseases and nutrition. Since its founding, JSI has implemented projects in 106 countries. JSI’s nonprofit affiliate, the JSI Research and Training Institute, is a leading USAID grantee. 4. Tetra Tech Founded: 1966 Headquarters: Pasadena, California, United States Chairman, CEO, and President: Dan L. Batrack Obligated USAID contract funding: $190.2 million Tetra Tech provides planning, design, implementation and applied research services in areas that include construction, agriculture and economic growth, democracy and governance, energy, and global security. Supported by 14,000 professionals worldwide, Tetra Tech has expanded its development business in recent years through its acquisition of ARD, DPK, the Institute for Public Private Partnerships, as well as the international development arm of PA Consulting. 5. Abt Associates Founded: 1965 Headquarters: Cambridge, Massachusetts, United States President and CEO: Kathleen L. Flanagan Obligated USAID contract funding: $145.5 million With a presence in nearly 40 countries and more than 2,700 employees, Abt Associates is a research and program implementation firm that works in practice areas, including education, environment and climate change, food security and agriculture, and international health. In 2013, Abt Associates acquired Brisbane-based global health and social sector consulting firm JTA International, now called Abt JTA. 6. DAI Founded: 1970 Headquarters: Bethesda, Maryland, United States President and CEO: James Boomgard Obligated USAID contract funding: $144.5 million Currently working in more than 80 countries, DAI is an international development consulting firm with expertise in the areas of economic growth and livelihoods, environment and energy, governance, health, information and communication technology, stability and corporate strategy. In December 2013, DAI acquired U.K.-based development consulting firm HTSPE. 7. AECOM Founded: 1990 Headquarters: Los Angeles, California, United States Executive Chairman: John M. Dionisio Obligated USAID contract funding: $125.8 million Public policy and economic institutions, democracy and governance, humanitarian response and stabilization, and industrial and commercial area development are among AECOM’s areas of expertise in its international development practice. In October 2014, AECOM completed its acquisition of the URS Corp., a San Francisco-based engineering firm with an international development practice focused on Asia-Pacific. 8. Engility Founded: 2012 Headquarters: Chantilly, Virginia, United States President and CEO: Anthony Smeraglinolo Obligated USAID contract funding: $117.8 million In July 2012, the government services giant L-3 spun off seven of its business units to create Engility. One of those business units, the International Resources Group, is now Engility’s international development division. Drawing on IRG’s 36 years of international development experience, Engility’s practice areas include energy, climate-smart development, learning and capacity building, policy and governance, and agriculture and food security. 9. RTI International Founded: 1958 Headquarters: Research Triangle Park, North Carolina, United States President and CEO: E. Wayne Holden Obligated USAID contract funding: $89.7 million RTI’s international development division provides advisory and training services in the fields of international education, international environmental services, global health, ICT and public-private partnerships. An independent, nonprofit research institute, RTI International has more than 3,700 staff in over 75 countries worldwide. 10. Management Systems International Founded: 1981 Headquarters: Arlington, Virginia, United States President: Larry Cooley Obligated USAID contract funding: $78.4 million Working in fragile states such as Iraq, Afghanistan and Pakistan, development consultancy firm MSI is currently staffed by 800 development experts in the fields of public sector management, monitoring and evaluation, governance, and anti-corruption. In 2008, MSI was acquired by Australian professional services firm Coffey International Ltd. 11. FHI 360 Headquarters: Durham, North Carolina, United States Obligated USAID contract funding: $76.7 million 12. Creative Associates International Headquarters: Washington, D.C., United States Obligated USAID contract funding: $70.2 million 13. ICF International Headquarters: Fairfax, Virginia, United States Obligated USAID contract funding: $54.6 million 14. ACDI/VOCA Headquarters: Washington, D.C., United States Obligated USAID contract funding: $47.8 million 15. IBM Headquarters: Armonk, New York, United States Obligated USAID contract funding: $44.9 million 16. Deloitte Consulting LLP Headquarters: New York, New York, United States Obligated USAID contract funding: $42.7 million 17. CAMRIS International Headquarters: Bethesda, Maryland, United States Obligated USAID contract funding: $40.2 million 18. Fintrac Headquarters: St. Thomas, U.S. Virgin Islands Obligated USAID contract funding: $38.7 million 19. International Relief and Development Headquarters: Arlington, Virginia, United States Obligated USAID contract funding: $38.3 million 20. Mashriq Engineering Construction Co. Headquarters: Kabul, Afghanistan Obligated USAID contract funding: $37.8 million Check out more practical business and development advice online, and subscribe to Money Matters to receive the latest contract award and shortlist announcements, and procurement and fundraising news.
As Rajiv Shah prepares to step down as administrator of the U.S. Agency for International Development next month, the latest data suggests modest movement in his yearslong push to broaden its base of contractors. In fiscal 2014, USAID’s obligated funding for its top 20 contractors accounted for 67 percent of its contract spending, down from 73 percent in fiscal 2012.
USAID awarded $3.8 billion in contracts in fiscal 2014, a 23 percent drop from fiscal 2012. Against the backdrop of budget pressures in Washington, the agency’s contract spending has now fallen two years in a row. As might be expected, USAID continues to award the bulk of its contract spending to for-profit groups.
Firms based out of the United States claimed only 6 percent of USAID’s contract spending in fiscal 2014 — just one year away from USAID’s deadline for meeting its 30 percent local spending target. That figure is up from 4 percent in fiscal 2012. USAID contracts, however, are only a subset of the agency’s total spending, which also includes grants and government-to-government funding. We’ll dig into the data on USAID’s grants later this month so stay tuned.
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Lorenzo is a former contributing analyst for Devex. Previously Devex's senior analyst for development finance in Manila.