Who were USAID's top contractors in 2023?
Of the $6.8 billion that USAID obligated in the fiscal year 2023, $3 billion went to just 10 contractors, out of the 1,900 organizations that won contracts from the agency.
By Miguel Antonio Tamonan // 10 June 2024The U.S. Agency for International Development spends most of its money through the assistance and acquisition, or A&A, mechanism. Although the biggest portion of it goes through grants and direct payments, a significant sum is spent via contracts. Based on USASpending, USAID obligated around $6.8 billion through contracts in the fiscal year that ended in September 2023 — accounting for 17.8% of A&A. This is down $831 million, or 14%, in cash terms, from the previous year. USAID uses various contracting methods to procure goods, services, and works — such as purchase orders, definitive contracts, delivery orders, and blank purchases, which differ in requirements and process. We crunched the numbers to see who got the biggest contracts among the suppliers and what they were procured for. Top contractors in FY 2022-23 Overall, USAID awarded $6.8 billion to more than 1,900 organizations. Of that, $3 billion went to the top 10 suppliers, or 43.7% of the total. This is nearly equivalent, in cash terms, to the total obligation received by the top 10 suppliers in 2022. Among these suppliers, eight contractors were part of the previous list. Credence Management Solutions and Tetra Tech replaced NTT Data Federal Services and Macfadden, which previously ranked 7th and 8th, respectively. About $934.3 million was obligated to undisclosed recipients. 1. Chemonics Location: Washington, D.C., Obligated amount in FY 2022-23: $1.4 billion Rank in FY 2020-21: 1 Although down $127.7 million from the previous fiscal year, Chemonics still maintained its rank among suppliers, receiving 20.4% of the total. Our analysis shows that the bulk of the transactions, worth $835.6 million, were funded under the Global Health Supply Chain Program - Procurement and Supply Management, or GHSC-PSM, project. GHSC-PSM is USAID’s $9.5 billion flagship global health initiative led by Chemonics. The remaining $545.9 million went to technical assistance and consulting services in other sectors, such as democracy and governance, food security, and water, sanitation, and hygiene. 2. DAI Global Location: Maryland, U.S. Obligated amount in FY 2022-23: $489.2 million Rank in FY 2020-21: 2 DAI won its first contract with USAID over five decades ago and has since implemented numerous projects in different sectors in over 100 countries on behalf of many lead donors, including the U.K. Foreign, Commonwealth & Development Office and the European Union institutions. DAI’s biggest transaction in 2023, worth $81.6 million, was for activities under USAID’s five-year Africa Trade and Investment activity. Recently, USAID named the program Critical Infrastructure Digitalization and Resilience, or CIDR, as one of the five winners of the Digital Development Awards. The award recognizes the contributions of USAID bureaus and missions and implementing partners toward improving development and humanitarian results through digital technology. Implemented by DAI with funding from USAID, CIDR aims to improve cybersecurity resilience in seven Eastern European countries. 3. Abt Global Location: Massachusetts and Maryland, U.S. Obligated amount in FY 2022-23: $229.5 million Rank in FY 2020-21: 3 Consulting and research firm Abt Global is another long-standing contractor of USAID. Its offices in Maryland and Massachusetts received $118.2 million and $111.3 million respectively. Its top transaction, worth $44.1 million, is for the Local Health Systems Sustainability, or LHSS, project. LHSS aims to help low- and middle-income countries increase access to universal health coverage and improve their overall health systems. 4. Research Triangle Institute Location: North Carolina, U.S. Obligated amount in FY 2022-23: $152.9 million Rank in FY 2020-21: 9 RTI International is a nonprofit research organization that delivers projects through a science-based approach. Up five notches from the previous list, its biggest activities include $23 million for the Feed the Future Ethiopia Transforming Agriculture, or FAST, project; $19.8 million for the five-year electrification project in Papua New Guinea; and $14.7 million for a WASH program in Ethiopia. 5. Credence Management Solutions Location: Virginia, U.S. Obligated amount in FY 2022-23: $140.8 million Rank in FY 2020-21: 13 Credence Management Solutions was awarded $140.8 million as part of the Global Health Training, Advisory, and Support Contract, or GHTASC. GHTASC intends to support USAID’s Bureau for Global Health programs through “workforce development and institutional support services from junior, mid-level, senior, and expert advisory and assistance professionals.” Credence leads its implementation, along with other partners, including The Public Health Institution, EnCompass, and International Business & Technical Consultants. 6. Associates for Rural Development Location: Vermont, U.S. Obligated amount in FY 2022-23: $134.7 million Rank in FY 2020-21: 4 Acquired by Tetra Tech in 2007, ARD specializes in providing consultancy in agriculture, energy, environment, infrastructure, governance, and natural resources. ARD received $20.7 million in 2023 for land restitution in conflict-affected rural households in Colombia. It was also ARD’s biggest transaction in the previous fiscal year. Its other large transactions include $12.6 million to support curtail wildlife trafficking in Ghana, $9.8 million for marine waste management in Sri Lanka, and $6.1 million for forest management and sustainable energy in Malawi. 7. Palladium International Location: Washington, D.C. Obligated amount in FY 2022-23: $130.4 million Rank in FY 2020-21: 5 With a presence in over 90 countries, Palladium provides technical expertise in different sectors for several donors, including Australia’s Department of Foreign Affairs and Trade, FCDO, and the Global Fund to Fight AIDS, Tuberculosis and Malaria. In 2023, Palladium was awarded the Sustainable Agriculture Activity, which aims to promote sustainable agribusiness models to farmers as an alternative to illicit activities in conflict-affected regions of Colombia Of the total contract, $11.9 million has been obligated so far. 8. Deloitte Consulting, LLP Location: Virginia, U.S Obligated amount in FY 2022-23: $128.6 million Rank in FY 2020-21: 6 Deloitte is one of the world’s largest consulting firms specializing in audit, tax, and financial advisory. USAID awarded several consulting contracts to Deloitte’s office in Virginia, with the largest one, worth $17.4 million, for the provision of human resources to the Office of Human Capital and Talent Management. 9. Creative Associates International Location: Maryland, U.S. Obligated amount in FY 2022-23: $87 million Rank in FY 2020-21: 10 From the initial stage up to the project implementation, Creative Associates International incorporates local context through close collaboration with stakeholders and communities. Creative Associates International implements the West Africa Trade and Investment Hub Activity, which aims to improve the region’s private sector and strengthen its agriculture and trade. In 2023, it received $40.7 million of the $116.1 million contract budget. 10. Tetra Tech Location: California, United States Obligated amount in FY 2022-23: $84.1 million Rank in FY 2020-21: 22 Tetra Tech has cemented its place as a leading provider of consulting and engineering services in the fields of development, environment, energy, infrastructure, and water. One of its top transactions in the recent fiscal year, worth $13.9 million, was for the Citizen Security Program — a five-year program that aims to strengthen citizen security to reduce violence in Port-au-Prince, Haiti. Try out Devex Pro Funding today with a free five-day trial, and explore funding opportunities from over 850 sources in addition to our analysis and news content.
The U.S. Agency for International Development spends most of its money through the assistance and acquisition, or A&A, mechanism. Although the biggest portion of it goes through grants and direct payments, a significant sum is spent via contracts.
Based on USASpending, USAID obligated around $6.8 billion through contracts in the fiscal year that ended in September 2023 — accounting for 17.8% of A&A.
This is down $831 million, or 14%, in cash terms, from the previous year.
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Miguel Tamonan is a Senior Development Analyst at Devex, where he analyzes data from public and private donors to produce content and special reports for Pro and Pro Funding readers. He has a bachelor’s degree in Political Science with a Major in International Relations from the Polytechnic University of the Philippines.