USAID East Africa Risk Assessment and Audit

The US Agency for International Development (USAID) established a Master IDIQ for risk assessment, financial audit services, and agreed-upon procedures for USAID/East Africa on July 18, 2014, with a shared ceiling of $10 million and a final ordering date of March 31, 2017—now closed for over nine years. This vehicle is no longer active and should be skipped by prospective bidders.

The vehicle contracted financial audit and organizational risk assessment work exclusively. Task orders funded closeout audits of USAID-managed grants, financial examinations of specific organizations (including Kenya's Medical Supplies Agency and the Kenya Agricultural and Livestock Research Organization), and pre-award assessments of implementing partners. All 31 orders were firm-fixed-price with no set-aside restrictions.

Ordering momentum declined sharply over the vehicle's life: 14 task orders in 2014, 10 in 2015, and 7 in 2016. The most recent order was awarded November 22, 2016. Combined potential value was only $709 thousand, of which $687 thousand (97 percent) was obligated, indicating the vehicle was heavily utilized during its active period.

Competition was concentrated among the Big Four accounting firms. Deloitte & Touche LLP held the largest share by value at $187 thousand across 5 orders, followed by PricewaterhouseCoopers LIMITED at $167 thousand across 6 orders, KPMG Kenya at $133 thousand across 7 orders, and Ernst & Young at $116 thousand across 4 orders. RSM Eastern Africa LLP received the most orders (9) but the smallest combined value at $107 thousand. These five firms captured 100 percent of all task orders.

Funding came almost entirely from USAID proper: the parent agency funded 17 orders worth $399 thousand combined, while USAID's Bureau for Management and Kenya regional office accounted for the remaining 14 orders totaling $310 thousand. Individual task-order values ranged from under $5 thousand to roughly $98 thousand, with most orders completing within six to eighteen months.

Risk Assessment, Financial Audit Services, and Agreed Upon Procedures for USAID/East Africa