USAID's $27.9M Energy II IDIQ task order to Tetra Tech ES, Inc. for renewable energy scaling

Contract Overview

Contract Amount: $27,898,696 ($27.9M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Agency for International Development

Start Date: 2020-07-17

End Date: 2025-02-12

Contract Duration: 1,671 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Energy

Official Description: SCALING UP RENEWABLE ENERGY II (SURE II) TASK ORDER - ENERGY II IDIQ

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $27.9 million to TETRA TECH ES, INC. for work described as: SCALING UP RENEWABLE ENERGY II (SURE II) TASK ORDER - ENERGY II IDIQ Key points: 1. Task order awarded under a broad IDIQ vehicle, suggesting potential for follow-on work and established contractor relationships. 2. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely monitored, but allows flexibility for evolving project needs. 3. Competition was full and open, indicating a robust bidding process that should theoretically drive competitive pricing. 4. The duration of over 1600 days suggests a long-term commitment to the project's objectives. 5. The professional, scientific, and technical services NAICS code points to a focus on expertise and analysis rather than physical goods. 6. The contract's value is moderate within the context of large federal energy initiatives.

Value Assessment

Rating: good

The contract value of approximately $27.9 million over a period of roughly 5.5 years appears reasonable for a task order focused on scaling renewable energy initiatives. Benchmarking against similar task orders under the Energy II IDIQ or other USAID energy programs would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure necessitates careful oversight to ensure costs remain aligned with the fixed fee and project scope, but it allows for adaptation to the complexities inherent in renewable energy deployment.

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 qualified bidders had the opportunity to submit proposals. The presence of 5 bidders suggests a healthy level of interest and competition for this specific task order within the Energy II IDIQ. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value and pricing for the services rendered, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are likely developing countries and regions where USAID is working to scale up renewable energy infrastructure and adoption. Services delivered will focus on technical assistance, project development, and potentially implementation support for renewable energy projects. The geographic impact will be determined by USAID's specific program objectives and target countries within its operational areas. Workforce implications may include the need for specialized technical expertise in renewable energy, project management, and international development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent monitoring to prevent scope creep and ensure cost efficiency.
The long duration of the contract necessitates sustained oversight to ensure continued relevance and effectiveness of services.
Effectiveness of renewable energy scaling depends heavily on local conditions and political will, which are external factors.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to ambiguity in specific deliverables if not clearly defined.

Positive Signals

Awarded under a large IDIQ vehicle (Energy II) suggests a pre-vetted pool of contractors and streamlined acquisition.
Full and open competition indicates a robust selection process likely resulting in a qualified contractor.
The focus on renewable energy aligns with global sustainability goals and critical development needs.
Tetra Tech ES, Inc. is a known entity in the engineering and environmental consulting space, suggesting relevant expertise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to energy and environmental consulting. The market for such services is substantial, driven by government initiatives, private sector investment, and global demand for sustainable energy solutions. Comparable spending benchmarks would involve analyzing other federal contracts for energy consulting, project management, and technical assistance, particularly those supporting international development.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor, Tetra Tech ES, Inc., is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the task order. Further analysis of the subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this task order will primarily be conducted by the Agency for International Development (USAID), likely through contract officers and technical monitors. Accountability measures will be embedded in the Cost Plus Fixed Fee contract terms, requiring regular reporting on costs, progress, and performance against milestones. Transparency will be facilitated through contract databases and potentially public reporting on USAID's development initiatives, though specific project details might be limited.

Related Government Programs

Energy II IDIQ
USAID Global Development Lab
Power Africa Initiative
USAID Energy Sector Capacity Building Programs

Risk Flags

Potential for cost overruns due to CPFF structure if not closely managed.
Effectiveness contingent on external factors like political stability and local infrastructure.
Broad NAICS code requires precise definition of deliverables for effective oversight.
Long contract duration necessitates sustained monitoring and adaptation.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $27.9 million to TETRA TECH ES, INC.. SCALING UP RENEWABLE ENERGY II (SURE II) TASK ORDER - ENERGY II IDIQ

Who is the contractor on this award?

The obligated recipient is TETRA TECH ES, 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 $27.9 million.

What is the period of performance?

Start: 2020-07-17. End: 2025-02-12.

What is Tetra Tech ES, Inc.'s track record with USAID and similar energy-focused contracts?

Tetra Tech ES, Inc. has a significant history of contracting with U.S. federal agencies, including USAID, across various sectors, including environmental services, engineering, and international development. Their experience often involves large-scale projects requiring technical expertise and program management. For USAID energy contracts, Tetra Tech has been involved in initiatives related to energy infrastructure, policy development, and renewable energy deployment in developing countries. A detailed review of their past performance ratings, past performance questionnaires, and any past performance issues on similar contracts would provide a clearer picture of their capabilities and reliability for this specific task order. Their extensive portfolio suggests they possess the necessary qualifications, but specific project outcomes and client satisfaction on comparable energy scaling tasks are key indicators.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar energy scaling contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex service contracts where the scope may evolve or is difficult to define precisely at the outset, such as in international development and energy scaling projects. Compared to fixed-price contracts, CPFF offers more flexibility for the contractor to adapt to unforeseen challenges, which can be beneficial for innovative or pioneering work. However, it also places a greater burden on the government to meticulously monitor costs and ensure that the fixed fee adequately compensates the contractor for their effort without incentivizing excessive spending. Other similar contracts might utilize Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) structures, which introduce performance-based incentives to control costs and drive specific outcomes. A direct comparison of fee percentages and overhead rates against benchmarks for similar services and agencies would be necessary for a definitive value assessment.

What are the primary risks associated with scaling renewable energy in developing countries, and how does this contract address them?

Key risks in scaling renewable energy in developing countries include political instability, regulatory uncertainty, lack of skilled local workforce, inadequate grid infrastructure, financing challenges, and community acceptance. This contract, through Tetra Tech ES, Inc., likely aims to mitigate these risks by providing technical expertise in project design, feasibility studies, policy advisory, and capacity building for local stakeholders. The CPFF structure allows for adaptation if unforeseen challenges arise, such as needing to adjust project scope due to new regulations or infrastructure limitations. However, the contract's effectiveness in addressing these risks depends heavily on the specific task order's objectives, the contractor's implementation strategy, and USAID's ongoing program management and risk mitigation efforts. The contract itself is a tool; successful risk management relies on its execution.

What is the historical spending trend for USAID's renewable energy initiatives, and how does this task order fit within that trend?

USAID has consistently allocated significant funding towards energy sector development, with a growing emphasis on renewable energy over the past decade, driven by global climate change goals and energy access initiatives like Power Africa. Historical spending trends show an increase in investments for renewable energy projects, capacity building, and policy reform in developing nations. This $27.9 million task order, awarded under the Energy II IDIQ, represents a specific investment within this broader trend. It is likely one of many task orders issued under the IDIQ to address diverse renewable energy needs across different regions. To understand its place, one would need to compare its value and scope against other task orders under Energy II and USAID's overall energy portfolio for the relevant fiscal years. It appears to be a moderate-sized investment within a larger strategic framework.

How does the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) classification impact the scope and oversight of this contract?

The NAICS code 541990 is a broad classification that encompasses a wide range of non-classified professional, scientific, and technical services. For this contract, it likely covers activities such as energy policy analysis, feasibility studies, technical assessments, program management, and advisory services related to renewable energy deployment. The broadness of the code means the specific deliverables and services must be very clearly defined within the task order itself to ensure proper scope management and oversight. Oversight agencies must ensure that the services provided align precisely with the stated objectives and do not stray into areas not intended or adequately resourced. Clear performance metrics and reporting requirements are crucial under such a broad classification to maintain accountability and ensure value for money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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

Solicitation ID: 7200AA20R00037

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1320 N COURTHOUSE RD STE 600, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,710,621

Exercised Options: $29,710,621

Current Obligation: $27,898,696

Actual Outlays: $13,322,538

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $11,040

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 7200AA19D00029

IDV Type: IDC

Timeline