USAID's $44.8M Power Central Asia Activity Phase I awarded to Tetra Tech ES, Inc. for technical services

Contract Overview

Contract Amount: $44,794,295 ($44.8M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Agency for International Development

Start Date: 2020-08-03

End Date: 2025-02-26

Contract Duration: 1,668 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER TO IMPLEMENT USAIDS POWER CENTRAL ASIA ACTIVITY PHASE I

Plain-Language Summary

Agency for International Development obligated $44.8 million to TETRA TECH ES, INC. for work described as: TASK ORDER TO IMPLEMENT USAIDS POWER CENTRAL ASIA ACTIVITY PHASE I Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. Duration of 1668 days indicates a long-term commitment to the program's objectives. 4. The North American Industry Classification System (NAICS) code 541990 covers a broad range of professional, scientific, and technical services. 5. This task order is part of a larger effort to implement USAID's Power Central Asia Activity. 6. The award amount of $44.8 million reflects a significant investment in regional energy infrastructure and policy.

Value Assessment

Rating: good

The contract's value of $44.8 million for a 1668-day period appears reasonable given the scope of implementing a major USAID activity. Benchmarking against similar large-scale international development contracts would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure necessitates close monitoring of costs to ensure efficiency and prevent overruns, but it is a common and accepted pricing model for complex, long-term projects where exact costs are difficult to predict upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of 4 bidders (no=4) suggests a competitive environment, which typically leads to better pricing and service offerings for the government. This level of competition is generally favorable for ensuring that taxpayer funds are used effectively.

Taxpayer Impact: A competitive bidding process helps ensure that the government secures the best possible value for its investment, potentially leading to cost savings compared to a sole-source or limited competition award.

Public Impact

Beneficiaries include regional energy sector stakeholders in Central Asia, aiming to improve energy infrastructure and policy. Services delivered focus on implementing USAID's Power Central Asia Activity, likely involving technical assistance, capacity building, and project management. Geographic impact is concentrated in Central Asian countries, supporting regional energy cooperation and development. Workforce implications may include local employment opportunities in project implementation and support roles within the Central Asian region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively.
The broad NAICS code may indicate a wide range of potential services, requiring clear performance metrics.
Long contract duration necessitates sustained program management and adaptation to evolving regional needs.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The contract supports a critical USAID development objective in the energy sector.
Tetra Tech ES, Inc. is a known entity in government contracting, suggesting established capabilities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting international development initiatives in the energy domain. The market for such services is characterized by specialized expertise, often involving complex project management, policy advisory, and technical implementation in developing regions. Comparable spending benchmarks would involve looking at other large-scale USAID or international development agency contracts focused on energy sector reform and infrastructure development in similar geographic areas.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large prime contract awarded through full and open competition, it is unlikely to be exclusively for small businesses. However, the prime contractor, Tetra Tech ES, Inc., may engage small businesses as subcontractors to fulfill specific aspects of the work, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Agency for International Development (USAID), likely through a Contracting Officer's Representative (COR). The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable to the contract. Transparency is expected through regular reporting requirements from the contractor and potentially through public-facing program updates from USAID regarding the Power Central Asia Activity.

Related Government Programs

USAID Power Central Asia Activity
International Development Assistance
Energy Sector Development Programs
Professional, Scientific, and Technical Services Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Geopolitical and regulatory risks in Central Asia.
Complexity of managing a multi-faceted development activity.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $44.8 million to TETRA TECH ES, INC.. TASK ORDER TO IMPLEMENT USAIDS POWER CENTRAL ASIA ACTIVITY PHASE I

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 $44.8 million.

What is the period of performance?

Start: 2020-08-03. End: 2025-02-26.

What is the track record of Tetra Tech ES, Inc. in managing large-scale international development contracts, particularly in the energy sector?

Tetra Tech ES, Inc. has a significant history of performing government contracts, including many with USAID and other development agencies. They have experience in areas such as environmental services, engineering, and technical assistance. For large-scale international development contracts, particularly those involving energy sector reform or infrastructure, their track record generally indicates a capacity to manage complex projects. However, a detailed review of past performance on similar USAID energy activities would be necessary to fully assess their specific expertise and success rate in this precise domain. This would involve examining past performance evaluations, any contract disputes, and the successful completion of objectives on prior related projects.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar USAID development activities?

The Cost Plus Fixed Fee (CPFF) structure is commonly used by USAID for complex, long-term projects where the scope of work is well-defined but the exact costs are difficult to estimate precisely at the outset. It allows the contractor to recover allowable costs plus a predetermined fixed fee, which represents their profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if the scope changes, but it carries a higher risk of cost growth if not managed diligently. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF provides a fixed profit margin, potentially offering less incentive for the contractor to exceed performance expectations beyond the basic requirements, unless other performance metrics are tied to the fixed fee or other contract clauses.

What are the primary risks associated with implementing a multi-year energy development activity in Central Asia, and how might they impact this contract?

Key risks in implementing energy development activities in Central Asia include political instability, regulatory changes, currency fluctuations, corruption, and logistical challenges in remote areas. Geopolitical shifts can also impact regional cooperation and project viability. For this contract, these risks could lead to delays, increased costs (especially under a CPFF structure), scope adjustments, or even project suspension. USAID's robust risk management framework and the contractor's adaptability are crucial. Tetra Tech ES, Inc. will need to navigate these complexities through strong local partnerships, continuous stakeholder engagement, and proactive risk mitigation strategies outlined in their project plan.

What are the expected outcomes and performance metrics for the USAID Power Central Asia Activity Phase I, and how is success measured?

While specific performance metrics are detailed within the contract's Statement of Work (SOW) and associated appendices, the expected outcomes for the Power Central Asia Activity Phase I generally revolve around improving energy sector efficiency, promoting sustainable energy sources, enhancing regional energy trade, and strengthening policy and regulatory frameworks. Success is typically measured through a combination of quantitative indicators (e.g., increased installed capacity of renewable energy, reduction in energy losses, number of policy reforms adopted) and qualitative assessments (e.g., improved governance, enhanced stakeholder capacity, successful project implementation). USAID's monitoring and evaluation (M&E) plan would outline the specific targets and reporting frequencies.

How does this contract's value and duration compare to previous USAID energy sector initiatives in the Central Asian region?

The $44.8 million award for a 1668-day period (approximately 4.5 years) for the Power Central Asia Activity Phase I represents a substantial investment. To provide a precise comparison, historical data on USAID's energy sector spending in Central Asia would be needed. However, based on the nature of USAID's development objectives, this funding level is consistent with major, multi-year programs aimed at significant policy reform, infrastructure support, or capacity building within a sector. Smaller, more targeted technical assistance projects might be valued in the single-digit millions and have shorter durations, while comprehensive regional energy programs often fall into this multi-million dollar, multi-year category.

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

Offers Received: 4

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: $44,794,295

Exercised Options: $44,794,295

Current Obligation: $44,794,295

Actual Outlays: $37,018,536

Subaward Activity

Number of Subawards: 43

Total Subaward Amount: $10,615,033

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